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

The Value Index (VI) = Worth / Cost. A VI of 1.0 indicates the function is worth exactly what it costs. VI < 1.0 signals poor value (costs more than it's worth), making it a prime target for VM improvement. VI > 1.0 is rare and suggests potential underinvestment.

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

Worth is defined as the lowest cost to reliably perform the required function — essentially the theoretical minimum cost. It is an analytical benchmark, not a market price, and is determined by asking 'what is the cheapest way this function could be accomplished?'

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 = Worth / Cost = $180 / $450 = 0.4. A VI significantly below 1.0 means the component costs much more than the function is worth, making it a high-priority target for VM improvement. Low VI ≠ low cost — it signals a value gap.

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

Performance measures are objective, measurable standards that confirm a function is meeting requirements (e.g., 'transfer load: must support ≥ 500 kg'). They prevent value improvements from inadvertently degrading required performance levels.

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

Identifying a cost-to-function imbalance is diagnostic, not prescriptive. The correct response is to focus creative effort on the functions where cost most exceeds worth — these are the highest-leverage targets for generating value improvement ideas.

CVS - Certified Value Specialist Practice Test

CVS - Certified Value Specialist Practice Test

CVS Value Measurement and Performance Metrics