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L4M2 Defining Business Needs

  • CIPS
  • 5 free sample questions

About this exam

L4M2 is the CIPS exam Defining Business Needs. Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
L4M2
Vendor
CIPS
Practice questions
Not available yet
Free sample questions
5
Question bank last updated
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Try 2 sample questions

Taken from the free sample set for L4M2.

Question 1

Which of the following may allow suppliers free to choose the materials, manufacturing process or delivery process?

  1. Option A:

    Performance specification


  2. Option B:

    Design specification


  3. Option C:

    Technical specifications


  4. Option D:

    Conformance specification

Show answer and explanation

Correct answer: A

Explanation

The Performance Specifications define what the system being designed must do, and not how it must do it. In this step a list of needs and wants should be created. The needs are customer requirements, while the wants are engineering desires. If a buyer adopts performance specification, the supplier will be free to choose how to make and deliver the product.

A technical specification document outlines how you’re going to address a technical problem by designing and building a solution for it.

A design specification is a detailed document providing a list of points regarding a product or pro-cess. For example, the design specification could include required dimensions, environmental fac-tors, ergonomic factors, aesthetic factors, maintenance that will be needed, etc. It may also give specific examples of how the design should be executed, helping others work properly (a guideline for what the person should do).

With conformance specification the buyer says what they want and how they want it and the supplier has to meet this

[Reference: CIPS study guide page 119-124, LO3, AC 3.1, , , ]

Question 2

Which of the following is true in relation to estimating the costs associated with whole life asset management?

  1. Option A:

    The supplier ' s quoted price represents the true end final cost of purchase


  2. Option B:

    Every purchase represents an ' iceberg of costs of which the price it the ' tip '


  3. Option C:

    The supplier ' s quoted price includes direct costs only and therefore other costs should be estimated


  4. Option D:

    All quoted prices are exaggerated and therefore discounts must be demanded to save costs

Show answer and explanation

Correct answer: B

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