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CIPS L4M7 Exam Syllabus Topics:

SectionObjectives
Topic 1: Understanding Asset Management- Principles of whole life asset management
  • 1. Asset lifecycle concepts
    • 2. Value creation and total cost of ownership
      Topic 2: Operation and Maintenance- Asset performance and reliability
      • 1. Maintenance strategies
        • 2. Performance monitoring and KPIs
          Topic 3: Risk and Value Management- Managing asset-related risk
          • 1. Cost-benefit and value analysis
            • 2. Risk assessment across lifecycle stages
              Topic 4: Asset Acquisition and Procurement- Sourcing and procurement of assets
              • 1. Make or buy decisions
                • 2. Supplier selection and evaluation
                  Topic 5: Disposal and End-of-Life Management- Asset disposal strategies
                  • 1. Resale, recycling, and decommissioning
                    • 2. Environmental and sustainability considerations

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                      CIPS Whole Life Asset Management Sample Questions (Q196-Q201):

                      NEW QUESTION # 196
                      Which of the following allow the operators to access higher levels in warehouse facility? Select TWO that apply:

                      Answer: C,E

                      Explanation:
                      It is important to ensure safe working in storage facilities, and access to higher shelves or racking presents a challenge. Lifting at full reach becomes a problem at relative low weight. There can also be danger for other workers who are around someone working at height, from the movement of equipment or dropping stock from a height.
                      Scissor platforms are used in high-roof warehouses to gain access to lighting, high-racking units and sections of wall and roof.

                      ORDER PICKER is manual or powered device - some with ride-on capability and some without. This allow for low-level, medium-level and high-level picking of various items. Many are equipped with forks to allow transfer capability of larger picked boxes. Higher-level and narrow or very narrow -aisle versions have the ability to elevate operators on the front platform to higher racking to pick items.

                      Grabs are designed to hold stock either width-wise or from above. These are either specific devices designed for grabbing materials or are available as an accessory to forklift trucks.

                      Carousels are space-efficient, rotating devices which allow access to a large range of product from a single location. Designs are variable, with carousels rotating horizontally or vertically until the required items can be retrieved.

                      Stacker-cranes are designed for the automated storage and retrieval of unit loads, in high-bay warehouses.
                      They travel in aisles equipped with guide rails, electrical supply, data transmission and control systems. To ensure the storage and retrieval functions, the stacker-crane carries out three types of movement : long-travel, lifting and picking.


                      NEW QUESTION # 197
                      A procurement manager has been asked to justify the purchase of a large piece of capital equipment valued at
                      ยฃ500,000 to internal stakeholders. The procurement manager decided to prepare the justification using a comprehensive formal business case due to the value of the purchase. Were they correct in doing this?

                      Answer: A


                      NEW QUESTION # 198
                      Which of the following is the cylindrical container that is suitable for liquids or loose material

                      Answer: D

                      Explanation:
                      Drum is the container for stock, which is usually cylindrical and can be made from a variety of materials. Contents are usually loose material or liquids

                      Tote box is the reusable storage box. These can be open or have lids or flaps to close them and come in a large variety of sizes and weight loadings.

                      A tote is ideal for holding and hauling items such as: tools, fasteners, bark dust, dry cement, cords, wires, smaller boxes,...
                      For larger and bulkier items, industrial containers make it easy to keep things stored and in one spot for transportation. Due to the metal interior, an industrial container is more appropriate for items that - unlike tools and small pieces of machinery - lack any surface sensitivity.

                      Solid containers like bins and totes are far from the only storage devices for the various materials that are needed in abundance at factories and warehouses. Another option is the storage bag, which can be used to hold bulk supplies of items until they're needed for the department shelves or assembly lines.

                      LO 1, AC 1.1


                      NEW QUESTION # 199
                      Sidel Corp is a major food processor. It invested heavily on manufacturing facilities and processing machineries. Sidel's expenses on maintenance are exceptionally high. To minimise the total cost of maintenance, what should Sidel Corp do?

                      Answer: C

                      Explanation:
                      Maintenance can represent a significant portion of the cost in asset intensive organisations (such as Sidel - a food processor), as breakdowns have an impact on the capacity, quality and cost of operation. However, the formulation of a maintenance strategy depends on a number of factors, including the cost of down time, reliability characteristics and redundancy of assets. Consequently, the balance between preventive maintenance (PM) and corrective maintenance (CM) for minimising costs varies between organisations and assets. Nevertheless, there are some rules of thumb on the balance between PM and CM, such as the 80/20 rule.
                      Preventive maintenance is a type of proactive maintenance, while corrective maintenance is an example of reactive maintenance. Therefore, the answer should be "Balance between proactive maintenance and reactive maintenance".
                      Reference:
                      - Preventive and corrective maintenance - cost comparison and cost-benefit analysis
                      - CIPS study guide page 158-163
                      LO 3, AC 3.1


                      NEW QUESTION # 200
                      Which of the following statements is true of just-in-time (JIT) purchasing?

                      Answer: D

                      Explanation:
                      Just-in-time (JIT) purchasing is a systems approach for developing and operating the purchasing function. JIT purchasing along with the total quality management in many industries has been suc-cessful in reducing inventory and increasing the overall effectiveness of purchasing function and hence the productivity of manufacturing.
                      The just-in-time objectives of eliminating waste can be summarised in the 'five zeros: zero defects, zero set-up times, zero inventories, zero handling and zero lead times.
                      The correct answer should be 'In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales' because it expresses that upstream activity (purchasing) only occurs as the downstream activity (production or sales) triggers.


                      NEW QUESTION # 201
                      ......

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