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CIPS L4M7 Exam Syllabus Topics:

Section	Objectives
Disposal and End-of-Life Management	- Asset disposal strategies 1. Environmental and sustainability considerations 2. Resale, recycling, and decommissioning
Operation and Maintenance	- Asset performance and reliability 1. Performance monitoring and KPIs 2. Maintenance strategies
Risk and Value Management	- Managing asset-related risk 1. Risk assessment across lifecycle stages 2. Cost-benefit and value analysis
Asset Acquisition and Procurement	- Sourcing and procurement of assets 1. Supplier selection and evaluation 2. Make or buy decisions
Understanding Asset Management	- Principles of whole life asset management 1. Value creation and total cost of ownership 2. Asset lifecycle concepts

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CIPS Whole Life Asset Management Sample Questions (Q45-Q50):

NEW QUESTION # 45
SpeedyCar GmbH is a vehicle manufacturer that is launching a new electric vehicle onto the market, replacing a previous diesel vehicle. There is a lot of equipment in the manufacturing site to be changed, some new machinery to replace older machinery, and some production equipment to decommission. The costs of decommissioning would include which of the following?

A. Costs to upgrade electric vehicle charging facilities
B. Sales and marketing costs of the new electric vehicle
C. Engineering drawing fees for the new electric vehicle designs
D. Decontamination and cleaning costs for site areas

Answer: D

NEW QUESTION # 46
Lean principle focuses on eliminating eight types of waste. Waste in Lean manufacturing is defined as...?

A. Part of any activity which is inevitable
B. Part of activity when operator is idle
C. Non value-adding steps in a process
D. Rejection of material because of quality related problems

Answer: C

Explanation:
Lean thinking aims to remove wastes from work processes. Before diving into the 8 wastes, it is important to understand what waste is. Waste is any action or step in a process that does not add value to the customer. In other words, waste is any process that the customer does not want to pay for.
The original seven wastes (Muda) was developed by Taiichi Ohno, the Chief Engineer at Toyota, as part of the Toyota Production System (TPS). The seven wastes are Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing and Defects. They are often referred to by the acronym 'TIMWOOD'. The
8th waste of non-utilized talent or 'Skills' of workers was later introduced in the 1990swhen the Toyota Production System was adopted in the Western world. As a result, the 8 wastes are commonly referred to as
'TIMWOODS'.
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Source: The lean way

NEW QUESTION # 47
A retailer wants to improve its service level in inventory management from 95% to 97%. Which of the following is the best course of action?

A. Increasing safety stock
B. Expanding replenishment lead time
C. Holding more cycle stock
D. Decreasing safety stock

Answer: D

Explanation:
For single items, an extra investment in inventory (higher levels of safety stock) will always in-crease customer service levels. Conversely, higher service levels imply larger quantities of safety stocks and an increased investment in inventory. (Procurement and Supply Chain Management - 9th Edition) Reference:
LO 2, AC 2.2

NEW QUESTION # 48
Which of the following are essential aspects that are required for the successful implementation of Just-In- Time (JIT)? SelectTWOthat apply.

A. Parts must arrive where they are needed, when they are needed, and in the exact quantity needed
B. All parts arriving must be of a quality standard which is usable and free from defects
C. The cost of carrying increased parts inventory to meet customer demand is transferred to the customer
D. The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT
E. Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

Answer: A,B

NEW QUESTION # 49
Global supply chains can increase efficiency, but they can also increase risk. As a result, the extended supply chain now has many additional points of potential failure. These can include ...

A. contract terms and conditions that do not reflect the balance of power between the contracting parties
B. a fluctuation in currency exchange rates that may mean you pay more for the item at time of purchase than at time of contract
C. that the purchasing team have no or little experience of dealing with international suppliers, which could increase costs
D. The price that you charge to customers at time of sale may be lower than the cost it took to manufacture the item

Answer: B

NEW QUESTION # 50
......

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