EX0-006 Online Practice Questions and Answers

Which would be undertaken in the Process Information process?

A. Collating information gathered to date and documenting any analysis already conducted

B. Meeting with key stakeholders to gain consensus on MoV Study objectives

C. Deciding to implement part of a Value Improving Proposal

D. Reviewing cost estimates to check for double counting

Which is a valid criterion for assessing the return on investment of an MoV Study?

A. Completed on time

B. Delivers a reduction on cost

C. MoV processes being followed

D. Completed within budget

When would MoV NOT be of use?

A. When determining the value of a decommissioned asset

B. During the transition of an asset into the operational environment

C. When an asset is in the operational environment

D. During the delivery stage of a project

Why may cost benefit analysis (CBA) be applied when developing a Value Improving Proposal (VIP)?

A. It compares the initial magnitude of cost of an MoV Study with the long term benefits it will deliver

B. All new policies, programmes and projects should be subject to comprehensive but proportionate assessment

C. It is used in conjunction with discounted cash flow to ensure that the lowest cost VIP is always selected

D. It assesses the benefits of implementing a proposal against the risk that the VIP may fail

Which statement regarding a Value Improving Proposal is true?

A. It provides information to feed into the MoV Policy

B. It is an idea-generation technique

C. It is based on detailed analysis of selected ideas or options

D. It is developed before an Option Evaluation Matrix

Which is NOT a recommended action in constructing an Option Evaluation Matrix?

A. Select criteria

B. Define scale of improvement required and sensitivity ranges

C. Set targets

D. Establish weights for relative importance

Which is a reason why MoV should be applied throughout the Investment Decision?

A. To minimize the number of points where decisions need to be made

B. To ensure that information used to make a decision is used only in that decision

C. To maximize value in the face of evolving requirements

D. To ensure that reviews such as those conducted under the Gateway Review Process will be positive

Which would normally be recorded in the Study Scope?

A. Any restrictions placed on the Study

B. A summary of outcomes

C. The method by which ideas are ranked

D. Value Profiles and FAST diagrams

Why is Value Engineering (VE) applied?

A. VE improves value by balancing function and cost whilst trading off time and quality

B. VE primarily aims to bring all the key stakeholders together to reduce project costs

C. VE primarily aims to assess value for money in an existing design or set of circumstances

D. VE produces value improving proposals which will be implemented by the project team

Which statement about the application of the 7 MoV process stages is true?

A. All MoV process stages must be adopted for any MoV Study if it is to be fully effective

B. The Gather Information process only needs to be undertaken for the first MoV Study in a project

C. Some processes will be used at many stages, others only in specific stages

D. Lessons learned MoV studies should only be undertaken at the completion of a project