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CIPS L6M9 Exam Syllabus Topics:
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NEW QUESTION # 31
Scenario:
Five manufacturing organisations usedifferent order prioritisation methodsandworkflow patterns. Each company follows a uniquestrategy for order processingandworkflow structure.
For eachorganisation, select thecorrect Prioritisation MethodandPattern of Workflow.
Answer:
Explanation:
Explanation:
A screenshot of a product list AI-generated content may be incorrect.
NEW QUESTION # 32
Which of the following is adifferencebetween a supply chain and a supply network?Select ALL that apply.
- A. Profit made
- B. Number of players involved
- C. Location of the players
- D. Complexity
- E. Dimension difference
Answer: B,D,E
Explanation:
Asupply chainis asimple, linearsystem where products move from A # B # C.Asupply networkismulti- layered, withhorizontal and vertical connections, making itmore complex.
* Dimension difference (B):Supply networks have largerdimensions, with multiple supply channels and flows.
* Complexity (C):A supply network ismore intricatethan a single supply chain.
* Number of players (D):Supply networks involvemore entitiesthan a simple supply chain.
* Profit made (A) is incorrect, asboth supply chains and supply networks can be profitable.
* Location of players (E) is incorrect, as both supply chains and networks can belocal or global.
(LO 1.1, See p.8)
NEW QUESTION # 33
What would the Boston Consulting Group Matrix help an organisation decide?
- A. Which product mix should be invested in
- B. The break-even point
- C. The optimum number of suppliers
- D. The desirable size of the supply network
Answer: A
Explanation:
TheBoston Consulting Group (BCG) Matrixidentifies four categories of products based on market size and growth rate. It is a useful tool for evaluating whether a product is performing well and whether it's worth investing in. Organisations use this matrix to determine which products to invest in and which ones to discontinue. (See p.130)
NEW QUESTION # 34
Manuel has created an Efficient Frontier diagram mapping six options his organisation can take. Is it possible for there to be two curves on this diagram?
- A. No - the diagram should only have straight lines, not curves
- B. No - only one curve is needed as this plots the trade-offs and level of risk
- C. Yes - there should always be at least two curves on the graph to demonstrate different timescales for the options
- D. Yes - the second curve can represent what is achievable should the organisation engage in continuous improvement
Answer: D
Explanation:
AnEfficient Frontier diagramcan have multiple curves. The first curve shows potential return on investment under current conditions, while the second curve models improvements if the organisation engages in continuous improvement. A third curve may represent a long-term vision, but this is less common. (See p.
136)
NEW QUESTION # 35
A car manufacturing organisation organises formal, regular meetings with itstier one suppliersfor the purpose of collaborating on improvements and changes to the final product. What is this arrangement known as?
- A. Supplier focus group
- B. Supplier forum
- C. Supplier association
- D. Supplier improvement project
Answer: C
Explanation:
This is asupplier association-the key clue in the question is "formal, regular meetings."
* Asupplier improvement projectwould be aone-offinitiative rather than ongoing formal meetings.
* Asupplier forumismore informalthan what is described in the question.
* Asupplier focus groupmeets to discuss specific topics rather than engaging in regular collaboration on improvements.
(See p.191)
NEW QUESTION # 36
Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply.
- A. Customer demand is low
- B. Changes in competitor activity
- C. There is a short lead time for the product
- D. Raw materials are vulnerable
Answer: B,D
Explanation:
Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159)
NEW QUESTION # 37
Gill runs the operations department of amanufacturing organisationin Wales. The departmentemulates best practicesfrom competitors throughbenchmarkingand has recently introducedSix Sigmato prevent operational problems. Which of the following best describes Gill's approach to operations function?
- A. Internally supportive
- B. Externally neutral
- C. Externally supportive
- D. Internally neutral
Answer: B
Explanation:
This aligns withexternally neutral, which includes:
* Benchmarking against competitors
* Adopting best practices(Lean, Six Sigma, BPR, TQM)
* Emulating successful industry models
(LO 2.1, See p.99)
NEW QUESTION # 38
Dev is creating anOperations Strategyfor hishealthcare consultancybusiness. Which of the following describes anOperations Strategy? SelectALLthat apply.
- A. Operations Strategy focuses on external processes
- B. Operations Strategy supports the competitive advantage of the company
- C. Operations Strategy is a short-ranged plan
- D. The Operations Strategy is aligned with the Organisational Strategy
Answer: B,D
Explanation:
* Option B is correctbecause Operations Strategy helps build acompetitive advantagefor the organisation.
* Option C is correctbecause Operations Strategy must align with theoverall organisational goals.
* Option A is incorrect-it isSupply Chain Managementthat focuses onexternalprocesses.
* Option D is incorrectbecauseOperations Strategy is long-term, not short-ranged.
(See LO 2.1, p.63)
NEW QUESTION # 39
The operations department of ABC Ltd has recently launched a new product. The product is manufactured within a large factory and then sent to retailers for sale. The department has a system in place which details the components required for the product and the quantities required to fulfil customer demand. The system works online and links to other areas of the business including HR and finance.
So far, several large orders have been placed for the product from different retailers. The Chief Operations Officer (COO) has decided to programme the completion of the orders based on when the orders were placed.
The benefit of this strategy is that it will give each customer a similar lead time. Thus far no buffer stock has been created as products are only created when orders are received.
Three teams are required to make the product and the product flows from team one to team two toteam three, each team adding a component to the product. Unfortunately, team two are short staffed and are completing their work at a slower rate than the other two teams. This is a huge consideration for the COO as it will impact upon the capacity of the organisation.
The retailers have all signed contracts with ABC Ltd and the COO is extremely happy that they are long term contracts. Contract 1 is with retailer X and the price is set for three years. Contract 2 is with retailer Y and is a five year contract where the price will be reviewed annually in line with CPI. Contract 3 has a variable pricing mechanism based on the volume of products ordered.
What is the nature of the COO's consideration?
- A. Variance analysis
- B. Push technique
- C. Corporate strategy
- D. Theory of Constraints
Answer: D
Explanation:
This is an issue related to theTheory of Constraints, as Team 2 is thebottleneckaffecting overall production efficiency. TheTheory of Constraintsfocuses on identifying and managing the most critical limitation in a system. (See LO 3.3)
NEW QUESTION # 40
Which of the following areexamples of Linear Programming (LP) solvers? SelectALLthat apply.
- A. MATLAB
- B. Lindo
- C. CPLEX
- D. Excel
- E. LPX
Answer: A,B,C,D
Explanation:
Excel, Lindo, MATLAB, and CPLEXare all realLinear Programming (LP) solversused foroptimization problems.
#LPX is made up-it does not exist. (See LO 1.3, p.47)
NEW QUESTION # 41
Which of the following are examples of investment appraisal techniques? Select ALL that apply.
- A. Cash flow impact
- B. Gearing
- C. Payback period
- D. Liquidity
- E. Return on investment
Answer: A,C,E
Explanation:
Investment appraisal techniques help assess whether an investment, such as purchasing new machinery, is financially viable.Return on investment, cash flow impact, and payback periodare all investment appraisal methods.Liquidity and gearingassess financial health but do not determine whether to make an investment.
(See p.160)
NEW QUESTION # 42
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
- A. No - organisations should always aim to meet customer demand or resources will be underutilised
- B. No - this would negatively affect the profit the organisation could make
- C. Yes - there are occasions when an organisation would choose not to fulfil customer demand
- D. Yes - there are exceptions, but these are always outside of the organisation's control
Answer: C
Explanation:
While organisations generally try to fulfil customer demand, there are times when theystrategicallychoose not to. A common reason is maintaining a premium image-limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169)
NEW QUESTION # 43
According toHays and Wheelwright, there arefour stages of operations functions, reflecting how an organisationapproaches its operational system.
Which of the following isStage 4, the stage that organisations should aspire to achieve?
- A. Externally Neutral
- B. Externally Supportive
- C. Internally Neutral
- D. Internally Supportive
Answer: B
Explanation:
#Externally SupportiveisStage 4, where an organisation's operations function is astrategic asset, driving competitive advantage.
#The four stages in order:1##Internally Neutral- Focus on avoiding mistakes2##Externally Neutral- Keeping up with industry standards3##Internally Supportive- Aligning operations with business strategy4## Externally Supportive- Operations function is acompetitive differentiator This model isimportant for the exam, somemorise the stages!(See LO 2.2, p.99)
NEW QUESTION # 44
Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point?Select ALL that apply.
- A. Price per car wash
- B. Fixed costs
- C. Number of customers
- D. Number of employees
- E. Variable costs
Answer: A,B,E
Explanation:
Greg needs to know hisfixed costs, variable costs, and price per car washto determine his break-even point.
For example, if:
* Fixed costs(rent, bills) = £100/day
* Variable cost per car wash(soap, sponges) = £5
* Price per car wash= £10
Thebreak-even pointis when revenue = costs, which means washing20 cars per day(£10 × 20 = £200 revenue, covering fixed and variable costs).
* Number of customers (C) is incorrect, as this iscalculated from the break-even formula, not an input.
* Number of employees (E) is incorrect, as it isnot a direct factorin the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
NEW QUESTION # 45
Dan is an Operations Manager at a retail organisation. He is keen to understand more about the types of customers his organisation serves and has therefore devised new KPIs (key performance Indicators) with a customer-centric focus. He is particularly keen to understand which customersegments are providing the organisation with the highest ROI (return on investment). Which customer-centric performance measure should Dan look to introduce?
- A. Customer Retention Rate
- B. Churn Rate
- C. Net Promoter Score
- D. Customer Lifetime Value
Answer: D
Explanation:
#Customer Lifetime Value (CLV)measures the total amount a customer is expected to spend over their lifetime with a company, helping identify themost profitable customer segments.
#Other KPIs are not suitable for Dan's needs:
* Churn Rate: Measurescustomer lossover time.
* Net Promoter Score: Measurescustomer satisfaction and loyalty.
* Customer Retention Rate: Focuses onhow many customers stay with the companybut does not indicate ROI.
For more insights onCLV, visit:#Customer Lifetime Value - WallStreetMojo (See LO 2.2, p.97)
NEW QUESTION # 46
What does a forcefield diagram show?
- A. The flow of information through a supply network
- B. The sequencing of events within an operational strategy
- C. The potential causes of an issue that has occurred
- D. People in favour of change and against it
Answer: D
Explanation:
Aforcefield diagramidentifies forces (e.g., people or factors) that support or oppose change. This model, developed byKurt Lewin, helps organisations assess and manage resistance to change. (See p.196)
NEW QUESTION # 47
Paul is the Operations Manager at a button factory. Buttons are incorporated into many different fashion garments, and as they are currently 'on trend,' there is a high demand for more buttons. Paul is concerned that the factory cannot produce the number of buttons that is being demanded in the marketplace. He has calculated that each team within the factory only has the capacity to create 1,000 buttons per day, and he will decline any requests for buttons that exceed this amount. In terms of Capacity Loading, what is this called?
- A. Complete loading
- B. Finite loading
- C. Maximum loading
- D. Process loading
Answer: B
Explanation:
This isfinite loading. There is a finite amount of buttons that can be produced. Finite means there is a limit.
This is the opposite ofinfinite loading, where a team can take on additional tasks/orders without any issues.
Maximum loadingis similar to finite loading, but the difference is subtle-maximum is the amount of work that is possible in a given time period, but no limits are placed on this. Infinite loading, a strict limit is placed.
(See p.181)
NEW QUESTION # 48
Alexandra is the new Chief Procurement Officer at Wet Lettuce Incorporated, a manufacturing organisation that uses a tiered supply structure. She has asked to see the contracts with all thesuppliers and has been told that it is not common practice to have contracts with the full range of suppliers. What should Alexandra do?
- A. Do nothing-if it is not common practice within the organisation, she should not change things
- B. Amend the supply structure so that contracts are put in place with all suppliers
- C. Ensure contracts are immediately put in place with all suppliers within the tiered supply structure
- D. Set up meetings with the tier-one suppliers and assess the contracts with these suppliers
Answer: D
Explanation:
SinceWet Lettuce Incorporatedoperates atiered supply structure, it is common for contracts to be in place only with tier-one suppliers, while sub-contractors in lower tiers are managed by those suppliers. Instead of changing the entire structure, Alexandra should ensure that contracts and relationships withtier-one suppliers are well managed. (See p.195)
NEW QUESTION # 49
White Moon Ltd, amanufacturing organisation, is consideringoutsourcing transportation. What would be areason for doing this?
- A. To decrease fixed costs
- B. To gain better access to emerging markets
- C. To avoid the inefficiency trap
- D. To please shareholders
Answer: A
Explanation:
* Outsourcing replaces fixed costs with variable costs-companies onlypay for what they use, rather than maintaining their own fleet.
* Option A is incorrectbecause gaining market access is abenefit of offshoring, not outsourcing.
* Option C is incorrectas there is no mention of shareholders in the scenario.
* Option D is incorrectsince the inefficiency trap relates tooffshoring.
(LO 1.2, See p.44)
NEW QUESTION # 50
ZYX Ltd creates products to meet customer demands. Each product created isunique to the customer's specification. What is the name of the workflow pattern used by ZYX Ltd?
- A. Engineered to order
- B. Produced to order
- C. Made to order
- D. Configured to order
Answer: A
Explanation:
* Engineered to order (ETO): Each product isuniquely designedbased on customer specifications.
* Made to order (MTO): The same product is made only when there is a demand.
* Configured to order (CTO): A hybrid approach where customers choose from predefined configurations (e.g., furniture with different color options).
* Produced to order: This is not a standard term for this type of workflow.
SinceZYX Ltdcreates products that are uniquely specified by each customer,engineered to order (ETO)is the correct answer. (See p.205)
NEW QUESTION # 51
Which of the following is atechnique for continuous improvementthat employs afull-time specialist improvement team?
- A. Employee suggestion scheme
- B. Value stream mapping
- C. Kaizen
- D. Six Sigma
Answer: D
Explanation:
* Six Sigmaemploysdedicated full-time teamsfocused oncontinuous improvement.
* Kaizen (A)is anongoing improvement philosophybut does not require aspecialist team.
* Employee suggestion schemes (B)are informal.
* Value stream mapping (D)is a tool, not a full-time methodology.
(LO 2.3, See p.121)
NEW QUESTION # 52
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