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CIPS
CIPS Level 3 Advanced Certificate in Procurement and Supply Operations
L3M2
Ethical Procurement and Supply Questions and Answers

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Viewing questions 11-20 out of questions

Questions # 11:

Regarding quality management, how many defects?

Options:

Zero

One

Three

Two

Answer

Explanation

Zero defects - a quality concept, recognising the significant cost of re-work - remedying problems created earlier in the process. It is therefore desirable to strive for 'zero defects', thus avoiding error correction, re-work, etc. An important idea within JIT, Lean, etc.

Questions # 12:

You have recently moved into the procurement department at your company, having earlier worked in the finance area in the same company for five years. You have decided to set up home with your partner, and you will need additional money to buy furniture, furnishings, etc. Afriend has offered you extra part-time work at weekends, helping serve meals in their small family restaurant. Do you:

Options:

Decline the work on the basis that there is a potential conflict of interest (you may not work so effectively without weekend time off to relax)?

Accept the extra work, and let your employer know?

Advise your friend you’ll consult your employer, and let your friend know as soon as possible?

Accept the extra work, and say nothing to your employer?

Answer

Explanation

While one can take the view that your weekend is yours and nothing to do with your main employ-er, many contracts of employment prohibit extra work unless pre-agreed. In any event, it is likely to be seen as polite and respectful to seek permission from your main employer. The point about need-ing to rest at weekends (and during annual holidays) is a serious point: we should be able to func-tion effectively during normal working hours.

If your main employer does not give consent, you may wish to ask for a pay rise. :)

Questions # 13:

The time between recognition / origin of the need; through to usage or consumption is described as:

Options:

User’s view of lead time

Seller’s lead time

Maker’s lead time

True lead time

Procurement lead time

Answer

Explanation

True lead time.

You may wish to argue regarding the QUESTION NO: of consumption, but my textbook tells me this is how it is. A true lead time could also be from recognition of the need through to delivery into the user's hands, I would suggest. For example, are we to say that a requirement for a fire extinguisher is un-fulfilled as it hangs on a hook next to the requisitioner for three years?

Questions # 14:

Finding new potential suppliers using the internet might be known as:

Options:

e-sourcing

e-scouring

e-souring

e-auction

Answer

Explanation

E-sourcing.

Try to be clear on the difference between e-sourcing and e-auctions.

Other related e-terms include e-contracting, e-procurement, and possibly more.

Questions # 15:

You have invited quotations for some building maintenance work to be done at your organisational headquarters. Your sister has recently taken up a position as Head of Marketing at one of the firms which has quoted for the work. What should you do?

Options:

Disbar the firm your sister works in, from the exercise, as the connection could create undesirable rumours about malpractice.

Do nothing – you know you are honest and that is what matters.

Ask your sister to take you out for dinner on her expense account to discuss the matter.

Advise your line manager in writing, and ask to be excused from participation in this particular procurement exercise.

Answer

Explanation

A simple solution is to 'recuse' yourself from anything to do with this procurement. That way, nei-ther you, your employer or your sister can be accused of malpractice.

Disbarring your sister's employer punishes them simply because both they and your firm employed high-quality people. :)

Sometimes knowing you are honest is not enough: sometimes you have to demonstrate that.

So the only answer which makes sense is the correct one, as above.

Questions # 16:

A single purchase agreement created to cover multiple repeat orders for supplies from a single source, is called a:

Options:

Call-off contract

Frequency distribution

Single source tender

Automatic replenishment

Answer

Explanation

Requirements are 'called off' from a single contract.

Questions # 17:

Which two of the following are world-famous quality management gurus?

Options:

W Edwards Deming

Philip Crosby

Phil Collins

Bill Cosby

Bing Crosby

Edgar Hoover

Answer

A, B

Explanation

Both Philip Crosby and Deming (alongside Juran) are legendary quality management thinkers and writers.

Both Phil Collins and Bing Crosby are famous singers; Bill Cosby is an American comedian; and J Edgar Hoover was the legendary Head of the FBI in the USA.

Questions # 18:

‘Efficiency is measured in terms of a quantity of …’