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CIPS L4M2 Exam Syllabus Topics:

SectionObjectives
Specification development- Key performance indicators and measurable requirements
- Types of specifications (input, output, conformance)
- Stakeholder engagement in requirements definition
Risk, sustainability, and compliance considerations- Sustainability and ethical sourcing requirements
- Legal and regulatory constraints affecting specifications
- Managing procurement and supply risks
Understanding and defining business needs- Alignment of procurement with organisational objectives
- Role of procurement in identifying and defining needs
Demand management and value for money- Balancing cost, quality, and risk
- Demand analysis and forecasting
- Whole life costing and total cost of ownership

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CIPS Defining Business Needs Sample Questions (Q311-Q316):

NEW QUESTION # 311
Which of the following are typical environmental considerations throughout the contract life cycle? Select the TWO that apply.

Answer: A,C

Explanation:
All procurement has some level of impact on the environment that needs to be minimised to ensure sustainable procurement practices.
The greatest opportunity to influence environmental outcomes is by selecting products and services with the least ongoing environmental impacts, such as use of water, electricity and fuel, waste/disposal management, and impact on human health over the life of the product or service.
Lifecycle stages that impact on the environment:
Diagram Description automatically generated

Most goods and services will have an element of environment impact in a number of areas. The five main impact areas are listed in the following table.
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Source: Buying for Victoria
Reference: CIPS study guide page 137-139
LO 3, AC 3.2


NEW QUESTION # 312
Buyer power may make a supply market more competitive. Which of the following are examples of buyer power? Select TWO that apply.

Answer: A,D


NEW QUESTION # 313
When preparing through-life specification, which of the following requirements should procure-ment team define besides the physical asset? Select TWO that apply.

Answer: D,E

Explanation:
Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.
Diagram, table Description automatically generated

Source: Andrew Graves
With through-life management, buyer not only cares about the physical asset but also other factors like customer services and maintenance.


NEW QUESTION # 314
When procuring a machinery, at which stage buyer must check whether it is working to the stand-ards set out in the design specification?

Answer: B

Explanation:
Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.
Diagram, table Description automatically generated

Source: Andrew Graves
The installation stage occurs in In-Service Operations. At this stage, the machinery is shipped and installed on the buyer's premises and check to ensure that it is working to the standards set out in the design specification.
Reference: CIPS study guide page 130
LO 3, AC 3.2


NEW QUESTION # 315
Which of the following is an assumption of Kano model?

Answer: A

Explanation:
Kano model of excitement and basic quality (Kano et al, 1984; Berger et al, 1993; Matzler et al, 1996) brings a different perspective for the analysis of improvement opportunities in products and services because it takes in consideration the asymmetrical and non-linear relationship between performance and satisfaction. The Kano model classifies customers requirements in three categories (figure 3):
a) Basic Requirements. The basic requirements fulfill the basic functions of a product. If they are not present or their performance is insufficient, customers will be extremely dissatisfied. On the other hand, if they are present or have sufficient performance, they don ' t bring satisfaction. Customers see them as prerequisites.
For instance, for luxury automobiles, " air bags " are considered basic. A customer won ' t feel satisfied if the automobile has " air bag " , however he/she will not buy it if "air bag" is not present.
b) Performance Requirements. As for these requirements, satisfaction is proportional to the performance level
- the higher the performance, the higher the customer ' s satisfaction will be and vice-versa. Gas consumption in automobiles is an example of these requirements. Usually customers explicitly demand performance requirements.
c) Excitement Requirements. These requirements are key to customer satisfaction. If they are pre-sent or have sufficient performance, they will bring superior satisfaction. On the other hand, if they are not present or their performance is insufficient, customers will not get dissatisfied. For instance, a surprise gift at the end of a dinner in a restaurant will certainly bring satisfaction, but it will not cause dissatisfaction if not offered. These requirements are not demanded nor expected by customers.
Two other types of requirements may be identified in the Kano model: neutral and reverse ones. Neutral requirements do not bring either satisfaction or dissatisfaction. Reverse requirements bring more satisfaction if absent than if present.
Diagram Description automatically generated
Reference:
- Integrating Kano model and QFD for Designing New Products
- CIPS study guide page 171-172


NEW QUESTION # 316
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