CVS CVS Value Concepts and Philosophy Questions and Answers 1 — Questions and Answers
Question 1: How is 'value' primarily defined in value engineering?
- The monetary worth of a finished product
- The ratio of function to cost (Correct answer)
- The aesthetic quality of a design
- The market price set by competitors
Correct answer: The ratio of function to cost
Value in VE is defined as the ratio of function (performance) to cost, meaning value increases when function improves or cost decreases.
Question 2: Who is widely recognized as the founder of value engineering?
- Frederick Winslow Taylor
- W. Edwards Deming
- Lawrence D. Miles (Correct answer)
- Joseph M. Juran
Correct answer: Lawrence D. Miles
Lawrence D. Miles developed value analysis at General Electric in the late 1940s, which evolved into the discipline of value engineering.
Question 3: Which professional organization administers the Certified Value Specialist (CVS) credential?
- American Society of Civil Engineers (ASCE)
- Project Management Institute (PMI)
- SAVE International (Correct answer)
- American Society for Quality (ASQ)
Correct answer: SAVE International
SAVE International (formerly the Society of American Value Engineers) is the professional organization that certifies and administers the CVS program.
Question 4: In value engineering, 'worth' is best defined as:
- The market selling price of a finished product
- The lowest cost to reliably accomplish a required function (Correct answer)
- The total manufacturing cost of a product
- The perceived prestige associated with ownership
Correct answer: The lowest cost to reliably accomplish a required function
Worth is the lowest cost to reliably accomplish a required function, serving as the benchmark against which actual cost is compared to identify unnecessary cost.
Question 5: What does a Value Index (VI) equal to 1.0 indicate?
- The product delivers no functional value
- The product is overpriced by 100%
- Function and cost are perfectly balanced (worth equals cost) (Correct answer)
- The product requires immediate redesign
Correct answer: Function and cost are perfectly balanced (worth equals cost)
A Value Index of 1.0 means worth equals cost, indicating the product is performing its functions at exactly the minimum required expenditure with no unnecessary cost.
Question 6: Which type of value refers to properties that make an item desirable for ownership independent of its functional use?
- Use value
- Exchange value
- Cost value
- Esteem value (Correct answer)
Correct answer: Esteem value
Esteem value refers to properties such as prestige, appearance, and desirable features that make an item attractive to own beyond its functional capabilities.
Question 7: In value engineering, 'unnecessary cost' is best described as:
- Any cost that exceeds the original project budget
- Cost that provides neither use nor esteem value (Correct answer)
- All costs incurred during the VE study itself
- Costs associated with quality inspection activities
Correct answer: Cost that provides neither use nor esteem value
Unnecessary cost is any cost that does not contribute use value or esteem value to a product or service, and it is the primary target for elimination in a VE study.
CVS CVS Value Concepts and Philosophy Questions and Answers 1
How is 'value' primarily defined in value engineering?