Unlike other L4M2 study materials, there is only one version and it is not easy to carry. Our L4M2 exam questions mainly have three versions which are PDF, Software and APP online, and for their different advantafes, you can learn anywhere at any time. And the prices of our L4M2 training engine are reasonable for even students to afford and according to the version that you want to buy.

CIPS L4M2 Exam Syllabus Topics:

Topic 1
  • Output or outcome, statement of work based specifications
  • Types of market data that can provide information on costs and prices
Topic 2
  • Approaches to total costs of ownership
  • whole life cycle costing
  • Interpret financial budgets for the control of purchases
Topic 3
  • Identify opportunities to regulate short and longer term specifications
  • Procurement’s role in developing a business case
Topic 4
  • Analyse the criteria that can be applied in the creation of a business case
  • Availability of substitutes and threat of entry
Topic 5
  • Provide guidance to internal stakeholders on implementation
  • Implications of the business needs on the types of purchase
Topic 6
  • Monitor specification creation by colleagues and other internal stakeholders
  • Analyse how business needs influence procurement decisions
Topic 7
  • Understand the use of specifications in procurement and supply
  • Analyse the different types of markets utilised by procurement and supply
Topic 8
  • Understand how to devise a business case for requirements to be sourced from external suppliers
  • Producing estimated costs and budgets
Topic 9
  • Identify the risks that can result from inadequate specifications and mitigation approaches
  • Use information to prepare budgets or to negotiate prices
Topic 10
  • Understand market management in procurement and supply
  • Compare the competitive forces that influence markets

>> L4M2 Questions Answers <<

L4M2 Questions Answers | High-quality Test L4M2 Lab Questions: Defining Business Needs

The study system of our company will provide all customers with the best study materials. If you buy the L4M2 latest questions of our company, you will have the right to enjoy all the L4M2 certification training dumps from our company. More importantly, there are a lot of experts in our company; the first duty of these experts is to update the study system of our company day and night for all customers. By updating the study system of the L4M2 training materials, we can guarantee that our company can provide the newest information about the exam for all people. We believe that getting the newest information about the exam will help all customers pass the L4M2 Exam easily. If you purchase our study materials, you will have the opportunity to get the newest information about the L4M2 exam. More importantly, the updating system of our company is free for all customers. It means that you can enjoy the updating system of our company for free.

CIPS Defining Business Needs Sample Questions (Q15-Q20):

This is the information on an organisation's activities over the past year
* Sale were $5,000,000. The value of accounts receivable was $450,000 at the start of the year and $525,000 at the end of the year
* The value of direct costs was $2,500,000 and 75% of this was bought on credit
* Indirect costs were $3,000,000 and 25% of this was bought on credit
* During the year the organization spent $1,500,000 on new assets and sold $150,000 of old assets. $1,000,000 of the spend on assets was funded by a bank loan
* The organization declared a dividend of $200,000 at the end of the year but this was not paid for another two months
* Opening balance was $175,000
Which of the following is the bank balance of that organization at the end of the year?

  • A. $1,875,000
  • B. $2,025,000
  • C. $1,675,000
  • D. $1,700,000

Answer: A

In this question, you should understand the concept of cash flow and formula of cash flow. Cash flow calculates the physical money moving in and out a company's bank balance. The cash flow from sale activity is:
cash flow from sale = account receivable at beginning of the year + revenue - account receivable at the end of the year = $450,000 + $5,000,000 - $525,000 = $4,925,000
75% of direct costs was bought by credit, therefore, the company spent 25% on direct cost: -$2,500,000*25/100 = -$625,000
25% of indirect costs was bought on credit. Cash flow out on indirect costs is: -$3,000,000*75/100 = -$2,250,000 Company spent $1,500,000 on new assets funded by a loan of $1,000,000. Cash flow out from this activity is -$500,000 Company received $150,000 from selling old assets Dividends have not been paid for another 2 months, thus, they are not accounted as cash flow out.
The bank balance at the end of the year is: $175,000 + $4,925,000 - $625,000 - $2,250,000 - $500,000 + $150,000 = $1,875,000 LO 1, AC 1.4

In 2016, ANA Airlines had to cancel some of its flight. The airline said it had discovered the cracks to the jet engine turbine blades. What should ANA procurement team do next to solve this problem?

  • A. Generate options addressing the issue
  • B. Assess the risks
  • C. Analyse the situation and draw conclusion
  • D. Collect data to identify the root cause
  • E. Define the ideal solution

Answer: D

Cracks on the jet engine is a closed-end problem. A typical problem solving process has 8 steps:
Step 1: Define the Problem
- What is the problem?
- How did you discover the problem?
- When did the problem start and how long has this problem been going on?
- Is there enough data available to contain the problem and prevent it from getting passed to the next process step? If yes, contain the problem.
Step 2: Clarify the Problem
- What data is available or needed to help clarify, or fully understand the problem?
- Is it a top priority to resolve the problem at this point in time?
- Are additional resources required to clarify the problem? If yes, elevate the problem to your leader to help locate the right resources and form a team.
- Consider a Lean Event (Do-it, Burst, RPI, Project).
- Ensure the problem is contained and does not get passed to the next process step.
Step 3: Define the Goals
- What is your end goal or desired future state?
- What will you accomplish if you fix this problem?
- What is the desired timeline for solving this problem?
Step 4: Identify Root Cause of the Problem
- Identify possible causes of the problem.
- Prioritize possible root causes of the problem.
- What information or data is there to validate the root cause?
Step 5: Develop Action Plan
- Generate a list of actions required to address the root cause and prevent problem from getting to others.
- Assign an owner and timeline to each action.
- Status actions to ensure completion.
Step 6: Execute Action Plan
- Implement action plan to address the root cause.
- Verify actions are completed.
Step 7: Evaluate the Results
- Monitor and Collect Data.
- Did you meet your goals defined in step 3? If not, repeate th 8-Step Process.
- Were there any unforeseen consequences?
- If problem is resolved, remove activities that were added previously to contain the problem.
Step 8: Continuously Improve
- Look for additional opportunities to implement solution.
- Ensure problem will not come back and communicate lessons learned.
- If needed, repeat the 8-Step Problem Solving Process to drive further improvements.
ANA has already known what is going on, the next step they should adopt is collecting more infor-mation on the problem. If the airline is hurry to the solution, it may choose 'Generate options ad-dressing the issue'. The crack on turbine blade can be welded, or the airline replaces a new blade. However, jumping to solution without knowing the root cause does not completely solve the prob-lem. The root cause is unaddressed, then it may occur in the future. Therefore, the airline should still collect information to find the root cause, then remove it.
LO 1, AC 1.1

A CPO is analyzing whole life cycle costing of a machinery. He realises that cost elements are not specific but come from a range of values. Which whole-life costing model should the CPO use to get the most accurate total cost of ownership?

  • A. Kraljic's preferencing model
  • B. Simulation models
  • C. Decision support models
  • D. Optimisation models

Answer: B

There are three basic groups of WLC (whole life-cycle costing) models:
- Decision support models
- Simulation models: Life cycle cost is an essential approach to decide on alternative rehabilitation strategies for infrastructure systems. Monte Carlo simulation approach is used to develop a stochastic life cycle cost (SLCC) model and methodology in order to compare different rehabilitation scenarios/alternatives for infrastructures, such as water mains. This method assumes that some inputs are randomly variable in a range of values.
- Optimisation models
LO 1, AC 1.2

Which of the following is an assumption of Kano model?

  • A. Different types of customer requirements have different impact on customer satisfaction
  • B. All customer requirements are basic requirements
  • C. All types of customer requirements have the same impact on customer satisfaction
  • D. The relationship between product functionality and customer satisfaction is always linear

Answer: A

Kano model of excitement and basic quality (Kano et al, 1984; Berger et al, 1993; Matzler et al, 1996) brings a different perspective for the analysis of improvement opportunities in products and services because it takes in consideration the asymmetrical and non-linear relationship between performance and satisfaction. The Kano model classifies customers requirements in three categories (figure 3):
a) Basic Requirements. The basic requirements fulfill the basic functions of a product. If they are not present or their performance is insufficient, customers will be extremely dissatisfied. On the other hand, if they are present or have sufficient performance, they don't bring satisfaction. Customers see them as prerequisites. For instance, for luxury automobiles, "air bags" are considered basic. A customer won't feel satisfied if the automobile has "air bag", however he/she will not buy it if "air bag" is not present.
b) Performance Requirements. As for these requirements, satisfaction is proportional to the performance level - the higher the performance, the higher the customer's satisfaction will be and vice-versa. Gas consumption in automobiles is an example of these requirements. Usually customers explicitly demand performance requirements.
c) Excitement Requirements. These requirements are key to customer satisfaction. If they are pre-sent or have sufficient performance, they will bring superior satisfaction. On the other hand, if they are not present or their performance is insufficient, customers will not get dissatisfied. For instance, a surprise gift at the end of a dinner in a restaurant will certainly bring satisfaction, but it will not cause dissatisfaction if not offered. These requirements are not demanded nor expected by customers.
Two other types of requirements may be identified in the Kano model: neutral and reverse ones. Neutral requirements do not bring either satisfaction or dissatisfaction. Reverse requirements bring more satisfaction if absent than if present.
- Integrating Kano model and QFD for Designing New Products
- CIPS study guide page 171-172

Which of the following agencies can produce a technical standard?

  • A. House of Lords
  • B. Marketing department
  • C. BSI
  • D. Department of State

Answer: C

Technical standards are often produced by a national or international body such as British Standard Institute (BSI) LO 3, AC 3.1


L4M2 exam dumps provided by TroytecDumps are tested through practice, and are the most correct and the newest practical L4M2 test dumps. Our TroytecDumps can provide accurate L4M2 certification training questions based on extensive research and the experience of real world to make you pass L4M2 Certification Exam in a short time. If you purchase our L4M2 exam dumps, we will offer free update service within one year.

Test L4M2 Lab Questions: https://www.troytecdumps.com/L4M2-troytec-exam-dumps.html