CIPS L3M2 TEST LATEST UPDATED
Monies - ANSWER costs that contribute towards making the product
Fixed costs - ANSWER Costs that do not vary with the quantity of output
produced
Variable costs - ANSWER costs that vary with the quantity of output produced
Direct costs - ANSWER costs attributed directly to the job or contract
Indirect costs - ANSWER costs not directly associated with the job or contract
The 5 Rights of Procurement - ANSWER Quantity
Quality
Time
Place
Price
Lifetime costing - ANSWER total anticipated costs of designing, procuring,
running and disposing of a fixed asset
Costs included in Lifetime Costing - ANSWER Pre-purchase, item, operating,
maintenance, insurance and disposal
, 5 factors of Organisational Success - ANSWER People, purpose, procedures,
customers and resources
The 3 Es - ANSWER efficiency, effectiveness, economies
5S Framework Definition - ANSWER used to refine methods and procedures
5S Framework - ANSWER Sort, set in order, shine, standardise, sustain
Lean thinking definition - ANSWER identifying waste that may be hindering
the success of a project
Lean Waste Types - ANSWER transportation, inventory, motion, waiting,
over-processing, over-production and defects (TIMWOOD)
Effectiveness - ANSWER doing the right task
Efficiency - ANSWER doing the task right
Economies of scale - ANSWER the quantity is increased and price per unit
decreases
Value engineering - ANSWER systematic approach to provide the lowest costs
without losing functionality for products not on the market
Monies - ANSWER costs that contribute towards making the product
Fixed costs - ANSWER Costs that do not vary with the quantity of output
produced
Variable costs - ANSWER costs that vary with the quantity of output produced
Direct costs - ANSWER costs attributed directly to the job or contract
Indirect costs - ANSWER costs not directly associated with the job or contract
The 5 Rights of Procurement - ANSWER Quantity
Quality
Time
Place
Price
Lifetime costing - ANSWER total anticipated costs of designing, procuring,
running and disposing of a fixed asset
Costs included in Lifetime Costing - ANSWER Pre-purchase, item, operating,
maintenance, insurance and disposal
, 5 factors of Organisational Success - ANSWER People, purpose, procedures,
customers and resources
The 3 Es - ANSWER efficiency, effectiveness, economies
5S Framework Definition - ANSWER used to refine methods and procedures
5S Framework - ANSWER Sort, set in order, shine, standardise, sustain
Lean thinking definition - ANSWER identifying waste that may be hindering
the success of a project
Lean Waste Types - ANSWER transportation, inventory, motion, waiting,
over-processing, over-production and defects (TIMWOOD)
Effectiveness - ANSWER doing the right task
Efficiency - ANSWER doing the task right
Economies of scale - ANSWER the quantity is increased and price per unit
decreases
Value engineering - ANSWER systematic approach to provide the lowest costs
without losing functionality for products not on the market
