CIPS Level 4 Diploma in Procurement and Supply Changed L4M2 Questions

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Question 56

ABC Ltd has recently set up a stationery contract with a large stationery provider, obtaining fixed prices on core stationery items. The brochures have been distributed within ABC Ltd and one of the key users wants to order a corner desk and office chair from the brochure. Is this within scope?

Options:

No, because the contract is for stationery only and not furniture

No, because the corner desk wouldn't match existing furniture

Yes, because the contract is with the company and not just stationery

Yes, because the office equipment is in the brochure and must be covered

Question 57

Which of the following might be the consequences of under-specification? Select TWO that apply:

Options:

Few suppliers can supply the full range of features

Additional cost to rework

Unfit products or services

Poor competition between suppliers

Higher cost due to inessential features

Question 58

Why is the specification considered as the most important document in procurement?

Options:

It provides a mean to appraise the performance of supplier

It helps the buyer to gain at supplier's loss

It eliminates all possible supply risks

It always shifts the balance of bargaining power in favour of the buyer

Question 59

An automotive manufacturer is sourcing rubber components from Company A. The specification given to the supplier state that the component should be 1 meter long, without mentioning the tolerance. Enthusiast with the opportunity, engineers at Company A work hard to cut the components with tolerance at only +/- 1mm. The head and tail of the component is then joined together to form a circular band. After that it is stretched over another component. To fit this purpose, the rubber component can be at any length from 80cm to 110cm. This is an example of...?

Options:

Defects

Waiting

Unnecessary motion

Over processing

Answer:

Explanation:

Explanation

This questions is intended to ask students about types of waste in Lean principles.

Lean was born out of manufacturing practices but in recent time has transformed the world of knowledge work and management. It encourages the practice of continuous improvement and is based on the fundamental idea of respect for people. Womack and Jones defined the five principles of Lean manufacturing in their book “The Machine That Changed the World”. The five principles are considered a recipe for improving workplace efficiency and include: 1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5) pursuing perfection.

Lean principles aim to eliminate waste in processes. The eight wastes of Lean principles are:

- Defects

- Over-production

- Waiting

- Not using talent

- Transport and handling

- Inventory

- Motion waste

- Excess processing

In the scenario, the component is processed more than necessary. The engineers try to make them as accurate as possible with very little tolerance. In fact, the component does not need to be that precise. This excesses buyer's requirements and incurs costs for both buyer and supplier. The scenario is an example of over processing (or excess processing).

Overprocessing is one of the seven wastes of lean manufacturing (or 7 mudas); Overprocessing is adding more value to a product than the customer actually requires such as painting areas that will never be seen or be exposed to corrosion.

Overprocessing as one of the seven wastes is caused by having unclear standards and specifications, many operators will try to do the best job possible and will not always be aware of what truly adds value to the product or even the end use. They will therefore often expend time polishing and finishing components that do not require it.

[Reference:, - CIPS study guide page 153-156, - Waste of Overprocessing; causes, costs, examples solutions, symptoms (leanmanufactur-ingtools.org), LO 3, AC 3.4]

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