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CIPS L4M8 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Application of Procurement Cycle25%- Key stages of procurement cycle in practice
  • 1. Tendering and selection processes
    • 2. Market analysis and supplier research
      • 3. Defining business needs and requirements
        • 4. Contract formation and management
          Topic 2: Ethics, Responsibility & Compliance25%- Ethical and responsible sourcing application
          • 1. CIPS Code of Conduct and professional standards
            • 2. Anti-bribery, corruption and human rights protection
              • 3. Regulatory compliance and ethical governance
                • 4. Sustainability and ESG integration
                  Topic 3: Sourcing Process & Supplier Management25%- Stages of strategic sourcing
                  • 1. Supplier evaluation, selection and award
                    • 2. Stakeholder engagement and communication
                      • 3. Supplier performance monitoring and development
                        • 4. Creation of contract terms and specifications
                          Topic 4: Whole Life Asset & Cost Management25%- Total cost of ownership concept
                          • 1. Hidden costs and supply chain risks
                            • 2. Purchase, operation, maintenance and disposal costs
                              • 3. Cross-functional collaboration and data use
                                • 4. Legal, environmental and waste management obligations

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                                  CIPS Procurement and Supply in Practice Sample Questions (Q150-Q155):

                                  NEW QUESTION # 150
                                  Create a list of assets of a company with which you're familiar and divide them into standard and bespoke categorizing.

                                  Answer:

                                  Explanation:
                                  See the answer in explanation.
                                  Explanation:
                                  Name of company: Full power projects
                                  Business: Project management training and consultancy
                                  If an organization is sourcing an asset that is readily available or mass produced then the cost associated with the design and manufacturing will be lower percentage of the total cost than if an organization commissions a bespoke piece of equipment to be designed and manufactured.
                                  The following are a list of assets owned by fullpower projects.
                                  Standard/off the shelf (Mass produced)
                                  Projector from a shop-displayed files and document jackets from market
                                  Desks and furniture
                                  Bespoke/specialist - white board and marker
                                  With extra, e.g. made with company color
                                  Gift/ sovereign (bags and T. shirt) with coup any label, color and design Refer to the question column for response


                                  NEW QUESTION # 151
                                  What is Decommissioning?

                                  Answer:

                                  Explanation:
                                  See the answer in explanation.
                                  Explanation:
                                  When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.
                                  Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example; gas plant, power generator, transformer etc.
                                  Decommissioning process include the following aspect
                                  1) Preparation: Plan the process
                                  2) Dismantle: Take the asset apart and remove hazardous waste
                                  3) Processing: make safe any hazardous waste
                                  4) Disposal: Ensure paper work is received to confirm removal and disposal
                                  * Refer to the question column for response


                                  NEW QUESTION # 152
                                  What are the definition of a new buy and a modified re-buy?

                                  Answer:

                                  Explanation:
                                  See the answer in explanation.
                                  Explanation:
                                  A new buy is the purchase of goods and services by an organization or an individual for its first time. For example a transport organization for the very first time contracting the purchase of a Lorry out to an external supplier. In situations like this, it is advisable to start the procurement cycle from the very first stage. Which is understanding the need and developing high level specification.
                                  Modified re-buy is the purchase of goods or services that an organization has bought before there was a need but with changes to the specification or supplier or quantity or quality. In carrying out modified re-buy, procurement professional should start from the very first stage of the procurement cycle to justify the added need and follow through. Not in all cases that buyer would have to start from understanding the need. In a situation where the changes required is a change of supplier, the organization will start from its preferred suppliers list and contract the next ranking supplier as the case may be.
                                  * Refer to the question column for response


                                  NEW QUESTION # 153
                                  What is Decommissioning?

                                  Answer:

                                  Explanation:
                                  When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.
                                  Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example; gas plant, power generator, transformer etc.
                                  Decommissioning process include the following aspect
                                  1) Preparation: Plan the process
                                  2) Dismantle: Take the asset apart and remove hazardous waste
                                  3) Processing: make safe any hazardous waste
                                  4) Disposal: Ensure paper work is received to confirm removal and disposal


                                  NEW QUESTION # 154
                                  Explain why the behavior of an organization with which you are familiar could affect its business.

                                  Answer:

                                  Explanation:
                                  See the answer in explanation.
                                  Explanation:
                                  The social impact of an organization is formed by various behaviors. If an organization; behavior is poor this will create social impact which is likely to be reflected in the business performance. Organizations which display poor behavior face outcomes such as the following.
                                  1. Reduce brand loyalty
                                  2. Difficulty in recruiting
                                  3. Negative media coverage
                                  4. Reduced sales/profit
                                  5. reputation damage


                                  NEW QUESTION # 155
                                  ......

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