L4M6 Certification Exam Dumps Questions in here [Apr-2023]
Updated L4M6 Exam Practice Test Questions
NEW QUESTION 23
One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:
- A. Measurable, achievable and time-bound
- B. Time bound, difficult and relevant
- C. Significant, measurable and achievable
- D. Relatable, specific and measurable
Answer: A
Explanation:
The correct answer is Measurable, achievable and time-bound. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.
NEW QUESTION 24
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 25
At what stage of the relationship cycle could you use Carter's 10 Cs?
- A. on-boarding
- B. development and innovation
- C. segmentation and risk management
- D. qualification
Answer: D
Explanation:
Carter's 10 Cs are a way to qualify (aka shortlist) a supplier. See p.11 for more details on this and p.10 for the stages of the relationship cycle.
NEW QUESTION 26
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.
- A. customers
- B. suppliers
- C. legal department
- D. employees
- E. end-users
Answer: C,D,E
Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64
NEW QUESTION 27
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The need to improve performance to satisfy the end customer
- B. The marketplace has become more volatile
- C. The protection of intellectual property rights
- D. Working together will create synergies
Answer: A,B,D
Explanation:
To increase production costs and lead-times
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.
NEW QUESTION 28
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?
- A. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them
- B. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
- C. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival
- D. Competing- the supplier needs to earn more money as they are struggling financially
Answer: C
Explanation:
The correct answer is 'accommodating'. This Question: is based
on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.
NEW QUESTION 29
Under what circumstances should a competitive tender not be completed? Select TWO.
- A. When there is a clear specifications
- B. When there is not a clear specification
- C. When the items are of low value
- D. When the items are of high value
Answer: B,C
Explanation:
Note the word 'NOT' in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it's time consuming to do, so you wouldn't do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn't a clear specification'. There's a useful table on p.73 of when you would and wouldn't use a competitive tender.
NEW QUESTION 30
Grey Stone Memorial Hospital is a private medical facility which has an idea for a vaccine to a deadly disease, but does not have the capacity to make the vaccine itself. It is considering partnering with a well-known pharmaceutical company in order to bring the vaccine to market. What is the biggest risk to Grey Stone?
- A. Increased Costs
- B. Intellectual Property Rights
- C. Uninformed stakeholders
- D. Low quality product
Answer: B
Explanation:
The correct answer is 'Intellectual Property Rights'. Grey Stone will need to share its idea for the vaccine with the pharmaceutical company and this is risky if there is no trust between the parties. See p.134 for more information on Risks of Partnerships.
NEW QUESTION 31
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?
- A. Items of high value
- B. Items that are imported from outside the EU
- C. Items that are produced by lots of suppliers
- D. Items of strategic importance
Answer: A
Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'. These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75
NEW QUESTION 32
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?
- A. routine
- B. bottleneck
- C. leverage
- D. strategic
Answer: D
Explanation:
Friendly Flour Ltd is a strategic supplier; this is a critical supplier, responsible for core products. They represent a high risk impact and a high cost impact. This is the top-right hand corner of the Kraljic matrix. 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 (see p.20)
NEW QUESTION 33
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket's profitability. What should Sandra do first?
- A. Develop an exit strategy
- B. Obtain business approval to terminate the contract
- C. Give written notice to the supplier of plans to terminate
- D. Review the market and look for an alternative supplier
Answer: B
Explanation:
The first step is to obtain business approval to terminate. If Senior Management don't give approval, then the rest of the stages can't happen and Sandra will be stuck with her current banana supplier. There's a good diagram on p.109 detailing the steps to supplier termination.
NEW QUESTION 34
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn't think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?
- A. Value Engineering Analysis
- B. Make vs Buy Analysis
- C. Cost Analysis
- D. Force Field Analysis
Answer: D
Explanation:
Richie should do a Force Field Analysis - this is explained on p.86 and is an idea of Kurt Lewin - it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn't go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin's Force Field Analysis.
NEW QUESTION 35
Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?
- A. Invite known suppliers to bid for the contract
- B. Contact current suppliers to try and get a good deal
- C. Hold an open competition
- D. Put together a business case to make the product in-house
Answer: C
Explanation:
Fred should hold a competition as this is a 'key way of achieving value for money' p.67. Fred shouldn't put a business case together to make the product in-house without doing a make vs buy analysis, and that analysis showing make is the way to go. As the firm buy in 100s of components, it's very unlikely that making the component in-house would bring 'value for money'. He should also be careful of only looking at current suppliers or known suppliers- the best supplier of this new component might be unknown to the engineering firm at present.
NEW QUESTION 36
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. human resource management
- D. cost focus
- E. cost leadership
Answer: A,B,C
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 37
A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren't very expensive to buy. What type of supplier is the supplier of mixer valves?
- A. routine
- B. bottleneck
- C. leverage
- D. strategic
Answer: B
Explanation:
This is a bottleneck supplier- refer to the Kraljic matrix on p.20; these types of supplier hold a monopoly in the marketplace and provide low-value items. 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 38
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy's first step?
- A. Run a restricted competition- send out a RFI
- B. Run an open competition - send out a RFQ
- C. Run a restricted competition - send out a PQQ
- D. Run an open competition - send out an ITT
Answer: C
Explanation:
The correct answer is 'run a restricted competition - send out a PQQ'. This Question: tests both your understanding of when to run open and restricted competitions (which is explained on p.75) and your understanding of tender documents. Mandy should run a restricted competition- there are a lot of options in the marketplace and this will allow her to pre-qualify those who best suit her requirements. Running an open competition when there are lots of suppliers would be too time-consuming- you need a way of making a short-list. When you run a restricted competition, the first stage is sending out a PQQ- pre-qualification questionnaire; this document is sent to suppliers asking for necessary information to support their qualification as an approved supplier.
NEW QUESTION 39
The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?
- A. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
- B. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
- C. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this
- D. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
Answer: C
Explanation:
The correct answer is 'Yes- the Public Sector is regulated by EU procurement regulations which prohibits this'. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
NEW QUESTION 40
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years' time. Should IPR be included into a contract between partners?
- A. No- a separate legal agreement should be created to cover IPR
- B. Yes- IPR is a valid concern for both parties but will survive the termination of the agreement
- C. Yes- IPR should always remain with the buyer- this will protect those rights
- D. No- a contract is not necessary if it is a partnership.
Answer: B
Explanation:
The correct answer is 'Yes- IPR is a valid concern for both parties but will survive the termination of the agreement' (p.112). See the section on 'Legal considerations' in chapter 2.4
NEW QUESTION 41
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