CIPS L4M1 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION

CIPS L4M1 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION 1) Stakeholders - answer in any activity an organization undertakes, whether strategic, operational or tactical, the activity can only be successful with the input, commitment and support of its key stakeholders. Gaining and maintaining the support and commitment of stakeholders requires a continuous process of engaging the right stakeholders at the right time and understanding and managing their expectations. 2) Global supply chains - answer a dynamic worldwide network when a company purchases or uses goods or services from overseas. It involves people, information, processes and resources involved in the production, handling and distribution of materials and finished products or providing a service to the customer. 3) Whole life costing - answer takes into account the total cost of a product or service over its lifetime, from concept through to disposal including purchase, hire or lease, maintenance, operation, utilities, training and disposal. It is important for procurement to take all these elements into consideration when making decisions and comparing the costs of buying, renting or leasing equipment particularly. In most cases the purchase costs are only a small proportion of the cost of operating it. 4) Stakeholder mapping - answer a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders. 5) Value generation - answer creating value from the supply base can be achieved by not only focusing on price but also increasing operational performance, driving efficiencies, working collaboratively or developing continuous improvement activities. 6) Procurement cycle - answer the cyclical process of key steps when procuring goods or services. 7) How to procurement professionals ensure the right price is achieved form external suppliers - answer 1. Benchmarking during sourcing process 2. Negotiation 3. Open book costing- request a breakdown of how supplier came to that cost 4. Economic order quantities/volume discounts 8) Name 5 other sources of added value - answer 1. Additional features- 2. Brand - 3. Convenience - 4. Excellence of service- 5. Market development- 6. Reducing input costs- 7. Reputation- 8. Innovation- 9. Sustainability- 9) What are the challenges of procuring services - answer 1. Intangibility - more difficult to evaluate compared to goods, no physical contact with provider, difficult to set and justify services 2. Inseparability - can't produce on mass, other customers can affect service levels .i.e. Queues 3. Perishability - services cannot be stored and reused so they are time sensitive 4. Variability - difficult to standardize and measure 5. Customer contact - requires high level of employee training for efficient customer contact - your people need to know the service well enough 10) Methods of behaviour to enhance the process of interacting with individuals and building rapport - answer -positive body language -make eye contact -listen and use positive gestures for emphasis -ask questions -be empathetic -respect all ideas -remove preconceptions -be honest -justify opinions and feedback 11) Maslow's hierarchy of needs - answer physiological, safety, love/belonging, esteem, self-actualization 12) Elemenst of value for money - answer -five rights of procurement -innovation -total life costs -customer service 13) Just in time (jit) - answer a system that contributes towards the reduction of waste in the supply chain. Its purpose is to make sure the inventory is not held unnecessarily 14) Kanban - answer linked to continuous change and aims to refine and improve work systems. This theory concerns maintaining acceptable levels of inventory 15) Advantages of managing inventory through it systems - answer -accurate data provided -saves resources -improves efficiency -speeds up communication -promotes consistent working methods -traceability -supplier visibility -customer visibility -allows remote working 16) Disadvantages of managing inventory through it systems - answer -reliant on accurate set up information -time consuming to install -large financial outlay to implement -staff resist change and be concerned for their job -incorrect data input could cause major problems -less direct contact with suppliers, relationships could suffer 17) Functions included in an erp system - answer -supply chain management -manufacturing -human resources -project management -finance/accounting -customer relationship management 18) Elements of the supply chain module in an erp system - answer -requisitions -purchase order creation and sending -delivery of purchase order -invoice payment -contract managment -supplier relationship management -supplier database -supplier evaluation 19) M2m - answer machine to machine communication 20) Advantages of using it systems for communication - answer -speeds up processes -reduces errors -increases control -aids traceability -not reliant on human input -no distortion in communication -receipt of messages can be tracked 21) Disadvantages of using it systems for communications - answer -relationships may suffer -impersonal -could result in job losses -costly to implement -it support for systems required -power failures may cause systems to crash -e-mails may be open to interpretation 22) The three economic sectors - answer public Private Third 23) Public sectors are - answer owned and controlled by the government, funded by the tax payer 24) Purpose of the public sector - answer to provide the general public with services that are integral to their wellbeing and lifestyle 25) Examples of uk taxes - answer stamp duty, property rates, taxes on vehicles, income tax, businesses corporation tax, commodity taxes on fuel, alcohol, tobacco and sugar 26) Stakeholders for the public sector - answer communities of place Communities of interest Community organisations and societies Voluntary organisations and charities Social enterprises Businesses Local authorities, strategic bodies Health and wellbeing agencies Cultural and leisure services Schools, colleges 27) The private sector - answer owned and funded by individuals or enterprises. 28) Purpose of private sector businesses - answer to make a profit by suppling products or services to customers and consumers 29) Forms of private sector organisations - answer sole traders Partnerships Private limited companies (ltd) Public limited companies (plc) 30) Sole traders - answer owned and run by one person (hair dressers, carpenters, artists) 31) Partnerships - answer owned and run by two or more individuals 32) Private limited companies - answer unlike a sole trader, it is a legal entity in its own right. This means it is legally seperate from the people who run it and the company itself keeps any profitit makes 33) Public limited companies - answer companies who shares are sold to financial institutions and the general public and quoted on the stock exchange 34) Third sector organisations - answer exist to support and promote social, environmental or cultural objectives. They do not aim to make a profit (not-for-profit)(charities) 35) Goals of a third sector organisation - answer to provide support and improvement to the chosen area of society 36) Budget of a third sector organisation - answer low budget, dependent on donations, investments and legacies 37) Objectives of the public sector - answer caring for its citizens Providing and improving services Enhancing and operating facilitites Interacting with communities And promoting csr 38) Facilitites provided by the public sector - answer public toilets Libraries Care homes Recycling plants 39) Corporate social responsibility (csr) oppotunities within the public sector - answer sourcing and evaluating suppliers for sustainability Initiating projects that give something back to the community Regenerating waste land or cleaning up polluted areas Undertaking business in an ethical way Promoting the interests and employment of disadvantaged members of society 40) Common themes of regulations - answer non-discrimination Free movement of goods Equality of treatment Transparency 41) The four types of procurement procedures in the public sector - answer open Restricted Competitive dialogue Competititve procedure with negociation 42) Open procedure - answer a single-stage process, it gives any organisation wishing to bid the chance to do so