New L4M2 Test Answers, Question L4M2 Explanations

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Question L4M2 Explanations | L4M2 Test Papers

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CIPS Defining Business Needs Sample Questions (Q224-Q229):

NEW QUESTION # 224
The procurement team of an IT hardware manufacturer has been set a target by senior management to reduce the rates paid to the sole supplier of a new and innovative power-saving battery. Which action should the procurement team first consider?

Answer: D

Explanation:
Detailed Explanation:Dual or multiple sourcing introduces competition, reducing the sole supplier's bargaining power and leading to cost reductions. Framework agreements (A) or economies of scale (D) may not address the immediate need to reduce rates. Reference: CIPS Level 4, Sourcing Strategies.


NEW QUESTION # 225
It could be argued that wherever possible, specifications should be more output and outcome focused. Why is this?

Answer: A


NEW QUESTION # 226
Which of the following are potential advantages of using a product performance specification?
It reduces the need for the buyer to produce a detailed design
It can widen the potential supply base
The buyer can specify the product's actual design in detail
Products are provided using the buyer's methodology

Answer: D

Explanation:
Detailed Explanation:
1 (Reduces design need): Performance specifications focus on outcomes rather than detailed designs, saving buyer resources.
2 (Wider supply base): Allowing suppliers to propose their own solutions can attract a broader range of suppliers.Options 3 and 4 align with conformance specifications, not performance-based ones. Reference:
CIPS Level 4, Specification Writing.


NEW QUESTION # 227
Ymira is asked to develop the specification for water purifier which will be used at the company headquarter.
She believes that the specification can be drafted based on the information available on the Internet, such as blog posts, comparison websites, how-to websites, life hacks, etc. Which of the following traits will make the information more useful?

Answer: D,E

Explanation:
Internet is a great source of information, however, information from the Internet needs to be tested for accuracy and reliability. To check the information from the Internet, a buyer can use the criteria with acronym SAMOA:
Source (of the information)
Audience (intended as the recipient of the information)
Methodology (used to collect and analyse the data)
Objectivity (of the information - there should be no bias)
Accuracy


NEW QUESTION # 228
Which of the following statements is the best definition of 'value engineering?

Answer: C

Explanation:
Value Engineering (VE) is concerned with new products. It is applied during product development. The focus is on reducing costs, improving function or both, by way of teamwork-based product evaluation and analysis.
This takes place before any capital is invested in tooling, plant or equipment.
This is very significant, because according to many reports, up to 80% of a product's costs (throughout the rest of its life-cycle), are locked in at the design development stage. This is under-standable when you consider the design of any product determines many factors, such as tooling, plant and equipment, labour and skills, training costs, materials, shipping, installation, maintenance, as well as decommissioning and recycle costs.
LO 3, AC 3.4


NEW QUESTION # 229
......

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