CIPS L4M2 questions with complete solutions 2024/2025

CIPS L4M2When should Competitive bidding not be used? - correct answer Where price cannot be establish with certainty Where price isn't the only variable Where there are significant set up costs involved Which 3 types of Whole Life Costing (WLC) models can be used in the planning stage? - correct answer Decision support models Simulation models Optimisation models What do Decision Support models do in WLC? - correct answer Identify the issue to find possible alternatives What do Simulation Models do in WLC? - correct answer Considers that cost variables may come in different values and informs which variables have the biggest impact What is the Preparation stage of WLC used for? - correct answer To choose the best model and identify any costs requiring further investigationg Why is it good to know the criteria whether considering whether to approve a BC? - correct answer Because it improves chances of approval Which criteria is usually applied when creating a Business Case (BC)? - correct answer Objectives Options Cost and Benefits Risk Assessment Implementation Plan What are the 3 trends to help determine strategic levels of Objectives in a BC? - correct answer External trends Internal trends Organisational trends Identify the 6 types of intervention to consider when looking a Options in a BC. - correct answer Market interventions: 'make vs buy' Technical interventions: simplifying specs Cost structure interventions Work process interventions Supplier rel interventions: Supply chain interventions: Identify 3 of the typical costs considered in the Costs and Benefits part of a BC. - correct answer Machinery Additional staff Cost of external input Identify 3 less typical costs considered in the Costs and Benefits part of a BC. - correct answer Impact on health and safety Organisation's reputation Environmental Costs How should you conduct a Risk Assessment? - correct answer List all the potential sources of risk Identify the potential impact if the risk occurs Identify the likelihood of the risk occurring Identify the 6 typical elements to consider when creating a Implementation Plan in a BC. - correct answer Have roles/responsibilities been allocated and agreed?