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NEW QUESTION 40

Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?

  • A. Yes, decommissioning and disposal costs will not be accounted in this approach
  • B. No, a ship is used only once, through-life management is unnecessary
  • C. No, the company just needs to select the lowest bidder
  • D. Yes, this approach will lower the total cost of ownership

Answer: D

Explanation:

Through-life management is a approach applied to capital asset. According to Ward and Graves, 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. According to CIPS study guide, through-life management comprises of 6 parts:

1. Design

2. Manufacture

3. Installation

4. In-service support

5. Decommission and disposal

6. Customer support

In this scenario, the company is planning to procure a ship, which is a capital asset. Through life management is a good approach. Sealines can start with developing through-life specification. This approach may have several benefits:

- It lowers the costs over the whole life of the asset

- It lowers the risks as there is a single company accountable for costs and service over the life of the asset

- A closer match between the asset delivered and the users' needs

- Development of capability over the life of the asset as the supplier continues to get experience of the users' needs and can adapt services to meet them.

Reference:

- CIPS study guide page 130-131;

- Through-life management: The provision of total customer solutions in the aerospace industry, by Yvonne Ward and Andrew Graves LO 3, AC 3.2

NEW QUESTION 41

OMK is a Russian steel firm that is expanding market abroad. It plans to build a steel plant in a foreign country. Due to intricate technical requirements, the plant design will be very complex. Procurement department or technical department alone cannot draft the specification. OMK senior management decides that this task must be treated as a project. Which of the following should be done before writing the specification for new steel plant?

  • A. Develop the performance framework for the supplier
  • B. Invite suppliers to the tendering process
  • C. Draft the terms and conditions for plant construction contract
  • D. Develop project initial document

Answer: D

Explanation:

The writing of a complex specification should be treated as a project because it requires the brain power from different stakeholders. Many tools and processes of project management can be applied to complex specification development. Before engaging with the stakeholders and implementing the project, the project initial document should developed.

A Project Initiation Document (PID) is one of the most important components of project manage-ment, which forms the foundation for a company project. It is a reference point during the entire project, for the client as well as for the project team.

A PID bundles documentation into a logical reference work that collects all important information needed to start and run a project from a good foundation. After that, Project Initiation Document must be transferred to all stakeholders, including business sponsors.

This forms the basis for the project management. The documentation from which the PID is com-posed include the business case in which the project's justification can be found, the communica-tion plan and the project plan.

The PID is composed out of collected information and includes, among others, the following com-ponents:

- Project goal(s); what do you want to achieve with the project?

- Project size; how large is the project, how long does it take and how many people are involved?

- Project organisation; who are involved in the project, what are their tasks, responsibilities and authority?

- Limits and risks; what can cause a project to stagnate and are there risks related to the project?

- Stakeholders; who has a stake in the success of the project?

- Project checks and frame reporting; by carefully taking into account evaluation moments, it is clear to everyone what sample tests can be carried out during the process.

In addition, it is important that the Project Initiation Document also contains the following infor-mation:

- The background and occasion of the project, which together provide information about the con-text.

- The project organisational structure, which describes who has which management responsibility in the project.

- The project quality plan, describing who controls the quality of the products to be delivered and how it will take place.

- The total project planning, including the duration of all activities.

- The exception process, which describes how exceptions are dealt with and the steps of the escalation procedure.

- The risk log, including the measures that will be taken when there are unforeseen risks.

- The documentation structure of the project, in which the encoding and storage of all documents and products to be provided by the project has been recorded in advance.

Reference:

- CIPS study guide page 148

- Project Initiation Document (PID), a project management tool | ToolsHero LO 3, AC 3.3

NEW QUESTION 42

Which of the following standards specifies requirements for a quality management system?

  • A. ISO 27001
  • B. ISO 22000:2018
  • C. ISO 9001:2015
  • D. ISO 14001:2015

Answer: C

Explanation:

ISO 9001:2015 specifies requirements for a quality management system.

ISO 14001:2015 specifies the requirements for an environmental management system that an or-ganization can use to enhance its environmental performance. ISO 14001:2015 is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.

ISO 22000:2018 specifies food safety management systems - Requirements for any organization in the food chain ISO 27001 provides requirements for an information security management system.

LO 3, AC 3.1

NEW QUESTION 43

Which of the following activities are considered as primary activities of an organization according to Porter's value chain? Select TWO that apply:

  • A. Trainees recruitment
  • B. Picking and delivery components
  • C. Sourcing transportation services
  • D. Assembly design
  • E. Maintenance

Answer: B,E

Explanation:

Primary activities consist of inbound logistics, operations, outbound logistics, sales & marketing, service.

Second activities consist of firm infrastructure, human resource management, technology development and procurement The following graph illustrate the value chain (Source: Smartsheet)



Picking and delivery components is inbound logistics.

Maintenance is an example of operations activity.

Sourcing transportation services is an activity of procurement

Assembly design is an activity in research and development (Technology) Recruiting is an activity of human resource management Reference:

LO 2, AC 2.1

NEW QUESTION 44

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