CIPS : L4M8 Questions & Answers
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CIPS L4M8 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Contracting and Legal Principles | - Contract management
|
| Topic 2: Supplier Relationships and Performance | - Performance improvement
|
| Topic 3: Procurement and Supply Context | - Role of procurement in organisations
|
| Topic 4: Procurement Technology and Innovation | - Innovation in supply management
|
| Topic 5: Risk, Ethics and Sustainability | - Procurement risk management
|
| Topic 6: Procurement Process and Sourcing | - Sourcing strategies
|
CIPS Procurement and Supply in Practice Sample Questions:
What is commissioning?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Commissioning is bringing something new into working condition, e.g start running a gas plant after building it. Commissioning is one of the eight elements that form the cycle of whole life asset management. The commissioning of an asset has the following associated costs, installation, training insurance, testing, operational efficiencies/performance and quality.
What information should be included on a purchase requisition?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
RESPONSE
A purchase requisition should contain the following information
1) Date of the requisition
2) Description of what is required
3) Supplier if known
4) The quantity
5) when the need is required
6) why the need is required
7) who identified the need
8) who approved the need
9) if it's a re-buy
What are the four quadrants in the Mendelow stakeholder matrix?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Stakeholder are individuals or organizations that can be affected directly or indirectly by any project or decision. For successful procurement activities to take place, stakeholders must be identified, engaged and managed. Not all stakeholders require the same level of engagement and management. To appropriately manage identified stakeholders, the Mendelow management matrix has categorized stakeholders in four quadrants, according to how low or high their power and interest in the project could be. The four categories are:
1) Minimum effort (low power-Low interest)
2) Keep satisfied (high power-Low interest)
3) Keep informed (Low power - high interest)
4) Manage closely (High power- High interest)
* Refer to the question column for response
Use the balance sheet below to work out the correct ratio for coffee Time and explain whether the company appears to have enough assets to cover it liability.
Correct Answer:
See the answer in explanation.
Explanation:
A current ratio of 1 shows that the organization has enough assets to repay (cover) it liability Buyers can be encouraged to deal with these suppliers after if they considered proven and strong in other areas.
Refer to the question column for response
What is a cross function team?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
A cross-function Team is the involvement of all departments that are in an organization to contribute knowledge, skills and innovation towards adding value to achieving the organization's strategic goal.
Example, procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.
When working in a cross-functional team, members of the organization give support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information Refer to the question column for response
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