Free Practice Questions for CIPS L5M7 Exam

The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: “added value may be created through quality, innovation and time-to-market.” (L5M7 Study Guide, p.27)

AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).

Short cited term: “used to identify root causes of problems.” (L5M7 Study Guide, p. 126)

Rationalisationincludesreducing supplier numbersand practices such astier-skippingto simplify the network and reduce cost/complexity. Short extract: “rationalisation—reduce supplier base; consider tier-skipping.” (L5M7 Study Guide, p.11)

TQM objectives focus oncustomer satisfaction, zero defects, and employee engagement, not financial planning.

Short cited extract: “TQM aims: customer focus, zero defects, continuous improvement – not financial planning.” (L5M7 Study Guide, p. 112)

Process mappingvisually defineshow processes operate, revealinginefficiencies, duplication, and waste, and clarifies thecurrent process flow and responsibilities.

Short cited term: “identifies inefficiencies and highlights process waste” (L5M7 Study Guide, p. 73).

The main relationship drivers aretrust, communication, duration, and problem-solving. Finance alone does not define the relationship type.

Short cited extract: “Key relational attributes: trust, communication, duration, joint problem-solving.” (L5M7 Study Guide, p. 80)