Screwdriver Ltd runs a Lean manufacturing process and has recently sequenced its supply chain. It discovered that there is an average two-day delay between the completion of task 1 and task 2. What type of cost is this?
Answer(s): A
An interchange cost arises when there is inefficiency or delay between process stages in the value stream. In Lean thinking, ideal flow minimises these gaps to improve cycle time and efficiency.
CIPS L5M8 Study Guide, p.220.
Daniel is a Project Manager and has just run a risk simulation to find out the likelihood of his project taking 3, 4, or 5 weeks to complete. He discovered it is equally likely the project would take any of those durations. What type of distribution is this?
Answer(s): D
A uniform distribution gives equal probability to all outcomes. Each project duration (3, 4, 5 weeks) has the same likelihood, making it uniformly distributed.
CIPS L5M8 Study Guide, p.209.
In Project Management, when would you use a Monte Carlo Analysis?
Answer(s): B
A Monte Carlo Analysis is a quantitative risk simulation technique. It models uncertainty by running many scenarios to estimate potential outcomes for cost, time, or other risk variables.
CIPS L5M8 Study Guide, pp.208209.
Bob is the CEO of a fast-growing electronics company. Bob has a high risk appetite and this is reflected within the company culture. Which of the following would be the best approach to manage risk at this company?
Answer(s): C
The guide advises defining risk thresholds--acceptable limits of exposure--based on organisational appetite. This ensures balanced risk-taking without being reckless, maintaining strategic alignment.
CIPS L5M8 Study Guide, p.205.
Which of the following is an international standard for Social Responsibility?
ISO 26000 provides global guidance on social responsibility, addressing seven key areas: governance, human rights, labour practices, environment, fair operating practices, consumer issues, and community development.
CIPS L5M8 Study Guide, p.184 (Domain 3.2).
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