CIPS Level 4 – Diploma in Procurement andSupplyModule 8 – Procurement and Supply in PracticeSAMPLE EXAM QUESTIONSCONSTRUCTED RESPONSE QUESTIONS1Leading global excellence in procurement and supplyL4M8 Sample Exam Questions Dec 2018
Q1Insta FoodsInsta Foods purchased new machinery for a new packing line and used it for a period of 3 years. During this periodthe machine required specialised repairs and part replacement in year two and three. Insta Foods now need toupgrade the packaging operation in order to fulfil its production schedule.Insta Foods have prepared the following table of costs associated with the new machine. The table shows genericheadings which cover a range of costs. Not all of the costs of the new machine are included but these are the mainareas of costs that the organisation believes it must consider.Item Description of CostsYear 1Year 2Year 31Tender and contracting for new packing machine costs 40,0002Purchase cost of machinery 20,000,0003Installation and delivery cost of packing machine 170,0004Annual raw material costs consumed by machine 7,500,000 8,000,000 8,200,0005Machines annual energy and fuel costs 250,000 280,000 290,0006Annual maintenance costs for packing machine 100,000 100,000 100,0007Residual value and disposal costs 500,000Analyse the costs shown in the table. Provide a categorisation for the costs shown and provide examples of actualdetailed expenditure that would be in each category.[25 marks]LO: 3AC: 3.1L4M8 Exam Exemplar Questions Dec 20182
Q2Infinity IncInfinity Inc is a global technology company and produces TV sets, cell phones, computers, and tablets. In just 12years after being founded, Infinity has become one of the world’s most valuable technology company and itsproducts are in high demand across the globe.In recent times the dynamics of consumer electronics manufacturing has changed, and the majority ofmanufacturers are now based in China. Infinity has adopted a similar approach and sources parts for all its productsfrom multiple suppliers based in China and South East Asia. Technica China holds the long-term contract forassembling all Infinity products and is responsible for liaising with other parts manufacturers.It is widely accepted that the primary reason behind Infiniti’s high-profit margin is its supply chain which uses a 3pronged approach to keep costs under control: reduce inventory, cut down on high warehouses costs and promotecompetition between the suppliers.While the extent of Infinity’s supplier base has enabled it to drive down costs, it has been constantly criticised for theconduct of its suppliers including very poor compliance with ethics guidelines.The other concerns which have come to light include the HR manager of Technica, hiring staff through a companyowned by his son-in-law.Infinity are aware of the CIPS code of ethics and other organisations who encourage improved conditions andpractices such as the ILO (International Labour Organisation) but have not yet addressed them.QuestionExplain FIVE areas which would be addressed by a code of ethics produced by organisations such as CIPS.[25 marks]LO: 4AC: 4.1L4M8 Exam Exemplar Questions Dec 20183
Q3Data – SchoolsThe procurement of products and services by government funded schools represents a significant sum ofmoney spent in an important area of the public sector. Staffing typically amounts to around 70% of schoolcosts. The remainder consists of operating and maintenance expenditures, such as gas and electricity, catering,stationery, buildings maintenance, cleaning and insurance. These are purchased from external suppliers andaccount for a sizeable proportion of any school’s budget. There is a growing focus on the importance ofprocurement activity within schools, as they have often failed to comply with government procedures forprocurement.A report entitled ‘Review of Efficiency in the Schools System’ published in 2013 found that too many schoolscontinue to purchase products and services individually. They have failed to realise potential economies of scalewhich might have been achieved by collaborating with other schools by using a consortium or group buyingapproach. Where competition was sought, contracts were often awarded to suppliers purely on the basis of thelowest prices. This focus on price often created problems with the quality of product and service that weresupplied. For example, in the case of catering, pupils could have been offered food with little nutritional valueor a limited range of healthy options. By contrast, in other categories of procurement, such as in the supply ofenergy and insurance of personnel and buildings, very little competition was evident.A survey of prices for routine items (such as stationery) showed how they varied hugely by supplier, dependingon the supplier selected. The report also highlighted a sample of 23 schools, all based within a 15 mile radius ofeach other, with a combined spend on purchased goods and services of approximately 5m per year.The following issues were identified: 1,828 different suppliers were used The annual spend with 1,524 of these suppliers was less than 500 each The schools in the sample were using the same suppliers, but on varying terms and conditions Schools were also paying different amounts for the same goods and services.QuestionDescribe FIVE sequential stages of a typical tendering process that could be adopted by a new buying consortium forschools.[25 marks]LO: 1AC: 1.1L4M8 Exam Exemplar Questions Dec 20184
Q4GFATMThe Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) is an international organisation that aims to attractand distribute resources to prevent and treat HIV and AIDS, tuberculosis and malaria. The organisation has itsheadquarters in Geneva, Switzerland. It is financed by government grants and public donations. GFATM intends todevelop its sourcing and procurement activities. It has recently carried out a review to explore how efficiency couldbe improved, to develop increased commercial expertise in its field staff, and therefore achieve greater transparencyon costs and payments.A new sourcing process was established to organise the structured purchase of mosquito nets, shifting the powerfrom seller to buyer. The process focused on reducing the market dominance of individual manufacturers andmosquito net suppliers. There would be a strong focus by GFATM on local production and suppliers using this newapproach. Long-term contracts resulting from the new sourcing process would improve visibility, production,capacity planning and pricing.Another aim of the sourcing exercise was to generate overall value by ordering more nets of a standard size andsimplifying manufacturing processes to cut costs. Previously the number of mosquito net specifications was verywide. Through standardisation and reduced prices, a third more nets could be bought within the same budget. Byusing large-scale purchasing power, the new process would provide better value for money, providing savings andthe reduction of supply chain bottlenecks and shortages.QuestionExplain FOUR ways in which supplier selection may add value in the sourcing process for organisations such asGFATM.[25 marks]LO: 2AC: 2.1L4M8 Exam Exemplar Questions Dec 20185
CIPS Level 4 – Diploma in Procurement and Supply . Module 8 – Procurement and Supply in Practice . SAMPLE EXAM QUESTIONS . CONSTRUCTED RESPONSE QUESTIONS . 2 L4M8 Exam Exemplar Questions Dec 2018 . Q1 Insta Foods . Insta Foods purchased new machinery for a new packing lin
CIPS Level 5 5 Advanced Diploma in Procurement and Supply Ref: 603/3925/1 6\OODEXV Version 1 Fhyzics Business Consultants Pvt. Ltd. An Approved Study Centre of CIPS, UK www.IISCM.org cs@fhyzics.net 91 900-304-9000. Your TXDOLIÂFDWLRQ Next steps 7KLV TXDOL 4FDWLRQ SURYLGHV SURJUHVVLRQ WR WKH CIPS Level 6 Professional Diploma in Procurement and Supply. 5HIHUV WR OHYHOV ZLWKLQ WKH 8. 54 .
CIPS Asia PacificIG Rochester Drive, Level HJ, Singapore, GINLIM TPLK LNFN NMHG FPLK LNFN NMHH Einfosg@cips.org CIPS AustralasiaLevel H, KHF Collins Street, Melbourne, Victoria IFFF, Australia TGIFF MLK GJH/PLG (F)I OLHO LFFF FGIFF MLK GJI/PLG (F)I OLHF KJNN Einfo@cipsa.com.au CIPS MENAOffice GMFI, The Fairmont Hotel, Sheikh Zayed Road, PO Box GGOMMJ, Dubai, United Arab Emirates TPOMG (F)J IGG .
CIPS Level 4 Diploma in Procurement and Supply . Level 8, 3 Spring St, Sydney NSW 2000 Ph: 1300 950 251 E: info@academyglobal.com www.academyglobal.com Level 4 Diploma in Procurement and Supply The Level 4 Diploma in Procurement and Supply now consists of eight core modules of 6 or 12 units. This is the highest entry point to our diploma level qualifications. Developed using the Procurement .
A/C and Ref. Engineering Diploma, Advance Diploma & B.Tech Diploma Diploma Chemical Engineering Diploma, Advance Diploma & B.Tech 2.5. Department Structure Land Surveying SECTION SPECIALIZATION Architecture Engineering Diploma, Higher Diploma & B.Tech Diploma, Advance Diploma & B.Tech ARCHICTURE LEVELS Quantity Surveying MECHANICAL ENGINEERING
The University CIPS Level 3 Programme 2.1. About the CIPS Programme The University’s CIPS Level 3, Advanced Certificate in Procurement and Supply Operations programme is partly funded through the Finance Division. You may apply if you work in one of the University colleges, the University Press or Cambridge Assessment or other associated institution, although funding will be requested from .
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details of the entry requirements for each level, please refer to www.cips.org The CIPS Diploma in procurement and supply is a higher level qualification. It has been accredited by . (100% divided by 4 25%). This weighting indicates the level o
2 Both the global standard and qualification are kept under regular review and updated when necessary to ensure relevance is maintained. Entry requirements Learners will need to have achieved CIPS Level 5 Advanced Diploma in Procurement and Supply. Some module exemptions may be applicable under the CIPS Exemption policy. Further information on the