Reliable L4M2 Exam Sims, L4M2 Detailed Study Plan

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CIPS Defining Business Needs Sample Questions (Q50-Q55):

When preparing through-life specification, which of the following requirements should procure-ment team define besides the physical asset? Select TWO that apply.

  • A. Available substitute
  • B. Market analysis
  • C. Objectives
  • D. Customer service
  • E. Logistics and installation

Answer: D,E

Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.

Source: Andrew Graves
With through-life management, buyer not only cares about the physical asset but also other factors like customer services and maintenance.
LO 3, AC 3.2

An automotive manufacturer is sourcing rubber components from Company A.
The specification given to the supplier state that the component should be 1 meter long, without mentioning the tolerance. Enthusiast with the opportunity, engineers at Company A work hard to cut the components with tolerance at only +/- 1mm. The head and tail of the component is then joined together to form a circular band. After that it is stretched over another component. To fit this purpose, the rubber component can be at any length from 80cm to 110cm. This is an example of…?

  • A. Unnecessary motion
  • B. Waiting
  • C. Over processing
  • D. Defects

Answer: C

This questions is intended to ask students about types of waste in Lean principles.
Lean was born out of manufacturing practices but in recent time has transformed the world of knowledge work and management. It encourages the practice of continuous improvement and is based on the fundamental idea of respect for people. Womack and Jones defined the five principles of Lean manufacturing in their book “The Machine That Changed the World”. The five principles are considered a recipe for improving workplace efficiency and include: 1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5) pursuing perfection.
Lean principles aim to eliminate waste in processes. The eight wastes of Lean principles are:
– Defects
– Over-production
– Waiting
– Not using talent
– Transport and handling
– Inventory
– Motion waste
– Excess processing
In the scenario, the component is processed more than necessary. The engineers try to make them as accurate as possible with very little tolerance. In fact, the component does not need to be that precise. This excesses buyer’s requirements and incurs costs for both buyer and supplier. The scenario is an example of over processing (or excess processing).
Overprocessing is one of the seven wastes of lean manufacturing (or 7 mudas); Overprocessing is adding more value to a product than the customer actually requires such as painting areas that will never be seen or be exposed to corrosion.
Overprocessing as one of the seven wastes is caused by having unclear standards and specifications, many operators will try to do the best job possible and will not always be aware of what truly adds value to the product or even the end use. They will therefore often expend time polishing and finishing components that do not require it.
– CIPS study guide page 153-156
– Waste of Overprocessing; causes, costs, examples solutions, symptoms (leanmanufactur-ingtools.org) LO 3, AC 3.4

Which of the following standards specifies requirements for a quality management system?

  • A. ISO 14001:2015
  • B. ISO 9001:2015
  • C. ISO 27001
  • D. ISO 22000:2018

Answer: B

ISO 9001:2015 specifies requirements for a quality management system.
ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.
ISO 22000:2018 specifies food safety management systems – Requirements for any organization in the food chain ISO 27001 provides requirements for an information security management system.
LO 3, AC 3.1

GSC Ltd is a manufacturer of car parts. To accommodate growing demands of electric cars, the company is developing a new component which requires different type of steel. The project team estimates that the component will be ready for production in 1.5 years. Until then, they need to keep the production busy.
After checking the inventory records, the production team sees that the company has 3 months of stock. The lead time for each batch is two months. Which of the following should be a priority ac-tion of the company?

  • A. Standardise the specification
  • B. Create new specification to new supplier
  • C. Create new specification to current supplier
  • D. Make a call-off order to current supplier

Answer: D

The scenario is very long with many distracting data. Students need to read carefully and use their experience to solve this problem.
The company is developing a new component which requires different type of material. But this component will not be available for mass production in 1.5 years. This means the company still needs to produce the current components with current materials until the development is finished. They must continue purchase the materials from current supplier through call-off orders. This situation is an example of straight re-buy.
LO 1, AC 1.1

One of the disadvantages of using standards in specification is that…

  • A. Standards don’t allow the buyers to add health and safety requirements into the specification
  • B. Standards tend to be rigid and they often don’t encourage innovation
  • C. Standards lengthen the time to produce a specification
  • D. Standards tend to be inaccurate and ambiguous, causing confusion among suppliers

Answer: B

Using standards in specification is very convenient. They reduce the time and effort to produce. They tend to be very accurate with correct technical terminologies. They are well recognised and accepted by a wide range of suppliers and buyers. However, since a standard is very specific, complex and lengthy, it requires a lot of time to be drafted and approved. Therefore, standard tends to be static and don’t encourage innovation. It may also not accommodate latest technology and trends.
LO 3, AC 3.1


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