L3M2 Exam Dumps - Ethical Procurement and Supply

Explanation

A force majeure clause in a contract may give rights to either party to suspend its obligations in the event of something untoward happening which is outside the control of the parties.

Examples might volcanic dust clouds, tidal waves or a pandemic. Often lesser events trigger (or are used to try to trigger) the use of such a clause.

Explanation

Quality, like most things in business, is ultimately about the customer.

Explanation

The Plan-Do-Check-Act cycle, attributed to Deming, stresses the need for action in improving quali-ty. Plan Do Check and Assess would have been close to the correct answer, but not quite close enough.

The other responses shown here are simply made up to fit the letters.

Explanation

The principle of economies of scale is that cost will decrease as the scale / volume of operations in-creases. Remember that 'cost' is not the same as 'price'.

See also 'learning curve' or 'experience curve'. A clear mathematical ratio between volumes and cost per unit can be calculated / determined. The concept of the learning curve originated within the air-craft manufacturing sector in the United States, where engineers drew up precise cost benefits as the quantity of aircraft manufactured increased - as experience was gained.

These ideas can be very useful when negotiating price for large volumes, especially for new or be-spoke goods or services - the supplier's costs may decrease significantly as volumes or experience increase(s).

Explanation

Quality, quantity, price, place, time. You will need to memorise these.

Note that for CIPS purposes, none of: goods (product or service), manner (ethics) or supplier, is in-cluded in this list. For the sake of ease, perhaps best to just go along with CIPS' view.

Explanation

Pareto Analysis is sometimes known as the 80-20 Rule. It is the basis of ABC Analysis.

'in any series of elements to be controlled, a selected small factor [say 20%] in terms of number of elements almost always accounts for a large factor [say 80%] in terms of effort'. The figures in square brackets are illustrative - Pareto did not include these numbers and the % can be otherwise. The principle that a small percentage of 'things' will soak up a large amount of resource is what actu-ally matters.

For example, if you have 100 suppliers, a disproportionate amount of energy / time / spend will be devoted to a small number of them. Similarly if you have 100 staff members. Or a stock range of thousands. Similarly for customers. And so on.

A relatively simple concept, worth it's weight in gold in my opinion - my favourite management concept.

Explanation

This is the Pareto Principle, which can be invaluable as a guide for any procurement person, or any manager.

The other names shown here are those of other well-known thinkers, all much earlier than Pareto.

Explanation

Requirements are 'called off' from a single contract.

Explanation

The interests of your employer / official position (for example, to award a contract to the most suit-able bidder) may be in conflict with your personal interests (for example, to line your pockets to live more comfortably). Hence 'conflict of interest'.

Explanation

Suboptimal

Less than optimum.

Explanation

It's a cycle.

This is relevant to the measurement of cycle times, as featured in your syllabus.

Explanation

This is a definition of embezzlement.

The other terms shown as possible answers are also part of the syllabus for this subject.

Explanation

Cross-functional.

That is, drawn from a number of functions, or departments, within an organisation.

Explanation

E-sourcing.

Try to be clear on the difference between e-sourcing and e-auctions.

Other related e-terms include e-contracting, e-procurement, and possibly more.

Explanation

Anytime, up to bid receipt closing date, would be acceptable normal practice.

Late bids should never be accepted.

Explanation

Risk and financial impact.

Explanation

Once a supplier is contracted, monitoring performance is vendor rating.

Prior to a supplier being contracted, attempting to understand what their performance would be like is called 'supplier appraisal'.

Explanation

Business is all about the customer.

Explanation

How powerful are stakeholders?

How much interest do they have?

Using these measures to help manage stakeholders effectively.

Explanation

The correct answer is 'stature' which is a word used in a heading within the CIPS Code of Conduct.

If you selected 'status' you cannot be blamed for selecting a response different to the correct one - the two are extremely closely linked. However as 'stature' is used by CIPS, I think I can just about get away with declaring that the correct answer.

Explanation

This is a definition of extortion.

The other terms shown as possible answers are within the syllabus for this course and may be the subject of other questions within this test.

Explanation

Surely you know readily you should decline?

Explanation

Disassociate is the correct answer.

This is the 4 D's model of how to deal with a conflict of interest.

'Discombobulate' means to disconcert or confuse, as if you didn't know.

Explanation

Decline.

It seems pretty obvious, and I hope you can come up with one or two reasons for this being the cor-rect answer.