Pass the CIPS Level 3 Advanced Certificate in Procurement and Supply Operations L3M2 Questions and answers with ExamsMirror

Explanation

Audits, CIPS membership and effective training are all likely to foster an ethical culture in a pro-curement department.

Poor salaries or uncontrolled out-of-hours liaisons with supply companies may facilitate undesirable behaviour.

Explanation

Suppliers entertain to retain or generate business - there is a cost to this, which is recovered from customers - the antithesis of value for money. Late bids are sometimes related to inflated prices and instances of malpractice. A late bid is extremely unlikely to increase value for money in the long term and is a serious breach of organisational procedure.

Explanation

The answer is 'six'.

Six Sigma is a statistical approach to quality management.

Explanation

Pareto Analysis is sometimes known as the 80-20 Rule. It is the basis of ABC Analysis.

'in any series of elements to be controlled, a selected small factor [say 20%] in terms of number of elements almost always accounts for a large factor [say 80%] in terms of effort'. The figures in square brackets are illustrative - Pareto did not include these numbers and the % can be otherwise. The principle that a small percentage of 'things' will soak up a large amount of resource is what actu-ally matters.

For example, if you have 100 suppliers, a disproportionate amount of energy / time / spend will be devoted to a small number of them. Similarly if you have 100 staff members. Or a stock range of thousands. Similarly for customers. And so on.

A relatively simple concept, worth it's weight in gold in my opinion - my favourite management concept.

Explanation

SPQR is a symbol of the Roman Empire, not a quality management concept.

Failure Mode and Effects Analysis, Total Quality Management and Statistical Process Control are all concepts which relate to quality management.

Explanation

The price / cost iceberg.

The notion that when you buy something for a price, only part of the total cost has been exposed. a potentially very significant chunk of cost remains unseen, 'below the waterline'.

Explanation

Is it fit for purpose? Can it do the job required? This is one definition of quality.

The nearest answer to this would have been 'fitness for sale' perhaps, but this has no legal or such a strong traditional standing.