Pass the SAVE International Value Methodology CVS Questions and answers with Dumpstech

The correct answer is A. Carpet $120,000 . This question applies life-cycle cost comparison , which is commonly used in the Development Phase when VM alternatives are being analyzed for economic feasibility and owner value. The better value option is not determined by the lowest initial cost alone; it must include installed cost, maintenance cost, recurring service cost, and service life impacts.

For carpet:

Installed cost = 1,000 sq. m × $30 = $30,000 .

Vacuum maintenance = $500/month × 12 months × 10 years = $60,000 .

Annual shampoo = $3,000/year × 10 years = $30,000 .

Total carpet life-cycle cost = $30,000 + $60,000 + $30,000 = $120,000 .

For vinyl over a comparable 10-year ownership period:

Installed cost = 1,000 sq. m × $10 = $10,000 .

Vacuum maintenance = $400/month × 12 × 10 = $48,000 .

Strip and wax = $1,000/month × 12 × 10 = $120,000 .

Total vinyl cost = $178,000 .

Although vinyl has a lower initial cost, its recurring monthly strip-and-wax cost makes it more expensive. Therefore, carpet provides the better value.

References/topics: Development Phase; Life-Cycle Costing; Economic Evaluation; Alternative Comparison; Owner Value.

The correct answers are A and D . In the Creativity Phase, the VM team deliberately moves beyond the current design, process, or solution and generates alternative ways to perform the required functions. SAVE’s Value Methodology Standard defines the Creative Phase as the point where the team uses creative techniques to identify other ways to perform the project’s functions .

Envisioning the ideal promotes innovation because it removes premature constraints and helps the team imagine the best functional outcome before judging feasibility, cost, or implementation difficulty. This supports divergent thinking, which is essential during Creativity. Modifying what currently exists also promotes innovation because many value-improving ideas are produced by adapting, improving, simplifying, combining, or changing an existing concept rather than inventing a completely new one.

By contrast, maintaining existing solutions does not promote innovation because it preserves the current approach and limits alternative thinking. Testing old combinations is also not the best answer because the Creativity Phase is focused on generating possibilities, not testing or validating them. Testing, screening, and ranking belong more naturally in the Evaluation Phase.

References/topics: Creativity Phase; Creative Thinking; Alternative Generation; Function-Based Innovation; VM Job Plan.

The correct answer is D. The life cycle cost is reduced . In Value Methodology, life cycle cost analysis is used to compare alternatives over the full ownership period, not just by initial cost. Future costs such as operation, maintenance, replacement, repair, and disposal are converted to present value using a discount rate. When the discount rate is higher, future costs are discounted more heavily, meaning their present value becomes smaller.

This does not mean the actual future cash payment disappears; it means that, in present-value terms, money spent in the future is worth less today. Therefore, increasing the discount rate reduces the present value of future cost streams and normally lowers the calculated present-value life cycle cost, especially for alternatives with large costs occurring later in the study period.

Option A is incorrect because discounting is essential when costs occur at different times. Option B is incorrect because changing the discount rate directly changes present-value calculations. Option C is incorrect because a higher discount rate does not increase the present value of future costs; it reduces them.

References/topics: Development Phase; Life Cycle Costing; Economic Analysis; Present Value; Discount Rate; VM Proposal Development.

The correct answers are A and D . When decision-makers review VM study results but take no action, the facilitator is dealing with a change-response problem, not simply a technical presentation problem. In VM implementation guidance, this behavior aligns with the early “shock” response to change, where people may mentally shut down because the proposed change feels uncertain, risky, or disruptive. The recommended coping strategy is to create safety, structure, and visible support around the change.

Therefore, discussing allocation of time and resources is appropriate because implementation cannot move forward without clear commitment, staffing, schedule allowance, and management attention. The VM Guide identifies proper allocation of time and resources as a way to provide safety during change. It also states that shock and stress can be reduced by building a support network through a detailed implementation plan . ( pdfcoffee.com )

Option B is incorrect because the guidance emphasizes visible upper management support, not merely lower-level involvement. Option C is incorrect because limiting information increases uncertainty; the recommended approach is to provide broad, clear, and consistent information about the change.

References/topics: Implementation Phase; Change Management Strategies; Implementation Plan; Resource Allocation; Decision-Maker Engagement.

The correct answers are A and C . A fine evaluation filter is used in the Evaluation Phase when the VM team needs a more disciplined and defensible method for screening ideas before selecting them for development. SAVE’s VM Job Plan states that evaluation factors and their relative importance should be agreed upon before ideas are evaluated, and that ideas are then ranked and rated against the most important evaluation criteria.

Option A is correct because the fine filter applies weighted relative importance to evaluation criteria. This prevents all criteria from being treated equally when some factors, such as cost, performance, risk, schedule, or customer impact, are more important than others. Option C is correct because this method increases rigor by moving the team from informal opinion to structured comparison. It supports rational selection of ideas for development and reduces bias, popularity-based decisions, and premature rejection of valuable alternatives.

Option B is incorrect because the purpose is not to slow the process or promote initial ideas. Option D may be a result of scoring, but it is not the primary distinguishing reason for using the fine filter.

References/topics: Evaluation Phase; Fine Evaluation Filter; Weighted Criteria; Ranking and Rating Ideas; Selection for Development.

The correct answers are A and C because the VM Job Plan is a sequential, function-based process. SAVE’s study guide explains that the Job Plan guides the study team through identifying and focusing on key project functions so new ideas can be created for value improvement. It also states that Job Plan phases are performed in sequence because each phase provides the information needed for the next phase. ( )

Therefore, functions must be defined before alternative solutions are generated . This occurs in the Function Analysis Phase , where the team identifies, classifies, and models project functions, then selects value-mismatched functions to focus the Creativity Phase. ( ) The Creative Phase then generates alternative ideas for performing those functions, while the Evaluation Phase later reduces and prioritizes those ideas by considering cost, performance, and other evaluation methods. ( )

Option B is incorrect because idea generation and evaluation are intentionally separated; judgment is suspended during Creativity and applied during Evaluation. Option D is incorrect because functions are not fully defined before the VM study; they are formally developed during the Job Plan.

References/topics: VM Job Plan; Function Analysis Phase; Creativity Phase; Evaluation Phase; Sequential Job Plan Logic.

The correct answer is A. Intuitive Creativity Method . In the CVS® Value Methodology framework, the Creativity Phase is designed to generate a large quantity of ideas for performing the functions selected during Function Analysis. The SAVE VM Standard describes the Creative Phase as an effort to develop many ideas for “performing each function selected for study,” with judgment suspended and free idea flow encouraged.

The intuitive creativity method is based on considering the overall problem and allowing ideas to emerge freely through association, imagination, and non-linear thinking. The VM Guide states that intuitive creativity methods are based on the “overall problem” and that brainstorming by function is a prime example. This matches the question exactly.

Option C, Discursive Creativity Method , is incorrect because it follows a deliberate, structured, step-by-step procedure by breaking the problem into sub-problems. Option D, Empirical Creativity Method , is more experimental or data-driven. Option B is not the standard classification used here.

References/topics: Creativity Phase; Creativity Techniques; Intuitive Creativity Methods; Brainstorming by Function; Creating by Function

The correct matches are FAST Diagram = Describes the purpose of the study subject and Flowchart = Describes the activities of the study subject . In Value Methodology, a FAST diagram is not an activity map. It is a function model. SAVE’s Study Guide defines a function as the original intent or purpose that a product, service, or process is expected to perform, expressed in active verb/measurable noun form. It also defines FAST as a graphical representation of dependent relationships between functions within a project. Therefore, FAST is used to understand the functional purpose and how functions logically relate through “how/why” thinking.

A flowchart is different. It represents process flow: the sequence of activities, steps, or operations used by the study subject. SAVE’s glossary defines a process as a sequence of activities that delivers a product or project. That aligns directly with the option “Describes the activities of the study subject.”

“Identifies flaws” is too narrow; defects may be discovered during analysis, but that is not the defining purpose of either tool. “Prioritizes activities” is also incorrect because prioritization normally belongs to evaluation or decision methods, not basic FAST or flowchart definition.

References/topics: Function Analysis Phase; FAST Diagramming; Function Modeling; Process Flowchart; How-Why Logic.

The correct answers are A and B . In Function Analysis and FAST diagramming, a higher-order function is positioned to the left of the basic function and answers the question “Why is this function performed?” It represents the broader purpose or need that is satisfied when the basic function is successfully achieved. Therefore, option A is correct because the higher-order function expresses the customer, user, or project need served by the basic function.

Option B is also correct because the higher-order function can be understood as the output or result produced by accomplishing the basic function. In FAST logic, the basic function performs a required action, and the higher-order function explains the reason or outcome of that action. It is not normally the detailed mechanism for achieving the basic function.

Option C is incorrect because the basic function , not the higher-order function, is fundamental to the subject scope. The higher-order function often lies just outside or above the study scope as the reason the basic function is needed. Option D is incorrect because inputs or enabling actions are usually associated with lower-order or “how” functions, not higher-order “why” functions.

References/topics: Function Analysis Phase; FAST Diagramming; Higher-Order Function; Basic Function; How/Why Logic.

The correct answers are B and D . In Value Methodology, functions are intentionally expressed at an abstract level, normally in an active verb / measurable noun format, so the team can move away from the existing physical solution and examine what the subject must accomplish. SAVE guidance states that the Function Analysis Phase requires understanding the project from a functional perspective: what it must do, rather than how it is currently conceived . It also states that this phase identifies functions on which to focus the Creativity Phase. ( )

This abstraction creates productive ambiguity. Instead of locking the team into a component, design feature, or known process, the function statement reframes the subject context and opens multiple possible ways to satisfy the same need. That directly supports divergent thinking , which is specifically associated with Creativity in the CVS body of knowledge, including unrestricted idea generation, large quantities of ideas, and suspending judgment until Evaluation. ( )

Option A is incorrect because convergent thinking belongs to Evaluation, where ideas are reduced and prioritized. Option C is also incorrect because structure may support FAST or function modeling, but ambiguity fosters creativity by loosening solution bias, not by focusing on structure.

References/topics: Creativity Phase; Function Analysis Phase; Divergent Thinking; Function Abstraction; Subject Reframing.