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CIPS L4M8 Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Whole Life Asset & Cost Management	25%	- Total cost of ownership concept 1. Hidden costs and supply chain risks 2. Legal, environmental and waste management obligations 3. Purchase, operation, maintenance and disposal costs 4. Cross-functional collaboration and data use
Topic 2: Application of Procurement Cycle	25%	- 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 3: Sourcing Process & Supplier Management	25%	- Stages of strategic sourcing 1. Creation of contract terms and specifications 2. Stakeholder engagement and communication 3. Supplier evaluation, selection and award 4. Supplier performance monitoring and development
Topic 4: Ethics, Responsibility & Compliance	25%	- Ethical and responsible sourcing application 1. Anti-bribery, corruption and human rights protection 2. CIPS Code of Conduct and professional standards 3. Regulatory compliance and ethical governance 4. Sustainability and ESG integration

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CIPS Procurement and Supply in Practice Sample Questions (Q99-Q104):

NEW QUESTION # 99
Write down a list of assets that belong to an organization with which you are familiar.

Answer:

Explanation:
See the answer in explanation.
Explanation:
Assets are things that an organization owns regarded as having value and available to meet debt and generate revenue. The following are list of assets owned by Fullpower project, a shoe manufacturing firm;
1) Machinery,
2) a factory,
3) an innovative software,
4) skills of its personnel,
5) land,
6) Distribution network.
7) Its long time relationship with experienced suppliers of raw materials and Distributors of finished shoes.

NEW QUESTION # 100
Describe two ways in which an organization with which you are familiar could use continuous im-provement as part of whole life asset management.

Answer:

Explanation:
See the answer in explanation.
Explanation:
Continuous improvement relates to removing waste from the supply chain and improving processes to increase efficiency within whole life asset management in a full power project (a flour producing firm) can benefit from continuous improvement in the following ways;
1) Reduce cost of spears by recondition parts, instead of disposing them out rightly.
2) Can reduce down time by conducting routine maintenance after hours.
3) Can reducing accident by up skilling operators on safety
4) Can reduce waste oil by following owner's manual instead of relying on experience.
5) Create efficiencies by operating a 24/7 shift pattern.

NEW QUESTION # 101
Explain why risk should be evaluated prior to the disposal of any assets.

Answer:

Explanation:
Disposal of an asset is the final stage in the decommissioning process of a fixed asset.
When a fixed asset reaches the end of its useful or cost effective life time within an organization, the decision is made as to whether it should be removed from the premises or disposed off.
The process of disposing an asset cannot be without its risk, for example there could be pollution in the community, waste or hazardous materials that could affect the underground water or humans around.
These risks should be identified, evaluated to come up with a response strategy on how to avoid or mitigate them causing damage to human, property, business and the environment.

NEW QUESTION # 102
Use the balance sheet below to work out the correct ratio for coffee Time and explain whether the company appears to have enough assets to cover it liability.

Answer:

Explanation:

A current ratio of 1 shows that the organization has enough assets to repay (cover) it liability Buyers can be encouraged to deal with these suppliers after if they considered proven and strong in other areas.
Refer to the question column for response

NEW QUESTION # 103
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

NEW QUESTION # 104
......

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