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| Section | Weight | Objectives |
|---|---|---|
| Sustainability, Ethics and Governance in Asset Management | 15% | - Sustainable asset management and ESG principles - Governance, standards and regulatory frameworks - Ethical and responsible sourcing of assets - Circular economy and asset lifecycle sustainability |
| Asset Disposal and End-of-Life Management | 15% | - Data management and asset record keeping - Environmental and legal obligations in disposal - Disposal options: sell, reuse, recycle, donate, scrap - Asset valuation and residual value calculation |
| Asset Operation, Maintenance and Performance | 25% | - Compliance, health, safety and environmental requirements - Inventory and spare parts management - Asset reliability, availability and risk management - Maintenance strategies: preventive, corrective, predictive - Asset utilization and performance monitoring |
| Asset Planning and Acquisition | 25% | - Procurement processes for capital assets - Whole life costing and total cost of ownership - Options appraisal: buy, lease, rent, outsource, in-house - Contract types and supplier selection for assets - Asset requirements definition and specification |
| Principles of Whole Life Asset Management | 20% | - Role and contribution of procurement in asset management - Value creation and whole life value concepts - Definition, scope and importance of asset management - Asset lifecycle stages: planning, acquisition, operation, maintenance, disposal |
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NEW QUESTION # 134
Which of the following is the correct statement about total ordering cost?
Answer: B
Explanation:
Typically, ordering costs include expenses for a purchase order, labor costs for the inspection of goods received, labor costs for placing the goods received in stock, labor costs for issuing a supplier's invoice and labor costs for issuing a supplier payment. These costs are irrelevant from the size of the order and are incurred every time a firm places an order.
The total ordering cost will be equal to ordering cost per order multiply with number of orders.
NEW QUESTION # 135
Which of the following are advantages for a purchasing organisation when adopting a leasing method of acquiring equipment?
* The initial purchase cost of the equipment is avoided
* The payments can be met from daily trading income
* The buyer can freely switch to newer technology whenever they wish
* The buyer is not responsible for any damage at the end of the contract
Answer: C
NEW QUESTION # 136
Which of the following can replace pallets as bases for unit loads but they require push pull acces-sories to retrieve or discharge unit load?
Answer: B
Explanation:
The system of slip sheet load handling involves the use of a thin sheet of material, the slip sheet, as a base on which items are assembled as a unit load for handling, storage, and transport. The slip sheet is used in conjunction with a pallet, if desired, at certain stages in the distribution cycle. If all lift trucks in the cycle are equipped with the proper attachment, an appropriate slip sheet is the only material handling base required. Slip sheet requires special push pull accessories and usually use thin and wide forks.
Skids are generally described as single-deck pallets and do not have bottom flatted layer which makes them less bulky and cheaper than conventional pallets but also less universal in their use.
Shrink wrap, also referred to as shrink film or shrink wrap, is a versatile polymer material used for the packaging of finished goods. Heat is applied to the film - by either a conveyor heat tunnel or an electric or gas heat gun - which catalyzes the film to shrink tightly around the item placed within. This process results in a clear, durable barrier of protection around the product.
Post pallets have a simple metal structure with four uprights and substantial feat to take the load. These may be free standing, but many are designed for the feet to interlock with the posts of another post pallet so that the stack can be created.
Reference:
LO 1, AC 1.3
NEW QUESTION # 137
Staff at DIY Products Inc (DPI) have been experiencing issues with the identification of stock items. The current labelling system is outdated and unreliable. DPI has therefore invested in a machine-readable approach. Each item has a unique number that is attached visibly to the packaging. This number can be deciphered by a scanner to aid identification. This approach is known as which of the following?
Answer: B
NEW QUESTION # 138
The managing director requires action to be taken to improve the organization's profitability and has asked for suggestions to enable this to be achieved. The procurement manager has said that a just-in-time (JIT) system should be introduced. Would such a system improve profitability?
Answer: A
Explanation:
Just-in-Time (JIT) inventory management minimizes stock levels by synchronizing orders with production schedules, which:
* Reduces holding costs: Less inventory means lower costs for storage and management.
* Increases cash flow: Reduced stock levels free up working capital.
Whole-life asset management supports JIT as a cost-saving measure, focusing on maintaining lean inventories while meeting production needs.
NEW QUESTION # 139
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