CVS CVS Value Concepts and Philosophy Questions and Answers 4 — Questions and Answers
Question 1: A project team reduces a component's cost by 20% but the change causes the product to fail a key customer requirement. According to value methodology philosophy, what happened to value?
- Value decreased because function was sacrificed (Correct answer)
- Value increased because cost went down
- Value stayed the same since cost and function offset
- Value cannot be assessed without market data
Correct answer: Value decreased because function was sacrificed
Value is the relationship of function to cost, so cutting cost at the expense of required function lowers value.
Question 2: In value methodology, which term describes what a product or service must do, expressed in a verb-noun format?
- Function (Correct answer)
- Feature
- Specification
- Attribute
Correct answer: Function
A function is the intended purpose of an item, classically expressed with an active verb and measurable noun.
Question 3: A homeowner pays extra for a designer faucet because of its appearance and brand prestige. Which type of value is primarily driving this purchase?
- Esteem value (Correct answer)
- Use value
- Exchange value
- Cost value
Correct answer: Esteem value
Esteem value reflects the desirability or prestige a customer attaches to an item beyond its functional use.
Question 4: Which statement best reflects the philosophy behind Lawrence Miles' original development of value analysis at General Electric?
- Focus on the function needed, then find alternative ways to achieve it (Correct answer)
- Always substitute the cheapest available material
- Reduce labor hours to cut product cost
- Standardize all parts across product lines
Correct answer: Focus on the function needed, then find alternative ways to achieve it
Wartime material shortages led Miles to ask what a part does rather than what it is, spawning function-based thinking.
Question 5: A value study team identifies that a costly bracket exists only because of how an adjacent part was designed, not because the customer needs it. This bracket's function is best classified as what?
- Secondary function (Correct answer)
- Basic function
- Higher-order function
- Task function
Correct answer: Secondary function
Secondary functions support or result from the design approach chosen and are prime targets for value improvement.
Question 6: Which scenario illustrates improving value by the philosophy of the value methodology rather than simple cost cutting?
- Redesigning a housing to perform the same functions with fewer parts and equal reliability (Correct answer)
- Switching to a thinner material that shortens product life
- Deleting a safety feature customers rarely notice
- Negotiating a supplier discount while keeping the same design
Correct answer: Redesigning a housing to perform the same functions with fewer parts and equal reliability
Value improvement maintains or enhances required functions while lowering total cost, unlike cuts that degrade function.
Question 7: In value methodology philosophy, 'worth' of a function is defined as what?
- The lowest cost to reliably achieve the function (Correct answer)
- The current cost of the existing solution
- The market price of the finished product
- The customer's stated budget for the project
Correct answer: The lowest cost to reliably achieve the function
Worth is the least cost required to perform a function, serving as the benchmark against actual cost to reveal value gaps.
CVS CVS Value Concepts and Philosophy Questions and Answers 4
A project team reduces a component's cost by 20% but the change causes the product to fail a key customer requirement.
According to value methodology philosophy, what happened to value?