SIEMENS LEVEL 1 CERTIFICATION STUDY GUIDE
2026 COMPREHENSIVE SCRIPT QUESTIONS
AND SOLUTIONS
◉ Network diagram. Answer: schematic display of activities, events,
relationships, decisions, interdependencies
helps optimize project logistics by ensuring on time delivery
gives ability to recognize deviations earlier in the project
◉ Project Specific Supplier Evaluation helps.... Answer: secure
necessary project quality & reduce probability of future claims
against supplier (A&B cat.)
◉ NCM - New Collaboration Model. Answer: Internal Regulation for
cross-border business w/ Siemens units.
- aims to *allocate the RU a profit margin* w/in range earned by
similar independent companies
, - aims to support the *reduction of internal negotiation* efforts by
*standardization* & enabling RU to take responsibility for agreed
offshore/onshore portion
- aims to *avoid permanent establishments*
*Contract conditions / escalation rules prescribed @ PM040*
*Mainly impacts the SALES phase*
*Mandatory for MOST international large projects*
◉ Arms-length Principle. Answer: For cross-border transactions
between affiliated companies internal billing has to be done the
same way, as if done between external market
◉ Risk Management. Answer: EXAMPLE
Risk - Fire in production hall
Probability - 20%
Damage - $1 mil
Risk Value - $200k
, Measures - reduce probability (forbid smoking), minimize damage
(place fire extinguishers)
AFTER MEASURES
Risk - Fire in production hall
Probability - 12%
Damage - $100k
Risk Value - $12k (*= RISK CONTIGENCY*)
◉ Completed Contract Method (CoCo). Answer: recognition of
revenue for a long-term contract when the project is complete.
◉ Percentage of Completion Method. Answer: Revenue recognition
method in which recognize revenues, costs, and gross profit as
progress is made toward completion on a long-term contract, using
a basis or standard (such as the cost-to-cost basis) to measure the
progress toward completion at interim dates.
◉ cost-to-cost basis. Answer: Cost incurred in to date / total costs
expected
2026 COMPREHENSIVE SCRIPT QUESTIONS
AND SOLUTIONS
◉ Network diagram. Answer: schematic display of activities, events,
relationships, decisions, interdependencies
helps optimize project logistics by ensuring on time delivery
gives ability to recognize deviations earlier in the project
◉ Project Specific Supplier Evaluation helps.... Answer: secure
necessary project quality & reduce probability of future claims
against supplier (A&B cat.)
◉ NCM - New Collaboration Model. Answer: Internal Regulation for
cross-border business w/ Siemens units.
- aims to *allocate the RU a profit margin* w/in range earned by
similar independent companies
, - aims to support the *reduction of internal negotiation* efforts by
*standardization* & enabling RU to take responsibility for agreed
offshore/onshore portion
- aims to *avoid permanent establishments*
*Contract conditions / escalation rules prescribed @ PM040*
*Mainly impacts the SALES phase*
*Mandatory for MOST international large projects*
◉ Arms-length Principle. Answer: For cross-border transactions
between affiliated companies internal billing has to be done the
same way, as if done between external market
◉ Risk Management. Answer: EXAMPLE
Risk - Fire in production hall
Probability - 20%
Damage - $1 mil
Risk Value - $200k
, Measures - reduce probability (forbid smoking), minimize damage
(place fire extinguishers)
AFTER MEASURES
Risk - Fire in production hall
Probability - 12%
Damage - $100k
Risk Value - $12k (*= RISK CONTIGENCY*)
◉ Completed Contract Method (CoCo). Answer: recognition of
revenue for a long-term contract when the project is complete.
◉ Percentage of Completion Method. Answer: Revenue recognition
method in which recognize revenues, costs, and gross profit as
progress is made toward completion on a long-term contract, using
a basis or standard (such as the cost-to-cost basis) to measure the
progress toward completion at interim dates.
◉ cost-to-cost basis. Answer: Cost incurred in to date / total costs
expected
