L3M2 Sample Questions Answers

Explanation

A performance specification concentrates on the outputs of whatever it is you're buying.

Explanation

While one can take the view that your weekend is yours and nothing to do with your main employ-er, many contracts of employment prohibit extra work unless pre-agreed. In any event, it is likely to be seen as polite and respectful to seek permission from your main employer. The point about need-ing to rest at weekends (and during annual holidays) is a serious point: we should be able to func-tion effectively during normal working hours.

If your main employer does not give consent, you may wish to ask for a pay rise. :)

Explanation

Output per unit of input resource.

Efficiency is, in a sense, seeking to get as much out of a system, while putting in as little as possible.

Explanation

Commitment to Quality.

You will need to know the 10 C's for various exams at Advanced Certificate, CIPS Diploma, and possibly beyond...

Explanation

Transparency.

Explanation

The product has a defect; it might be rejected, then it would be a reject.

The effect of this might be that it would affect profitability.

Explanation

Whilst alerting senior managers to wrongdoing within the organisation may be whistling in the wind, requiring one to wet one's whistle afterwards, the term for this increasingly common practice in organisations is 'whistleblowing'.

Explanation

The correct answers to the QUESTION NO: are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services.

The other four answers are distinguishing features of services, which result in services being more challenging to buy.

Explanation

A simple solution is to 'recuse' yourself from anything to do with this procurement. That way, nei-ther you, your employer or your sister can be accused of malpractice.

Disbarring your sister's employer punishes them simply because both they and your firm employed high-quality people. :)

Sometimes knowing you are honest is not enough: sometimes you have to demonstrate that.

So the only answer which makes sense is the correct one, as above.

Explanation

This is the Pareto Principle, which can be invaluable as a guide for any procurement person, or any manager.

The other names shown here are those of other well-known thinkers, all much earlier than Pareto.

Explanation

Key performance indicator, designed to monitor a small number of critically-important aspects of supplier performance, indicated within a contract or a service level agreement as part of a contract.

Explanation

The correct answer is ISO 9000 - this was based originally on the British Standard BS 5750.

ISO 14,001 is an environmental management standard.

ISO 19,000 is a management systems standard.

Explanation

CIPS is keenly interested in procurement ethics, and you can find a wealth of information on the CIPS website as well as other CIPS publications, such as Supply Management magazine.

CIPS members are also encouraged to undertake the ethical training and test, also available online via the CIPS website.

Explanation

The statement is false.

CIPS actively campaigns against modern slavery anywhere in the world.

Explanation

This is a reference to cost reduction - something which procurement is often tasked with as an activ-ity.

Thisquestionis pretty straightforward - we wouldn't normally seek cash, profit or value reductions. However, there is something a little bit counter-intuitive: adding or creating something by making a reduction... Perhaps 'less is more'.

Explanation

A force majeure clause in a contract may give rights to either party to suspend its obligations in the event of something untoward happening which is outside the control of the parties.

Examples might volcanic dust clouds, tidal waves or a pandemic. Often lesser events trigger (or are used to try to trigger) the use of such a clause.

Explanation

On time and in full.

OTIF is a reference to an order placed with a supplier having been delivered in the right quantity and on time. Note that this acronym makes no reference to quality.

Explanation

Functionality.

The idea of value analysis or value engineering is that cost should be taken out of the product, whilst enabling the same performance.

Explanation

All of the ones shown, except acting as a means of exchange, which is one of the parts of a defini-tion of money.

Explanation

FACE2FACE

An alternative to Carter's 10 C's.

Fixed assets, ability to deliver, cost, efficiency

Financial stability, ability to work with the buyer, commitment to quality, environmental / ethical factors.

Explanation

Value analysis.

This is simply a distinction between VA and VE.

Explanation

Pareto Analysis is sometimes known as the 80-20 Rule. It is the basis of ABC Analysis.

'in any series of elements to be controlled, a selected small factor [say 20%] in terms of number of elements almost always accounts for a large factor [say 80%] in terms of effort'. The figures in square brackets are illustrative - Pareto did not include these numbers and the % can be otherwise. The principle that a small percentage of 'things' will soak up a large amount of resource is what actu-ally matters.

For example, if you have 100 suppliers, a disproportionate amount of energy / time / spend will be devoted to a small number of them. Similarly if you have 100 staff members. Or a stock range of thousands. Similarly for customers. And so on.

A relatively simple concept, worth it's weight in gold in my opinion - my favourite management concept.

Explanation

Key Performance Indicators should be specific, measurable, achievable, realistic and time-bound; or words very similar to those, meaning broadly the same.