Free L4M2 Exam Braindumps (page: 3)

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

  1. ISO 27001
  2. ISO 9001:2015
  3. ISO 22000:2018
  4. ISO 14001:2015

Answer(s): B

Explanation:

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



Housing Ltd is inviting a number of contractors to a tender for the construction of a commercial building. In the attachment to the invitation to tender, there is a document which describes the re- quired materials and installation methods. This document is known as...?

  1. Functional specification
  2. Prescriptive specification
  3. Drawings
  4. Performance specification

Answer(s): B

Explanation:

This question mentions about specification in construction. In this sector, specifications are written documents that describe the materials and workmanship required for a development. They do not include cost, quantity or drawn information and need to be read alongside other contract documentation such as quantities, schedules and drawings. Specifications vary considerably depending on the stage to which the design has been developed, ranging from performance (open) specifications that require further development by a contractor or supplier, to prescriptive (closed) specifications for which the design is already complete when the project is tendered.
Prescriptive specifications typically contain detailed descriptions of the following components:
- General requirements relating to regulations and standards.
- The type of products and materials required.
- The execution and installation methods required.
Prescriptive specifications give the client much more certainty about the end product when making investment decisions (such as when they appoint the contractor), and place a greater burden on the designer to ensure proper installation rather than the contractor.


Reference:

- CIPS study guide page 116-120
- Prescriptive specification - Designing Buildings Wiki LO 3, AC 3.1



A purchaser is looking for alternative supplies if there is a major disruption to their supply chain, including logistics, manufacturing and all support services.
Which of the following method is that purchaser applying?

  1. Treat the risk
  2. Terminate the risk
  3. Tolerate the risk
  4. Transfer the risk

Answer(s): A

Explanation:

Risk control is the process by which an organization reduces the likelihood of a risk event occurring or mitigates the effects that risk should it occur. CIPS preferred way to determine your risk control strategy is to use the four T's Process:
Transferring Risk can be achieved through the use of various forms of insurance, or the payment to third parties who are prepared to take the risk on behalf of the organization Tolerating Risk is where no action is taken to mitigate or reduce a risk. This may be because the cost of instituting risk reduction or mitigation activity is not cost-effective or the risks of impact are at so low that they are deemed acceptable to the business. Even when these risks are tolerated they should be monitored because future changes may make it no longer tolerable. Treating Risk is a method of controlling risk through actions that reduce the likelihood of the risk occurring or minimize its impact prior to its occurrence. Also, there are contingent measures that can be developed to reduce the impact of an event once it has occurred. Finding an alternative sup-plier is an example of treating the risk.
Terminating Risk is the simplest and most often ignored method of dealing with risk. It is the ap- proach that should be most favored where possible and simply involves risk elimination. This can be done by altering an inherently risky process or practice to remove the risk. The same can be used when reviewing practices and processes in all areas of the business. If an item presents a risk and can be changed or removed without it materially affecting the busi- ness, then removing the risk should be the first option considered; rather than attempting the treat, tolerate or transfer it.


Reference:

CIPS study guide page 144
LO 3, AC 3.3



A procurement team is categorising their purchased items into four quadrants of Kraljic's supply chain portfolio matrix. They realise that there are some low-value items which come from very few suppliers in the market. The organisation is critically dependent on these suppliers. The team plans to reduce the dependence by finding alternative sources. Is this a right course of action?

  1. Yes, the organisation needs to reduce the supply risks
  2. No, the organisation should run competitive biddings to exploit the competition
  3. No, there is no way to escape this dependency
  4. Yes, this action will dramatically increase the supplier's bargaining power

Answer(s): A

Explanation:

According to Kraljic portfolio matrix, the low-value items with high supply risk are bottleneck items.



The purchasing strategy that is commonly recommended for these products is primarily based on acceptance of the dependence and reduction of the negative effects of the unfavourable position. An alternative strategy suggested by purchasing practitioners is to find other suppliers and move towards the non-critical quadrant.
- Accept dependence, reduce negative consequences: The main focus of this strategy is to assure supply, if necessary even at additional cost. Examples of this strategy are keeping extra stocks of the materials concerned or developing consigned stock agreements with suppliers. By performing a risk analysis firms can identify the most important bottleneck products and consider the implications. A possible action for dealing with unexpected bad dependence positions for certain products is to employ contingency planning.
- Reduce dependence and risk, find other solutions: This strategy is geared towards reducing the dependence on the supplier. The most common way to achieve this is to broaden the specifications of the product or to search for new suppliers.
The procurement team in the scenario has selected reducing dependency by finding alternatives.
This is a right strategy for bottleneck item.


Reference:

- CIPS study guide page 82-84
- Purchasing strategies in the Kraljic matrix--A power and dependence perspective, Marjolein C.J.
Caniels, Cees J. Gelderman
LO 2, AC 2.1



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Tshepang 8/18/2023 4:41:00 AM
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Tshepang 8/18/2023 4:41:56 AM
Kindly share this dump. Thank you
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