The Management of Value (MoV) framework is structured around seven principles and seven processes. The processes provide a pathway for applying MoV within a programme or project. "Frame the programme or project" is the first of these seven processes. It involves understanding the strategic context, objectives, and key stakeholders to establish a solid foundation for all subsequent MoV activities. The other options listed are MoV principles, which are the guiding obligations and good practices that determine whether MoV is being applied effectively, rather than being distinct, sequential process steps.

A. "Learn from experience and improve" is one of the seven MoV principles, which guides the overall approach, not a specific process step.

B. "Tailor MoV activity to suit the subject" is a MoV principle that emphasizes adapting the framework, making it a guiding rule rather than a process.

D. "Focus on functions and required outcomes" is a core MoV principle that directs how value should be perceived and analyzed, not a process itself.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office (TSO).

Page 23, Section 3.3, "The MoV processes": This section explicitly lists the seven MoV processes, with "Frame the programme or project" being the first.

Page 13, Section 2.3, "The MoV principles": This section details the seven MoV principles, which include "Focus on functions and required outcomes" (Principle 2), "Tailor MoV to suit the subject" (Principle 5), and "Learn from experience and improve" (Principle 6). This confirms that options A, B, and D are principles, not processes.

When formulating MoV Study Plans, it is crucial to understand the external context, often analyzed using PESTLE (Political, Economic, Social, Technological, Legal, Environmental). Environmental influences, such as sustainability targets or carbon reduction policies, frequently create inherent conflicts with other project objectives, like minimizing cost or maximizing speed. The Management of Value (MoV) methodology provides a structured framework and specific techniques (e.g., Function Analysis, Value Trees) to explicitly identify, analyze, and reconcile these competing demands. By focusing on function and balancing benefits against resources and risks, MoV facilitates decision-making to achieve the optimal balance and deliver the best overall value.

B. Legal requirements are fundamental value drivers. Non-compliance can lead to severe penalties and reputational damage, thus heavily influencing and often defining minimum acceptable value criteria.

C. While uncertain, the potential impact of technology is a key area for value improvement. MoV studies actively explore technological developments to identify opportunities and threats, not dismiss them as unknown.

D. Understanding what other organizations are doing through benchmarking is essential. It provides context, identifies best practices, and helps set realistic targets for value improvement.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office.

Section 4.3.2, ‘Plan the MoV study: activities’: This section emphasizes gathering information on the subject of the MoV study, including the wider context and stakeholder perspectives, which encompasses environmental, legal, and technological factors (p. 39).

Appendix C, ‘PESTLE’: This appendix details the analysis of external environmental factors, stating that these influences "may constrain the project or programme or create opportunities" which MoV must address (p. 156).

Section 2.2, ‘What is value?’: The definition of value as the relationship between satisfying needs and the use of resources inherently involves balancing conflicting criteria, such as environmental performance versus cost (p. 9).

An organization's culture is fundamentally defined by its shared values, beliefs, and assumptions. The Value Profile is a Management of Value (MoV) technique specifically designed to understand, structure, and articulate the key value drivers for an organization and its stakeholders. By creating and understanding this profile, a MoV Study Leader gains the most direct and structured insight into what the organization considers important. This understanding of core values is the most helpful and fundamental element for comprehending the organizational culture, as it explains the "why" behind behaviors, decisions, and priorities.

B. What the organization does describes its outputs and activities, but not the underlying values or behavioral norms that constitute its culture.

C. The organization's jargon is a surface-level artifact or symptom of a culture, not a deep insight into the core beliefs that drive it.

D. The organization's business priorities are often an outcome or expression of its culture and values; the Value Profile provides a more foundational understanding of why those priorities exist.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office (TSO).

Section 5.3, 'Understand the environment': This section emphasizes the need to understand the organization's culture as part of the environment in which MoV is being applied. It states, "The environment includes the organization’s culture, its readiness for change..." (p. 32).

Appendix C.13, 'Value Profile (Value Tree, Value Drivers)': This section defines the Value Profile as a technique to "understand and articulate the key value drivers for the organization". It is described as a hierarchical model of value components that helps clarify what is important to stakeholders (p. 138). The direct link is that understanding what is valued (Value Profile) is key to understanding the culture.

Operating and running costs refer to the ongoing, recurring expenditures required to keep a system functional after it has been implemented. Options A, B, and C are all valid inputs for estimating these operational costs. Using data from similar implementations (analogous estimating), assessing the cost of required specialist skills, and estimating staffing levels are standard techniques for forecasting future operational expenditure (Opex).

Conversely, the expenditure on Management of Value (MoV) studies is a one-time cost incurred during the project's initiation and planning phase. It is part of the initial investment or capital expenditure (Capex) used to justify and shape the project, not a recurring cost of running the final system.

A. The operating costs of a similar IT implementation is a valid analogous estimation technique used to forecast future running costs.

B. The current daily rate of specialist skills is a direct and necessary input for calculating the ongoing personnel costs of operating the system.

C. An estimate of how many staff would be required is fundamental to calculating the total labor component of the system's running costs.

1. Management of Value (MoV) Guide. The Stationery Office (TSO), 2010. Section 4.4.3, "Investment appraisal," discusses Whole-Life Costing. This concept distinguishes between initial capital costs (which would include the cost of appraisal studies like MoV) and subsequent operating and maintenance costs. The cost of the study itself is not part of the system's operational budget.

2. Management of Value (MoV) Guide. The Stationery Office (TSO), 2010. Appendix C, "Techniques – Whole-life costing," explicitly breaks down costs into categories: initial capital investment, operating costs, and disposal costs. The expenditure on a pre-project study falls under the initial capital investment, not the operating costs.

3. MIT OpenCourseWare. 16.852J Integrating the Lean Enterprise, Fall 2005. Lecture 10, "Life Cycle Cost Analysis." This courseware explains that life cycle costs are composed of distinct phases, including research & development, production/acquisition, and operation & support. The cost of a value study (like MoV) belongs to the initial R&D or acquisition phase, while operating costs are part of the subsequent operational phase.

The Management of Value (MoV) methodology emphasizes a structured approach to innovation. The most effective technique is to channel creative thinking by focusing on the functions that a project or service must perform. The Function Analysis model, often represented by a Function Analysis System Technique (FAST) diagram, provides this essential focus. By applying brainstorming to each specific function (e.g., asking "How else can we perform this function?"), the team generates targeted, relevant, and innovative ideas that are directly linked to delivering value, rather than engaging in unfocused, freewheeling discussions.

A. Unstructured, freewheeling discussion lacks the focus on value-driving functions, making it less effective than a targeted approach guided by function analysis.

C. Evaluating and rejecting ideas as they are identified is counter-productive. It stifles creativity and violates a core principle of brainstorming, which is to defer judgment.

D. Introducing financial assessment during the idea generation phase prematurely shifts the focus from creative possibilities to cost constraints, which can inhibit innovation. This is an evaluation activity.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office.

Section 6.4.3, Phase 3 - Creative: "The purpose of the creative phase is to generate a wide range of ideas on alternative ways of performing the functions that have been identified and analysed." This directly links the creative phase to the preceding function analysis.

Section 6.4.3.1, Brainstorming: "The team should focus on one function at a time, starting with the higher-order functions on the FAST diagram... The question to be addressed is: 'How else can this function be performed?'" This explicitly confirms that brainstorming is guided by the function analysis model.

Section 6.4.3, Phase 3 - Creative, Principles: One of the key principles listed for the creative phase is "Criticism is ruled out," which directly contradicts option C. The evaluation of ideas occurs in the next phase.

The approach to implementing Management of Value (MoV) within an organization is a strategic process that begins with a foundational understanding of what the organization values. The first stage involves engaging with senior management to comprehend the organizational environment and strategic objectives. This allows for the clear articulation of what 'value' means in that specific context. This initial step, "Understand and articulate value," is crucial for aligning all subsequent MoV activities and embedding a value-focused culture. It precedes the application of specific MoV processes on projects or programmes and sets the direction for the entire implementation plan.

B. "Tailor MoV activity to suit the subject" is one of the seven MoV principles that guide application, not a distinct stage in the implementation approach.

C. "Frame the programme or project" is the first of the seven MoV processes applied during a specific MoV study, not a stage of organizational implementation.

D. "Apply MoV throughout the investment decision" is also one of the seven MoV principles, defining the scope of application rather than being an implementation stage.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office (TSO).

For Correct Answer (A): Chapter 7, "How to implement MoV," Section 7.2, "The approach to implementation," outlines the first step as "Understand the environment and senior management objectives." This directly corresponds to the concept of understanding and articulating value as the foundational stage.

For Incorrect Options (B and D): Chapter 2, "What is MoV?", Section 2.2, "The MoV principles," lists "Tailor MoV to suit the subject" and "Apply MoV throughout the investment lifecycle" as guiding principles, not implementation stages.

For Incorrect Option (C): Appendix C, "The MoV process," and Chapter 4, "How to apply MoV," Section 4.2, "The MoV pathway," identify "Frame the programme or project" as the first process within an MoV study.

The official Management of Value (MoV) guidance provides evidence of its effectiveness from various sectors. Specifically for government applications, it cites a report from the US Office of Management and Budget (OMB). This report documented that US federal departments applying value-improving approaches have demonstrated returns on investment (ROI) that range from 34:1 to over 300:1. This entire range is significantly "more than 30 to 1," confirming the substantial financial benefits achieved through the structured application of value management in the US public sector.

A. Less than 10 to 1: This is incorrect. The documented evidence shows the lowest ROI in the range is 34:1, which is substantially higher.

B. Less than 20 to 1: This is incorrect. The reported ROI starts at 34:1, well above the 20:1 threshold.

C. Less than 30 to 1: This is incorrect. The evidence explicitly states the ROI range begins at 34:1, which is greater than 30:1.

1. AXELOS. (2010). Management of Value. The Stationery Office (TSO). Chapter 1, Section 1.4.1, 'Evidence from government', Page 6. (This section states: "In the USA, the Office of Management and Budget (OMB) has reported that federal departments have demonstrated returns on investment ranging from 34:1 to over 300:1 as a result of the application of value-improving approaches.")

Cost/function analysis is a core technique within the Management of Value (MoV) methodology used to assess value for money. It involves systematically identifying the functions of a project, product, or service (what it does), and then allocating costs to those specific functions. By comparing the cost of a function to its importance (or worth) to stakeholders, a team can determine which elements, or Value Drivers, offer poor value and require improvement. This analysis is fundamental to the MoV equation: Value = Function/Cost.

A. Value index: This is the numerical result or metric (Worth/Cost) derived from the analysis; it is not the assessment technique itself.

B. Cost/benefit analysis: This is a broader financial appraisal method. MoV uses the more specific and structured technique of Function Analysis to deconstruct value.

C. Cost/worth analysis: While MoV defines value as the relationship between worth and cost, 'Cost/function analysis' describes the specific, systematic technique used to perform this assessment.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office (TSO).

Section 5.3, Page 43: Introduces Function Analysis as a key MoV technique "for analysing a project, product, service or process into its constituent parts to understand the functions that each part contributes".

Section 5.3.1, Page 44: Explains the process of allocating costs to functions, stating, "This enables the study team to identify functions that have a low value index (i.e. a high cost relative to their importance)." This directly describes the process of cost/function analysis for assessing value.

Appendix C, Glossary, Page 138: Defines Function Analysis as "A technique to identify and quantify the functions of a project, product, service or organization." This confirms it is the technique used for assessment.

Appendix C, Glossary, Page 138: Defines Value Index as "A figure that represents the relationship between the cost of providing a function and the worth of that function..." This confirms it is the output metric, not the method.

The Management of Value (MoV) framework is centered on maximizing value, defined as the relationship between the satisfaction of needs and the use of resources. This requires balancing stakeholder needs, aligning resource use with organizational priorities, and optimizing the ratio of benefits to resources. While balancing capital expenditure (CapEx) and operating expenditure (OpEx) is a valid financial management activity that can be part of a value analysis, it is not considered a primary or fundamental balancing act within the core MoV framework itself. MoV is concerned with the total resources used over the whole life of a project or service, rather than the specific accounting classification of those costs.

A. Reconciling stakeholder needs is fundamental to MoV, as different stakeholders define value differently; a balance must be struck to achieve a common understanding.

C. MoV explicitly requires balancing resource allocation against organizational priorities to ensure that limited resources are applied where they will generate the most value.

D. This is the core definition of value in the MoV framework (Benefits vs. Resources), making the balancing of these two elements the central purpose of the methodology.

1. AXELOS, Management of Value (MoV) Guide, 2010 Edition.

Page 11, Section 2.2, What is value?: Defines value as "the ratio of satisfaction of needs to the use of resources." This directly supports the concept in option D as the fundamental balance.

Page 17, Section 3.2, Principle 2: Align with organization's objectives: "MoV activities must be aligned with the organization's strategic objectives... This ensures that the use of resources is focused on the organization's priorities." This supports the balancing act described in option C.

Page 41, Section 4.4.1, Stakeholder analysis: The guide emphasizes the importance of understanding and managing different stakeholder perspectives to define what is valuable, which directly relates to the reconciliation mentioned in option A.

Page 100, Section 9.3.5, Cost estimating: Capital and operating costs are discussed as components of whole-life costing, a technique used within MoV. However, the framework does not present the balancing between these two cost types as a primary area of balance, unlike the concepts in A, C, and D which are foundational principles.

The Function Analysis Systems Technique (FAST) is a core method used during the function analysis phase of a Management of Value (MoV) study. Its primary output is a FAST diagram, which is a graphical representation of a project's or product's functions. This diagram logically organizes functions into a hierarchy by asking 'How?' and 'Why?' for each function, thereby clarifying their interrelationships and dependencies. This visual model helps the team understand the fundamental purposes and ensures all essential functions are identified before seeking value improvements.

B. A detailed proposal to improve value is an output of the later 'Develop proposals' phase of the MoV process, not the FAST technique itself.

C. A diagram showing information flows and responsibilities describes tools like process flowcharts or RACI matrices, which are distinct from the function-based logic of a FAST diagram.

D. An analysis of current equivalent values of future cash flows describes financial evaluation techniques, such as Net Present Value (NPV), used during the 'Evaluation' phase of MoV.

1. AXELOS. (2010). Management of Value (MoV®). The Stationery Office (TSO).

Section 4.3.2, Function analysis, page 41: "The most common method for doing this is the Function Analysis System Technique (FAST), which produces a FAST diagram... The FAST diagram links functions in a logical sequence using ‘how-why’ logic."

Figure 4.5, page 42: Provides a visual example of a FAST diagram, explicitly showing the hierarchical and logical linking of functions.

2. SAVE International. (2015). Value Standard and Body of Knowledge.

Section 3.3.2, Function Analysis System Technique (FAST) Diagramming: "FAST is a diagramming technique to show the logical relationships between the functions of a project, product, or service... The output is a FAST diagram." This confirms the output is a diagram representing function logic and hierarchy.