CVS Value Measurement and Performance Metrics

Question 1

The Value Index (VI) in value engineering is calculated as:

Accepted Answer

Function worth divided by function cost

Answer

Total project cost divided by number of functions identified

Answer

Life cycle cost divided by initial capital cost

Answer

Cost of unnecessary functions divided by total cost

Question 2

In VM terminology, what does 'worth' represent when applied to a function?

Accepted Answer

The lowest cost at which the function could be reliably performed

Answer

The market price of the component performing the function

Answer

The cost of the most expensive alternative that was evaluated

Answer

The depreciated asset value of existing equipment

Question 3

A component costs $450 and performs a function with an estimated worth of $180. What is the Value Index, and what does it indicate?

Accepted Answer

VI = 0.4; the component is a strong VM improvement target

Answer

VI = 2.5; the component delivers exceptional value

Answer

VI = 1.0; the component is exactly at par value

Answer

VI = 0.4; the component is too cheap to warrant study

Question 4

Which of the following BEST describes a 'performance measure' in a VM study?

Accepted Answer

A quantifiable indicator that verifies a function is being performed at the required level

Answer

The number of team members attending the workshop

Answer

The total dollar savings projected from all proposals

Answer

The FAST diagram complexity score

Question 5

When a VM team identifies that a product has a 'cost-to-function imbalance,' which action is the MOST appropriate next step?

Accepted Answer

Target the highest-cost, lowest-worth functions for creative idea generation

Answer

Immediately eliminate the over-cost component without further analysis

Answer

Accept the imbalance as a design requirement and move to the next phase

Answer

Reassign the function to a lower-rated team member for re-evaluation

Question 6

A VM study reports that removing unnecessary functions reduced product cost by 22% while maintaining all required functions at spec. What VM metric MOST directly captures this improvement?

Accepted Answer

Increase in the aggregate Value Index across targeted functions

Answer

Life Cycle Cost reduction percentage

Answer

Reduction in the number of FAST diagram nodes

Answer

Decrease in team workshop hours