CIPS L3M2 questions correctly answered 2024/2025

CIPS L3M2Brand - correct answer An organizations identity total cost approach - correct answer An approach that considers all the costs associated with procuring an item The 5 rights of Procurement - correct answer Quantity, quality, time, place, price Lifetime costing - correct answer Total anticipated costs of designing procuring acquiring running and disposing of a fixed asset Request for Quotation (RFQ) - correct answer An invite to supplier to bid on specific products or services - the supplier will feedback a purchase price Purchase Order (PO) - correct answer Documents that detail the transaction the supplier and buyer have agreed on Advantages of life time costing - correct answer Improved awareness, enables action to be taken if required, clear decision making, improved forecasting Disadvantages of lifetime costing - correct answer Pressure from management, could make an organisation reactive, time consuming, costs can change Value for money is linked to the 3 E's - correct answer Efficiency, economies and effectiveness Organisational success comprises of 5 factors - correct answer People, purpose, procedures, customers, resources Kaizen - correct answer Japanese term for continuous improvement The 5s framework- used to refine methods and procedures - correct answer Sort, set in order, shine, standardise, sustain lean - correct answer A business methodology that aims to create more value with fewer resources There are 7 types of waste in a lean thinking - correct answer Motion, inventory, over production, waiting, defects, over processing, transportation Effectiveness is how efficiently an org reaches its objectives. To improve, it needs to consider the following - correct answer Leadership, communication, accountability, delivery, performance, measurement economies of scale - correct answer factors that cause a producer's average cost per unit to fall as output rises Value Engineering (VE) - correct answer An approach to having the lowest cost for a product without losing its functionality. Used for new products value analysis - correct answer Also an approach to having the lowest cost for a product without losing its functionality - but VA is used for established products Performance Specifications - correct answer Outcome focused Quality management system - correct answer A formal system that include process that outline the responsibilities for achieving quality in an organisation Total Quality Management (TQM) - correct answer Efforts of all departments within an organisation to improve processes products and services Concept of zero defects - correct answer Overall responsibility for quality sits with managers, supply products that cannot be faulted Quality circle approach - correct answer Plan -> Do -> Check-> Act (continuous improvement) Lead time - correct answer Time needed to manufacture an item