L6M5 Exam Dumps - CIPS Level 6 Professional Diploma in Procurement and Supply Questions and Answers

The correct answer is Activity Schedule (p.60). A Gantt chart is a time-based project planning tool, typically used in Activity Schedule contracts, where payments are tied to the completion of specific tasks. Other payment methods, such as Fixed Lump Sum and Bill of Quantity, do not rely on this approach. [P.60]

Espoused values are what the company says is important to them. Therefore, the correct answers are B and C. This is taken from Schein’s Three Levels of Culture, which you can find on p.155 of the study guide.

Options A, D, and E would be classed as Artefacts, as they express culture in terms of physical attributes.

Domain: 3.1

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The structure is centred around the CEO’s authoritative style, which is indicative of a power-based structure.

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Fixed pricing makes forecasting easier, simplifies the bidding process, and can reduce tensions between the parties. It typically does not lead to lower quotes or share cost savings with the buyer.

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Specific performance is an alternative remedy to paying damages (i.e., money). It is used when money isn't going to help solve the situation—examples include the sale of land, rare or customized goods.

Option A is incorrect as specific performance can only be awarded if the injured party has "clean hands" and fulfilled all their obligations.

Option D is incorrect as specific performance is often decided by the court.

Option E is incorrect as specific performance would be used instead of liquidated damages.

See p.128-132 in the study guide.

Domain: 2.3

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The Human-Relations Model (p.193) values flexibility and internal focus.

Organizations encourage open communication and participative decision-making.

Option 2 (low flexibility) is incorrect.

Option 4 (external focus) describes a market-driven structure. [P.193]

A Payback Analysis (p.72) calculates how long it takes for a project to recover its initial investment. It accounts for project duration but does not provide a rate of return (Option C). Discount factors (Option D) are used in Net Present Value (NPV) analysis, not Payback Analysis. [P.72]

Changes to building regulations are mandatory because they are legally binding and require compliance.

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Project 1 - NEC & Target Costing

NEC (New Engineering Contract) is used in public sector projects because of its flexibility and collaborative nature.

The Target Costing pricing mechanism is used, as cost savings are shared between the client and the contractor.

Project 2 - FIDIC & Fixed Lump Sum

FIDIC (Fédération Internationale des Ingénieurs-Conseils) is known as the "Rainbow Suite", which is rigid and does not allow changes.

The Fixed Lump Sum pricing mechanism applies since the price was set at contract signing.

Project 3 - Joint Venture Contract & Bill of Quantities

Joint Venture Contracts are commonly used in international construction projects, such as wind turbine projects.

Bill of Quantities pricing applies since the cost is calculated per unit (each wind turbine).

Project 4 - JCT & Cost Reimbursable

JCT (Joint Contracts Tribunal) is the most popular contract type in the construction industry, and it includes a Contract Administrator.

The Cost Reimbursable pricing mechanism is used because costs are shared plus a profit margin.

Project 5 - IMechE & Activity-Based Pricing

IMechE (Institution of Mechanical Engineers) is used for ICT and engineering-related projects.

Activity-Based Pricing applies because payments are milestone-based.

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Project 1 - Parametric & Positional Power

Parametric estimation uses an algorithm based on existing data to estimate project costs.

Positional power applies because the leader is the founder of the organisation.

Project 2 - Analogous & Expert Power

Analogous estimation uses historical project data to estimate costs, aligning with the Head of R&D using past projects.

Expert power applies since the project lead is a PhD-qualified Data Scientist.

Project 3 - Bottom-up & Positional Power

Bottom-up estimation involves creating a Bill of Materials and summing up individual costs, which matches this project.

Positional power applies because the project leader is a key stakeholder.

Project 4 - 3-Point Estimate & Negative Power

3-Point Estimation calculates the best, worst, and most likely cost scenarios, matching the given description.

Negative power applies because the leader has the authority to cancel the project at any time.

Project 5 - Expert Judgement & Personal Power

Expert Judgement applies because the leader used his own research to determine the budget.

Personal power applies because the project leader is well-liked and selected a team he is comfortable with.