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Where an organisational internal customer / user deliberately circumvents the procurement function, and buys from an external supplier without following due procedure. This is commonly called:

A.

Compliant spend

B.

Tail spend

C.

Iceman spend

D.

Maverick spend

‘All procurement requirements valued at more than $100,000 must be competitively tendered, and any contracts arising therefrom must be signed by the Procurement Director’. This is an example of a:

A.

Procurement threshold

B.

Minimum order quantity

C.

Standard contract term

D.

Statute

One of the appendices to a formal contract should be a 'pricing schedule'. This is because price is the most important item of a contract and it is a requirement for it to be detailed in a pricing schedule. Is this a correct statement?

A.

Yes, because the contract is always a very large document and the parties need easy access to price information to negotiate increases

B.

Yes, because all contracts are required to have detailed pricing terms, such as fixed prices, incentives, and price escalation, which must be attached

C.

No, because it is not a requirement to attach a pricing schedule if complex pricing terms are not applicable to that particular contract

D.

No, a pricing schedule is required only if other attachments such as a non-disclosure agreement and insurance policy are also appended

CIPS believes that it is good practice for different staff members to be responsible for three key ac-tivities in procurement (specifying / requisitioning; sourcing / contracting; authorising payment), in order to reduce the likelihood of malpractice, and to do what is in the best interests of the organisa-tion. Select two of the following terms which this principle is known by.

A.

Segregation of duties

B.

Separation of duties

C.

Severance of duties

D.

Synthesis of duties

Esther Francis has recently changed jobs from a supply role at Shine Cleaning Services (SCS) to a purchasing role at Southern Commercial Property (SCP). Esther requires industry technical input to develop a cleaning services requirements specification for her new employer. Esther Francis wants to include her former employer SCS in a market engagement exercise to inform the specification. Which of the following would be the most appropriate way to deal with the conflict of interest?

A.

Conduct the market engagement with SCS off the record

B.

Declare the potential conflict of interest to a senior manager of SCS

C.

Ask a colleague to conduct the market engagement with SCS

D.

Conduct market engagement with several capable suppliers, including SCS

A xxxx team is a group of individuals brought together into a single team from different areas of the organisation.

Select one which best replaces xxxx.

A.

Cross-stitch

B.

Cross-organisational

C.

Cross-functional

D.

Cross-training

Workers are naturally lazy. They lack ambition. They must be controlled.

A.

Theory X

B.

Theory Y

A local hospital has had to use a number of substitute cardiac pacemaker devices, due to poor delivery performance from its regular contracted cardiac equipment supplier. Which key performance indicators would be suitable to monitor the performance of the supplier in this area to help prevent the issue from reoccurring? Select TWO that apply.

A.

The results from a patient complaints survey

B.

The minimum speed of response relating to invoice queries

C.

The average lead time from order placed to receipt of devices

D.

The percentage of on-time in-full orders received per month

E.

The number of orders placed in the previous accounting period minus orders placed in the current period

A performance specification has several features that make it different from a conformance specification. Which of the following are features of a performance specification? Select TWO that apply.

A.

It includes quality levels (including relevant quality standards) required

B.

It includes key functionality, attributes, or capabilities to be achieved

C.

It describes to the supplier exactly what the buyer requires

D.

It will need to relate to a brand name and model name

E.

It requires compliance with a recognised standard (e.g. British Standards)

Fear of the unknown, peer pressure, organisational politics are examples of reasons why people might:

A.

Invest in a corporation

B.

Resist change

C.

Resist promotion

D.

Take up procurement as a career