CVS CVS Value Concepts and Philosophy Questions and Answers 5 — Questions and Answers
Question 1: A value study finds a function costs $50 to perform but its worth is $10. What does the resulting cost-to-worth ratio of 5:1 indicate?
- A significant value improvement opportunity (Correct answer)
- The function should be eliminated immediately
- The design already offers excellent value
- The worth estimate must be wrong
Correct answer: A significant value improvement opportunity
A high cost-to-worth ratio signals poor value and flags the function as a prime candidate for alternatives.
Question 2: Which of the following best distinguishes value engineering from traditional cost reduction?
- Value engineering analyzes functions before seeking alternatives, while cost reduction targets the existing design directly (Correct answer)
- Value engineering only applies during construction, while cost reduction applies during design
- Value engineering ignores quality, while cost reduction protects it
- Value engineering is performed by accountants, while cost reduction is performed by engineers
Correct answer: Value engineering analyzes functions before seeking alternatives, while cost reduction targets the existing design directly
The function-first analysis step is the defining difference between value methodology and ordinary cost cutting.
Question 3: A city needs to move commuters across a river. A value team reframes 'build a bridge' as 'transport people,' opening options like ferries and tunnels. Which philosophical principle does this illustrate?
- Defining the problem at the function level expands the solution space (Correct answer)
- Brainstorming should always precede information gathering
- The customer's first stated solution is usually optimal
- Higher-cost alternatives should be considered first
Correct answer: Defining the problem at the function level expands the solution space
Stating needs as functions rather than solutions frees the team to consider fundamentally different alternatives.
Question 4: In the value equation, which action would NOT improve value?
- Increasing cost while function performance stays the same (Correct answer)
- Holding cost constant while improving function performance
- Reducing cost while maintaining function performance
- Slightly increasing cost while greatly improving function performance
Correct answer: Increasing cost while function performance stays the same
Paying more for the same function performance lowers the function-to-cost ratio and therefore reduces value.
Question 5: A manufacturer's product includes gold plating specified decades ago for a corrosion condition that no longer exists. In value methodology terms, this cost is best described as what?
- Unnecessary cost that provides no required function (Correct answer)
- Basic function cost that must be retained
- Esteem value that customers demand
- Life-cycle cost that is unavoidable
Correct answer: Unnecessary cost that provides no required function
Cost that no longer contributes to required use, esteem, or exchange value is unnecessary cost, the core target of value analysis.
Question 6: Why does value methodology philosophy emphasize evaluating alternatives on life-cycle cost rather than initial cost alone?
- An option cheap to acquire may cost more overall through operation, maintenance, and disposal (Correct answer)
- Initial costs are impossible to estimate accurately
- Life-cycle cost is always lower than initial cost
- Owners are legally required to use life-cycle costing
Correct answer: An option cheap to acquire may cost more overall through operation, maintenance, and disposal
Total cost of ownership captures downstream expenses that can reverse which alternative truly delivers the best value.
Question 7: During a value study, a team member insists on judging ideas the moment they are suggested. Why does value methodology philosophy discourage this during creative idea generation?
- Early judgment suppresses the free flow of ideas needed to find breakthrough alternatives (Correct answer)
- Judgment is only allowed by the project owner
- All ideas generated must eventually be implemented
- Evaluation is unnecessary in the value job plan
Correct answer: Early judgment suppresses the free flow of ideas needed to find breakthrough alternatives
Separating creation from evaluation preserves the quantity and diversity of ideas that later screening can refine.
CVS CVS Value Concepts and Philosophy Questions and Answers 5
A value study finds a function costs $50 to perform but its worth is $10.
What does the resulting cost-to-worth ratio of 5:1 indicate?