In a typical supply chain, in which direction does value-add travel?
Answer(s): B
Value flows downstream, originating with suppliers and moving toward the end customer. A typical chain is tiered suppliers OEM/producer distributors/retailers customer. Short cited term:"value moves downstream" (L5M7 Study Guide, p.4).
CIPS L5M7 Study Guide, p.4.
Kerry is a new department manager at XYZ Ltd. The company has several manufacturing divisions that serve different market segments. She is considering introducing Total Quality Management (TQM) only in her division. Is this a good idea?
Answer(s): C
TQM is a holistic philosophy requiring organisation-wide adoption and leadership commitment; partial/isolated adoption undermines results. Short cited terms: "holistic," "organisation-wide commitment" (L5M7 Study Guide, p.118).
CIPS L5M7 Study Guide, p.118.
Just-in-Time (JIT) manufacturing is a form of which organisational strategy?
JIT is a Lean technique to minimise inventory and produce "only what is needed, when needed," thereby removing waste from processes. Short cited phrase: "only when needed" (L5M7 Study Guide, p.111).
CIPS L5M7 Study Guide, p.111.
What is Six Sigma?
Answer(s): A
Six Sigma is a data-driven methodology aimed at eliminating defects and reducing variation to improve quality and performance. Short cited terms: "data-driven," "eliminate defects" (L5M7 Study Guide, p.110).
CIPS L5M7 Study Guide, p.110.
What is the primary motivation for offshoring?
Offshoring typically seeks cost reduction (e.g., labour arbitrage) while maintaining service/output levels; other motives are secondary. Short cited term: "cost reduction/advantages" (L5M7 Study Guide, domain 1.4 discussion).
CIPS L5M7 Study Guide, Domain 1.4 (Offshoring and sourcing location).
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