Absolute Free L6M8 Exam Practice for Comprehensive Preparation 

A bread manufacturer requires flour to be delivered to the manufacturing plant on a daily basis. It is important for the bread manufacturer that the quality of the flour meets certain criteria or it cannot be used, and this will impact on the number of loaves that can be produced per day. The manager of the bread manufacturer stated in the contract a qualative target for amount of defects which ties the price they pay to an agreed level of performance. What form of supplier incentive is this?

TGY Ltd is a manufacturing organisation which produces five major components for use in the transport sector. Each component is produced by a different Project Team. Below are details of the five projects.

Project 1: The team are looking at where the material originates and how much of this natural resource is left in the ground.

Project 2: The team are focused on what happens when the product is no longer required by the customer and whether the product can be repurposed to save it going to landfill.

Project 3: The team are keen to ensure the customer is happy with the product and that it meets safety standards. The focus of the Life Cycle Analysis is on what happens inside the factory.

Project 4: The team are looking at the longevity of the item once purchased by the customer.

Project 5: The team are exploring the additional overhead costs associated with the production of the item and the way in which the item is produced.

Complete the table below by listing the area of life cycle analysis being looked at, and the area of the Balanced Scorecard this relates to (some options may be used twice); energy consumption, use, disassembly, extraction, manufacturing, transportation, sustainability x2, quality, environment, value for money, processes.

Mohammed has recently been hired as the new CEO of ABC Ltd, a large manufacturing organisation. The organisation has struggled in recent years due to the highly competitive nature of the marketplace and Mohammed has been brought in to radically change the organisation’s approach to procurement and supply chain management.

Traditionally the organisation has dictated its requirements to suppliers with stringent penalty clauses for non-compliance. Mohammed is keen to change this approach and leverage the knowledge of suppliers to ABC’s advantage.

XYZ is the main supplier to ABC Ltd and Mohammed has set up a meeting to discuss the relationship and contract currently in place. He wishes the relationship to be win-win and wishes to share ideas on potential efficiencies that can be gained for both organisations. He will propose a new mechanism for monitoring the performance of the contract based on four key parameters; cost, customer satisfaction, innovation and operational processes.

XYZ provides raw materials such as iron and steel and Mohammed is keen to gain an understanding of the environmental impact of the extraction, transportation and usage of these materials, the findings of which will impact the company’s mission statement, which will be re-written next year.

In terms of other suppliers, where spend is minimal and risk is low, Mohammed plans to introduce Standard Operating Procedures for the procurement of supplies and is looking into various tools which will save the procurement team time and money.

What type of analysis will Mohammed complete following his meeting with XYZ Ltd?

Below are details of 5 companies who are all embarking on the launch of a new product. For each company, you must decide which innovation tactic they are using and the priority for the new contract.

Company 1: The company aims to design the specification around customers’ requirements. They are keen to ensure a balance between costs and the service provided.

Company 2: This company attends regular conferences held by a professional body and will use the information discussed to inform upon the specification. They are keen to ensure sufficient interest from the marketplace so are placing a priority on networking at the conferences.

Company 3: There is a small group of internal stakeholders who meet regularly at Company 3 who discuss supply chain and organisational integration. The priority for the group is to ensure that the supplier of the new product’s raw materials meets the company’s standards for environmental protection.

Company 4: This company has regular phone calls with suppliers discussing ideas for the new product. Once the product is launched, the focus will be on ensuring that the supplier is held to account.

Company 5: Equipment has been loaned to a supplier to produce a prototype of the new product. The aim of the project is to ensure the supplier is capable of producing the components required for the product before the contract is signed.

Complete the table below by listing the innovation tactic and contract priority for each company; focus group, innovation council, technology transfer, collaboration, supplier forum, early supplier involvement, supplier development, balanced scorecard, contract management, selection, value for money, bidding.