CIPS Defining Business Needs : L4M2

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CIPS L4M2 Exam Syllabus Topics:

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/def%C4%B1ning-business-need

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CIPS Defining Business Needs Sample Questions:

Question #1
Lider Ltd is a leading bathroom furniture manufacturer in India. The company has more than 30 years experience in the market with extended knowledge of engineering and customers ' taste. Lider is planning to launch a new type of bath fitting next year which offers Bluetooth connectivity and thermostat display. The company gathers a team of multi-disciplines, including engineering, procurement, sales and marketing. At the first team meeting, the project leader tells the team to discuss which functions will be valued by the customers, and how to deliver those functions with the lowest costs possible. Which of the following describes the process that the project team is undertaking?

A. Standardisation
B. Value engineering
C. Just in time
D. Cost analysis

Question #2
Total cost of ownership of a solar panel is $5,000 and it is expected that the panel will make a sav-ing of
$1,000 each year. So it would take 5 years for the benefits to repay the investment. Therefore, the firm plans to keep the solar panel for at least 5 years. Is payback period calculation right for making the business decision?

A. Yes, because it takes everything into account
B. No, because payback period doesn't take into account price fluctuations
C. No, because payback period can be only used to calculate the depreciation of a fixed asset
D. Yes, because payback period shows how long the firm recovers the investment

Question #3
A company is analysing its existing product ' s components and aims at reducing costs without damaging customer value proposition. They want to check which components are critical and which are unnecessary.
Which of the following should be adopted by the company?

A. Variety reduction
B. Value engineering
C. Under specification
D. Value analysis

Question #4
What would provide the best method to ensure a car manufacturer can make adjustments to vehicle production to meet future market demands, such as the inclusion of an additional battery to make a hybrid model?

A. Correct product specification in place to allow variations
B. Investment in innovation to predict future trends
C. Adequate labour contracts in place to meet changing demand
D. Investment in versatile robotics to meet changing demand

Question #5
Which of the following are typical environmental considerations throughout the contract life cycle? Select the TWO that apply.

A. Inequality
B. Health and safety
C. Pollution control
D. Waste management
E. Modern slavery

Solutions: