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L5M6 Category Management - paper *2.
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1.
The behavioural skills required for the implementation of a category management methodology across the organisation, with suppliers, and other stakeholders for effective category management include which FOUR of the following?
1. Communication with stakeholders and suppliers
2. Supply chain analysis
3. Influencing skills
4. Working with teams and cross functional working
5. Acting as a change agent
6. Risk management
2.
Direct categories refer to groups of goods or services that are vital for manufacture of the product or service, of high value, and typically required in large quantities and must be acquired at the best possible cost and quality from a pool of reliable suppliers. Which FOUR of the following items fall under this category?
1.Manufacturing staff salaries
2. Office supplies
3. Raw materials
4. Repairing equipment
5. Components
6. Sub-assemblies
3.
Successful category management requires three main enablers. Which is one from thenfollowing is a correct combination of those enablers?
4.
The category plan deployment comes after assessment of change management needs,communication of change and kick-off of the category projects. Three phases occur after deployment of the plan. What THREE phases are these?
1. Supplier relationship management
2. Category strategy development
3. Results tracking and reporting
4. Category prioritisation and assessment
5.
What are strategic items and what type of relationships would you build with suppliers of such items
6.
What is the second step in the seven-step strategic sourcing process?
7.
Conventional sourcing practice normally has a basic provider model. What happens with the basic provider model?
1.Typically has a set price for individual products and services for which there is a wide range of standard market options i.e readily available in market
2. It has set volumes for products and services for which there is a narrow range of market options
3. It is used for low-cost standardised goods and services in the market with many suppliers
4. It is used for high-cost differentiated goods and services in the market with few suppliers
8.
The International Association for Contract & Commercial Management (IACCM) argues that there is no one best strategic sourcing model. Instead, it suggests that determining the right sourcing business model depends on the appropriate contractual relationship and appropriate economic model.
What does the economic model define?
9.
What THREE choices does the business have in terms of contractual relationship framework
1. Transactional
2. Out-put based
3. Relational
4. Outcomes-based
5. Investment
10.
What THREE economic model choices does the business have in terms of the economic model?
1. Investment
2. Transactional
3. Relational
4. Output-based
5. Outcome-based
11.
What are the key features of traditional purchasing that make it different from strategic sourcing?
1. focuses on best possible value and cost of ownership
2. aims at highest possible quality for lowest possible cost
3. focuses on lowest possible cost per unit
4. focuses on high volumes to attract mass discount
12.
What are the two bases for mapping supply items according to the Kraljic matrix?
1. Supply risk
2. Buyer spend
3. Profit impact
4. Attractiveness of buyer organisation
13.
The Kraljic matrix has some limitations or shortfalls. What are the main TWO shortfalls commonly identified
1. It is fairly simple.
2. It misallocates too many suppliers as strategic when in actual fact they are not
3. It does not take into account how suppliers view their buyers.
4. It is very complicated.
14.
In a category management eight-step cycle, what is step four?
15.
Michael is a category manager who uses the A.T. Kearney strategic as a sourcing model in his category management.
At one of the stages of the model he uses, he researches global and local suppliers and analysis risks and opportunities in the markets where the suppliers operate. He focuses on the cost of raw materials and other variable like labour and transport. He uses all this information to develop a criterion for supplier selection. At what step of his A.T. Kearny is he doing this?
16.
Having looked at various strategic sourcing models, Albert decides to use the IBM strategic sourcing approach as best for his organisation. What activities would Albert be doing at the first stage and last stage of the IBM model?
17.
At what stage of the CIPS Procurement and Supply model or cycle do the calculation of end-of life costs calculated to consider decommissioning, removal, and disposal processes, and where lessons are learned to improve procurement process next time, and a review of requirement is done to establish it is still required and is fit for purpose.
18.
Risks must be well managed. Identify the second stage in the risk protocol development
19.
The CIPS category management process has six steps. In one of the stages, the following questions are asked and answered?
▪ What is the scope of the category?
▪ Who are the key stakeholders?
▪ What key issues need to be addressed?
▪ Is there support for this work?
▪ Are resources and skills to undertake the work available?
▪ What are the benefits and risks that might be faced?
At what stage are these questions asked?
20.
There has been a huge increase in the outsourcing of procurement activities including category management in the recent past by companies especially of indirect spend categories.
Why are indirect spend categories being outsourced?
21.
What are the two most important factors that must be considered when faced with the decisions to outsource?
22.
The influencing style that involves use of reasoning, facts and expertise is _____________
23.
The Lombardo and Eichinger 70-20-10 model can used to a model to leading and developing skills within the team. In fact the model is a general guideline for organisations seeking to maximise effective of learning and development programmes. What is the most effective method (with a 70% impact) to develop and upskill category managers according to the model?
24.
To address the skills shortage and to maximise learning and skills development of your category team to 100% using the Lombardo and Eichinger 70-20-10 model, what approach would you use?
25.
There are four main different approaches to reducing cost and increasing value. Which two of the following classify as tactical price management approaches?
1. Cost-out
2. Price management
3. Price acceptance
4. Cost-down
26.
Which two of the following classify as strategic costs management approaches?
1. Cost-out
2. Price management
3. Price acceptance
4.. Cost-down
27.
The best way to categorise indirect expenditure is by creating a purchasing tree to facilitate the grouping of similar products or services. State whether true or false
28.
What are the advantages of using Pareto analysis? Select All that apply
1. Improved decision making
2. Lack of insight as to root causes
3. Enhanced problem solving skills
4. Multiple analysis is needed
5. Organisational efficiency
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