Question 1

A company is planning the procurement of an IT system and wants to agree a through-life contract with the supplier to ensure ongoing system support. The first step in producing that specification should be to:

Options :

A : Prepare tendering documents

B : Define the user requirements

C : Build a design

D : Identify the IT system supplier

Answer: B

Question 2

To strengthen its market presence, ABC Group decided to develop a new product. A cross-functional team was formed to discuss the scope and the functions of the product. They will also survey the potential customers to see what they like, what they love, and what they dislike. What is this process called?

Options :

A : Cash flow analysis

B : Product standardisation

C : Value engineering

D : Value analysis

Answer: C

Question 3

What issue is a buyer most likely to experience if the technical specification sent to suppliers as part of a Request For Quotation (RFQ) is insufficient?

Options :

A :

The buyer will receive quotes at different times from suppliers, which will require greater coordination with other members of the sourcing team

B :

The buyer will receive costs from suppliers in different formats, which will make it difficult to compare costs on a like-for-like basis

C :

The buyer will not be able to compare different suppliers' costs directly as the suppliers will have had to make assumptions on the specification

D :

The buyer will need to work with their finance colleagues and business stakeholders to adjust the budget available for the project

Answer: C

Question 4

Which of the following can directly affect labour variance? Select TWO that apply:

Options :

A : Company-s budget

B : Wage rate per hour

C : Overtime

D : Inflation

E : Overhead expenditure

Answer: B,C

Question 5

Which of the following is the structured approach for defining customer requirements and translate them into technical specification?

Options :

A : Kano model

B : Thomas-Kilmann model

C : Mendelow-s matrix

D : Quality function deployment

Answer: D

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