VMA Value Methodology Associate Question and Answers

The Value Methodology (VM) Job Plan is a structured, systematic process central to Value Methodology, as defined in the Value Methodology Fundamentals 1 (VMF 1) course and SAVE International’s Value Methodology Standard. According to these sources, the VM Job Plan consists ofsix phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation. These phases ensure a disciplined approach to analyzing functions, generating ideas, evaluating alternatives, and presenting value-enhancing recommendations.

Information Phase: Collect and analyze data on project scope, costs, constraints, and objectives to establish a baseline for the study.

Function Analysis Phase: Identify, classify, and analyze functions (e.g., basic, secondary) using tools like the Function Analysis System Technique (FAST) to understand their purpose and relationships.

Creative Phase: Generate a broad range of ideas to improve value through brainstorming or other creative techniques, focusing on alternative ways to perform functions.

Evaluation Phase: Assess the feasibility, cost impact, and benefits of ideas using criteria like performance, quality, and alignment with project goals.

Development Phase: Refine the most promising ideas into detailed, actionable proposals, including implementation plans and cost estimates.

Presentation Phase: Communicate recommendations to stakeholders through reports, presentations, or other deliverables to gain approval and facilitate implementation.

SAVE International’s VMF 1 course, which is a prerequisite for the VMA exam, explicitly teaches these six phases as part of Core Competency #3 (Value Methodology Job Plan). The standard is consistent across SAVE International’s documentation, including the Value Methodology Standard and certification guidelines. Options A (3), C (7), and D (8) do not match the official six-phase structure of the VM Job Plan.

The Information Phase is the first phase of the Value Methodology (VM) Job Plan, where the team gathers and understands data about the study subject, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “an effective Information Phase kickoff meeting sets the stage for the VM study by outlining the goals for the study subject and the VM study objectives, ensuring alignment among team members and stakeholders.” This involves clarifying the purpose of the study, the project’s goals (e.g., reduce costs, improve performance), and the specific objectives of the VM study (e.g., achieve 20% cost savings while maintaining function). This aligns with the primary objective of the Information Phase—to understand the subject—and ensures the team starts with a clear direction.

Option A (Discusses the challenges of the proposed VM study approach) is incorrect because, while challenges may be acknowledged, the primary focus of the kickoff is to set goals and objectives, not discuss challenges.

Option B (Outlines goals for the study subject and VM study objectives) is correct, as it matches the purpose of an effective Information Phase kickoff meeting.

Option C (Indicates the VM solutions desired by decision makers) is incorrect because solutions are developed later (e.g., in the Creativity and Development Phases), not during the Information Phase kickoff.

Option D (Describes how functions have normally been accomplished) is incorrect because this level of functional detail is addressed in the Function Analysis Phase, not the Information Phase kickoff.

The diagram provided is a Function Analysis System Technique (FAST) diagram, a key tool in Value Methodology’s Function Analysis phase, as taught in the VMF 1 course (Core Competency #2). FAST diagrams map the relationships between functions of a system, with the horizontal axis showing the “how-why” logic (critical path) and the vertical axis showing supporting functions. Functions are classified as basic, secondary, required secondary, or higher-order based on their position and role in the diagram. According to SAVE International’s Value Methodology Standard, “the basic function is the primary purpose of the system, typically found on the critical path; higher-order functions are the reasons why the basic function exists, located to the left of the basic function; secondary functions support the basic function and are often vertical; and required secondary functions are necessary to achieve the basic function.”

In the FAST diagram:

The critical path (horizontal, marked by Y in an earlier question) runs from E to F to G to J to L to M to N to O, representing the main sequence of functions.

Scope lines (B and D) define the study’s boundaries, as identified in Question 15.

Function E is positioned at the far left of the critical path, just inside the left scope line (B).

In FAST diagramming:

Thebasic functionis the primary purpose of the system, typically located near the center or right of the critical path within the scope lines. Here, it would likely be a function like J or L, which is central to the system’s purpose.

Thehigher-order functionis the reason “why” the basic function exists and is located to the left of the basic function, often at or near the left scope line. Function E, being the leftmost function on the critical path, answers “why” the subsequent functions (F, G, etc.) exist, making it the higher-order function.

Secondary functions(e.g., S, T, U, K) are vertical, supporting the critical path, and are not on the main horizontal sequence.

Required secondary functionsare secondary functions essential to the basic function, but E is on the critical path, not a vertical supporting function.

Thus, Function E, as the leftmost function on the critical path, is thehigher-order function, representing the overarching objective or need that the system fulfills.

Option A (Secondary Function) is incorrect because secondary functions are off the critical path (e.g., S, T, K), while E is on the critical path.

Option B (Required Secondary Function) is incorrect because E is not a secondary function; it is on the main path, not a supporting vertical function.

Option C (Basic Function) is incorrect because the basic function is typically more central on the critical path, not at the far left.

Option D (Higher Order Function) is correct, as E’s position at the left of the critical path indicates it is the higher-order function, answering “why” the system exists.

The Evaluation Phase of the Value Methodology (VM) Job Plan involves assessing ideas using a three-level filtering process, as taught in the VMF 1 course (Core Competency #7: Evaluation and Selection of Alternatives). According to SAVE International’s Value Methodology Standard, the three levels of filters are Coarse, Medium, and Fine (as confirmed in Question 33). The standard further specifies that “the Fine filter applies detailed evaluation techniques, such as an evaluation matrix, to select the best ideas for development by scoring them against weighted criteria.” An evaluation matrix (e.g., a weighted matrix, as noted in Question 11) is a tool where ideas are scored based on criteria like cost, performance, and risk, with weights reflecting their importance (as in Question 51). This detailed, quantitative approach is used in the Fine filter to make final selections after the Coarse (initial screening) and Medium (shortlisting) filters have narrowed down the ideas.

Option A (Fine) is correct, as the Fine filter uses an evaluation matrix technique for detailed idea selection.

Option B (Reasonable) is incorrect because “Reasonable” is not one of the three filter levels; the correct levels are Coarse, Medium, and Fine.

Option C (Medium) is incorrect because the Medium filter involves a more general assessment (e.g., comparing ideas against criteria), not the detailed matrix technique.

Option D (Coarse) is incorrect because the Coarse filter is for initial screening (eliminating unfeasible ideas), not detailed evaluation with a matrix.

The Creativity Phase (also known as the Creative Phase) of the Value Methodology (VM) Job Plan focuses on generating a large quantity of ideas, as taught in the VMF 1 course (Core Competency #6: Creative Thinking and Idea Generation). According to SAVE International’s Value Methodology Standard, “the Creativity Phase follows ground rules to foster divergent thinking, including: applying the Principle of Deferred Judgment (no criticism of ideas), establishing an ambitious goal for the number of ideas (to maximize quantity), and encouraging ‘Free-Wheeling’ of ideas (welcoming wild or unconventional ideas).” These rules were partially addressed in Question 10, where ground rules like encouraging openness, freewheeling, and recording good ideas were confirmed, aligning with the focus on quantity over quality during this phase.

A. Apply the "Principle of Deferred Judgment": Correct, as this ensures no ideas are criticized during brainstorming, fostering creativity.

B. Establish an ambitious goal for the number of ideas: Correct, as setting a high target (e.g., 100 ideas) encourages the team to generate many ideas, focusing on quantity.

C. Emphasize cost savings: Incorrect, as cost savings are considered in the Evaluation and Development Phases, not during Creativity, where the focus is on idea generation without judgment.

D. Encourage "Free-Wheeling" of ideas: Correct, as freewheeling (allowing wild, unconventional ideas) is a standard brainstorming rule in VM to maximize creativity.

E. Emphasize quality rather than quantity: Incorrect, as the Creativity Phase prioritizes quantity over quality; quality is assessed later in the Evaluation Phase (as noted in Question 49).

Function Analysis in Value Methodology involves identifying and classifying functions using verb-noun combinations, as taught in the VMF 1 course (Core Competency #2). The basic function of an item is its primary purpose—what it must do to fulfill its intended use. According to SAVE International’s Value Methodology Standard, “functions should be defined in broad, measurable terms (verb-noun format) to capture the core purpose.” For a pen or pencil, the basic function is the most fundamental action it performs. A pen or pencil mustmark surface, as this captures the essential action of leaving a visible trace (e.g., ink or graphite) on a surface (e.g., paper), which is the core purpose of both tools, regardless of their specific use (writing, drawing, etc.).

Option A (Write documents) is incorrect because writing documents is a specific application, not the basic function; a pen can also draw or mark without writing a document.

Option B (Color surface) is incorrect because coloring implies adding color, which is not the primary function of a standard pen or pencil (e.g., a pencil typically uses graphite, not color).

Option C (Mark surface) is correct, as it defines the basic function of a pen or pencil in the broadest, most fundamental terms, encompassing all uses (writing, drawing, marking).

Option D (Convey message) is incorrect because conveying a message is a higher-level outcome, not the basic function; a pen can mark a surface without conveying a message (e.g., a random scribble).

Value Methodology (VM) relies heavily on effective team dynamics to achieve optimal results, as emphasized in the VMF 1 course (Core Competency #5: Value Team Dynamics). According to SAVE International’s Value Methodology Standard, “the best VM study results are typically achieved with a multidisciplinary team with a selected set of skills, bringing diverse perspectives and expertise to analyze functions, generate ideas, and develop solutions.” A multidisciplinary team includes members from different disciplines (e.g., engineering, finance, design, operations) relevant to the project, ensuring a comprehensive understanding of the system and fostering innovative solutions through varied viewpoints. The VMF 1 course highlights that such teams are more effective at identifying value improvement opportunities because they combine technical, financial, and operational insights.

Option A (An executive-level task force) is incorrect because executives may lack the technical expertise needed for detailed function analysis and idea generation, though they may sponsor the study.

Option B (A team working in similar disciplines) is incorrect because a lack of diversity in perspectives can limit creativity and overlook key opportunities, which a multidisciplinary team avoids.

Option C (The current project team) is incorrect because the project team may be too close to the problem, potentially leading to bias and a narrower focus, whereas a multidisciplinary team brings fresh perspectives.

Option D (A multidisciplinary team with a selected set of skills) is correct, as it aligns with VM best practices for achieving the best study results.

In Value Methodology’s Function Analysis, the concepts of functions and activities are distinct but related, as taught in the VMF 1 course (Core Competency #2: Function Analysis). According to SAVE International’s Value Methodology Standard, “a function is defined as what a product, process, or system does, expressed in a verb-noun format (e.g., ‘contain liquid’), while an activity is a task, action, or operation that describes how a function is performed.” For example, the function of a teacup might be “contain liquid,” and the activity to achieve that function could be “holding the liquid in a ceramic structure.” Activities are the actionable steps or processes that enable the function, often identified during the creation of a FAST diagram or Random Function Identification table (as noted in Question 19). The “how” aspect aligns with the How-Why logic of FAST diagrams, where activities detail the practical execution of a function.

Option A (A task, action, or operation that describes why a function is performed) is incorrect because “why” relates to the higher-order function or purpose (e.g., Question 20), not the activity, which focuses on “how.”

Option B (A specific task, action, or operation that is generic and changes viewpoints) is incorrect because activities are not about changing viewpoints; they are specific actions to perform a function.

Option C (A task, action, or operation that describes how a function is performed) is correct, as it aligns with the definition of an activity in VM.

Option D (A specific task, action, or operation with a high level of abstraction) is incorrect because activities are practical and specific, not abstract; functions are more abstract (e.g., verb-noun format).

Creative Thinking and Idea Generation is a key focus of the Creative Phase in the Value Methodology (VM) Job Plan, as taught in the VMF 1 course (Core Competency #6). SAVE International’s Value Methodology Standard outlines that the Creative Phase involves “generating a large quantity of ideas through brainstorming, encouraging creativity without judgment.” The ground rules for effective brainstorming, as per VMF 1, include: encouraging openness to all ideas (no criticism), promoting freewheeling (wild ideas are welcome), and recording good ideas to ensure they are captured for later evaluation. These rules are designed to maximize idea quantity and foster a creative environment.

Option A (Encouraging openness to ideas, freewheeling, and recording good ideas) is correct, as it directly aligns with VMF 1’s brainstorming ground rules for the Creative Phase.

Option B (Focusing on prioritized functions, deferring judgment, and improving ideas) is partially correct—deferring judgment is a rule, but focusing on prioritized functions and improving ideas occurs in the Evaluation Phase, not during brainstorming.

Option C (Focusing on quality ideas, discussing their merits, and maintaining momentum) is incorrect because focusing on quality and discussing merits involves judgment, which is discouraged during brainstorming.

Option D (Requesting idea clarification, discussing cost impacts, and considering performance) is incorrect because these actions involve evaluation and analysis, which occur in the Evaluation Phase, not during Creative brainstorming.

In the context of Value Methodology, cost analysis often involves financial concepts to evaluate the economic impact of alternatives, including understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes basic financial metrics relevant to value studies, such as discounting cash flows to assess long-term value. The nominal rate of increase in the value of money over time, after subtracting for inflation, refers to thereal discount rate. In financial terms, as per standard economic principles taught in VMF 1, the discount rate is the rate used to discount future cash flows to their present value, and thereal discount rateis the nominal discount rate adjusted for inflation (i.e., real discount rate = nominal discount rate − inflation rate). This measures the true increase in the value of money over time, excluding inflationary effects.

Option A (Simple Payback or Breakeven Point) is incorrect because payback measures the time required to recover an investment, not the rate of increase in money’s value.

Option B (Return on Investment or ROI) is incorrect because ROI measures the profitability of an investment as a percentage, not the rate of increase in money’s value over time.

Option C (Discount Rate) is correct because the real discount rate, after subtracting inflation, defines the nominal rate of increase in the value of money over time, as used in financial analyses within VM studies.

Option D (Present Worth or Net Present Value) is incorrect because NPV is the result of discounting future cash flows to their present value using a discount rate, not the rate itself.

Cost analysis in Value Methodology often involves financial techniques to evaluate the economic feasibility of alternatives, as taught in the VMF 1 course (Core Competency #4: Cost Analysis). According to SAVE International’s Value Methodology Standard, “the time value of money is essential in costing techniques that account for costs and benefits over time, such as Life Cycle Cost (LCC).”Life Cycle Costis defined as “the total cost of a system or product over its entire life, including acquisition, operation, maintenance, and disposal, discounted to present value using the time value of money.” The time value of money ensures that future costs and benefits are adjusted to their present value using a discount rate (as noted in Questions 6 and 7), making LCC a comprehensive method for comparing alternatives in VM studies.

Option A (Return on Investment) is incorrect because, while ROI can consider the time value of money in some calculations, it is not essential; ROI is often calculated as a simple percentage (Profit ÷ Investment).

Option B (Life Cycle Cost) is correct, as LCC inherently requires the time value of money to discount future costs to present value, ensuring a fair comparison over the project’s life.

Option C (Simple Payback) is incorrect because simple payback (as calculated in Question 26) does not account for the time value of money; it simply divides the initial investment by annual savings.

Option D (Break-even point) is incorrect because the break-even point (similar to payback) typically does not incorporate the time value of money; it focuses on the point where costs equal revenues.

The Evaluation Phase of the Value Methodology (VM) Job Plan involves assessing ideas using established criteria, as taught in the VMF 1 course (Core Competency #7: Evaluation and Selection of Alternatives). According to SAVE International’s Value Methodology Standard, “establishing evaluation criteria follows a logical sequence: first, identify the context of the study (e.g., project goals, constraints); then define the criteria (e.g., cost, performance, risk); next, determine the importance of each criterion (e.g., weighting, as noted in Question 11); and finally, determine the range or scale for measurement (e.g., 1-5 scale for scoring).” This process ensures that criteria are relevant, prioritized, and measurable, enabling systematic evaluation (e.g., using coarse-medium-fine filters, as in Question 33).

Identify context: Understand the study’s goals and constraints (e.g., budget limits).

Define criteria: List specific criteria (e.g., cost savings, quality).

Determine importance: Assign weights to criteria (e.g., cost is 40% of the score).

Determine range/scale: Set a measurement scale (e.g., 1-10 for each criterion).

Option A (Identify context, define criteria, determine importance, determine range/scale) is correct, as it follows the logical sequence for establishing evaluation criteria.

Option B (Identify context, define criteria, determine range/scale, determine importance) is incorrect because determining importance (weighting) should precede setting the range/scale to ensure the scale reflects the criteria’s relative importance.

Option C (Define criteria, identify context, determine range/scale, determine importance) is incorrect because the context must be identified first to ensure criteria are relevant.

Option D (Define criteria, identify context, determine importance, determine range/scale) is incorrect because defining criteria before identifying the context risks missing the study’s specific needs.

Value Methodology (VM) is a versatile methodology, as taught in the VMF 1 course (Core Competency #1: Value Methodology Overview). According to SAVE International’s Value Methodology Standard, “the unique aspect of the Value Methodology is its focus on function analysis, making it applicable to anything that performs a function—whether a product, process, system, or service.” VM’s core principle is to improve value (function/cost) by analyzing what something does (its functions) and finding better ways to achieve those functions at lower cost without sacrificing performance. This focus on functions (e.g., “mark surface” for a pen, Question 38; “contain liquid” for a teacup, Question 44) allows VM to be applied universally to anything with a definable function, distinguishing it from other methodologies like Lean or Six Sigma, which focus on process efficiency or quality.

Option A (includes an activity) is incorrect because, while activities describe how functions are performed, VM’s unique aspect is its focus on functions, not activities.

Option B (performs a function) is correct, as VM’s defining feature is its application to anything with a function, per SAVE International’s standards.

Option C (is goal-oriented) is incorrect because many methodologies are goal-oriented; VM’s uniqueness lies in its function-based approach.

Option D (is a subject of study) is incorrect because being a subject of study is too broad; VM specifically targets subjects that perform functions.

The Creativity Phase (also known as the Creative Phase) is the third phase of the Value Methodology (VM) Job Plan, as taught in the VMF 1 course (Core Competency #6: Creative Thinking and Idea Generation). According to SAVE International’s Value Methodology Standard, “the objective of the Creativity Phase is to generate a large quantity of improvement ideas through brainstorming and other creative techniques, focusing on alternative ways to perform the functions identified in the Function Analysis Phase.” This phase emphasizes divergent thinking to produce as many ideas as possible without judgment, as supported by the ground rules discussed in Question 10 (e.g., encouraging openness, freewheeling, and recording ideas). The generated ideas are then evaluated in the next phase (Evaluation Phase).

Option A (Develop improvement ideas) is incorrect because development occurs in the Development Phase, where selected ideas are refined into actionable proposals, not in the Creativity Phase.

Option B (Select improvement ideas) is incorrect because selection occurs in the Evaluation Phase, not Creativity.

Option C (Prioritize improvement ideas) is incorrect because prioritization also occurs in the Evaluation Phase (as noted in Question 33 with the coarse-medium-fine filters).

Option D (Generate improvement ideas) is correct, as it matches the primary objective of the Creativity Phase in the VM Job Plan.

The Function Analysis System Technique (FAST) diagram is a key tool in Value Methodology’s Function Analysis phase, as taught in the VMF 1 course (Core Competency #2). The function logic path in a FAST diagram is the horizontal sequence of functions, often referred to as the critical path (as identified in Question 3 with arrow Y). According to SAVE International’s Value Methodology Standard, “the function logic path in a FAST diagram follows a How-Why logic: moving to the right answers ‘how’ a function is performed, and moving to the left answers ‘why’ a function exists.” This logic helps trace the relationships between functions, starting from the higher-order function (e.g., Function E, as noted in Question 18) on the left to more specific functions on the right (e.g., Function O).

How: Moving right along the path (e.g., from E to F to G) explains how the preceding function is achieved.

Why: Moving left (e.g., from O to N to M) explains why the succeeding function is needed.

In the diagram, the critical path (E-F-G-J-L-M-N-O) follows this How-Why logic, as confirmed in earlier questions (e.g., Question 3). The “when” direction (vertical, as noted in Question 36) and “and-or” logic (used at junctions for concurrent or alternative functions) are not the primary logic of the function logic path.

Option A (When-Why logic) is incorrect because the “when” direction is vertical, indicating simultaneous functions, not the horizontal logic path.

Option B (How-Why logic) is correct, as it matches the standard logic of the function logic path in a FAST diagram.

Option C (How-When logic) is incorrect because the “when” direction does not apply to the horizontal logic path.

Option D (And-Or logic) is incorrect because “and-or” logic applies to junctions (e.g., gates for concurrent or alternative functions), not the main logic path.