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NEW QUESTION 30
Sealines Inc is developing its fleet of cargo ships. The company is planning to build a new ship powered by natural gas. Brian, the procurement manager at Sealines, suggests the project team to develop a through-life specification before engaging with the supplier. Is this a correct approach?
- A. Yes, this approach will lower the total cost of ownership
- B. No, a ship is used only once, through-life management is unnecessary
- C. No, the company just needs to select the lowest bidder
- D. Yes, decommissioning and disposal costs will not be accounted in this approach
Answer: A
Explanation:
Through-life management is a approach applied to capital asset. According to Ward and Graves, Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer. According to CIPS study guide, through-life management comprises of 6 parts:
1. Design
2. Manufacture
3. Installation
4. In-service support
5. Decommission and disposal
6. Customer support
In this scenario, the company is planning to procure a ship, which is a capital asset. Through life management is a good approach. Sealines can start with developing through-life specification. This approach may have several benefits:
- It lowers the costs over the whole life of the asset
- It lowers the risks as there is a single company accountable for costs and service over the life of the asset
- A closer match between the asset delivered and the users' needs
- Development of capability over the life of the asset as the supplier continues to get experience of the users' needs and can adapt services to meet them.
Reference:
- CIPS study guide page 130-131;
- Through-life management: The provision of total customer solutions in the aerospace industry, by Yvonne Ward and Andrew Graves LO 3, AC 3.2
NEW QUESTION 31
Warwickshire Ambulance Service (WAS) is an NHS Trust. It operates throughout Warwickshire and the neighbouring areas. It has three core areas of activity, namely the provision of Emergency Ambulance Services, routine Patient Transport Services, and Logistic Medical Services. The agency is working towards higher service level through benchmarking. Which of the following is the benefit of benchmarking to WAS?
- A. It will help WAS analyse the competitors in the industry
- B. It helps WAS identify better ways to deliver service through a cookbook process
- C. Benchmarking is a panacea for all WAS's problems
- D. It will help WAS create performance standards derived from an analysis of the best in business
Answer: D
Explanation:
Benchmarking is 'the pursuit by organisations of enhanced performance by learning from the suc-cessful practices of others. Benchmarking is a continuous activity; key internal processes are adjusted, performance is monitored, new comparisons are made with the current best performers and further changes are explored. Where information about these key processes is obtained through a co-operative partnership with specific organisations (rather than via a third party such as an independently-maintained database), there is an expectation of mutual benefit over a period of time.
Reference:
- The Department of Navy Benchmarking Handbook: A system view
- CIPS study guide page 49-51
LO 1, AC 1.3
NEW QUESTION 32
Which of the following specific markets is most likely to have the lowest entry barrier?
- A. Financial
- B. Retail
- C. Services
- D. Agriculture
- E. Manufacturing
Answer: C
Explanation:
Start-up costs are generally low in service industries, and the main requirement is a level of knowledge and skill in that particular service.
LO 2, AC 2.1
NEW QUESTION 33
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