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NEW QUESTION 29
Warwickshire Ambulance Service (WAS) is an NHS Trust. It operates throughout Warwickshire and the neighbouring areas. It has three core areas of activity, namely the provision of Emergency Ambulance Services, routine Patient Transport Services, and Logistic Medical Services. The agency is working towards higher service level through benchmarking. Which of the following is the benefit of benchmarking to WAS?

  • A. It will help WAS create performance standards derived from an analysis of the best in business
  • B. Benchmarking is a panacea for all WAS’s problems
  • C. It helps WAS identify better ways to deliver service through a cookbook process
  • D. It will help WAS analyse the competitors in the industry

Answer: A

Explanation:
Benchmarking is ‘the pursuit by organisations of enhanced performance by learning from the suc-cessful practices of others. Benchmarking is a continuous activity; key internal processes are adjusted, performance is monitored, new comparisons are made with the current best performers and further changes are explored. Where information about these key processes is obtained through a co-operative partnership with specific organisations (rather than via a third party such as an independently-maintained database), there is an expectation of mutual benefit over a period of time.


Reference:
– The Department of Navy Benchmarking Handbook: A system view
– CIPS study guide page 49-51
LO 1, AC 1.3

 

NEW QUESTION 30
Thani Ltd is a fast growing logistics company with a fleet of 20 tractors. To meet Net Zero objec-tive, the company needs to electrify its fleet. Angelica is assigned to investigate the market price of electrifying services. After the investigation, she realises that the current market price is very expensive and unsustainable for her company. She decides to break down the costs before negotiating with the suppliers. Which internal stakeholders may help Angelica estimate the breakdown of costs? Select TWO that apply.

  • A. Finance department
  • B. Suppliers
  • C. Commercial agency
  • D. Engineering department
  • E. Sales and Marketing department

Answer: A,D

Explanation:
Despite of its importance, cost analysis is often a daunting task for procurement professionals. In order to analyse supplier’s costs effectively, procurement may need the input from other depart-ments. Normally, technical (or engineering) department may help them to identify the direct costs of the product/service (how much material is required to make the product, or how many people are needed to perform the job, etc), while finance (or accounting) department may have ideas on the overheads of the supplier.
In this scenario, engineering department may provide insights on the components needed and the tasks to perform. Similarly, finance may know how much supplier pays for the overheads.
On the other hand, while commercial agency and suppliers are external stakeholders, Sales and marketing is unlikely to provide valuable information in this case.
Reference:
LO 2, AC 2.3

 

NEW QUESTION 31
At which stage of through-life contract management, procurement team needs to identify sources of risk and the ways to mitigate them?

  • A. Contracting stage
  • B. Specification stage
  • C. Supplier relationship stage
  • D. Tendering stage

Answer: C

Explanation:
Risk management has become incredibly complex, especially for capital purchase which requires through-life contract. Any source of risks should be identified and closely managed from the specification stage.
There should be sufficient information in the specification to minimise risks later in the through-life contract. Here is something to consider:
– Make sure the parties to the contract are clearly identified. This is particularly important if a prime contractor is being used. Allow them to subcontract elements of the specification.
– Clearly identify any testing and quality assurance procedures and who will perform them.
– Document every important aspect of the specification including a project plan
– Include a reasonable limitation of liability clause in the contract and reference it in the specifica-tion
– Identify any guarantees that are needed
– Be clear on what insurance will and will not cover
– Make sure there is clear audit trail of any changes to the specification together with approvals LO 3, AC 3.2

 

NEW QUESTION 32
Lider Ltd is a leading bathroom furniture manufacturer in Indi
a. 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. Just in time
  • B. Value engineering
  • C. Cost analysis
  • D. Standardisation

Answer: B

Explanation:
From the scenario, you can see that the project team is developing a new product. They start with analysing the functions, and the costs of delivering those functions. This is a typical process of value engineering. You may read more on value engineering from the reference paper.
Reference:
– CIPS study guide page 171-173
– Value Analysis – Norwood Whittle (cimaglobal.com)
– A CASE STUDY ANALYSIS THROUGH THE IMPLEMENTATION OF VALUE ENGI-NEERING (researchgate.net) LO 3, AC 3.4

 

NEW QUESTION 33
What does the acronym RAQSCI stand for?

  • A. Relationship, Availability, Quantity, Sustainability, Cost, Innovation
  • B. Regulatory, Ability, Quality, Service, Cost, Inventory
  • C. Relationship, Ability, Quality, Service, Cost, Innovation
  • D. Regulatory, Availability, Quantity, Sustainability, Inventory
  • E. Regulatory, Availability, Quality, Service, Cost, Innovation

Answer: E

Explanation:
RAQSCI stands for Regulatory, Availability, Quality, Service, Cost, Innovation.
LO 1, AC 1.1

 

NEW QUESTION 34
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