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SAVE International

Certification Examination
Study Guide

Issued with Eleventh Edition Certification and Recertification Manual – Effective September 1, 2011
This document supersedes all previous documents issued
Study Guide

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 ..................................................................................................
Introduction Conference. At other times, candidates may
arrange to have the examination proctored by an
This study guide is written to assist certification individual approved by the SAVE International
candidates in preparing for their written Certification Board. The details of arranging for a
examination. It is intended to assist candidates proctored examination are described in the
discover where their knowledge of the value Certification Manual.
methodology (VM) and its applications need to
be strengthened. This guide includes the VM Examination Objectives
Body of Knowledge and the glossary of VM
terms as currently found in the Value Standard. The certification examination is designed to test
The material taught in the Module I Workshop the candidate's knowledge of fundamental VM
and the Module II Advanced Seminar courses concepts through the use of a variety of question
closely parallels this body of knowledge. How formats. Candidates for the different levels of
well you do on the certification examination is a certification (AVS, VMP, or CVS) will find
reflection on you, your course instructors and themselves being asked questions appropriate
your advisor. The examination however, as an to that level of certification (See Figure 1). In
encouragement to the use of standard terms, addition, the essay portion of the examination for
will follow the definitions listed in the Value CVS candidates tests the ability to articulate
Standard. comprehensive VM knowledge in response to a
particular question. This is intended to measure
Certification examinations are given each year effective communication abilities as well as
preceding the SAVE International Annual knowledge of VM.

Exam Category AVS VMP CVS

Part I. Fundamentals 100 points 100 points 100 points
40 multiple choice questions 30 minutes 30 minutes 30 minutes
Part II. Function Analysis 100 points 100 points 100 points
40 multiple choice questions 60 minutes 60 minutes 60 minutes

Part III. FAST Work Problem Not 100 points 100 points
Identify, classify functions and draw a FAST Applicable 60 minutes 60 minutes
Part IV. Team Building Not 100 points 100 points
20 questions (True or False) Applicable 30 minutes 30 minutes
Part V. Certification Not Not 100 points
25 questions (True or False) Applicable Applicable 15 minutes
Part VI. Financial Not Not 100 points
Identify VM opportunities, first costs, annual Applicable Applicable 30 minutes
costs, and break-even point
Part VII. Essay Not Not 100 points
Choose topic and prepare an essay Applicable Applicable 45 minutes
demonstrating VM principles
Total Exam Time 1 1/2 hours 3 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

Examination Requirements Sources:
1. Review Module I function analysis text
Figure 1 shows that each of the three levels of materials and exercises.
certification requires different parts of the 2. Practice with your advisor to gain
examination. The AVS candidate is required to proficiency. Strive to use action verbs
take the first two parts, the VMP candidate the and measurable nouns.
first four parts, and the CVS candidate all seven
parts. Each part is graded separately on the Part III. FAST Work Problem - The
basis of 100 points. A minimum of 70 percent is candidate will be required to express the
required to successfully pass each part. common object illustrated in function terms;
Candidates will be required to retake only those classify the functions as basic, secondary,
parts failed. Re-examinations can be taken at supporting, assumed and higher order functions,
the candidate’s convenience, not to exceed one to prepare a FAST diagram using those
year from the previous examination. However, functions. Sixty percent (60%) of the grade for
the policy is that no more than two re- Part III tests your ability to identify the proper
examinations will be allowed. A CVS candidate functions for a project and its component
who is currently certified as an AVS or VMP is elements (parts). Also included is credit to
required to take only those sections of the properly classify functions. Ten percent (10%)
examination not previously completed of the grade tests your ability to properly label a
successfully. FAST diagram. All remaining credit (30%) tests
your knowledge of creating a FAST diagram
Completion times shown in the individual parts using proper function logic (How/Why) and
of the examinations are shown only as a guide. proper placement of functions in the chosen
The candidate may allocate time as required to FAST diagram model.
each part so long as the examination is
completed in the total allowed time. Sources:
1. Review Module I and Module II texts
Preparation for Examination and class exercises.
2. Practice with your advisor, using all
Part I. Fundamentals - The 40 multiple three (3) main types of FAST diagrams.
choice questions test your comprehension of the 3. Learn the labeling by studying the
history of the value methodology, including the material in Appendix B.
job plan, function analysis, FAST diagramming, 4. Download and review the Function
function cost, function worth, creativity, Monographs on the SAVE website.
evaluation techniques, program management,
certification program and implementation Part IV. Team Building - This part of the
techniques. examination recognizes the vital role that teams
play in successful value studies and
Sources: implementation of value proposals. The 25
1. Review text materials from the Module I questions are aimed at testing your knowledge
course. of attributes of team members, team dynamics,
2. Review the Certification and consensus building, habits and attitudes,
Recertification Manual, and this Study roadblocks to creativity, and making an effective
Guide. presentation.

Part II. Function Analysis - The 40 multiple Sources:

choice questions require the candidate to 1. Review text materials from Module I and
answer questions about the common object Module II courses.
illustrated in function terms; classify the 2. "Contemporary Value Management
functions as basic, secondary and higher order Leadership Characteristics", R.A.
functions, their placement on a FAST diagram, Fraser, PhD, 1996 SAVE International
and understanding the value index. Proceedings
3. “Using Function Analysis to Give
Criticism and Influence the Behavior of

Teams”, Rea Gorin Cook, CCC, CTM, • Clarity of Presentation (20%) - Has the
1997 SAVE International Proceedings essay presented the material logically
and in an easily understood order?
Part V. Certification Program - These 20
questions are aimed at testing your Sources:
understanding of the general requirements for 1. Read a text on creative writing and
certification, recertification, workshops and prepare several essays relating to the
seminars. unique concepts of the value
Source: 2. Review Appendix C: “What is an
1. Module II course material Essay?”
2. Review the Certification &
Recertification Manual, Comprehensive Review
Workshop/Seminar Manual
Part VI. Financial - Currently there are two While there are a number of extremely valuable
sets of questions related to the financial aspects texts available in the value methodology, the
of value studies. One set (five questions) one that stands out for covering all aspects of
addresses industrial financial analysis. These VM is Value Engineering Theory, by Donald E.
questions test categorizing costs, calculate Parker (available from the SAVE International
value study costs and returns on investment, bookstore) and its companion, Instructor’s Guide
understanding of initial costs, recurring costs for Value Engineering Theory Course. It
and break-even analysis is tested. provides not only a comprehensive text, but it
will furnish excellent review questions and
The second set (seven questions) addresses answers for each of its 11 basic lectures.
financial analysis. These questions test
categorizing contractor costs, calculate value In addition, there are several other texts that will
study costs and returns on investment, be valuable in understanding the value
prioritizing value objectives using calculated methodology and passing the examination. All
value indices (value index), and life cycle costs. are available from SAVE International.
1. Review Module II text and class exercises. Value Engineering for the Practitioner, by J.
2. Review this Study Guide and the Value Jerry Kaufman is aimed at productivity
Standard improvements by increasing the value of
products and services to the markets and
Part VII. Essay - The candidate is asked to
prepare an essay on one of seven value
A third one to consider is Value Analysis in
methodology related questions. As an aid in
Design by Theodore C. Fowler. Fowler's focus is
preparing for this question, the criteria used in
on how modern methods emphasize customer
grading the question are:
needs to prevent product denigration by
inappropriate cost reduction.
• Content Relevance (60%) - Has the
essay demonstrated a comprehensive If you want to search for specific aspects of the
knowledge of the subject? value methodology, the SAVE International
• Ingenuity of Presentation (20%) - Has Knowledge Bank offers a comprehensive
the essay presented the material in an collection of conference technical papers, Value
interesting format that will inspire the World papers, and newsletter articles. The
reader? Knowledge Bank is located on the SAVE
International website.

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 should be measurable and thereby permit
quantification for establishing worth.


Items Function Unit of Measure

Table Support Weight pounds

Screwdriver Transmit Torque ft/lbs.
Electric Wire Transmit Current amperage
Structural Beam Support weight pounds
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 can result in literally hundreds of
functions to be defined using 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 that 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.





The Classic FAST Model








The Technical FAST Model

Caused by or
happens the
same time as


Customer-Oriented FAST


Basic Functions

TASK Supporting Functions/Sell Functions

Higher Order
Functi on
Convenience Third Level
Dependability Third Level


Primary Secondary Third Level

Functions Functions Functions

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 point 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
Adapted from Contexts: Writing and Reading by Jeanette Harris and Ann Mosley


June 2007
Value Standard and Body of Knowledge

Table of Contents
Page No.

J Acknowledgements ...............................................................................................................2

J Value Standard

Purpose and Scope of the Standard ............................................................................4

Value Standard..................................................................................................................5

J Body of Knowledge

History .................................................................................................................................7

Overview ............................................................................................................................8

Applicability .....................................................................................................................10

Study Duration ................................................................................................................11

Job Plan Techniques .......................................................................................................12

Workshop Activities .........................................................................................................13

Roles And Responsibilities...............................................................................................20

Standard Revision Process .............................................................................................23

Key Competencies for Practitioners.............................................................................25


J References .......................................................................................................................................... 28

The SAVE International Standard’s Body of Knowledge will continue to be expanded

to include information on the various tools and techniques used in the practice of Value

SAVE International Value Standard, 2007 edition 1

Value Standard and Body of Knowledge

Acknowledgements This Standard has been prepared by the

SAVE International Standards and
SAVE International gratefully acknowledges Resources Director, a member of the SAVE
the VP Education team and, in particular, International’s Vice President of Education’s
Fred Kolano, (SAVE International Director of team. It is approved by the SAVE
Standards and Resources), Randall International Certification Board and the
Sprague, and Dr. Roy Woodhead for their SAVE International Board of Directors. It
contributions and additions to the original seeks to state the minimum that clients and
standard developed by the Paul Revere providers should expect when the value
Chapter and John W. Bryant in May, 1997. methodology is applied to a project.

This Standard will assist managers, value

program managers, practitioners, and
Foreword trainers in applying value methodology in
their organizations in a consistent, standard
This Standard was originally drafted in May manner. It may also assist those who
1997. It has been updated periodically to procure value methodology services to
address changes in the business develop proposal requests that ensure they
environment and technology and to meet receive complete and useful value
future integration with the International methodology services.
Standards Organization. The Value
Standard is intended to provide a practical The nomenclature used throughout this
guide for applying the principles of the Value Standard and Body of Knowledge is
value methodology in a consistent manner. as follows:
It may be used by both practitioners and
management. Value Study -- The overarching objective of
a value study is to improve the value of the
The value methodology can be applied to project.
a wide variety of applications, including Job Plan – Provides the structure for the
industrial or consumer products, Value Study which is part of a three-stage
construction projects, manufacturing process (see Figure 1, page 12):
processes, business procedures, services,
1. Pre-Workshop preparation
and business plans.
2. Value Workshop which applies the
The value methodology is commonly Six Phase Job Plan (see page 6)
applied under the names Value Analysis 3. Post-Workshop documentation and
(VA), Value Engineering (VE), and Value implementation
Management (VM). These terms can be Value Methodology – Provides the process
used interchangeably with value and structure that is used to apply the
methodology throughout the standard and Value Job Plan used in the Workshop.
this document. Other value improvement
processes also qualify as value studies as Value Standard – Establishes the specific six-
long as they adhere to the Value phase sequential Job Plan process and
Standard’s Job Plan and perform Function outlines the objectives of each of those
Analysis as part of their total process. phases. It does not standardize the specific
activities that are used to accomplish each

SAVE International Value Standard, 2007 edition 2

Value Standard

Value Standard

SAVE International VM Standard, 2006 edition 3

Value Standard

Purpose and Scope of the Standard

The purpose of this document is to:

1) Define the steps and components that Users of the Value Standard should be
constitute a valid Value Study. aware that some governing bodies require
that value engineering facilitator hold
2) Document supporting information that specific licenses or other credentials not
defines a generic methodology, identified by the Value Standard. If so, the
common terminology, and standard user should identify such considerations
practice to guide practitioners and when soliciting and contracting for value
managers in effectively applying value methodology services.
methodology to improve the value of
their projects.

3) Guide the practitioner and manager in

determining at what point to apply A Value Study is the formal
value methodology to a project in order application of a value
to maximize: methodology to a project in
a. the benefits of team innovation order to improve its value. This
skills and application is also referred to as
b. implementation of alternative(s) value engineering, value analysis,
that add value to the project. value planning, or value
management. For purposes of
this standard, the subject of a
This document may be used by both Value Study whether it is a
practitioners and managers as a guide for product, process, procedure,
applying value methodology. design, or service will be referred
to as the “project.”
The Value Standard allows for the tailored
application of value methodology and
related practices to suit the intended

The Value 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

SAVE International Value Standard, 2007 edition 4

Value Standard

The Value 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 and the associated value improvement
sequential phases. (See Figure 1, page 13): opportunity.

1. Information Phase In order to qualify as a Value Study, the

The team reviews and defines the following conditions must be satisfied.
current conditions of the project and A. The Value Study Team follows an
identifies the goals of the study. organized Job Plan that includes, at a
2. Function Analysis Phase minimum, the six phases identified in this
standard. Function Analysis, as defined
The team defines the project functions in this document, is performed on the
using a two-word active verb/
measurable noun context. The team
reviews and analyzes these functions to B. The Value Study Team is a
determine which need improvement, multidisciplinary group of experienced
elimination, or creation to meet the professionals and project stakeholders.
project’s goals. Team members are chosen based on
their expertise and experience with the
3. Creative Phase
project. Sometimes individuals who have
The team employs creative techniques relevant expertise; but are not directly
to identify other ways to perform the involved with the project are added to
project’s function(s). provide a different point of view.
4. Evaluation Phase
C. The Value Team Leader is trained in
The team follows a structured evaluation value methodology techniques and is
process to select those ideas that offer qualified to lead a study team using the
the potential for value improvement Job Plan. The SAVE International
while delivering the project’s function(s)
Certification Board certifies, with the
and considering performance
designation Certified Value Specialists
requirements and resource limits. (CVS), those individuals who have met
5. Development Phase specified training requirements and
The team develops the selected ideas have demonstrated competency in the
into alternatives (or proposals) with a application of the Job Plan. The Team
sufficient level of documentation to Facilitator shall be a CVS, or a VMP
allow decision makers to determine if serving under the guidance of a CVS as
the alternative should be implemented. defined by SAVE Certification criteria, or
shall be the holder other active
6. Presentation Phase certification recognized by SAVE
The team leader develops a report International.
and/or presentation that documents
and conveys the adequacy of the
alternative(s) developed by the team

SAVE International Value Standard, 2007 edition 5

Body of Knowledge

Body of Knowledge

The information contained in this Body of Knowledge is a

general guideline and is not meant to be either fully inclusive
or exclusive of all possible techniques. Differences in the
application of techniques used to accomplish VE Phases will
be based on the nature of the project and the preference of
the value practitioner.

SAVE International Value Standard, 2007 edition 6

Body of Knowledge

History of the Value Methodologies

Value Analysis was conceived in the early performance, and reduced resource
1940s by Lawrence D. Miles while he was usage.
employed by General Electric, a major
defense contractor which was facing the The U.S. Army and Navy, and other
scarcity of strategic materials needed to companies, soon realized the success of
produce their products during World War II. Larry Miles’ methods. As the application of
Mr. Miles realized that if value and related value analysis expanded, there was also a
innovation improvements could be change in context—from review of existing
systematically “managed,” then General parts to improving conceptual designs. This
Electric would have a competitive was one of two factors that marked the
advantage in the marketplace. With that in emergence of value engineering. The other
mind, Mr. Miles accepted the challenge was a desire by the U.S. Navy to use the
and devised the function analysis concept, Value Analysis techniques for project
which he integrated into an innovative improvement in the early 1950s when there
process he later termed value analysis. was a moratorium on hiring “analysts.”
Since engineering positions were available,
Mr. Miles understood that products are individuals practicing this new discipline
purchased for what they can do—either were employed as “Value Engineers.”
through the work they perform or the
pleasing aesthetic qualities they provide. As the value methodology gained in
popularity, a group of practitioners formed
Using this as his foundational information, a learning society to share insights and
he focused on understanding the function advance their innovative capabilities. Thus,
of the component being manufactured. He in 1959, the “Society of American Value
questioned whether the design could be Engineers” was incorporated in
improved or if a different material or Washington, DC.
concept could achieve the function.
Soon, the value methodology was used to
To focus on the function itself, he used an improve the value of projects in
active verb and a measurable noun in government, the private sector, and the
combination to characterize the benefit manufacturing the construction industries
that a part’s function provides. He then and value concepts spread worldwide.
searched for other ways or methods to
achieve the benefit of that intended Concurrent with this growth, a number of
function. From this research, function other value improving tools, techniques,
analysis, the key foundation of value and processes emerged, many of which
methodologies, was developed and has were complementary to and were
become a tool to help individuals and integrated with the value concepts. In an
teams manage the way a concept is effort to attract the developers and
understood. practitioners of these emerging methods to
our membership, the name of the society
These specialized teams typically address was changed to “SAVE International” in
project-related issues such as increased 1996.
sales revenue, improved product

SAVE International Value Standard, 2007 edition 7

Body of Knowledge

The value methodology is a systematic The identification and naming of project
process used by a multidisciplinary team to functions enables clear thinking by limiting
improve the value of a project through the the description of a function to an active
analysis of its functions. Value is defined as verb that operates on a measurable noun
a fair return or equivalent in goods, services, to communicate what work an item or
or money for something exchanged. Value activity performs. This naming process helps
is commonly represented by the multidisciplinary teams build a shared
relationship: understanding of the functional
requirements of the project and, as a result,
Value ≈ Function/Resources it allows them to identify where
opportunities for value improvement exist in
where function is measured by the the project.
performance requirements of the customer
and resources are measured in materials, Function analysis can be enhanced
labor, price, time, etc. required to through the use of a graphical mapping
accomplish that function. A value tool known as the Function Analysis System
methodology focuses on improving value Technique (FAST), which allows team
by identifying alternate ways to reliably members to understand how the functions
accomplish a function that meets the of a project relate to each other.
performance expectations of the customer.
A fundamental tenet of a value
Function Analysis is the foundation of a methodology is that basic functions (the
value methodology and is necessary
the key activity that purpose of the
differentiates this body of Value is defined as a fair project) must be
knowledge from other preserved. This is
problem-solving or return or equivalent in goods, because the
improvement practices. services, or money for basic function
During the Function Analysis reveals the
Phase of the Job Plan,
something exchanged. usefulness of the
functions are identified that project and the
describe the work being reason for its
performed within the scope of the project existence. For example, the basic function
under study. These functions are described of a wristwatch could be “indicate time.”
using two word, active verb/measurable Other secondary functions support the
noun pairings, for example one function of basic function. These secondary functions
a hammer is to apply force. The team typically provide esteem, dependability, or
reviews the project’s functions to determine convenience value for the user. An
those that could be improved. These may example is a gold watchcase that performs
be project functions that seem to be an aesthetic function which pleases both
performed inefficiently or with more than customers and those whom they want to
expected cost. These functions become impress.
the focus of the value methodology team
in their endeavor to improve the project.

SAVE International Value Standard, 2007 edition 8

Body of Knowledge

The value methodology is applied using a While a Value Study is guided by the
process known as the “Job Plan.” The function-based Job Plan, it can be further
purpose of the Job Plan is to guide the supported by many commonly used
Study team through the process of business improvement techniques (See
identifying and focusing on key project Activities section for examples).
functions in order to create new ideas that
will result in value improvements.

SAVE International Value Standard, 2007 edition 9

Body of Knowledge

Value methodologies can be applied A value methodology can be used to
during any stage of a project’s either develop new ways to
development cycle, although the greatest manufacture a product or change an
benefit and resource savings are typically existing process.
achieved early in development during the
conceptual stages. At this point, the basic y Business systems and processes may also
information of the project is established, but be the subject of Value Studies. Many
major design and development resources elements of a business or an
organization may be improved through
have not yet been committed. The reason
the application of a value
this is the best time to apply a value
methodology is because the manner in methodology. This may be from the
which the basic function of the project is development of business plans and
organizational studies to improving
performed has not been established, and
alternative ways may be identified and existing business processes.
considered. y Service organizations can benefit from
the use of value methodologies. In the
Examples of these applications are: past value methodologies have been
y Construction projects could benefit by used to improve processes and
identifying improvements for various procedures in the medical industry
project phases: concept development, (operating rooms, emergency rooms,
preliminary design, final design, etc.) and the legal system (police
procurement and construction. systems).

y Manufactured products, whether Value methodologies may be applied

consumer, industrial, or defense, may be more than once during the life of the
studied with a focus on either the design project. Early application of a value
or manufacturing process of that methodology helps to get the project
product. A product may be the subject started in the right direction, and repeated
of a value study at any time during the applications help to refine the project’s
product’s life. A value study can be direction based on new or changing
applied at the onset of the product information. The later a Value Study is
development to better understand the conducted in project development, more
customer’s needs, identify the functions likely implementation costs will increase.
necessary to satisfy those needs, and
develop the initial concept. Throughout A value methodology may be applied as a
the design development, value quick response study to address a problem
methodology can be used to refine and or as an integral part of an overall
enhance the concept, based on the organizational effort to stimulate innovation
latest facts. Even after a product has and improve performance characteristics.
been introduced and is in production, a Value methodologies may be used to
Value Study can be used to further enhance an organization’s quality
enhance the product and respond to programs, new product development
changing customer and economic activities, manufacturing processes, and
conditions. architectural and engineering design.

SAVE International Value Standard, 2007 edition 10

Body of Knowledge

Study Duration
A value study generally encompasses three Projects with a concise scope or a low level
stages. (See Figure 1, page 13): of complexity may be performed in less
time. Sufficient time should be allotted to
1. Pre-Workshop (Preparation) adequately apply the value methodology
process and document the team’s findings.
2. Workshop (Execution of the six phase Shortening the time needed to execute the
Job Plan) Job Plan phases may result in a less-than-
optimal result.
3. Post-Workshop (Documentation and
Implementation) Projects of very large scope or complexity
may require 10-15 days or more to achieve
The duration for executing the Job Plan in a the study’s objectives. Consideration of
value study depends on several factors: the these factors is important to ensure that the
size and complexity of the project, the proper time is allocated and needs to be
stage of project development, the addressed as part of the upfront planning
estimated cost of the project, etc. for a value study.
A typical duration for the Workshop Stage is
five-days, which does not include the Pre-
Workshop and Post-Workshop efforts.

SAVE International Value Standard, 2007 edition 11

Body of Knowledge

Job Plan Techniques

The value methodology is a structured, Secondary functions are analyzed and
disciplined procedure aimed at improving evaluated with regard to their contributions
value. That procedure is called the Job to the project objectives. By making
Plan. The Job Plan outlines sequential functionality explicit (via function analysis
phases to be followed which support team and FAST), organizations can manage
synergy within a structured process, as innovation to provide a sustainable
opposed to a collection of individual competitive advantage that leads to
opinions. The activities conducted during success.
each phase of the Job Plan will stimulate
the team to identify ideas and develop Figure 1 illustrates the Job Plan process flow.
them into alternatives to the original Each of the Job Plan phases must be
concept or design. performed in sequence because each
The team and the project stakeholders phase provides information and
should identify and understand the understanding necessary for the successful
project’s basic and secondary functions. execution of the next phase. As the team
Basic functions must be maintained, gains additional knowledge about the
otherwise the intended study goals will not project, a previous phase may be revisited.
be accomplished.

Stage 1 - Pre Workshop/Study
Stage 2 - Workshop/Study (Value Job Plan)


Information Creative Evaluation Results
Phase Phase Phase OK?

Presentation Development
Phase Phase

Stage 3 - Post Workshop/Study

Results No
Yes Value Study
Implementation Follow Up
Phase Activities

Figure 1.
Value Study Process Flow Diagram

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Body of Knowledge

Workshop Activities

The standard Three-Stage of Pre-Workshop, Workshop and Post-Workshop; and Six-Phase

Workshop Job Plan Activities; are described on the following pages with related activities and
suggested tools and techniques.

Pre-Workshop Activities
Purpose: y Distribute information to team members
Plan and organize the Value Study for review
y Develop informational models and
Fundamental Question: diagrams about the project
What has to be done to prepare for a y Determine the study dates, times,
Value Study? location and other logical needs
y Clearly define, with senior
Common Activities: management, the requirements for a
successful Value Study results
y Obtain senior management
concurrence and support of the job
Typical Outcome:
plan, roles, and responsibilities.
The desired outcome is a clear
y Develop the scope and objectives for
understanding of what senior management
the Value Study
needs to have addressed, what the
y Obtain project data and information
strategic priorities are, and how
y Obtain key documents such as scope of
improvement will increase organizational
work definition, drawings, specifications,
value. It is during this phase that a view is
reports, and project estimate
formed as to whether subsequent phases
y Identify and prioritize strategic issues of
are likely to yield sufficient value to justify
the cost of the study within the terms set. It
y Determine the scope and objectives of
may be appropriate to increase or
the study
decrease study parameters at this time.
y Develop the study schedule
Team members are knowledgeable of and
y Undertake competitive benchmarking
committed to achieve the project’s
y Identify Value Team members
y Obtain commitment from the selected
team members to achieve the project
y Review the project costs
y Gather appropriate customer/user
information about the project
y If appropriate, invite suppliers,
customers, or stakeholders to
participate in the Value Study

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Workshop (Job Plan) Activities

Information Phase y Confirm the most current project
Purpose: y Identify high-level project functions
Understand the current state of the project y Visit site or facility
and constraints that influenced project y Confirm success parameters
Typical Outcome:
Fundamental Question: This phase brings all team members to a
What is really going on in the tactical and common, basic level of understanding of
operational contexts? the project, including tactical, operational,
and specifics of the subject. The functional
Common Activities: understanding establishes the base case to
identify and benchmark alternatives and
y Obtain project data and information
mismatches and set the agenda for
and key documents such as scope of
work definition, drawings, specifications,
reports, detailed project cost
information, quality data, marketing
information, process flow charts, etc.
Tools: Quality Function Deployment,
Function Analysis Phase
Voice of Customer
y Identify and prioritize strategic issues of Purpose:
concern. Further define the scope and Understand the project from a functional
objectives (management expectations) perspective; what must the project do,
of the study rather than how the project is currently
Tools: SWOT (Strengths, Weaknesses, conceived.
Opportunities and Threats); Project
Charter Fundamental Question:
y Project Team presents the original What are the functions and how are they
and/or present design/product/process related?
y Perform competitive benchmarking Common Activities:
analysis y Identify the project functions (team
Tools: Benchmarking, Tear Down format strongly encouraged)
Analysis, Pareto Analysis, Design for Tools: Random Function Identification
Assembly y Classify project functions
y Determine the study schedule; dates, y Develop function models
times, location and other logistical Tools: Function Analysis System
needs Technique (FAST), Function Tree
y Distribute information about the project y Dimension the model with cost drivers,
for team member review performance attributes and user
y Understand project scope, schedule, attitudes to select value mismatched
budget, costs, risk, issues, non-monetary functions to focus the creativity phase
performance. Tools: Cost to Function Analysis

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Body of Knowledge

(Function Matrix), Failure Measurement Typical Outcome:

Error Analysis (FMEA), Performance to The team develops a broad array of ideas
Function Analysis, Relate Customer that provide a wide variety of possible
Attitudes to Functions alternative ways to perform the function(s)
y Estimate worth of functions to select to improve the value of the project.
value-mismatched functions on which
to focus the creativity phase.
Tools: Value Index (function
cost/function worth) Evaluation Phase
Typical Outcome: Purpose:
This phase focuses the team on validating Reduce the quantity of ideas that have
that the project satisfies the need and been identified to a short list of ideas with
objectives of the customer. It provides a the greatest potential to improve the
more comprehensive understanding of the project
project by focusing on what the project
does or must do rather than what it is. The Fundamental Question:
team identifies value-mismatched Of all these ideas, which are worth
function(s) on which to focus in order to spending quality time to further develop?
improve the project.
Common Activities:
y Clarify and categorize each idea to
develop a shared understanding
Creative Phase y Discuss how ideas affect project cost,
and performance parameters.
Tools: T- Charts
Generate a quantity of ideas related to y Select and prioritize ideas for further
other ways to perform functions development
Tools: Pugh Analysis, Kepner-Tregoe, Life
Fundamental Question: Cycle Costing, Choosing by
How else may the functions be performed? Advantages (CBA), Value Metrics
y Explain how ideas are to be written as
Common Activities: stand-alone risk-reward investment
y Conduct creative warm-up exercises proposals
y Establish rules that protect the creative
environment being developed Typical Outcome:
Tools: Creativity “Ground Rules” The team produces a focused list of
y Employ group idea stimulation concepts that warrant quality time to
techniques develop into value-based solutions that
y Generate alternate ideas that may can be implemented into a project or a
improve value. project feature.
Tools: Brainstorming, Gordon Technique,
Nominal Group Technique, TRIZ, Synetics

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Development Phase y Prepare a written value alternative for

each idea selected for further
Purpose: development
y Assess and allocate risk judgments and
Further analyze and develop the short list of
costs, where appropriate
ideas and develop those with merit into
y Conduct cost-benefit analysis
value alternatives.
y Generate sketches and information
needed to convey the concept
Fundamental Questions:
y Confirm that an alternative should be
What is an informed description of each further developed
selected idea? What is the rationale for y Finish initial alternative development
making this change? Which ones are y Develop an action plan to define
mutually exclusive and are independent? implementation steps, dates, and
responsibilities for each value alternative
The selected ideas are developed into
value alternatives that are clearly written so Typical Outcome:
that the owner and other project
The Value Study team creates alternatives
stakeholders understand the intent of the
and low-, medium-, and high-risk scenarios
alternative and how it benefits the project.
and offers these alternatives to senior
Write-ups also identify any potential
management as options that address the
negative factors associated with the
Pre-Workshop strategic objectives.
alternative. The alternative should include
text, sketches, diagrams, assumptions,
supporting calculations, vendor
information, cost comparison work sheets,
and other information which may be Presentation Phase
necessary to convey the intent of the
alternative. The text should also identify Purpose:
other alternatives which may be enhanced Present value alternatives to management
or complemented by acceptance of an team and other project stakeholders or
alternative. Issues addressed include decision makers.
reliability, customer convenience, quality
control, capital cost, O&M cost, life cycle Fundamental Question:
cost, schedule, risk, availability, political How can we help the project team and
ramifications, and perception. Ideally, an senior managers make more informed
action plan is developed for each decisions so that they can select ideas that
alternative. The action plan should, at a fit their strategic plans?
minimum, include what needs to be done,
who will do it, and when it will get done. Common Activities:
y Prepare presentation and supporting
Common Activities: documentation
y Compare the study conclusions to the y Compare the study conclusions to the
success requirements established during success requirements established during
the Information and Function Analysis the Information and Function Analysis
Phases Phases

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y Offer to management “risk-reward” Typical Outcome:

innovation scenarios to select value Ensure management and other key
alternatives for implementation stakeholders understand the rationale of
y Exchange information with the project the value alternatives. Also generate
team interest to sanction implementation.
y Ensure management has full and
objective information upon which they
can make decisions
y Outline an anticipated implementation
y Prepare formal report

Common Value Study products include a

briefing document, risk analysis; cost vs.
worth comparisons; Present worth analysis;
advantages vs. disadvantages

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Post-Workshop Activities
Implementation Activities y Ensure that new practices become
embedded by establishing and
Purpose: managing an implementation plan
Ensure accepted value alternatives are Typical Outcome:
implemented and that the benefits
The project stakeholders determine what
projected by the Value Study have been
will be changed in the project as a result of
the Value Study. These are changes to the
Fundamental Question: original concept or base case of a study,
resulting from the value alternatives, that
What are the program changes, and how
the project development will incorporate in
will the project team manage them?
future design or product development
Following delivery of the value study
preliminary report, management and the
project team should consider and agree
upon the value alternatives to be
implemented and then how and by when
the implementation will occur. In some Value Study Follow-Up Activities
instances, additional study and information
may be required. Implementation of Purpose:
alternatives is the responsibility of Follow up on implementation of the Value
management with assistance from the Study results and improve the application
project and value teams. of a value methodology for future studies.

Common Activities: Fundamental Question:

y Review the preliminary report What have we learned about how best to
y Conduct an implementation meeting to create or improve value of the subject
determine the disposition of each value under study?
y Establish action plans for those Common Activities:
alternatives accepted and document y Prepare a report of the results of the
the rationale for the rejected study, lessons learned, or other items to
alternatives be recorded and/or tracked through
y Obtain commitments for implementation
implementation y Identify where opportunities were
y Set a timeframe for review and missed
implementation of each value y Identify roadblocks to innovation and
alternative understand why they existed
y Track value achievement resulting from y Debrief and record lessons learned
implemented alternatives y Integrate Value Study results into
y Sign off deliverables organization’s lessons learned or
y Validate benefits of implemented program reporting

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Body of Knowledge

y Reflect on the value study and consider the value study, comparing the way things
how the experience has developed turned out, and ascertaining how that
new capabilities knowledge affects the way they believed
their own theories in the first place. This is a
Typical Outcome: key step in learning what will help the
Individuals become better value creators organization become better at managing
by reflecting on theories they held before innovation.

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Body of Knowledge

Roles and Responsibilities

Management functions. At this early stage it is the Value
Manager’s responsibility to ensure that all
The aim of a value methodology is to parties who have a vested interest in the
increase organizational value through a project participate in the Value Study,
union of strategy, tactics, and operations including suppliers, customers, clients, end
with emphasis on “customer need,” cost users, and possibly outside interests, in order
effectiveness, and/or profitability. The link to gain the total perspective of real ‘needs’
between the Value Study and the vs. ‘wants’ so as to provide the maximum
organization is the role of management in value for the project being studied.
value improvement. Two key management
roles exist: Senior Management and the As the project approaches the design
Value Manager. phase, a value methodology focuses more
on the functions of each element or
Senior Management responsibilities are to component within the detailed design, with
provide clear leadership and make the results of function analysis and creativity
strategic expectations explicit in a being more limited since resources have
purposeful and prioritized manner. Senior been allocated and money spent. It is
management should understand the senior manager’s responsibility during a
potential benefit from a Value Study, Value Study at this stage of the project to
approve the expenditure of resources assess which value alternatives are
necessary to support the study, and guide economically feasible based upon the
the implementation for approval of requirements of the
required funding necessary to customer or client.
realize the recommendations.
The roles and As a project moves into
The roles and responsibilities of responsibilities of the the implementation phase
the Value Manager (an (construction or
organization’s designated Value Manager vary production), a value
manager of value) vary throughout the life of methodology process
throughout the life of the project. works to ensure changes
At all times the Value Manager
the project. are made. Although many
should confirm that value projects can still benefit
methodology activities are from a Value Study at this
coordinated and performed effectively in stage of a project, it is the responsibility of
order to meet the goals and objectives of the Value Manager to encourage early
the organization. A value methodology involvement of the organizations that are
can be used throughout project affected by the changes to ensure the
development with a different focus at each maximum benefit for any Value Study. For
stage. any given project, it is important that the
senior management team be made aware
At the conceptual stage, a value that the earlier a Value Study can be
methodology can be used to determine performed, the more potential benefit
the cost versus the worth of basic project there will be for the client or customer.

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Another role of the Value Manager is to ♦ Evaluate ideas using their experience
ensure that the proper amount of Pre- and expertise
Workshop activities take place prior to any ♦ Develop alternatives
Value Workshop. These Pre-Workshop
♦ Present results
activities may not need the attention of the
whole team. However, a successful Value
Study is unlikely without proper planning
Team Members’ Responsibilities
and information sharing so all interested
parties have a clear understanding of the
1. Keep accurate notes as assigned by
purpose and details of the project. This,
team leader
again, is the responsibility of the Value
2. Consult with team leader on any
Manager in charge of the project. If these
problem that may handicap progress
details are properly communicated with
3. Show respect through timely
the clients and customers involved, the
potential for a successful Value Study is
4. Share workload equally whenever
greatly increased.
Executive Review Board: Senior managers 5. Be willing to admit if they don’t know;
set the initial strategic goals for the Value but strive to get the answer. Don’t be
Study and, at a later date, decide which afraid to make mistakes
outputs will be invested so they can be 6. Stay focused - avoid tangents - follow
implemented. These managers do not the basic problem-solving steps and
always participate in the day-to-day get help from Value Team Leader on
working of the Value Study but are part of what techniques may be most suitable
the overall value program. for the particular problem
7. Don’t waste time discussing whether or
Sometimes managers are designated as not a step should be used; do it and
Sponsors or Champions to support a value evaluate it all after the entire workshop
study and/or the value program within an 8. Understand the approach being
organization. taught and its purpose, including the
reason for each step and the
Technical Champions: Those members of technique being applied
the Value Study team who are selected 7. Do the job together as a team. Don’t
because of their technical expertise. force individual solutions - sell them!
Remember, there can be more than
one solution to a problem
Value Team Members 8. Be a good listener; don’t cut people off
and don’t second guess what other
Value Team members are expected to people are going to say and what they
participate in a Value Study in the following are thinking
♦ Participate in all meetings
♦ Gather information as requested
♦ Analyze information
♦ Identify functions
♦ Contribute ideas

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Body of Knowledge

9. Bring all data that bears on the Team Leader’s Responsibilities

problem – some objective, some
subjective. Keep an open mind and 1. Ensure proper application of a value
don’t be a roadblock methodology and follow the Job
10. Be enthusiastic about the project and Plan
what it is that you are doing 2. Guide the team thorough the the
11. Do not attempt to take over as a Team activities needed to complete the
Leader – be as helpful as possible. pre-study, the Value Study and the
Remember, the leader already has a post study stages of a Value Study.
difficult job in trying to guide, control 3. Delegate responsibilities as
and coordinate the overall effort appropriate
4. Schedule follow-up team meetings
Team Leader and prepare the agenda
5. Keep team focused on specific
The Value Team Leader will plan, lead, and topic
facilitate the Value Study. Other key 6. Keep team members involved in the
responsibilities are noted below. discussion and the work that needs
to be done
This individual is also expected to have 7. Keep all team members together
numerous skills and experience that are whenever possible. It is desirable that
listed in Key Competencies for Value everyone breaks together, to
Practitioners (See Key Competencies for maintain team continuity
Value Practitioners). To ensure that the 8. Be a catalyst to keep team moving
Team Leader is trained and qualified to and motivated. Be diplomatic; not
lead the team, that person shall be a CVS dictatorial.
(Certified Value Specialist) as certified by
SAVE International, or equivalent, as
defined elsewhere in this Standard.

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Body of Knowledge

Standard Revision Process

The SAVE International Value Standard is The Standard and Body of Knowledge will
intended to provide a practical guide to be reviewed for possible updating every
apply the principles of a value four years, concurrent with the installation
methodology in a consistent manner. It of a new SAVE International President. The
may be used by both practitioners and Director of Standards and the Standards
management. Review Team will review the current
Standard and report to the Executive Board
The Value Standard, originally drafted in any actions necessary to update the
May 1997, has been through a process of Standard. This action will be completed by
periodic updates to address changes in the the fall Board of Directors Meeting following
business environment and technology, and the installation of the new President.
to meet future integration with the
International Standards Organization. Prior SAVE International members in good
to 2007, a formal process for reviewing and standing can, at any time, provide the
updating the Standard did not exist. As part Director of Standards with a written request
of the 2007 Value Standard update, the to modify or update the Value Standard or
following process was developed and Body of Knowledge. When this occurs, the
adopted to address future updates. Director of Standards and the Standards
Review Team will review the request and
Standard Responsibility provide a recommended plan of action to
the Board of Directors.
The SAVE International Director of
Standards has the primary responsibility for Once the Board of Directors approves an
managing the review process and action to update the Value Standards and
updating the Value Standard and Body of Body of Knowledge, the following process
Knowledge. The Director of Standards will be used to amend the wording or
appoints and maintains a Standards content of this document:
Review Team of experienced practitioners,
1. The Board of Directors approves the
one member of which (excluding the
specific areas of the Value
Director) should be a Fellow of SAVE
Standards and Body of Knowledge
International who is actively practicing a
to modify.
value methodology full time. Another
member will be a member of the
2. The membership of SAVE
Certification Board. The team shall have a
International is notified of the scope
minimum of three members (including the
of changes under review via
Director of Standards) and a maximum of
Interactions, a magazine published
seven members. This team will perform a
by SAVE International. The
review of the document and recommend
membership will direct all comments
improvements/changes to the Board of
to the Director of Standards.
3. The Director of Standards may add
up to a total of seven members to
the Standards Review Team in order

SAVE International Value Standard, 2007 edition 23

Body of Knowledge

to ensure the proper expertise is Standards Review Team, and Board

present on the team to develop the Oversight Team before the changes
changes. are taken to the SAVE International
Board for final approval
4. The Director of Standards and the
Standards Review Team will: 8. The SAVE International Board of
Directors will review, provide
a. Develop specific changes to comments, and issue the final
the Standards to address the approval of the change after any
areas approved by the SAVE comments are addressed. Any
Board. changes made by the SAVE
International Board of Directors will
b. Review the rest of the be resubmitted to the Certification
Standard to ensure that the Board for approval.
changes do not conflict with
the rest of the document. 9. If, after going through this process,
full agreement has not been
5. A Board of Director’s Oversight Team reached, a special committee will
comprised of the President, be formed to resolve this issue. This
Executive Vice President, and VP of committee, chaired by the President
Education will review, provide and comprised of the Certification
comments, and issues a preliminary Board Chair, the Executive VP, the
approval of the change. VP of Education, the Dean of the
College of Fellows, and the Director
6. Once the Oversight team has of Standards, will resolve any
approved the changes, the changes disputes.
will be submitted to the Certification
Board, whose members will review, 10. Final revision will be posted on the
provide comments, and approve SAVE International website followed
the changes. by membership notification of the
7. Any changes recommended by the
Certification Board are to be agreed
to by the Director of Standards,

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Body of Knowledge

Key Competencies for Value Practitioners

A Value Practitioner should understand the following principles and be able to effectively
communicate them to management and team members. Mastery of these competencies will
help ensure effective leadership of a wide range of multidisciplinary Value Study teams.

Value Principles
Strategic Problem/Opportunity Framing
J Historical development of the Value
Methodologies J Reviewing the business case

J The relationship between an J Discounted cash flow modeling

organization's strategies and a value
methodology J Analysis through key financial ratios

J Fundamental value principles, methods, J Strategic models, decisions, choices,

and job plans and uncertainties

J The relationship between value, J Identification of causal relationships and

functions, and solutions their modeling

J Function analysis J Identification of attributes and value

J Types of value
J Analysis of performance attributes (non-
J Value drivers (e.g., cost, schedule, monetary factors that affect value)
quality, risk, user attitudes etc.)
J Defining the base case and
J Investment appraisal techniques benchmarking

J Key thought-provoking questions J Determining whether the remaining

phases of the value study can justify the
client’s investment or whether what they
have is good, as understood within the
Value Job Planning terms and references used

J Major phases and activities in a Value

Job Plan
Function Analysis
J Purpose and objectives of each phase
of the job plan J Purpose and need
J Overview of techniques in a typical job J A “thing”, “process”, “product” or
plan “project” and their functions

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Body of Knowledge

J Defining functions with active verb and J Managing divergent thinking

measurable noun context
J Brainstorming techniques
J Function classification
J Unrestricted idea generation
J Levels of abstraction
J Large quantity of ideas is the goal
J Function Analysis System Technique
(using how-why logic) J Suspending judgment until the
evaluation phase
J If-Then and Caused-By logic flows of
classical and technical FAST models, J Other idea generation techniques
often termed “When”

J The differences among various FAST

diagrams and models (customer, Evaluation
technical, classical, hierarchical)
J Purpose and need

J Managing convergent thinking

Function, Performance, Worth, Cost and
J Building greater understanding of other
Customer Attitude people's ideas
J Purpose and need J Evaluation methods and techniques
J Cost as resource expenditure

J Performance-to-cost relationships
hitchhiking VM Study Recommendation
J Cost-to-worth relationships
J Document the key information related
J Cost-to-function allocation to a Value Study recommendations
♦ Original Concept
J Function worth identification and ♦ Proposed Change
♦ Discussion of benefits of the change
♦ Cost impact analysis
J Cost-value relationships
♦ Sketches
J Cost-value mismatches ♦ Implementation considerations
♦ Follow-up actions
J Pareto analysis of major cost drivers
J Investment appraisal

J Technical implementation feasibility

Creativity J Political implementation feasibility
J Purpose and need J Initial and subsequent revenue impacts

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Body of Knowledge

J Initial and subsequent cost impacts J Team Leader skill development

J Initial and subsequent schedule impacts J Strategic diagnosis and

problem/opportunity identification
J Life cycle cost analysis techniques

J Initial and subsequent impacts on other J Selecting and leading Value Studies
key attributes
J Coordinating Value Study logistics
J Sketches and other communication aids
J Facilitator skills

J Tracking Value Study implementation

Presentation results and other reports as necessary

J Purpose and need J Coordinating with other organization or

client quality improvement programs
J The relationship between a value
methodology and the needs of senior J Educating the organization in the value
management decision makers methods

J Presentation skills J Recognizing Value success and failures

and how to learn as a team
J Content organization
J Sharing value insights with the
J Implementation plan community and stakeholders

J Change management strategies J Periodic Value Program review for

continuous improvement
J Explanation of value tracking process

Management of Value Programs

J Management roles and responsibilities

J Reporting responsibilities

J Establishing links between Value Study

outcomes and organizational results

J Value training

J Facilitation skills training

J Organizing and implementing Value


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Body of Knowledge

VM Glossary
In 1985, the Lawrence D. Miles Foundation individually and in teams to define, refine
created the College of Fellows of the and finalize a glossary of value related
Society of American Value Engineers terms. In 2006, the Glossary was reviewed
(SAVE), now SAVE International, with the by the Certification Board and those
specific intent of developing a Glossary of definitions most essential to the current
Terms related to value. Over a two year application of value methodologies were
period, approximately 10 Fellows worked identified and refined where necessary.

ASSOCIATE AVS is a recognition designed for individuals who are new to the value
VALUE SPECIALIST methodology. An AVS is encouraged to progress to VMP or CVS
(AVS) certification.

CERTIFIED VALUE CVS is the highest level of certification attainable through SAVE
SPECIALIST (CVS) International. Designation is reserved for Value Specialists and Value
Program Managers who have demonstrated expert level experience and
knowledge in the practice of the value methodology.

COST: The expenditure of resources needed to produce a product, service, or


COST, LIFE The sum of all development acquisition, production or construction,

CYCLE: operation, maintenance, use, and disposal costs for a product or project
over a specified period of time.

COST MODEL: A financial representation such as a spreadsheet, chart, and/or diagram

used to illustrate the total cost of families of systems, components, or parts
within a total complex product, system, structure or facility.

FUNCTION: The original intent or purpose that a product, service or process is

expected to perform. It is expressed in a two-word active
verb/measurable noun structure.

FUNCTION A graphical representation of the dependent relationships between

ANALYSIS SYSTEM functions within a project.
(FAST): y Classical FAST Model: A function displaying the interrelationship of
functions to each other in a “how-why” logic. This was developed by
Charles Bytheway.

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Body of Knowledge

y Hierarchy Function Model: A vertical “hierarchical” chart of functions.

This places the basic function at the top. The function of each major
system is placed beneath the basic function. The functions that
support each of these functions are then placed on the next row. This
process is continued until the team feels the level of detail is sufficient
for the intent of the study.

ƒ Technical FAST Model: A variation to the Classical FAST that adds “all
the time” functions, “one time” functions and “same time ” or
“caused by” functions.

ƒ Customer-Oriented FAST Model: This variation of the FAST diagram

was developed to better reflect that it is the customer that
determines value in the function analysis process. Customer-oriented
FAST adds the supporting functions: attract users, satisfy users, assure
dependability, and assure convenience. The project functions that
support these customer functions are determined by using the how-
why logic.

FUNCTION The process of defining, classifying and evaluating functions.


FUNCTION, The specific purpose(s) for which a product, facility, or service exists and
BASIC: conveys a sense of ‘need’. In ‘continuous innovation’ projects the basic
function must always exist, although methods or designs to achieve it may
vary. In ‘discontinuous innovation’ projects, which seek to create new
industries, the existence and persistence of the basic function is itself the
focus of challenge.

FUNCTION COST: The expenditure of resources to perform the function.

FUNCTION, The specific goals (needs) for which the basic function(s) exists.

FUNCTION, The function that is selected to initiate the project and is outside the study

FUNCTION, A function that supports the basic function and results from the specific
SECONDARY: design approach to achieve the basic function.

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Body of Knowledge

FUNCTION, SELL: A function that provides a subjective expression of something that is to be

achieved. In Function Analysis, sell functions are qualitative and are
described using a passive verb and a non-measurable noun. Sell functions
are also sometimes referred to as “aesthetic” functions.

FUNCTION, A function that provides an objective expression of something that is to be

WORK: accomplished. In Function Analysis, work functions are quantitative and
are described using an active verb and a measurable noun. Work
functions are also sometimes referred to as “use” functions.

FUNCTION The lowest overall cost to perform a function without regard to criteria or
WORTH: codes.

JOB PLAN: A sequential approach for conducting a value study, consisting of steps or
phases used to manage the focus of a team’s thinking so that they
innovate collectively rather than as uncoordinated individuals.

PERFORMANCE: The capacity of a product to fulfill its intended function. Factors such as
reliability, maintainability, quality and appearance are some examples.

PROJECT: A temporary endeavor undertaken to create a unique product, service, or

result. For the purpose of Value Studies, a project is the subject of the
study. It may be a physical product such as a manufactured item, or a
structure, system, procedure, or an organization.

PROCESS: A sequence of activities that delivers a product or project.

SAVE For the purpose of a Value Study, the Job Plan shall be facilitated by a
INTERNATIONAL Certified Value Specialist (CVS), or a Value Methodology Practitioner
CERTIFIED (VMP) working under the supervision of a CVS. SAVE International
PROFESSIONAL: Certification requirements are identified by the SAVE International
Certification Board, which maintains a list of currently certified individuals.

SCOPE: The portion of the overall project that is selected for the value study. The
analysis accepts everything within the defined scope in order to focus
attention on the functions within those limits.

VALUE: An expression of the relationship between function and resources where

function is measured by the performance requirements of the customer
and resources are measured in materials, labor, price, time, etc. required
to accomplish that function.

SAVE International Value Standard, 2007 edition 30

Body of Knowledge

VALUE ANALYSIS: The application of value methodology to an existing project, produce or

service to achieve value improvement.



VALUE The application of a value methodology to a planned or conceptual

ENGINEERING: project or service to achieve value improvement.

VALUE INDEX: A ratio that expresses function cost ÷ function worth. This ratio is used to
determine the opportunity for value improvement, which is usually
identified in the Function Analysis Phase.

VALUE The application of value methodology by an organization to achieve

MANAGEMENT: strategic value improvement.

VALUE A systematic process used by a multidisciplinary team to improve the value

METHODOLOGY: of projects through the analysis of functions. See Value Engineering, Value
Analysis and Value Management.

VALUE An alternative or alternatives prepared by the value study team and

METHODOLOGY presented to management to provide financial and/or performance
ALTERNATIVE (or improvements and which is within acceptable terms and conditions of the

VALUE VMP recognizes individuals with basic value training and some experience
METHODOLOGY in the application of the methodology. Value methodology practitioners
PRACTITIONER participate in or lead Value Studies.

VALUE One who applies the value methodology principles to study and search for
PROFESSIONAL: value improvement. Synonymous with value analyst, value engineer, value
practitioner, or value specialist.



VALUE STUDY: The application of a value methodology by SAVE International certified

professionals using the Value Job Plan.

SAVE International Value Standard, 2007 edition 31

Body of Knowledge

Publications Catalog, SAVE International: Building Systems,” American Society
Describes textbooks and for Testing and Materials, Publication
educational materials on Value E-1699.
Methodologies and related
programs. This catalog includes Value Certification Manuals (on SAVE
videotapes and information on International
Value World, SAVE International’s website/home/certification)
peer-reviewed, technical journal.
y Certification/Recertification
Annual Conference Proceedings, SAVE Manual
International: Includes all y Certified Workshop Manual
presentations given at each annual y Certification Examination Study
conference. Also available is a value Guide
bibliography, a compilation of all y SAVE International Internet Web
presentations since 1980, and articles Site:
from Value World. Each presentation
shows title, author, abstract, and Lawrence D. Miles Value Foundation
source. Papers may be individually Internet website:
ordered from SAVE International.

SAVE International website: Techniques of Value Analysis and Engineering, Lawrence D. Miles

“Standard Practice for Performing Value

Analysis (VA) of Buildings and

SAVE International Value Standard, 2007 edition 32