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Code d'Examen: A10
Nom d'Examen: CIPS (Measuring Performance in Purchasing and Supply)
Questions et réponses: 142 Q&As
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NO.1 THE CHARTERED INSTITUTE OF PURCHASING &SUPPLY
ADVANCED CERTIFICATE IN PURCHASING AND SUPPLY
Measuring Performance in Purchasing and Supply Management
A10
INSTRUCTIONS FOR CANDIDATES
*Ensure that you have been handed the correct examination paper.
*Ensure that you have been handed the correct examination paper.
*SECTION B: Questions 11?¡ìC16 are worth 5 marks each. You are advised to spend
approximately 50 minutes on this section.
*SECTION C: Questions 17?¡ìC19 require full answers with examples where appropriate.
Question 17 is worth 20 marks. Questions 18 and 19 are worth 15 marks each. You are advised to
spend a minimum of half an hour on each question.
*Answers should be written in this answer booklet in the spaces provided. If you require
continuation paper you should request this from the invigilator. Your candidate number and
question number must be clearly marked on each sheet of continuation paper.
*All answers must be written in ink. Pencil should only be used where graphs/diagrams are
required. Cross out any work which you do not wish to be examined.
*Rough working must be shown, and crossed out.
*The use of silent, battery-operated, non-programmable calculators is permitted.
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NO.2 Q6. Which of the following tools of analysis can be used to classify stock?
A. Value chain analysis
B. ABC analysis
C. SMART analysis
D. Quantum analysis
Topic 1, D
D
NO: 8 CORRECT TEXT
Q17. An organisation wishes to review its procurement processes to try and achieve
operational benefits.
You have been asked by the senior materials manager to advise on how the
process should proceed, as follows:
(a) List THREE key tasks where buyers' performance is directly linked to the
objectives of supply management.
(b) For each of the three key tasks, give an example of how the purchaser??s
performance could be measured.
(c) Explain how a review of these key tasks could benefit an organisation.
Topic 5, B
B
9.
Q2. Which of the following is Pareto's Law?
A. The law of supply and demand
B. The law of vendor rating
C. The 80/20 rule
D. The 90/30 rule
10.
Q3. Which one of the following is a recognised measure of financial performance?
A. Stock exchange viability test
B. CLIP performance
C. Net profit before tax
D. Sales analysis
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NO.3 Q3. Which one of the following performance indicators is best used to assess whether there are
slow moving stock items in a store?
A. Total number of items held
B. Average number of stock issues over a period
C. Total value of stock held
D. Average number of deliveries received
Topic 3, A
A
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NO.4 CORRECT TEXT
Q17. Microfast Foods is concerned about the cost of holding large quantities of stocks for its food
processing operation, in particular the issue of the high cost of perishable ingredients and
'waste'. The company has no formal procedure for tracking levels and usage of inventory
within its stores. The managing director of Microfast has asked you to advise him as follows:
a) Briefly explain to the managing director why it is important to continually review and
measure inventory levels.
b) Within the stores and warehouse environment there are THREE factors that need to be
examined ?¡ìC Economy, Efficiency and Effectiveness ?¡ìC in relation to performance
measures. The managing director is unsure of the detail. Provide a brief explanation of
each in the context of this business.
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NO.5 Topic 1, D
D
1. CORRECT TEXT
Q11. Identify the FIVE stages that should be followed to ensure an effective staff appraisal.
Topic 2, F
F
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NO.6 CORRECT TEXT
Q16. Identify FIVE areas that should be covered when appraising the buyer's performance.
Topic 1, D
D
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NO.7 Advanced Certificate in Purchasing and Supply
Measuring Performance in Purchasing and Supply
A10
Senior Assessor's Report
INFORMATION FOR CANDIDATES
The senior assessor??s report is written in order to provide candidates with feedback relating to
the examination. It is designed as a tool for candidates ?¡ìC both those who have sat the
examination and those who wish to use as part of their revision for future examinations.
Candidates are advised to refer to the Examination Techniques Guide (see the following link
http://www.cips.org/documents/ExaminationtechniquesguideFeb07.pdf) as well as this senior
assessor??s report.
The senior assessor??s report aims to provide the following information:
* An indication of how to approach the examination question
* An indication of the points the answer should include and how marks are allocated
* An indication of candidate performance for the examination question
APPENDIX
A syllabus matrix for the examination is included as an appendix. It highlights the learning
objectives of the syllabus unit content that each question is testing.
The unit content guides are available to download at the following link:
http://www.cips.org/studyqualify/cipsqualifications/syllabuses/
ADDITIONAL SOURCES OF INFORMATION
The Supply Management magazine is a useful source of information and candidates are advised
to include it in their reading during their study. Please see the following link to the Supply
Management website http://www.supplymanagement.com/
Analysis of Section A
Many candidates achieved moderate marks for this section. There were a few quite low scores
and very few high scores for this section, some candidates gaining 20/20 marks. Section A
questions are designed to test the candidates?? understanding of key purchasing principles and
knowledge of the syllabus.
I recommend that candidates practise questions from past papers in order to improve their
performance on this section ?¡ìC it is vital to be able to make the right decision from the four
available options, without spending too much time on the question.
SECTION B
Analysis of Section A
Many candidates achieved moderate marks for this section. There were a few quite low scores
and very few high scores for this section, some candidates gaining 20/20 marks. Section A
questions are designed to test the candidates?? understanding of key purchasing principles and
knowledge of the syllabus.
I recommend that candidates practise questions from past papers in order to improve their
performance on this section ?¡ìC it is vital to be able to make the right decision from the four
available options, without spending too much time on the question.
SECTION B
Question 11
Answer should identify FIVE of the following key points (1 mark was allocated for each correct
point) - initial briefing regarding performance areas, identification of what the organisation requires
from the employee, highlighting of any problems, is performance on track?, feedback during the
meeting, can the employer provide any assistance and have any training needs been identified.
The qualities of responses to this question were quite high and many candidates scored a good
level of marks.
Question 12
Candidates were required to LIST any FIVE of the following - increased leverage, ease of control
of fewer suppliers, greater opportunities of negotiation, increased joint development potential,
value adding initiatives may be explored, more use of supplier agreements, less transactional
activity, more use of strategic procurement.
The majority of candidates answered this question very well, with strong responses giving four or
five correct points. Weaker answers gave incorrect examples of the benefits of reducing the total
number of suppliers.
Question 13
Candidates were required to explain TWO ways in which purchasers could achieve continuous
professional development. Candidates should recognise that 2 ? marks are available for the
explanation of each 'way'. This breaks down as 1 mark available for identification of each method
with up to a further 1? marks available for the explanation of how the method used would benefit
the purchaser (or their employer). Areas that answers could include were: own study, attendance
at professional association meetings, attendance on courses/distance learning, formal training,
site visits, job rotation, or academic achievement.
The overall approach to this question could have been better. This is a key section within the
learning outcomes of this unit and many candidates performed poorly and identified areas that
were irrelevant to the context of the question. A few strong answers managed to correctly identify
two ways and briefly explained the value of the concept, in the context of purchaser's professional
development.
Question 14
Part (a) asked for THREE correctly titled key performance indicators (KPIs), for example, stockturns,
service levels, stock damage, stock accuracy, accuracy of pick rates (1 mark for each
appropriate KPI, up to 3 marks). Part (b) required candidates to explain how the use of KPIs can
improve the management of stock.
Many candidates gave incorrect KPIs for part (a), or failed to list insufficient KPIs. Many poor
answers focused on efficiency and effectiveness, rather than actually identify a KPI measure.
Following on from this part (b) was poorly answered as a result of the candidate failing to
understand the context of the question. This is a key part of the unit content and it is important that
candidates address this syllabus topic.
Question 15
Benchmarking is a key concept and allows buyers to assess the suitability or performance of a
supplier when compared to a known standard.
Part (a) required candidates to describe the purpose of supplier benchmarking. Benchmarking
provides information which may be used to select the correct supplier or motivate a potential
supplier to improve its products or overall performance.
Part (b) required candidates to list two problems that can be encountered with benchmarking.
There were many weak answers to this question and this may suggest a knowledge gap in the
candidates who sat this paper. Many responses gave a poor or inappropriate response to part (a)
and incorrect examples for part (b). Some answers gained marks for part (b) but were awarded no
marks for an incorrect answer to part (a).
Question 16
Candidates were required to explain TWO measurements that contribute to a simple vendor
measurement system. Examples that could have been explained are: quality ?¡ìC quantity of
acceptable deliveries as a percentage, deliveries ?¡ìC percentage of accurate on-time deliveries,
after sales service ?¡ìC response time set against an agreed target
Many candidates scored highly on this question by correctly identifying two measures and then
giving an appropriate explanation. A few candidates gave inappropriate answers or failed to
adequately explain what the measure was.
Topic 4, E
E
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