Value Methodology VMA Release Date

Value Methodology (VM), as defined by SAVE International in the Value Methodology Fundamentals 1 (VMF 1) course, is a systematic, step-by-step approach to improve the value of a project, product, or process by optimizing the function-to-cost ratio. According to SAVE International’s Value Methodology Standard, VM is described as “a systematic and structured approach for improving projects, products, and processes… to achieve the optimum balance between function, performance, quality, safety, and cost.” The VM Job Plan, a core component of VM, involves a step-by-step process (six phases: Information, Function Analysis, Creative, Evaluation, Development, and Presentation) that can be likened to a design review because it evaluates and enhances the design or process to improve value.

Option A (suggestion program) is incorrect because VM is not merely about collecting suggestions; it is a structured methodology with defined phases and tools like function analysis.

Option B (cost reduction exercise) is incorrect because VM focuses on improving value, not just reducing costs—cost reduction may occur, but only if it does not compromise essential functions.

Option C (step-by-step design review) aligns with VM’s systematic nature, as the Job Plan reviews and improves designs or processes through structured phases, making it the best fit.

Option D (eight-phase process) is incorrect because the VM Job Plan has six phases, not eight, as established in SAVE International’s standards.

The Development Phase of the Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International’s Value Methodology Standard, involves refining the most promising ideas selected during the Evaluation Phase into actionable proposals. According to VMF 1 Core Competency #3 (Value Methodology Job Plan), the Development Phase includes “developing detailed proposals for the selected alternatives, including cost estimates, implementation plans, and risk assessments to ensure feasibility.” A key step in this phase is modeling the cost of ideas to provide stakeholders with a clear understanding of the financial impact of the proposed changes, ensuring the ideas improve value (function/cost).

Option A (Assign ideas to VM study team members) is incorrect because assigning ideas occurs during the Creative or Evaluation Phase, not Development.

Option B (Prioritize ideas) is incorrect because prioritization happens in the Evaluation Phase, before Development.

Option C (Model the cost of ideas) is correct, as the Development Phase focuses on creating detailed proposals, which includes costing out the ideas to validate their value improvement potential.

Option D (Determine verb-noun combinations for ideas) is incorrect because verb-noun combinations are used in the Function Analysis Phase to define functions, not in Development.