CIPS L4M2 Defining Business Needs Online Training

Question #111

When preparing through-life specification, which of the following requirements should procurement team define besides the physical asset? Select TWO that apply.

A . Customer service
B . Objectives
C . Market analysis
D . Logistics and installation
E . Available substitute

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Question #112

Which of the following specific markets is most likely to have product shortage by nature?

A . Retail
B . Financial
C . Construction
D . Services
E . Agriculture

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Question #113

Daytona Ltd is developing a new product which is more environmental friendly. Though the objectives are set, the project team has no idea on which functions will be customers’ favourites.

Which of the following will help them decide the ‘should-have’ functions of the new product?

A . Kano model
B . Taguchi method
C . Thomas-Kilmann model
D . Six Sigma

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Question #114

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

A . Shortage of key medicines in healthcare industry
B . A cyber attack takes down whole company’s IT system
C . Engine failures cause flight cancellations.
D . Logistics costs incur a large portion in wholesale prices
E . The suppliers don’t comply with the company’s policy on underage labour.

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Question #114

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

A . Shortage of key medicines in healthcare industry
B . A cyber attack takes down whole company’s IT system
C . Engine failures cause flight cancellations.
D . Logistics costs incur a large portion in wholesale prices
E . The suppliers don’t comply with the company’s policy on underage labour.

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Question #114

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

A . Shortage of key medicines in healthcare industry
B . A cyber attack takes down whole company’s IT system
C . Engine failures cause flight cancellations.
D . Logistics costs incur a large portion in wholesale prices
E . The suppliers don’t comply with the company’s policy on underage labour.

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Question #114

Which of the following problems may be identified as open-ended problems? Select TWO that apply:

A . Shortage of key medicines in healthcare industry
B . A cyber attack takes down whole company’s IT system
C . Engine failures cause flight cancellations.
D . Logistics costs incur a large portion in wholesale prices
E . The suppliers don’t comply with the company’s policy on underage labour.

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Question #118

Information security

2 and 4 only

B. 1 and 2 only

C. 2 and 3 only

D. 3 and 4 only

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Correct Answer: B

Explanation:

ISO 14001:2015 specifies the requirements for an environmental management system that an organization 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 14001:2015 helps an organization achieve the intended outcomes of its environmental management system, which provide value for the environment, the organization itself and interested parties. Consistent with the organization’s environmental policy, the intended outcomes of an environmental management system include:

• enhancement of environmental performance;

• fulfilment of compliance obligations;

• achievement of environmental objectives.

ISO 14001:2015 is applicable to any organization, regardless of size, type and nature, and applies to the environmental aspects of its activities, products and services that the organization determines it can either control or influence considering a life cycle perspective. ISO 14001:2015 does not state specific environmental performance criteria.

ISO 14001:2015 can be used in whole or in part to systematically improve environmental management. Claims of conformity to ISO 14001:2015, however, are not acceptable unless all its requirements are incorporated into an organization’s environmental management system and fulfilled without exclusion.

In conclusion, ISO 14001:2015 focuses on: management system (including roles, leadership and processes) and the life cycle of product or service. Life cycle is defined as "consecutive and inter-linked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal. […] The life cycle stages include acquisition of raw materials, design, production, transportation/ delivery, use, end-of-life treatment and final disposal." The answer is process and life cycle.

Reference: – ISO 14001:2015 Environmental management systems ― Requirements with guidance for use LO 3, AC 3.1

Question #119

An automotive manufacturer is sourcing rubber components from Company A. The specification given to the supplier state that the component should be 1 meter long, without mentioning the tolerance. Enthusiast with the opportunity, engineers at Company A work hard to cut the components with tolerance at only +/- 1mm. The head and tail of the component is then joined together to form a circular band. After that it is stretched over another component. To fit this purpose, the rubber component can be at any length from 80cm to 110cm.

This is an example of…?

A . Defects
B . Waiting
C . Unnecessary motion
D . Over processing

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Correct Answer: D
D

Explanation:

This questions is intended to ask students about types of waste in Lean principles.

Lean was born out of manufacturing practices but in recent time has transformed the world of knowledge work and management. It encourages the practice of continuous improvement and is based on the fundamental idea of respect for people. Womack and Jones defined the five principles of Lean manufacturing in their book “The Machine That Changed the World”.

The five principles are considered a recipe for improving workplace efficiency and include: 1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5) pursuing perfection.

Lean principles aim to eliminate waste in processes.

The eight wastes of Lean principles are:

– Defects

– Over-production

– Waiting

– Not using talent

– Transport and handling

– Inventory

– Motion waste

– Excess processing

In the scenario, the component is processed more than necessary. The engineers try to make them as accurate as possible with very little tolerance. In fact, the component does not need to be that precise. This excesses buyer’s requirements and incurs costs for both buyer and supplier. The scenario is an example of over processing (or excess processing).

Overprocessing is one of the seven wastes of lean manufacturing (or 7 mudas); Overprocessing is adding more value to a product than the customer actually requires such as painting areas that will never be seen or be exposed to corrosion.

Overprocessing as one of the seven wastes is caused by having unclear standards and specifications, many operators will try to do the best job possible and will not always be aware of what truly adds value to the product or even the end use. They will therefore often expend time polishing and finishing components that do not require it.

Reference: – CIPS study guide page 153-156

– Waste of Overprocessing; causes, costs, examples solutions, symptoms (leanmanufactur-ingtools.org)

LO 3, AC 3.4

Question #120

What is the purpose of sending value engineering analysis to external suppliers?

A . To improve early supplier involvement
B . To improve the existing products
C . To analyse the supply market
D . To standardise production processed

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