Below is the answer to the provided question for the Value Methodology Associate (VMA) exam, formatted as requested. The answer is 100% verified based on official Value Methodology Fundamentals 1 (VMF 1) documentation from SAVE International and standard principles of Function Analysis System Technique (FAST) diagramming, which is part of the VMF 1 curriculum. Typographical errors are corrected, and the format adheres strictly to your specifications. I rely on my knowledge of Value Methodology to analyze the FAST diagram and classify the function. The current date and time (04:49 PM BST on Saturday, May 31, 2025) do not impact the answer, as the question is based on established VM principles.

The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course (Core Competency #3: Value Methodology Job Plan), is a structured sequence of six phases designed to leverage bothdivergentandconvergentthinking. According to SAVE International’s Value Methodology Standard, “the VM Job Plan alternates between divergent thinking (to generate a wide range of ideas) and convergent thinking (to narrow down and refine those ideas).” Divergent thinking is used in the Creative Phase to brainstorm as many ideas as possible without judgment, while convergent thinking is applied in the Evaluation and Development Phases to analyze, select, and refine the best ideas into actionable proposals. This combination ensures a balance between creativity and practicality, maximizing value improvement.

Option A (Divergent and abstract) is incorrect because, while divergent thinking is used, “abstract” is not a specific type of thinking emphasized in the VM Job Plan.

Option B (Convergent and abstract) is incorrect because it omits divergent thinking, which is critical in the Creative Phase.

Option C (Critical and divergent) is incorrect because, while critical thinking is involved in Evaluation, the VM Job Plan specifically emphasizes convergent thinking to narrow down ideas.

Option D (Convergent and divergent) is correct, as it captures the dual thinking types leveraged across the VM Job Plan phases.

The Development Phase of the Value Methodology (VM) Job Plan involves refining selected ideas into actionable proposals, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, “during the Development Phase, the VM team develops proposals by addressing technical feasibility, assessing time and schedule impacts, determining costs, identifying risks, and providing implementation plans.” These tasks ensure that proposals are practical, cost-effective, and ready for presentation to stakeholders.

A. Address technical feasibility: Correct, as the team must ensure the proposal can be implemented technically (e.g., does the design work?).

B. Assess time and schedule impacts: Correct, as the team evaluates how the proposal affects the project timeline (e.g., delays or accelerations).

D. Determine costs: Correct, as cost modeling is a key task (as noted in Question 9), providing stakeholders with financial impacts of the proposal.

C. State the disposition of the proposal: Incorrect, as stating the disposition (e.g., accepted, rejected) occurs after the Presentation Phase, when stakeholders decide on the proposal, not during Development.

E. Validate the proposal: Incorrect, as validation (e.g., testing or final confirmation) typically occurs during implementation or post-study, not during Development, which focuses on creating the proposal.

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.

In Value Methodology (VM), gathering input from customers and stakeholders is a key activity, particularly during the Information Phase of the VM Job Plan, as taught in the VMF 1 course (Core Competency #3: Value Methodology Job Plan). According to SAVE International’s Value Methodology Standard, various techniques are used to collect stakeholder input, including interviews, questionnaires, surveys, and focus panels. The standard defines these as follows:

Interviews: One-on-one discussions with individual stakeholders to gather detailed insights.

Questionnaires: Written sets of questions distributed to stakeholders, typically completed individually.

Surveys: Similar to questionnaires, often distributed to a larger group, with responses collected individually.

Focus panels: Group discussions involving multiple customers and stakeholders simultaneously, designed to capture collective input and foster dialogue.

The question specifies a technique that involves capturing input “at the same time” from multiple customers and stakeholders, which aligns with the definition offocus panels. Focus panels (or focus groups) bring together diverse stakeholders in a single session to discuss needs, preferences, and concerns, allowing for real-time interaction and consensus-building, which is particularly useful in VM studies to understand project objectives and constraints.

Option A (Interviews) is incorrect because interviews are typically conducted one-on-one, not with multiple stakeholders simultaneously.

Option B (Questionnaires) is incorrect because questionnaires are completed individually, not in a group setting at the same time.

Option C (Surveys) is incorrect because surveys are also completed individually, often asynchronously, not at the same time.

Option D (Focus panels) is correct, as it involves capturing input from multiple stakeholders simultaneously in a group setting.

The Pareto Principle, often referred to as the 80/20 rule, is a concept used in Value Methodology to focus efforts on the most impactful areas during cost analysis. In the context of VM, as taught in the VMF 1 course (Core Competency #4: Cost Analysis), the Pareto Principle is applied to identify high-cost areas that offer the greatest potential for value improvement. According to SAVE International’s Value Methodology Standard, “the Pareto Principle in VM states that approximately 20% of the elements (components, functions, or items) typically account for 80% of the total cost.” This allows the VM team to prioritize their efforts on the small number of elements that drive the majority of the cost, thereby maximizing value improvement (function/cost). For example, in a project, a few components (like a specialized motor in a machine) might represent the bulk of the cost, and optimizing those components can yield significant savings.

Option A (20% of risks impact 80% of elements) is incorrect because the Pareto Principle in VM focuses on cost distribution, not risk impact.

Option B (20% of elements represent 80% of the cost) is correct, as it directly aligns with the application of the Pareto Principle in VM cost analysis.

Option C (80% of functions represent 20% of components) is incorrect because it reverses the principle and does not reflect the cost-focused application in VM.

Option D (80% of the whole includes 20% of the resources) is incorrect because it misapplies the principle and is too vague for VM’s specific use of Pareto in cost analysis.

In Value Methodology, cost analysis often involves evaluating the economic impact of alternatives over time, which requires understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes financial concepts like discounting cash flows to assess long-term value. The concept of converting all costs to a common reference point in today’s dollars refers toPresent Worth (or Net Present Value, NPV). According to SAVE International’s Value Methodology Standard, Present Worth (or NPV) is used to “evaluate the economic feasibility of alternatives by discounting future cash flows to their present value, accounting for the time value of money.” This process converts all costs and benefits (adjusted for time, value, and money) to a single value in today’s dollars using a discount rate, allowing for a fair comparison of alternatives.

Option A (Return on Investment or ROI) is incorrect because ROI measures profitability as a percentage and does not convert costs to a present value.

Option B (Present Worth or Net Present Value) is correct because NPV accounts for the effects of time, value, and money by discounting future cash flows to today’s dollars.

Option C (Discount Rate) is incorrect because the discount rate is the rate used in NPV calculations, not the method of converting costs itself.

Option D (Simple Payback or Breakeven Point) is incorrect because payback measures the time to recover an investment and does not account for the time value of money or convert costs to present value.