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SAVE International

Certification Examination

Study Guide

Effective July 1, 2016 This document supersedes all previous documents issued.

Introduction ............................................................................................................. 1

Examination Objectives ........................................................................................... 1

Examination Requirements ..................................................................................... 2

Preparation for Examination .................................................................................... 2

Part I. Fundamentals ...................................................................................... 2

Part II. Function Analysis ................................................................................ 2

Part III. FAST Diagram .................................................................................... 2

Part IV. Team Building .................................................................................... 2

Part V. Certification Program ......................................................................... 3

Part VI. Financial ............................................................................................ 3

Part VII. Essay ................................................................................................ .3

Comprehensive Review ............................................................................................ 3

Appendix A – FAST Diagramming ............................................................................. 4

Appendix B – What Is An Essay? .............................................................................. 8

VM Standard ............................................................................................................ 9

Certification Exam Study Guide

Introduction This study guide is written to assist certification candidates in preparing for their written examination. It is intended to assist candidates discover where their knowledge of the value methodology (VM) and its applications need to be strengthened. This guide includes the body of knowledge and the glossary of VM terms as currently found in the Value Standard. The material taught in the Module I Basic Certification Training Workshop and the Module II Advanced Certification Training Seminar courses closely parallels this body of knowledge. How well you do on the certification examination is a reflection on you, your course instructors and your advisor. The glossary of terms in the Value Standard is new in a few basic ways that will need some adjustment, with time, to be included in our day‐to‐day vocabulary. The examination however, as an encouragement to the use of standard terms, will follow the definitions listed in the Value Standard.

Certification examinations are given each year preceding the SAVE International Annual Conference. At other times, candidates may arrange to have the examination proctored by an individual approved by the SAVE International Certification Board. The details of arranging for a proctored examination are described in the Certification Manual.

Examination Objectives The certification examination is designed to test the candidate's knowledge of fundamental VM concepts through the use of a variety of question formats. Candidates for the different levels of certification (VMA or CVS) will find themselves being asked questions appropriate to that level of certification (See Figure 1). In addition, the essay portion of the examination for CVS candidates tests the ability to articulate comprehensive VM knowledge in response to a particular question. This is intended to measure effective communication abilities as well as knowledge of VM.

Exam Category VMA CVS

Part I. Fundamentals 40 multiple choice questions

100 points 30 minutes


Part II. Function Analysis 40 multiple choice questions



Part III. FAST Work Problem Identify, classify functions and draw a FAST diagram

Not Applicable


Part IV. Team Building 20 questions (True or False)

Not Applicable


Part V. Certification 25 questions (True or False)

Not Applicable


Part VI. Financial Identify VM opportunities, first costs, annual costs and break‐even point

Not Applicable


Part VII. Essay Choose topic and prepare an essay demonstrating VM principles

Not Applicable


Total Exam Time 1 1/2 hours 4 1/2 hours

Score to pass: 70 %70% achievement is required for each category. Grades will not be averaged.

Figure 1 Examination Matrix

1


Examination Requirements Figure 1 shows that each of the two levels of certification require different parts of the examination. The Value Methodology Associate (VMA) candidate is required to take the first two parts and the Certified Value Specialist (CVS) candidate all seven parts. Each part is graded separately on the basis of 100 points. A minimum of 70 percent is required to successfully pass each part. Candidates will be required to retake only those parts failed. Re‐examinations can be taken at the candidate’s convenience, not to exceed one year from the previous examination. However, the policy is that no more than two re‐examinations will be allowed. A CVS candidate who is currently certified as a VMA is required to take only those sections of the examination not previously successfully completed. Completion times shown in the individual parts of the examinations are shown only as a guide. The candidate may allocate time as required to each part so long as the examination is completed in the total allowed time.

Preparation for Examination

Part I. Fundamentals ‐ The 40 multiple choice

questions test your comprehension of the history of the value methodology, including the job plan, function analysis, FAST diagramming, function cost, function worth, creativity, evaluation techniques, program management, certification program and implementation techniques.

Sources: 1. Review text materials from the Module I course. 2. Review the Certification & Recertification

Manual and this Study Guide.

Part II. Function Analysis ‐ The 40 multiple

choice questions require the candidate to answer questions about the common object illustrated in function terms; classify the functions as basic, secondary and higher order functions, their placement on a FAST diagram, and understanding the value index.

Sources: 1. Review Module I function analysis text materials

and exercises. 2. Practice with your advisor to gain proficiency.

Strive to use action verbs and measurable nouns.

Part III. FAST Work Problem ‐ The candidate will be required to express the common object illustrated in function terms; classify the functions as basic, secondary, supporting, assumed and higher order functions, to prepare a FAST diagram using those functions. Sixty percent (60%) of the grade for Part III tests your ability to identify the proper functions for a project and its component elements (parts). Also included is credit to properly classify functions. Ten percent (10%) of the grade tests your knowledge to properly label a FAST diagram. All remaining credit (30%) tests your knowledge of creating a FAST diagram using proper function logic (How/Why) and proper placement of functions in the chosen FAST diagram model.

Sources: 1. Review Module I and Module II texts and class

exercises. 2. Practice with your advisor, using all three (3)

main types of FAST diagrams. 3. Learn the labeling by studying the material in

Appendix B. 4. Download and review the Function Monographs

on the SAVE website.

Part IV. Team Building ‐ This part of the examination recognizes the vital role that teams play in successful value studies and implementation of value proposals. The 25 questions are aimed at testing your knowledge of attributes of team members, team dynamics, consensus building, habits and attitudes, roadblocks to creativity, and making an effective presentation.

Sources: 1. Review text materials from Module I and II

courses. 2. "Contemporary Value Management Leadership

Characteristics", RA Fraser, PhD, 1996 SAVE International Proceedings.

2


3. “Using Function Analysis to Give Criticism and Influence the Behavior of Teams”, Rea Gorin Cook, CCC, CTM, 1997 SAVE International Proceedings.

Part V. Certification Program ‐ These 20

questions are aimed at testing your understanding of the general requirements for certification, recertification, workshops and seminars.

Sources: 1. Module II course material. 2. Review the Certification & Recertification

Manual, Workshop/Seminar Manual and Study Guide.

Part VI. Financial ‐ Currently there are two sets of questions. One set (five questions) addresses industrial financial analysis. These questions test categorizing costs, calculate value study costs and returns on investment, understanding of initial costs, recurring costs and break‐even analysis is tested. The second set (seven questions) addresses financial analysis. These questions test categorizing contractor costs, calculate value study costs and returns on investment, prioritizing value objectives using calculated value indices (value index), and life cycle costs.

Source: 1. Review Module II text and class exercises. 2. Review this Study Guide and the Value Standard.

Part VII. Essay ‐ The candidate is asked to prepare an essay on one of seven value methodology related questions. As an aid in preparing for this question, the criteria used in grading the question are:

Content Relevance (60%) ‐ Has the essay demonstrated a comprehensive knowledge of the subject?

Ingenuity of Presentation (20%) ‐ Has the essay presented the material in an interesting format that will inspire the reader?

Clarity of Presentation (20%) ‐ Has the essay presented the material logically and in an easily understood order?

Sources: 1. Read a text on creative writing and prepare

several essays relating to the unique concepts of the value methodology.

2. Review Appendix C: “What is an Essay?”.

Comprehensive Review While there are number of extremely valuable texts available in the value methodology, the one that stands out for covering all aspects of VM is Value Engineering Theory, by Donald E. Parker (available from the SAVE International bookstore) and its companion, Instructor’s Guide for Value Engineering Theory Course. It provides not only a comprehensive text, but it will furnish excellent review questions and answers for each of its 11 basic lectures. In addition, there are several other texts that will be valuable in understanding the value methodology and passing the examination. All are available from SAVE International. Value Engineering for the Practitioner, by J. Jerry Kaufman is aimed at productivity improvements by increasing the value of products and services to the markets and communities. A third one to consider is Value Analysis in Design by Theodore C. Fowler. Fowler's focus is on how modern methods emphasize customer needs to prevent product denigration by inappropriate cost reduction. If you want to search for specific aspects of the value methodology, the SAVE International Knowledge Bank offers a comprehensive collection of conference technical papers, Value World papers, and newsletter articles. The Knowledge Bank is located on the SAVE International website.

3

Appendix A – FAST Diagramming In the Value Methodology, functions are defined with two words, a verb and a noun. This enhances specific understanding. The noun, if possible, should be measurable and thereby permit quantification for establishing worth.

EXAMPLES

Items Activity Function Unit of Measure

Table Holds Items Support Weight pounds Screwdriver Insert Screws Transmit Torque ft/lbs. Electric Wire Connect Parts Transmit Current amperage Structural Beam Hold Floor Support Weight pounds Report Mail Report Communicate Data words

The first step is to define all the functions that the value study team believes are involved in the project. Then functions are classified as basic or secondary. For small projects, this is a relatively easy task. For complex projects it becomes more involved and literally hundreds of functions can be defined on this random basis. It was for these complex projects, that FAST diagramming was developed. FAST (Function Analysis Systems Technique) is a technique which specifically illustrates the relationships of all functions within a specific project utilizing a How‐Why logic pattern based on intuitive logic. The original FAST is referred to as Classic FAST. The second, known as Technical FAST, was developed to separate functions occur only one time, and those "all the time" functions that are active whether the system is operative or not. These "all the time" functions are shown separately from the main function logic. The third and latest, User/Customer FAST, is always headed by four supporting functions, Assure Convenience, Satisfy User, Assure Dependability and Attract User. The following pages illustrate the format and labeling of the three types of FAST diagrams. Hint: If doing a question on FAST, use the information to draw a FAST first!

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The Classic FAST Model

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FUNCTION ANALYSIS SYSTEMS TECHNIQUECustomer-Oriented FAST

Higher OrderFunction

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HOW? WHY?

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Supporting Functions/Sell FunctionsTASK

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Third LevelFunctions

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HOW? WHY?

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Supporting Functions/Sell FunctionsTASK

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SecondaryFunctions

Third LevelFunctions

77

Appendix B – What Is An Essay? Introduction: Statement of Thesis Essays like paragraphs develop one main idea. The main idea of an essay is called a thesis statement, and it is expressed in the introduction, usually at the end of the introduction. Like the main idea of a paragraph, a thesis is a general statement. The statement that serves as a thesis for an essay is often more general than the topic sentence of a paragraph but not as general as a thesis of a book. An introduction serves as a contract between a writer and his or her readers. In the introduction, a writer makes specific commitments that must be fulfilled. The most important of these is the thesis statement, which commits the writer to a specific focus. In effect, it provides the reader with an accurate expectation of what the writer plans to do – the main idea that the writer plans to develop. In general, a good introduction accomplishes three purposes:

1. It attracts the reader’s interest, 2. It provides the reader with background definition, 3. It focuses the reader’s attention on the main idea of the essay.

Body: Development of Thesis The body of a unified coherent essay consists of a number of related paragraphs that develop the thesis. The individual sentences within each paragraph support the main idea (topic sentence) of the paragraph and the paragraphs support the main idea (thesis) of the essay. A writer develops the topic sentence of a paragraph by discussing, explaining and expanding the idea that it expresses. A writer develops the thesis of an essay in the same way. Both topic sentences and thesis statements are general statements that must be supported by specific facts, details, and examples. In an essay, a writer usually devotes a paragraph to each major supporting point. Each of these supporting points is directly related to the thesis and helps develop it. But each major supporting pint is also developed individually as a paragraph. Writers often develop the paragraphs that make up the body of an essay by using the familiar methods of development – narration, description, illustration, comparison/contrast, classification, cause and effect, and definition. Although sometimes you may use a single method for an entire essay, it is much more likely that you will use a combination of methods. Conclusion: Re‐emphasis of Thesis The conclusion of an essay, like the conclusion of a paragraph, gives the reader a sense of completion. Conclusions usually refer back to the introduction or, at least re‐emphasize in some way the thesis stated in the introduction. Often the conclusion briefly summarizes the thesis and the major supporting points. A good conclusion always confirms the audience’s understanding of what they have read by reminding them of the writer’s purpose. Like introductions, conclusions provide readers with an overview. Adapted from Contexts: Writing and Reading by Jeanette Harris and Ann Mosley.

8

VALUE METHODOLOGY STANDARD

March 2015

Value Methodology Standard

SAVE International gratefully acknowledges

the VP Education team and, in particular,

Fred Kolano, (SAVE International Director of

Standards and Resources), Randall Sprague,

and Dr. Roy Woodhead for their

contributions and additions to the original

standard developed by the Paul Revere

Chapter and John W. Bryant in May, 1997.

Foreword This Standard was originally drafted in May

1997. It has been updated periodically to

address changes in the business

environment and technology and to meet

future integration with the International

Standards Organization. The Value

Methodology Standard is intended to

provide a practical guide for applying the

principles of the value methodology in a

consistent manner. It may be used by both

practitioners and management.

The value methodology can be applied to a

wide variety of applications, including

industrial or consumer products,

construction projects, manufacturing

processes, business procedures, services,

and business plans.

The value methodology is commonly applied under the names Value Analysis (VA), Value Engineering (VE), and Value Management (VM). These terms can be used interchangeably with value methodology throughout the standard and this document. Other value improvement processes also qualify as value studies as long as they adhere to the Value Standard’s Job Plan and perform Function Analysis as part of their total process.

This Standard has been prepared by the

SAVE International® Standards and

Resources Director, a member of the SAVE

International® Vice President of Education’s

team. It is approved by the SAVE

International® Certification Board and the

SAVE International® Board of Directors. It

seeks to state the minimum that clients and

providers should expect when the value

methodology is applied to a project.

This Standard will assist managers, value

program managers, practitioners, and

trainers in applying value methodology in

their organizations in a consistent, standard

manner. It may also assist those who

procure value methodology services to

develop proposal requests that ensure they

receive complete and useful value

methodology services.

The nomenclature used throughout this

Value Methodology Standard is as follows:

Value Study -- The overarching objective of

a value study is to improve the value of the

project.

Job Plan – Provides the structure for the

Value Study which is part of a three-stage

process (see Figure 1):

Pre-Workshop preparation

Value Workshop which applies the

Six Phase Job Plan

Post-Workshop documentation and

implementation

Value Methodology – Provides the process

and structure that is used to apply the Value

Job Plan used in the Workshop.

Value Methodology Standard –

Establishes the specific six-phase sequential

Job Plan process and outlines the objectives

of each of those phases. It does not

standardize the specific activities that are

used to accomplish each phase.


3 SAVE International Value Standard, 2015 edition

Purpose and Scope of the Standard The purpose of this document is to:

1) Define the steps and components that

constitute a valid Value Study.

2) Document supporting information

that defines a generic methodology,

common terminology, and standard

practice to guide practitioners and

managers in effectively applying

value methodology to improve the

value of their projects.

3) Guide the practitioner and manager

in determining at what point to apply

value methodology to a project in

order to maximize:

a. the benefits of team

innovation skills and

b. implementation of

alternative(s) that add value to

the project.

This document may be used by both

practitioners and managers as a guide

for applying value methodology.

The Value Methodology Standard allows

for the tailored application of value

methodology and related practices to

suit the intended application.

The Value Methodology Standard has

not been prepared as a legal document.

If the user intends to use the Value

Standard for procurement purposes the

user should consult expertise familiar

with contract language, including

seeking legal guidance.

Users of the Value Methodology

Standard should be aware that some

governing bodies require that value

engineering facilitator hold specific

licenses or other credentials not

identified by the Value Standard. If so,

the user should identify such

considerations when soliciting and

contracting for value methodology

services.

A Value Study is the formal application of a value methodology to a project in order to improve its value. This application is also referred to as value engineering, value analysis, value planning, or value management. For purposes of this standard, the subject of a Value Study whether it is a product, process, procedure, design, or service will be referred to as the “project.”



The Value Methodology Standard The value methodology is a systematic

process that follows the Job Plan. A

value methodology is applied by a

multidisciplinary team to improve the

value of a project through the analysis of

functions.

The Job Plan consists of the following

sequential phases. (See Figure 1)

1. Information Phase

The team reviews and defines the

current conditions of the project and

identifies the goals of the study.

2. Function Analysis Phase

The team defines the project

functions using a two-word active

verb/ measurable noun context. The

team reviews and analyzes these

functions to determine which need

improvement, elimination, or creation

to meet the project’s goals.

3. Creative Phase

The team employs creative

techniques to identify other ways to

perform the project’s function(s).

4. Evaluation Phase

The team follows a structured

evaluation process to select those

ideas that offer the potential for value

improvement while delivering the

project’s function(s) and considering

performance requirements and

resource limits.

5. Development Phase

The team develops the selected ideas

into alternatives (or proposals) with a

sufficient level of documentation to

allow decision makers to determine if

the alternative should be

implemented.

6. Presentation Phase

The team leader develops a report

and/or presentation that documents

and conveys the adequacy of the

alternative(s) developed by the team

and the associated value

improvement opportunity.

In order to qualify as a Value Study, the following conditions must be satisfied.

A. The Value Study Team follows an

organized Job Plan that includes, at

a minimum, the six phases identified

in this standard. Function Analysis, as

defined in this document, is

performed on the project.

B. The Value Study Team is a

multidisciplinary group of

experienced professionals and

project stakeholders. Team members

are chosen based on their expertise

and experience with the project.

Sometimes individuals who have

relevant expertise; but are not directly

involved with the project are added to

provide a different point of view.

C. The Value Team Leader is trained

in value methodology techniques and

is qualified to lead a study team using

the Job Plan. The SAVE

International® Certification Board



certifies, with the designation

Certified Value Specialist® (CVS®),

those individuals who have met

specified training requirements and

have demonstrated competency in

the application of the Job Plan. The

Team Facilitator shall be a CVS®, or a

VMP serving under the guidance of a

CVS® as defined by SAVE

Certification criteria, or shall be the

holder of another active certification

recognized by SAVE International®.

Figure 1 illustrates the Job Plan process

flow. Each of the Job Plan phases must

be performed in sequence because each

phase provides information and

understanding necessary for the

successful execution of the next phase.

As the team gains additional knowledge

about the project, a previous phase may

be revisited.

References The Value Methodology Body of

Knowledge is comprised of the Value

Methodology: A Pocket Guide to

Reduce Cost and Improve Value

through Function Analysis (ISBN 978-

1-57681-105-4)

ASTM Standard Practice E1699-13 for

the Value Methodology

SAVE International®® website:

http://www.value-eng.org

Miles Value Foundation website:

http://www.valuefoundation.org

Principles of Value Analysis/Value

Engineering by Lawrence D. Miles.

No

ResultsOK?

Workshop/Study (Value Job Plan)

Post Workshop/Study

Pre Workshop/Study

InformationPhase

FunctionAnalysisPhase

CreativePhase

EvaluationPhase

ImplementationPhase

Follow UpActivities

PreStudy

Activities

DevelopmentPhase

Yes

No

Yes

PresentationPhase

ResultsOK?

Value StudyPhases

AdditionalActivities

Stage 1 -

Stage 2 -

Stage 3 -

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