L4M2 V1

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 type of specification is less time-consuming to develop?A . Outcome-based specificationB . Design specificationC . Conformance specificationD . Technical drawingsView AnswerAnswer: A Explanation: There are two major types of specification: conformance and performance specifications. They have the following characteristics: Since performance specification is often a list of outputs or...

Which of the following is a risk to buying organization when using conformance specification?A . Buyer is responsible for product failureB . Buyer may face liquidity risksC . Buyer cannot control the inputsD . Time to produce specification is shortenedView AnswerAnswer: A Explanation: When using conformance specification, the buying organisation...

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...

Which of the following may allow suppliers free to choose the materials, manufacturing process or delivery process?A . Performance specificationB . Design specificationC . Technical specificationsD . Conformance specificationView AnswerAnswer: A Explanation: The Performance Specifications define what the system being designed must do, and not how it must do it....

A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company’s spend. Is that concern justified?A . No, because the broader range of spend category can increase the value of the contract and...

Which of the following is the purpose of benchmarking?A . To identify and adapt the best practices to improve organisation's performanceB . To copy other organisation's intellectual properties, processes and practicesC . To coerce all suppliers to sacrifice their profitD . To resist continuous improvementView AnswerAnswer: A Explanation: According to...

Which of the following problems may be identified as open-ended problems? Select TWO that apply:A . Shortage of key medicines in healthcare industryB . A cyber attack takes down whole company’s IT systemC . Engine failures cause flight cancellations.D . Logistics costs incur a large portion in wholesale pricesE ....

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...

Which of the following factors are likely to be direct barriers to a new entrant in a supply market?A . Threat of forward integrationB . Value to priceC . Brand identityD . Availability of substitutesE . Cost advantagesView AnswerAnswer: C, E Explanation: There are many types of barriers to entry...