CIPS L4M2 - Defining Business Needs
Which of the following are advantages of zero-based financial budgeting?
Use of previous year figures
Emphasis on short-term planning
Budget treated as flexible
Focus on operational issues
Raheem is the head of procurement at a care home. He decides to use a performance specification for the purchase of a new intelligent patient record IT system. Is this a correct approach?
A company assembles its finished products from a wide selection of components. It is analysing these
components to see which features are needed and whether any features can be removed to save costs. The. eventual aim is to purchase fewer components but in larger quantities to lower price and
reduce costs. Which of the following could result from this process?
1. Variety reduction
2. Value engineering
3. Ratio analysis
4. Standardisation
Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?
Builder Inc is a rapidly expanding business in construction sector. Due to an increase in projects, it cannot manage the flow of materials by Excel spreadsheets but by more dedicated software. Who would be a key internal stakeholder in defining software compatibility with company's current system?
Which of the following is a potential driver of change in the manufacturing industry to help reduce costs
and increase efficiency?
Which of the following is a risk to buying organization when using conformance specification?
A procurement manager is helping to improve a specification for an existing product. They list all existing functions, processes, their costs, and the value they add. This exercise aims to support writing an improved specification for future purchasing. Which of the following is this an example of?
Which of the following is part of a conformance specification?
Which of the following is the purpose of benchmarking?
