ISM LEAD Exam Practice Test Instant Access

Question 1

An organization wishes to implement principles of world-class logistics management. Which of the following is the MOST appropriate type of goal for integrating such activities?

ADivisional

BFunctional

CManagement

DStrategic

Answer : D

Goal Setting in World-Class Logistics Management:

Integrating world-class logistics involves aligning logistics activities with the overall strategic objectives of the organization.

Strategic goals ensure that logistics functions contribute to the broader long-term objectives and competitive positioning of the company.

Types of Goals:

Divisional Goals: Focus on specific divisions, might lack integration with overall company strategy.

Functional Goals: Concern specific functions within logistics, but may not align with broader company strategy.

Management Goals: Directed towards managerial performance and oversight.

Strategic Goals: Encompass company-wide objectives, ensuring all logistics activities support the long-term vision and competitive advantage.

Conclusion: Setting strategic goals ensures that logistics management aligns with the company's overall strategy, driving long-term success and competitiveness.

''Strategic Logistics Management'' by Donald Bowersox, David Closs, and M. Bixby Cooper

Best practices in logistics management from the Council of Supply Chain Management Professionals (CSCMP)

Question 2

PQR, Inc., a company with operations in a single country, merges with a firm that has operations in ten countries. PQR's supply manager wants to be sure the combined firm continues to attract diverse talent across all international operations. The supply manager believes that contingent labor in particular will be critical over the next few years. Given this situation, which of the following is the BEST course of action for the supply manager to take?

ARecommend a single managed service provider (MSP) who can manage all locations, after consultation with the human resources department

BPerform a review of existing staffing contracts and projected future needs

CConduct a search to identify sources of global contingent labor expertise capable of managing the company's combined operations

DIdentify several critical countries and obtain contingent labor data projections over the next five years from government resources

Answer : C

Global Operations: With operations in multiple countries, expertise in managing global contingent labor is crucial.

Contingent Labor Management: Identifying a source with experience in global operations ensures that the company can effectively manage and attract diverse talent.

Strategic Fit: A firm with the necessary expertise will align with the company's strategic needs for contingent labor across various international markets.

Reference: Industry reports and best practices (e.g., from SHRM and WorldatWork) highlight the importance of specialized global labor management expertise in multinational operations.

Question 3

A company wants to employ an enterprise resource planning (ERP) system in order to coordinate an expanded global supply base for an innovative new product line. The company has never used such technology in the past. Which of the following should be the FIRST step in implementing this project?

ASchedule demonstrations of top-rated planning systems

BDetermine organizational functional requirements

CReview current supplier capabilities

DSeek advice from commodity councils

Answer : B

Understanding ERP Implementation: Implementing an ERP system involves integrating various business processes to streamline operations and improve efficiency.

First Step in ERP Implementation:

Determining Organizational Functional Requirements: This step involves identifying the specific needs and functionalities required by the organization to support its operations.

This ensures the selected ERP system aligns with the company's goals and processes, avoiding potential mismatches and ensuring the system meets all necessary criteria.

Other Steps (for context):

Scheduling Demonstrations: Useful but should follow the identification of requirements to ensure relevant systems are evaluated.

Reviewing Supplier Capabilities: Important for the selection process but secondary to understanding internal needs.

Seeking Advice from Commodity Councils: Can provide valuable insights but should be done after defining the organizational requirements.

Conclusion: Defining the organizational functional requirements is the foundational step that guides the entire ERP selection and implementation process.

''ERP: Making It Happen: The Implementers' Guide to Success with Enterprise Resource Planning'' by Thomas F. Wallace and Michael H. Kremzar

Articles on ERP implementation best practices from CIO.com and Gartner

Question 4

A supply manager is scheduled to make a presentation at an upcoming management conference. The supply manager wants to present supply management as a key team member and an important contributor. Which of the following is the BEST approach for the supply manager to take in order to get a favorable reception?

AInclude technical definitions and specific process mapping

BPresent results and challenge other departments to match them

CDemonstrate how accomplishments support organizational goals

DDiscuss supply management in a light manner without appearing frivolous

Answer : C

When a supply manager aims to present supply management as a key team member and an important contributor at a management conference, the most effective approach is to demonstrate how the department's accomplishments support the overall organizational goals. This aligns with leadership and transformation management principles that emphasize the importance of illustrating the strategic impact of supply management.

Strategic Alignment: Demonstrating accomplishments in the context of organizational goals helps in showcasing how supply management contributes to the broader success of the company. This approach highlights the department's relevance and importance within the organization's strategic framework.

Building Credibility: Presenting tangible results tied to organizational goals builds credibility with the audience, as it shows that supply management is not just a support function but a critical component of the company's success.

Engagement: By focusing on accomplishments that support organizational goals, the presentation will likely engage the audience more effectively. Other departments and senior management are more inclined to listen and appreciate contributions that directly benefit the organization.

Kotter, J.P. (1996). Leading Change. Harvard Business Review Press.

Northouse, P.G. (2019). Leadership: Theory and Practice. Sage Publications.

Question 5

A supply manager is evaluating the firm's supply management training courses developed for non-department staff. Which of the following should the supply manager address FIRST when evaluating these courses?

A'Is the participation rate reasonable considering the total number of employees?'

B'Are the costs of training reasonable compared to the results?'

C'Do the skills learned in the courses support organizational goals?'

D'Are the instructors appropriately certified to teach the subject matter?'

Answer : C

Evaluation Focus: When evaluating training courses, the primary concern should be whether the skills taught align with and support the organization's strategic goals and objectives.

Alignment with Goals: Ensuring that training programs are aligned with organizational goals guarantees that the training contributes to the company's overall success and effectiveness.

Importance of Relevant Skills: Training programs that teach relevant skills enhance employee performance and ensure that the workforce is equipped to meet the company's needs.

Reference: Training and development best practices, as outlined in resources such as 'Employee Training & Development' by Raymond A. Noe and the guidelines from the Association for Talent Development (ATD), emphasize the importance of aligning training with organizational goals.

Question 6

A category manager for an electronics firm is tasked with building a strategy for wiring harnesses for the coming year. Which of the following is the BEST course of action for the category manager to take?

AEngage relevant stakeholders in order to craft a plan that includes multiple viewpoints

BEngage senior management to determine what they want from the category in question

CAsk suppliers to provide sealed bids to determine which one will be the most aggressive in reducing price

DFocus on suppliers with which the firm spends the most money

Answer : A

Task Definition: Building a strategy for wiring harnesses requires a comprehensive approach that considers multiple factors and perspectives.

Importance of Stakeholder Engagement:

Ensures the strategy is aligned with the overall business objectives and meets the needs of all departments.

Involves input from those directly affected by or involved in the procurement and usage of wiring harnesses, leading to a more informed and effective strategy.

Best Course of Action:

Engaging Relevant Stakeholders: Gathering input from engineering, production, quality control, and other relevant departments ensures the strategy is robust and addresses all critical aspects.

Creates a sense of ownership and commitment among stakeholders, facilitating smoother implementation.

Outcome:

A well-rounded strategy that considers all necessary viewpoints, leading to better decision-making and successful implementation.

Stakeholder engagement practices from PMI's ''A Guide to the Project Management Body of Knowledge (PMBOK Guide)''

Best practices in category management from the Chartered Institute of Procurement & Supply (CIPS)

Question 7

A firm's supply manager surveys stakeholders to rate the performance of supply management along several key factors and to determine what factors matter most to the stakeholders. The results of the survey (with scale values ranging from 1 for Low to 5 for High), are as follows:

Factors Rating Priority

Speed of order processing 4 2

Supply management knowledge 4 3

Quality 2 4

On-time delivery 4 3

Supplier innovation 4 4

Product and market awareness 2 5

Cost control 4 2

Which of the following conclusions is MOST strongly supported by the survey results?

AOrder processing time should be streamlined.

BCost control efforts are valued by internal customers.

CSupplier innovation is less important than on-time delivery.

DProduct and market awareness need more emphasis.

Answer : B

The survey results indicate that cost control is highly rated (4) and given a high priority (2), suggesting that internal customers place significant value on cost control efforts. Leadership and transformation management principles underline the need to align supply management activities with stakeholder priorities. The survey results reveal that stakeholders prioritize cost control, speed of order processing, and supply management knowledge, with cost control being particularly valued. Reference from leadership documents emphasize the importance of understanding and responding to stakeholder needs to ensure that supply management efforts are focused on areas that provide the most value to the organization.

ISM LEADership and Transformation in Supply Management Exam Practice Test