AB Manufacturing (ABM) has been in business for the last twenty years. During this time its directors and senior managers have not changed. ABM has been successful, because these directors and senior managers have inspired the workforce to strive for continuous improvement. Which of the following has had the most direct influence on ABM’s organisational culture?
Model contract forms are frequently used because of which of the following?
1. They encourage greater use of ‘soft’ remedies
2. They have broad acceptance in some industries
3. They will eliminate most supply chain risks
4. They avoid the need to create bespoke terms
. When undertaking a high value and long-term investment appraisal, which of the following are the most important considerations?
1. Competitor information
2. Supplier appraisals
3. Cash outflows
4. Discount factor
When attempting to understand a supplier’s product pricing methods, it is useful to identify the fixed and variable cost drivers. Is this TRUE?
The use of value engineering can maximise value for the organisation by supporting the optimisation of product design. Is this TRUE?
An organisation’s culture can be identified directly through which of the following? Select ALL that apply.
Which of the following are recognised tools of persuasion? Select ALL that apply.
The programme director (PD) for International Products Group (IPG), a major manufacturer of consumer products, has been tasked with finalising project budgets for the upcoming financial year. There are numerous projects within the programme and creating accurate budgets is always a significant challenge for the PD. In particular, they find it difficult to allocate overheads accurately across the various projects. In addition, the PD has difficulty in identifying the precise financing cost relating to each project. The specific challenges faced by the PD relate to which of the following costs?
1. Investment costs
2. Indirect costs
3. Interest costs
4. Infrastructure costs
Major Construction Group (MCG) is planning a new project. It has a clear outline of its full requirements and perceives its lowest risk to be using a single supplier for the entire project. This supplier will take the project from concept to completion of the works. Which type of contracting option will be the most appropriate?
The legal solution ‘specific performance', is only available in which circumstances?
1. Where damages alone are insufficient
2. Where an adequate like-for-like replacement is not available
3. Wherever there is a serious breach of contract
4. Where the supplier has gone into administration
A target costing approach can be effective in encouraging suppliers to reduce their own cost base. Is this statement TRUE?
KV Banking Group (KVBG) is going through a large change programme. Contracts with existing suppliers are being renegotiated. KVBG's management is offering suppliers longer term contracts in return for price reductions. For those that do not reduce their pricing, notice is being served to terminate contracts, and new suppliers will be recruited. Which tools are KVBG's management using?
1. Logic
2. Bargaining
3. Authority
4. Coercion
Which of the following are recognised differences between cultures that should be considered when negotiating? Select ALL that apply
Advanced Wind Power Group (AWPG) is planning the next phase of its expansion and needs to invest significantly in new turbines. Its existing shareholders have already committed additional funds to support this growth. The board has commissioned a detailed financial appraisal of the available options. The Chief Financial Officer (CFO) is leading this project, and four different options have been evaluated. The CFO is currently reviewing the net present values (NPVs) of each option. Before the detailed financial analysis, the CFO conducted a preliminary assessment using the payback method. Option One yielded the best results, with estimated total outflows of €75,000,000 and annual inflows of €12,000,000. In parallel, the CFO, Chief Procurement Officer (CPO), and marketing teams are working together to explore ways to enhance the functionality of existing products. They have formed a project team with the objective of improving product offerings from the customer’s perspective. This includes investigating opportunities within the supply chain for potential cost savings and efficiency gains. AWPG’s flagship product, the X23I turbine, involves a collaborative agreement with VOM Inc. This contract is currently under renegotiation for an additional five years. The CPO is seeking greater transparency regarding VOM's relevant expenditures and profit margins on the components it supplies to AWPG.
Which of the following has been used in the calculations currently under review by the CFO?
The result of the CFO's quick payback analysis is …
What is the main drawback to the tool used by the CFO to undertake the quick analysis?
The project team is involved in which of the following?
Which of the following would achieve the CPO's goal in respect of the future contract with VOM Inc?
The client and a contractor have agreed on a contract for the contractor to carry out project of building a house. Soon after contract implementation and signing, an earthquake occurs that prevents the contractor from building the house. Since they have agreed on a force majeure clause, the client understands that he cannot hold the contractor liable in this instance. Is this correct?
Which of the following is correct about an EPC (engineering, procurement and construction) contract? Select ALL that apply.
Which of the following are the features of an EPC (engineering, procurement and construction) project?
1. use of cost-plus contracts
2. fixed completion dates
3. fixed price contracts
4. only uses a pricing schedule
Which of the following is a benefit of the EPC contractor in an EPC contract?
Which of the following variables considered when undertaking value for money analysis? Select ALL that apply.
A government agency wants to undertake a construction project. They do not wish to be involved in the project’s day to day running. They also lack adequate capacity and expertise and partners with another specialist organisation to leverage their skills and capabilities. This is known as which of the following?
Which of the following is true about public and private sector partnership?
Post-occupancy evaluation considers which of the following?
What is the responsibility of the client in an engineering, procurement and construction (EPC) contract?
Morgan Fraser is a project manager for TBRF Investment. They want to undertake a major project for expanding their operational facilities. Fraser realizes that for this to be possible, an effective stakeholder and senior management buy-in is required. He decides to draft a business case to achieve this. Is this a correct action?
Simon is a programme manager for Make It Investments Limited (MIIL). MIIL wants to undertake a project for the extension of their operating facilities. Simon is evaluating which contracting method to utilize. He prefers a method which will reduce the number of contracts they will administer. He selects construction management as the best contracting option. Is this a suitable option?
Which of the following are the criticisms of using FIDIC contract forms in programmes?
1. FIDIC contract forms are used only in local contracts
2. FIDIC contracts forms involves complexity and ambiguity in language used
3. FIDIC contracts forms do not allow for variability and flexibility
4. FIDIC contract forms only used in mechanical contracts
