CIPS L4M6 Exam Dumps [2023] Practice Valid Exam Dumps Question
L4M6 Dumps - Grab Out For [NEW-2023] CIPS Exam
NEW QUESTION 47
Mendelow's Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?
- A. The Matrix doesn't consider whether the stakeholder is for or against the activity
- B. The Matrix doesn't consider the power these stakeholders have
- C. The categories are hard to remember
- D. Nowadays, Stakeholders fall into more than four categories
Answer: A
Explanation:
The correct answer is 'The Matrix doesn't consider whether the stakeholder is for or against the activity'. For a list of other limitations of using Mendelow's Stakeholder Matrix see p.82
NEW QUESTION 48
Which of the following are valid strategies for dealing with conflict? Select THREE
- A. Compromising
- B. Contesting
- C. Collecting
- D. Competing
- E. Collaborating
Answer: A,D,E
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
NEW QUESTION 49
Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?
- A. Contract
- B. ITT
- C. Framework
- D. Audit
Answer: D
Explanation:
Tim should do an audit. P.71 of the textbook says "to ensure that a procurement department is achieving value for money, an audit should be undertaken"
NEW QUESTION 50
What is the correct order of the stages of team development?
- A. Storming, forming, performing, norming
- B. Forming, norming, performing, storming
- C. Storming, forming, norming, performing
- D. Forming, storming, norming, performing
Answer: D
Explanation:
The correct answer is Forming, storming, norming, performing (p.91). Note; some people add on two additional stages to this; mourning and adjourning. The study guide forgets to mention this, but the exam may ask you about these additional stages. So I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model)
NEW QUESTION 51
If a stakeholder has high power in a business but isn't interested in your procurement activity, what should be your management style for dealing with this stakeholder?
- A. Minimum effort is required as they're not interested- do nothing
- B. Keep them satisfied - they have high power
- C. Keep them informed - they have high power
- D. Manage closely - they're a key player
Answer: B
Explanation:
The correct answer is 'keep satisfied' because the stakeholder is high power and low interest. This is the top left corner of Mendelow's Stakeholder Matrix - see p.81
NEW QUESTION 52
The use of technical jargon can result in what?
- A. Increased price
- B. Lack of transparency
- C. Lack of trust
- D. Misunderstanding
Answer: D
Explanation:
Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues
NEW QUESTION 53
Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn't need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?
- A. No- Debbie should continue using the same supplier- it doesn't matter that the contract has expired.
- B. Yes - the contract has now expired so she must do a new competitive tender
- C. Yes- competitive tender is the only option to procure uniforms
- D. No- the contract is not of significant value
Answer: D
Explanation:
The correct answer is 'no-the contract is not of significant value'. CIPS state that competitive tenders should only be used when 'the item or service is of significant value' p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.
NEW QUESTION 54
The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?
- A. cost engineering
- B. cost analysis
- C. supplier positioning
- D. relationship spectrum
Answer: C
Explanation:
ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this
NEW QUESTION 55
Kirsty is designing a specification for a new contract and wants to include some qualitive KPIs for the new supplier, as well as quantitative. Which of the following could she include? Select TWO.
- A. Information sharing
- B. Early supplier involvement
- C. Trust
- D. Cost savings
- E. Deliveries in full and on time
Answer: A,C
Explanation:
The correct answers are information sharing and trust. Further qualitative KPIs are listed on p.102. Deliveries in full and on time would be a quantitative KPI and early supplier involvement is not a KPI at all.
NEW QUESTION 56
In public sector procurement, tenders are advertised with CPV codes, which provide a reference to describe the product or service being tendered. What does CPV stand for?
- A. Clear Procurement Vocabulary
- B. Common Procurement Vocabulary
- C. Complete Procurement Vocabulary
- D. Condensed Procurement Vocabulary
Answer: B
Explanation:
CPV stands for Common Procurement Vocabulary. This is explained briefly on p.72 but it doesn't really go into much detail as to what CPVs are or how they work. CPVs are a string of numbers which refer to an object that is being procured. For example the CPV for Fire Doors is 44221220. When a Tender gets advertised for Fire Doors, it will have this CPV code on, and any suppliers who provide fire doors will get a notification if they have this CPV code on their profile. It's basically a code that links suppliers with tender opportunities.
NEW QUESTION 57
A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products. What is the reason for the failure of this?
- A. Communication overload
- B. Distortion of the facts
- C. Miscommunication
- D. Poor communication
Answer: D
Explanation:
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.
NEW QUESTION 58
In a monopoly market, which of the following statements is true?
- A. bargaining power of suppliers is strong
- B. bargaining power of buyers is strong
- C. There is strong rivalry
- D. There is a threat of new entrants
Answer: A
Explanation:
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
NEW QUESTION 59
Which of the following are Intellectual Property Rights that you would you encounter in procurement and supply contracts? Select THREE.
- A. Risk Assessments
- B. Copywrite
- C. Patents
- D. Trademark
- E. Method Statements
Answer: B,C,D
Explanation:
Intellectual Property Rights include; Patents, Copywrite, Trademarks and Trade Secrets. P.114
NEW QUESTION 60
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?
- A. Strong governmental regulation
- B. High barriers to entry
- C. The product is easy to source elsewhere
- D. Low levels of profitability
Answer: C
Explanation:
The correct answer is 'The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.
NEW QUESTION 61
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender. What purpose would this serve?
- A. To ensure suppliers can find the opportunity
- B. To ensure only qualified suppliers bid for the tender
- C. To ensure more suppliers bid for the tender
- D. To ensure suppliers know the deadline for tender submission
Answer: A
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.
NEW QUESTION 62
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Human Resources
- B. Marketing and Sales
- C. Procurement
- D. Operations
- E. Inbound Logistics
Answer: B,D,E
Explanation:
This Question: refers to
Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service
NEW QUESTION 63
Togo Bongos is a manufacturer of percussion instruments, in particular of bongo drums. It requires electricity to run its factories and this is a major factor of cost impact. There are lots of suppliers of electricity in the market and there is no switching costs if Togo Bongos wanted to switch suppliers. What type of supplier is Togo Bongo's electricity supplier?
- A. routine
- B. leverage
- C. strategic
- D. bottleneck
Answer: B
Explanation:
This is a leverage supplier on the Kraljic Matrix; high cost impact and low risk impact. The diagram on p.20 gives the example of utility services such as electricity as a common leverage supplier. There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix
NEW QUESTION 64
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.
- A. Lower costs
- B. No tender process
- C. Supplier KPIs
- D. No defined end period
- E. Early supplier involvement
Answer: B,D,E
Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5
NEW QUESTION 65
Which of the following are elements of a business that can develop a company's competitive advantage? Select THREE.
- A. organisation culture
- B. natural resources
- C. cost focus
- D. human resource management
- E. cost leadership
Answer: A,B,D
Explanation:
This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34
NEW QUESTION 66
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
- A. The supplier has a change in senior management
- B. The supplier made one late delivery
- C. Supply base rationalisation
- D. The supplier becomes insolvent
- E. The supplier suddenly increases prices
Answer: A,B
Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
NEW QUESTION 67
What are service credits?
- A. A type of payment where goods are delivered before payment is made
- B. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
- C. A clause in a contract that allows for additional bonus payments for meeting KPIs
- D. When a buyer makes a purchase on credit
Answer: B
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION 68
Agile Cars Ltd is creating a 'lean' business model which involves receiving deliveries of components only when they are required. Which of the following 'wastes' is being removed from the business?
- A. Over-production
- B. Defects
- C. Transportation
- D. Inventory
Answer: D
Explanation:
This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don't need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it's worth remembering.
NEW QUESTION 69
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