CVS CVS Value Concepts and Philosophy Questions and Answers 5

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?

Accepted Answer

A significant value improvement opportunity

Answer

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?

Accepted Answer

Value engineering analyzes functions before seeking alternatives, while cost reduction targets the existing design directly

Answer

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?

Accepted Answer

Defining the problem at the function level expands the solution space

Answer

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?

Accepted Answer

Increasing cost while function performance stays the same

Answer

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?

Accepted Answer

Unnecessary cost that provides no required function

Answer

Cost that no longer contributes to required use, esteem, or exchange value is unnecessary cost, the core target of value analysis.

CVS - Certified Value Specialist Practice Test

CVS - Certified Value Specialist Practice Test

CVS CVS Value Concepts and Philosophy Questions and Answers 5