CIPS L3M2 Exam Practice Test Instant Access

Question 1

The abbreviation 'KPI' stands for:

AKey performance inducement

BKey procurement indicator

CKey performance improvement

DKey performance indicator
Key personnel insurance

Answer : D

Key performance indicator, designed to monitor a small number of critically-important aspects of supplier performance, indicated within a contract or a service level agreement as part of a contract.

Question 2

Regarding quality management, how many Sigma?

AFive

BSeven

CFour

DSix

Answer : D

The answer is 'six'.

Six Sigma is a statistical approach to quality management.

Question 3

The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:

AAfter life

BShelf life

CShort life

DLong life

Answer : D

Lifetime costing is of greatest applicability when an asset has a long life.

Question 4

Finding new potential suppliers using the internet might be known as:

Ae-sourcing

Be-scouring

Ce-souring

De-auction

Answer : A

E-sourcing.

Try to be clear on the difference between e-sourcing and e-auctions.

Other related e-terms include e-contracting, e-procurement, and possibly more.

Question 5

A term used to describe preparatory activities undertaken after a contractor has been appointed, but before they have commenced work. Often used in projects, construction or management consultan-cy

Awork.

BGlobalisation

CSynchronisation

DMobilisation

EImprovisation

Answer : D

It is probably often improvisation, but the correct answer is mobilisation: getting ready to undertake the task at hand.

It could be as simple as booking a team of consultants into a hotel room; it could be as complex as leasing bulldozers from the US, hiring cranes from China, and buying cement from Nigeria.

Question 6

Key Performance Indicators could be said to be:

ASWART

BSMART

CSHARP

DSTART

Answer : B

SMART

Specific, measurable, achievable, realistic, timebound or similar.

Question 7

'I'm not really well up on ethics within organisations, especially within procurement. Where can I find some really good quality up-to-date information about ethics?' Choose one.

ACIPS website

BA recently-elected local politician

CA good second-hand bookshop

DAnni, who retired from our organisation's social media department four years ago

Answer : A

CIPS is keenly interested in procurement ethics, and you can find a wealth of information on the CIPS website as well as other CIPS publications, such as Supply Management magazine.

CIPS members are also encouraged to undertake the ethical training and test, also available online via the CIPS website.

CIPS L3M2 Ethical Procurement and Supply Exam Practice Test