L3M2 Ethical Procurement and Supply Questions and Answers

Explanation

Supply Management annual awards are external, and while they may be impressive, they are not to be relied upon as a measure of internal customer service.

The other answers offered however, can be effective in this regard.

Explanation

Anytime, up to bid receipt closing date, would be acceptable normal practice.

Late bids should never be accepted.

Explanation

While one can take the view that your weekend is yours and nothing to do with your main employ-er, many contracts of employment prohibit extra work unless pre-agreed. In any event, it is likely to be seen as polite and respectful to seek permission from your main employer. The point about need-ing to rest at weekends (and during annual holidays) is a serious point: we should be able to func-tion effectively during normal working hours.

If your main employer does not give consent, you may wish to ask for a pay rise. :)

Explanation

Value engineering, like value analysis, but at the design stage, seeks to create at least as great an output, but with fewer components / inputs.

Explanation

Expediting - a task, which in an ideal world would not normally need to exist - is seeking to ensure delivery is made in line with contract and / or organisational needs.

It has nothing to do with permission to spend, auditing, or preparing for an expedition.

Explanation

A simple solution is to 'recuse' yourself from anything to do with this procurement. That way, nei-ther you, your employer or your sister can be accused of malpractice.

Disbarring your sister's employer punishes them simply because both they and your firm employed high-quality people. :)

Sometimes knowing you are honest is not enough: sometimes you have to demonstrate that.

So the only answer which makes sense is the correct one, as above.

Explanation

Both Philip Crosby and Deming (alongside Juran) are legendary quality management thinkers and writers.

Both Phil Collins and Bing Crosby are famous singers; Bill Cosby is an American comedian; and J Edgar Hoover was the legendary Head of the FBI in the USA.

Explanation

The correct answer is 'long life'.

Lifetime doesn't really make sense in respect of the other answers offered.

Explanation

Quality.

Specification is fundamental to receiving the right quality.

Standards can be seen as a form of specification intended for recurrent use (Lysons)

Explanation

Reverse e-auction.

This term is used in your syllabus.

Explanation

The Plan-Do-Check-Act cycle, attributed to Deming, stresses the need for action in improving quali-ty. Plan Do Check and Assess would have been close to the correct answer, but not quite close enough.

The other responses shown here are simply made up to fit the letters.

Explanation

This actually happened and the banking authorities in both the UK and the US fined the bank heavily.

Closing the bank down would be too Draconian a step; imprisoning the Chief Executive could hap-pen and others in the banking sector have been imprisoned for wrongdoing - a famous case of 'The NatWest Three' saw three managers of a UK bank extradited and imprisoned in the US.

Explanation

Output per unit of input resource.

Efficiency is, in a sense, seeking to get as much out of a system, while putting in as little as possible.

Explanation

The others may be stakeholders, but the answer is 'stakeholders' - those who have a legitimate inter-est in what is going on.

Explanation

This is a reference to cost reduction - something which procurement is often tasked with as an activ-ity.

Thisquestionis pretty straightforward - we wouldn't normally seek cash, profit or value reductions. However, there is something a little bit counter-intuitive: adding or creating something by making a reduction... Perhaps 'less is more'.

Explanation

You should be familiar with the meaning of the terms economy, efficiency and effectiveness and able to distinguish one from the other.

Explanation

Transparency.

Explanation

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.

Explanation

All aspects of an acquisition may be impacted by the use of competition - normally favourably - but the one we are most likely to see immediate impact on is 'price'.

Explanation

Fishbone diagram.

Explanation

The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.

Explanation

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.

Explanation

Standard operating procedure.

A set of step-by-step instructions to direct employees how to perform routine operations (Profex Publishing).

Explanation

This is the Pareto Principle, which can be invaluable as a guide for any procurement person, or any manager.

The other names shown here are those of other well-known thinkers, all much earlier than Pareto.