QUESTION: 21

Which of the following indicates types of waste that procurement department concentrates on when adopting Lean methods?

DOWNTIME
VA/VE
OWN-IT
SCAMPER

Answer(s): A

Explanation:

Copious amounts of waste can occur in the workplace, particularly in a manufacturing process, but do you know what the eight most commons wastes are and how they impact your organization? Taiichi Ohno, considered the father of Toyota Production System, created a lean manufacturing framework, which was based on the idea of preserving (or increasing) value with less work. Any- thing that doesn't increase value in the eye of the customer must be considered waste, or "Muda", and every effort should be made to eliminate that waste. The following 8 lean manufacturing wastes, mostly derived from the TPS, have a universal application to businesses today. The acro-nym for the eight wastes is DOWNTIME. Downtime stands for:
- Defects
- Overproduction
- Waiting
- Not utilizing talent
- Transportation
- Inventory excess
- Motion waste
- Excess processing
OWN-IT is the acronym for the process of collecting and analysing the data and information needed in any field
SCAMPER is acronym for options addressing the underlying issues and achieving target VA/VE is value analysis and value engineering
LO 3, AC 3.4

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QUESTION: 22

A procurement manager includes provision on recovery from natural disaster into a through-life specification. Some suppliers suppose that provision is unnecessary. Is procurement manager's action justified?

No, because with current technology, natural disaster can't disrupt supply chain.
Yes, because natural disaster may cause risks in organisation's supply chain
Yes, because the regulations require contract to have recovery provision
No, because this provision will incur unnecessary cost to supplier

Answer(s): B

Explanation:

Risks like natural disasters - fire, flood, or weather-related event, and cyber-attacks can disrupt the supply chain seriously. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. Risks must be identified early and supplier should have a plan that ensures continuous operations during disasters. There are several steps many companies must follow to develop a solid business continuity plan.
They include:
- Business Impact Analysis: Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
- Recovery: In this portion, the business must identify and implement steps to recover critical business functions.
- Organization: A continuity team must be created. This team will devise a plan to manage the disruption.
- Training: The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Reference:

CIPS study guide page 138.
LO 3, AC 3.2

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QUESTION: 23

Which of the following is the new technology that has impact on manufacturing sector?

Social Media
E-commerce
Robotics
Blockchain

Answer(s): C

Explanation:

Robots in manufacturing help to create jobs by reshoring more manufacturing work. Robots protect workers from repetitive, mundane and dangerous tasks, while also creating more desirable jobs, such as engineering, programming, management and equipment maintenance.
LO 2, AC 2.1

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QUESTION: 24

Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?

Yes, decommissioning and disposal costs will not be accounted in this approach
Yes, this approach will lower the total cost of ownership
No, a ship is used only once, through-life management is unnecessary
No, the company just needs to select the lowest bidder

Answer(s): B

Explanation:

Through-life management is a approach applied to capital asset. According to Ward and Graves, 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. According to CIPS study guide, through-life management comprises of 6 parts:
1. Design
2. Manufacture
3. Installation
4. In-service support
5. Decommission and disposal
6. Customer support
In this scenario, the company is planning to procure a ship, which is a capital asset. Through life management is a good approach. Sealines can start with developing through-life specification. This approach may have several benefits:
- It lowers the costs over the whole life of the asset
- It lowers the risks as there is a single company accountable for costs and service over the life of the asset
- A closer match between the asset delivered and the users' needs
- Development of capability over the life of the asset as the supplier continues to get experience of the users' needs and can adapt services to meet them.

Reference:

- CIPS study guide page 130-131;
- Through-life management: The provision of total customer solutions in the aerospace industry, by Yvonne Ward and Andrew Graves
LO 3, AC 3.2

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QUESTION: 21

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QUESTION: 22

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QUESTION: 23

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QUESTION: 24

Explanation:

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