L4M6 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Explanation

The seven wastes (as defined by Taiichi Ohno) can be remembered as Tim Wood; transportation, inventory, motion, waiting, over-processing, over-production, defects. Some people add an S onto the end of Tim Wood to make Tim Woods (the s is for skills). In some modules of CIPS, they refer to 8 wastes and include skills, but in M6 they’ve only put the 7 on p.70.

Explanation

The correct answer is ‘No- a reverse e-auction would be more suitable as it will secure the lowest price’. An E-auction is something like eBay- where bids go up in price. If David wants to secure a lower price, he should use a Reverse E-Auction- where suppliers bid lower than the previous bid in order to win. For example, Supplier 1 offers to fulfil the contract at £50k per year, Supplier 2 can offer to beat this price by bidding £48k per year. Although Reverse E-Auctions may ensure cheaper prices, there are a lot of disadvantages to using this method. See p.21 and p.76 for more information

Comprehensive and Detailed Explanation:

In the context of portfolio analysis, particularly using the Kraljic Matrix, procurement items are categorized based on their profit impact and supply risk.Strategic criticalitems are those with high profit impact and high supply risk. These items are vital to the organization's operations and often have limited suppliers, making them critical to secure.

For such items, developing apartnership relationshipis appropriate. This involves close collaboration, mutual trust, and long-term commitment between the buyer and supplier to ensure reliability, innovation, and continuous improvement.

Explanation

This QUESTION NO: refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service

Comprehensive and Detailed Explanation:

Cultural compatibility is crucial in partnership relationships. Differences in corporate culture can lead to misunderstandings, misaligned objectives, and conflicts, ultimately jeopardizing the partnership's success. Therefore, assessing cultural compatibility at the outset is essential.

Explanation

The first step is to obtain business approval to terminate. If Senior Management don’t give approval, then the rest of the stages can’t happen and Sandra will be stuck with her current banana supplier. There’s a good diagram on p.109 detailing the steps to supplier termination.

In stakeholder management,Negative leadersandPromoterspossess high influence over others:

Negative leaders: Individuals who oppose the project and can sway others against it due to their influence.

Promoters: Advocates who support the project and can positively influence others.

Understanding these dynamics is crucial for effectively managing stakeholder resistance.

As highlighted in the CIPS study materials:

"Overcoming resistance- Promoters - They have a high influence on other stakeholders and support the project. They support and empower."

Explanation

The correct answer is ‘A situation when the apparent output from collaboration is considerably less than expected’. This is verbatim the definition given in the study guide on p.166 A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

Partnership sourcing is ideal for high-spend, high-risk situations where collaboration mitigates risks and maximizes value through innovation, efficiency, and trust.

Explanation

You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you’re procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn’t form part of a RFP. See p.76