CCC Value Engineering & Value Management 1 — Questions and Answers
Question 1: What is the primary goal of Value Engineering (VE)?
- Increase the project scope to maximize deliverables
- Achieve required functions at the lowest life cycle cost (Correct answer)
- Reduce the project schedule at any cost
- Maximize contractor profit margins
Correct answer: Achieve required functions at the lowest life cycle cost
Value Engineering aims to achieve all required project functions at the lowest possible life cycle cost while maintaining performance, quality, and reliability.
Question 2: In the VE job plan, which phase is dedicated to identifying and categorizing all project functions?
- Creative Phase
- Evaluation Phase
- Function Analysis Phase (Correct answer)
- Development Phase
Correct answer: Function Analysis Phase
The Function Analysis Phase systematically identifies, classifies, and analyzes project functions to distinguish necessary costs from unnecessary ones.
Question 3: In a FAST (Function Analysis System Technique) diagram, what does moving to the right — the 'How' direction — represent?
- Higher-order functions and project goals
- Lower-order functions and how each function is accomplished (Correct answer)
- Project milestone dates
- Cost breakdown elements
Correct answer: Lower-order functions and how each function is accomplished
In a FAST diagram, moving right (the 'How' direction) reveals lower-order functions and the methods by which each higher function is achieved.
Question 4: In Value Engineering, 'worth' is defined as:
- The market replacement price of a component
- The contractor's bid price for an element
- The lowest cost to reliably perform a required function (Correct answer)
- The depreciated asset value on the balance sheet
Correct answer: The lowest cost to reliably perform a required function
In VE, 'worth' is the lowest cost to reliably perform a required function and serves as a benchmark against actual cost to identify unnecessary expenditure.
Question 5: Which of the following best describes a 'basic function' in Value Engineering?
- A function that supports or enhances another function
- The primary purpose that defines what an item must do (Correct answer)
- A function that can be eliminated without affecting performance
- A function added solely for aesthetic value
Correct answer: The primary purpose that defines what an item must do
A basic function is the primary purpose of an item — the essential reason it exists — and cannot be eliminated without destroying the item's usefulness.
Question 6: During which project phase does Value Engineering typically provide the greatest cost savings potential?
- Construction and installation phase
- Project closeout and commissioning phase
- Early design and planning phase (Correct answer)
- Procurement and bidding phase
Correct answer: Early design and planning phase
VE provides the greatest savings potential during early design and planning phases when design decisions are not yet locked in and changes are least expensive to implement.
Question 7: What does SAVE International represent in the context of Value Engineering?
- Systematic Assessment of Value Engineering, a federal program
- The professional society that sets standards and certifies VE practitioners (Correct answer)
- A cost estimating software platform for consultants
- A government-mandated savings verification process
Correct answer: The professional society that sets standards and certifies VE practitioners
SAVE International (Society of American Value Engineers International) is the professional organization that publishes the Value Methodology Standard and certifies VE practitioners.
CCC Value Engineering & Value Management 1
What is the primary goal of Value Engineering (VE)?