CIPS L4M2 Defining Business Need Exam Questions and Answers.
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Course
CIPS L4M2
Institution
CIPS L4M2
CIPS L4M2 Defining Business Need Exam Questions and Answers.CIPS L4M2 Defining Business Need Exam Questions and Answers.CIPS L4M2 Defining Business Need Exam Questions and Answers.CIPS L4M2 Defining Business Need Exam Questions and Answers.CIPS L4M2 Defining Business Need Exam Questions and Answers.
CIPS L4M2 Defining Business Need Exam Questions
and Answers.
Types of Purchases - Correct answer new buy, straight rebuy, modified rebuy
Straight rebuy purchase - Correct answer Routine purchases of the same products
under approximately the same terms of sale
Modified rebuy purchase - Correct answer when new-task purchases are changed on
repeat orders or straight rebuy purchases are modified
New purchase - Correct answer a purchase of an item for the first time
Examples of straight rebuy purchases - Correct answer Utilities (gas, water, and
electricity)
MRO (Maintenance, repair and operating items)
Raw materials (steel, chemicals)
Examples of modified rebuy purchases - Correct answer Services (Consulting)
Components or semi finished products
ICT
Examples of New purchases - Correct answer Capital Items
Finished products
Products from resale’s
Task in a new purchasing - Correct answer Understand the business requirement
Writing and effective communication
Researching the supply market
Researching key suppliers in that market
Deciding on the key capabilities that suppliers must have
Writing invitation to tender documentation
Managing the tender process
Negotiating
Selecting the supplier.
Straight re-buy decision - Correct answer a purchase decision resulting from an ongoing
purchasing relationship with a supplier
Modified rebuy decision - Correct answer a purchase decision that occurs when a buyer
has experience in purchasing a product in the past but is interested in acquiring
additional information regarding alternative products and/or suppliers
,New purchase decision - Correct answer a purchase decision that made when the
buyer identifies a new requirement. (New Product, technology change, changes in the
legislation to offer a new service)
Private sector Mission and Purpose - Correct answer Supply the needs and improve the
end user lives maximizing the profits and provide a financial return to its shareholders.
Public sector Mission and Purpose - Correct answer Provide services not available by
nonprofit organization.
Terms of RAQSCI Model - Correct answer Regulatory
Availability
Quality
Service requirement
Cost
Innovation
RAQSCI Regulatory - Correct answer covers any legal requirements or requirements of
regulatory bodies
RAQSCI Availability - Correct answer covers the continuing supply of goods and
services when required and is based on factors, such as capacity, financial stability and
risk.
RAQSCI Quality - Correct answer this is the consistency, repeatability and how fit for
propose the procured goods and services are
RAQSCI Service requirements - Correct answer are factors associated with the way
services are supplied for example flexibility, support and help desk.
RAQSCI Cost - Correct answer Cost and price: target cost, total cost of ownership,
benchmarked prices, continues improvements.
Use of RAQSCI Model - Correct answer Identified business requirements
Business requirements things to consider - Correct answer Collect Information
Categorize potential stakeholders
Identify individuals who contribute to the acquisition
On completion analysis
Straight rebuy steps - Correct answer List of approved suppliers
New suppliers are not considered
The process for ordering is a procurement approved and routine
Buyer’s experience
, Why is the capability of a supplier important to a buyer? - Correct answer Provide
special skills
World-class processes
Qualification from regulatory bodies (ISO)
Leading edge software
Specific capital equipment
Unit or dominate access to rare resources (including human skills)
Reasons to prepare a business case - Correct answer a contract is coming to an end
and the product or service need to be procured again.
Cost reduction need to be made and this requires changes to the way that the
organization operates.
An alternative product or service has been found that potentially delivers a number of
benefits
Business case approach - Correct answer 1) state problem 2) solution 3) resources
Problem solving - Correct answer the process of finding ways to correct situations
(closed problems or unblock the blockages (open ended problems).
Groups of problems - Correct answer Closed
Open-ended
Closed problems - Correct answer these appears when something happen that should
not have happen.
Open-ended problems - Correct answer these are where something is stopping the
achievement of an objective or blocking progress
Buying off-contracts - Correct answer the purchase of an item without a contract when a
contract for that item already exist.
Moving from the problem to the solution steps - Correct answer Problem > Problem
definition > Data collection > Analysis > Insight > Hypotheses > Test > Solution
5 Whys strategies - Correct answer Helps to describe a problem. Why this is
happening?
Kepner-Tregoe Method - Correct answer -Relies on 3 key activities
1) Describe problem in terms of identity, location, timing and magnitude
2) Compare problematic conditions with similar situations that are normal
3) Identify changes suggesting possible causes
-Works best if showing something abrupt (stop vs. go)
Kepner-Tregoe approach - Correct answer what is the problem
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