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This arrangement is known as...?
A procurement manager is discussing with other stakeholders about the scope and the implementation of the upcoming construction project. A stakeholder argues that the construction projects are often risky as the overall scope of the work can't be accurately estimated from the beginning. Furthermore, the project spans over a long...
The substitute fits organization’s strategy
The substitute fits organization’s strategyA . 1 and 4 onlyB . 3 and 4 onlyC . 1 and 2 onlyD . 2 and 4 onlyView AnswerAnswer: D Explanation: The threat of substitution is a function of three factors: • The relative value/ price of a substitute compared to an industry’s...
Which of the following elements should be included in the business case?
A CPO is making a business case for acquiring a new computer system. He has set out objective, generated options, cost and benefit of each option and implementation plan. Which of the following elements should be included in the business case?A . Risk assessmentB . Operation managementC . Invitation to...
Which of the following is the core of value analysis process?
Which of the following is the core of value analysis process?A . Be creativeB . DevelopC . EvaluateD . Gather informationE . Carry out functional analysisView AnswerAnswer: E Explanation: Value Analysis (VA) is concerned with existing products. It involves a current product being ana-lysed and evaluated by a team, to...
At which stage of product life cycle, price competition between sellers will be the most intense?
At which stage of product life cycle, price competition between sellers will be the most intense?A . Growth stageB . Introductory stageC . Maturity stageD . Decline stageView AnswerAnswer: D Explanation: The term product life cycle refers to the length of time a product is introduced to consumers into the...
This is an example of...?
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...
Which of the following is the core of value analysis process?
Which of the following is the core of value analysis process?A . Be creativeB . DevelopC . EvaluateD . Gather informationE . Carry out functional analysisView AnswerAnswer: E Explanation: Value Analysis (VA) is concerned with existing products. It involves a current product being ana-lysed and evaluated by a team, to...
Which of the following might be the consequences of under-specification? Select TWO that apply:
Which of the following might be the consequences of under-specification? Select TWO that apply:A . Few suppliers can supply the full range of featuresB . Additional cost to reworkC . Unfit products or servicesD . Poor competition between suppliersE . Higher cost due to inessential featuresView AnswerAnswer: B, C Explanation:...
Which of the following are sources of information that can be used to create the specification?
A buying organisation may not have technical capability to produce a highly complex specification. Which of the following are sources of information that can be used to create the specification? Select TWO that applyA . Standard terms and conditionsB . Name cardsC . Industry standardsD . Suppliers' know-howE . ConstitutionView...
Is this a correct approach?
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?A . Yes, decommissioning...
