CIPS L4M2 – Practice Questions & Answers | Study
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Terms in this set (192)
When should Competitive bidding not Where price cannot be establish with certainty
be used? Where price isn't the only variable
Where there are significant set up costs involved
Which 3 types of Whole Life Costing Decision support models
(WLC) models can be used in the Simulation models
planning stage? Optimisation models
What do Decision Support models do Identify the issue to find possible alternatives
in WLC?
What do Simulation Models do in Considers that cost variables may come in different
WLC? values and informs which variables have the biggest
impact
What is the Preparation stage of WLC To choose the best model and identify any costs
used for? requiring further investigationg
Why is it good to know the criteria Because it improves chances of approval
whether considering whether to
approve a BC?
Which criteria is usually applied when Objectives
creating a Business Case (BC)? Options
Cost and Benefits
Risk Assessment
Implementation Plan
,What are the 3 trends to help External trends
determine strategic levels of Internal trends
Objectives in a BC? Organisational trends
Identify the 6 types of intervention to Market interventions: 'make vs buy'
consider when looking a Options in a Technical interventions: simplifying specs
BC. Cost structure interventions
Work process interventions
Supplier rel interventions:
Supply chain interventions:
Identify 3 of the typical costs Machinery
considered in the Costs and Benefits Additional staff
part of a BC. Cost of external input
Identify 3 less typical costs Impact on health and safety
considered in the Costs and Benefits Organisation's reputation
part of a BC. Environmental Costs
How should you conduct a Risk List all the potential sources of risk
Assessment? Identify the potential impact if the risk occurs
Identify the likelihood of the risk occurring
Identify the 6 typical elements to Have roles/responsibilities been allocated and
consider when creating a agreed?
Implementation Plan in a BC.
Is there an effective communication strategy?
Is there a change management strategy?
Has the procurement route been agreed?
Is there sufficient time allocated to managing the
tender process?
Is there sufficient time allocated for negotiations and
contract writing?
, What is benchmarking? A process of continuously measuring an
organisation's products, services and practices
against a recognised leader
Identify the 4 main types of Internal
benchmarking. Competitive
Functional
Generic
What is Internal Benchmarking? Comparing a business process to a similar one within
Identify 2 Pros and 2 Cons of this. the same organisation
Pros - quicker and easier
Cons - limits growth opportunity, could create
unhealthy competition
What is Competitive Benchmarking? Compares a business process with a direct
Identify 2 Pros and 2 Cons of this. competitor
Pros - compares similar processes, provides better
understanding of competitors
Cons - low performance improvement, potential to
capitalise on an organisational weakness
What is Functional Benchmarking? Comparing similar or identical practices with an
Identify 2 Pros and 2 Cons of this. organisation outside the immediate sector
Pros - provides industry trend information, increases
improvement rates
Cons - more time consuming, requires detailed
information to be provided
Guide With Solutions
Save
Terms in this set (192)
When should Competitive bidding not Where price cannot be establish with certainty
be used? Where price isn't the only variable
Where there are significant set up costs involved
Which 3 types of Whole Life Costing Decision support models
(WLC) models can be used in the Simulation models
planning stage? Optimisation models
What do Decision Support models do Identify the issue to find possible alternatives
in WLC?
What do Simulation Models do in Considers that cost variables may come in different
WLC? values and informs which variables have the biggest
impact
What is the Preparation stage of WLC To choose the best model and identify any costs
used for? requiring further investigationg
Why is it good to know the criteria Because it improves chances of approval
whether considering whether to
approve a BC?
Which criteria is usually applied when Objectives
creating a Business Case (BC)? Options
Cost and Benefits
Risk Assessment
Implementation Plan
,What are the 3 trends to help External trends
determine strategic levels of Internal trends
Objectives in a BC? Organisational trends
Identify the 6 types of intervention to Market interventions: 'make vs buy'
consider when looking a Options in a Technical interventions: simplifying specs
BC. Cost structure interventions
Work process interventions
Supplier rel interventions:
Supply chain interventions:
Identify 3 of the typical costs Machinery
considered in the Costs and Benefits Additional staff
part of a BC. Cost of external input
Identify 3 less typical costs Impact on health and safety
considered in the Costs and Benefits Organisation's reputation
part of a BC. Environmental Costs
How should you conduct a Risk List all the potential sources of risk
Assessment? Identify the potential impact if the risk occurs
Identify the likelihood of the risk occurring
Identify the 6 typical elements to Have roles/responsibilities been allocated and
consider when creating a agreed?
Implementation Plan in a BC.
Is there an effective communication strategy?
Is there a change management strategy?
Has the procurement route been agreed?
Is there sufficient time allocated to managing the
tender process?
Is there sufficient time allocated for negotiations and
contract writing?
, What is benchmarking? A process of continuously measuring an
organisation's products, services and practices
against a recognised leader
Identify the 4 main types of Internal
benchmarking. Competitive
Functional
Generic
What is Internal Benchmarking? Comparing a business process to a similar one within
Identify 2 Pros and 2 Cons of this. the same organisation
Pros - quicker and easier
Cons - limits growth opportunity, could create
unhealthy competition
What is Competitive Benchmarking? Compares a business process with a direct
Identify 2 Pros and 2 Cons of this. competitor
Pros - compares similar processes, provides better
understanding of competitors
Cons - low performance improvement, potential to
capitalise on an organisational weakness
What is Functional Benchmarking? Comparing similar or identical practices with an
Identify 2 Pros and 2 Cons of this. organisation outside the immediate sector
Pros - provides industry trend information, increases
improvement rates
Cons - more time consuming, requires detailed
information to be provided
