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Pass the CIPS Level 4 Diploma in Procurement and Supply L4M2 Questions and answers with Dumpstech

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CIPS Level 4 Diploma in Procurement and Supply
L4M2
L4M2 Questions and Answers

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Viewing page 9 out of 10 pages

Viewing questions 81-90 out of questions

Questions # 81:

Which of the following content should a performance specification feature? Select TWO that apply.

Options:

Exact details of the packaging

Outcomes to be achieved

Drawings of the required product

Required quality level

Approved/excluded materials requirements

Answer

B, D

Questions # 82:

Despite of better improvement rates than other types of benchmarking, functional benchmarking still has downsides. Which of the following is most likely to be a disadvantage of functional benchmarking?

Options:

Legal issues regarding intellectual property

Unfair competition

Difference of corporate cultures across companies

Benchmarking can only be undertaken within an industry

Answer

Explanation

Functional benchmarking is a comparison to similar or identical practices (e.g., the picking process for assembling customer orders, maintaining inventory controls of spare computer parts, logistics to move operational forces, etc.) within the same or similar functions outside the immediate industry. Functional benchmarking might identify practices that are superior in your functional areas in whatever industry they may exist. Functional benchmarking would be accomplished at the federal level by comparing the IRS collections process against those of American Express. Comparing copper mining techniques to coal mining techniques is an example in the private sector.

Benefits

- Provides industry trend information

- Quantitative comparisons

- Better improvement rate

Challenges

- Diverse corporate cultures

- Great need for specificity

- Not invented here. syndrome

- Common functions can be difficult to find

- Takes more time than internal or percent

- Must be able to visualize how to adapt the best practices

Source: USN Benchmarking Handbook

LO 1, AC 1.3

Questions # 83:

Synergy Ltd is a fast-growing tool and hardware retailer. The company's customer services team has been using Excel worksheets to manage customer relationships. When the company is expend-ing its market presence, this way of working leads to poorer customer services as the database is scattered around in spreadsheet, leading to patchy and inconsistent conversations with customers. The company decides to purchase a CRM system. What requirement should Synergy's procurement team take into account in the specification for CRM system?

Options:

Total number of the supplier's employees

The ability to import bulk data from Excel spreadsheets

The relative size of the potential suppliers to Synergy

The form and reference number of the purchase order

Answer

Explanation

The purpose of this QUESTION NO: is to test the student's ability to identify the problems and translate those problems to actionable requirements before communicating with the suppliers. The scenario suggests that Synergy Ltd's customer services team is using Excel spreadsheets, they lack a centralised customer database. This leads to problems in communications with customers.

A CRM system can solve the communication problem. But a QUESTION NO: arises: If a CRM system is employed, how will the previous data be imported? If the CRM system can support bulk import from Excel tables, it will save a lot of time.

[Reference: CIPS study guide page 10-18, LO 1, AC 1.1]

Questions # 84:

Which of the following market sectors is largely commodity-dependent, impacted by food standards and public health, impacted by climate change and population change, and driven by technology to improve production yield?

Options:

Finance

Services

Agriculture

Retail

Answer

Questions # 85:

GE has developed TurboProp engine that is made from over 850 metal parts. These parts are sourced from many suppliers. Value of spend on these parts make up 73% of total spend. Any delay in receiving a part will cause a bottleneck around the production of the engine. Which of the following should be the best course of action of GE's CPO?

Options:

Drive down prices by using market competition

Increase production

Part standardisation

Reduce delivery cost

Answer

Explanation

In this scenario, the final product has vast range of parts. The second problem is lacking any part can cause disruption to the production process. So GE has 2 things to do: to reduce the part varie-ties, and secure the supply. Part standardisation is the best option here. It can simplify the range of parts or materials used, and simultaneously, it expands the supply base of GE. If a supplier fails to deliver the part, the company always has other options to replace.

Costs are also a concern, but bottleneck in production imposes a serious risk to the organisation. Driving down costs using market competition cannot be a foremost priority.

Increasing production may help to reduce bottleneck. However, it will also increase the inventory of finished products and unnecessary upkeep costs.

LO 3, AC 3.4

Questions # 86:

A construction company requires a specification that details the exact composition of the concrete mix and the exact methods of construction required for its use. Which specification should it adopt?

Options:

Design specification

Performance specification

Ergonomic specification

Functional specification

Answer

Questions # 87:

Which of the following factors should be assessed to understand the competitiveness of a supply market?

Options:

Presence of a minimum wage

Gross National Product of the country of manufacture

Number of suppliers within the market

Previous price paid for goods

Answer

Questions # 88:

Which of the following are fixed costs? Select TWO that apply.

Options:

Sales commission

Utilities costs

Materials costs

Staff overtime

Premises costs

Answer

B, E

Questions # 89:

XYZ Ltd operates in the plumbing and heating industry. The company has developed and patented a new range of alternative products, using a different material from conventional brass that offers substantial cost savings. XYZ Ltd plans to launch the full range of new products. Will this change the impact on competitive forces in the market?

Options:

Yes, this development has created substitute products

Yes, this development has created the threat of new entrants

No, this development does not impact supplier bargaining power

No, this development does not impact buyer bargaining power

Answer

Questions # 90:

Which of the following specific markets is most likely to have the lowest entry barrier?

Options:

Retail

Manufacturing

Financial

Agriculture

Services

Answer

Explanation

Start-up costs are generally low in service industries, and the main requirement is a level of knowledge and skill in that particular service.

LO 2, AC 2.1

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Viewing questions 81-90 out of questions

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