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CIPS L4M7 exam is a valuable certification program for procurement and supply chain professionals who want to develop their knowledge and skills in asset management. L4M7 exam covers all aspects of asset management, from planning to disposal, and provides candidates with a comprehensive understanding of the principles of asset management. L4M7 exam is divided into three units, each of which is designed to build on the knowledge and skills developed in the previous unit, making it an excellent choice for individuals who want to enhance their career in the procurement and supply chain industry.
CIPS L4M7 Certification Exam is an essential program for professionals who are interested in building a career in asset management. CIPS Whole Life Asset Management certification program equips candidates with the knowledge and skills needed to optimize asset performance over an extended period, making them valuable assets to any organization. If you are interested in taking your asset management career to the next level, the CIPS L4M7 Certification Exam is the perfect program for you.
CIPS Whole Life Asset Management Sample Questions (Q68-Q73):
NEW QUESTION # 68
PPC Refinery (UK) must close down an out-of-date refinery which has very poor environmental performance. The refinery is very sophisticated with many technically complicated machineries, lubricants, coolants and other chemical substances. Decommissioning the refinery is highly risky and hazardous. To manage the decommissioning process well, PPC project team must know these machineries and substances in details. Which document can provide the technical details on the refinery?
- A. Non-disclosure agreement
- B. Original specifications
- C. Corporate social responsibility policy
- D. Code of Conduct
Answer: B
Explanation:
Decommissioning or disposal should start with the original specifications of the assets so that the organisation and supplier can make an appropriate plan. Some specifications also mention the is-sues regarding to end-of-life environmental factors.
Reference:
LO 3, AC 3.3
NEW QUESTION # 69
Amanda is the purchasing manager for AB Construction based in France. She is considering purchasing an asset from overseas but knows she must account for fluctuations in exchange rates in the contract. Is Amanda correct?
- A. Yes, as Amanda will be able to decide the currency exchange rates to be used
- B. No, as the price can be re-negotiated post-contract sign-off by AB Construction and the supplier
- C. Yes, as AB Construction could pay more for the asset than intended and Amanda should include a currency fluctuation clause
- D. No, as it will be better to purchase the asset in AB Construction's local currency as it would be efficient and more stable
Answer: C
Explanation:
Including a currency fluctuation clause protects against exchange rate volatility, which can increase the final cost if the currency depreciates. Whole-life asset management often incorporates such risk management measures to ensure cost predictability and avoid unanticipated financial impact on long-term projects.
NEW QUESTION # 70
With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?
- A. √(2D*S/H)
- B. √(D*S*H)
- C. √(D*S/2H)
- D. √(D*S/3H)
Answer: A
Explanation:
LO 2, AC 2.3
NEW QUESTION # 71
Which of the following best describes category 'A' in ABC analysis in inventory management?
- A. Items with high uncertainty
- B. Items with high values
- C. Items that represent approximately 15% of total value
- D. Items with low uncertainty
Answer: B
Explanation:
ABC classifications are applied to stock and its management is based loosely on the Pareto princi-ple, better known as the 80/20 rule.
The likely outcome of analysis of inventory (value importance):
- Category A - about 20% of the stock items account for about 80% of the total inventory value. Items in category A have the highest value.
- Category B - about 30% of items account for about 15% of total inventory value
- Category C - the remaining 50% of items account for 5% of the total inventory value Reference:
LO 2, AC 2.1
NEW QUESTION # 72
Which one of the following statements is true about radio frequency identification (RFID)?
- A. Normally passive RFID tags store ID numbers
- B. A passive RFID tag does not use an antenna
- C. An active RFID tag does not require a power source
- D. RFID tags require laser scanning.
Answer: A
Explanation:
Radio frequency identification (RFID) are items which use radio technology to identify itself and its location subject to having appropriate hardware and software.
RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate.
A RFID Reader is a device that uses radio-frequency waves to wirelessly transfer data between itself and a RFID tag/label in order to identify, categorize and track assets. When combined with the right RFID software, a RFID reader can identify objects quicker, more accurately, at a reduced overall cost, and at various points of the object's lifecycle.
Passive RFID systems use tags with no internal power source and instead are powered by the electromagnetic energy transmitted from an RFID reader. Passive RFID tags are used for applica-tions such as access control, file tracking, race timing, supply chain management, smart labels, and more.
Active RFID systems have three essential parts - a reader or interrogator, antenna, and a tag. Ac-tive RFID tags possess their own power source - an internal battery that enables them to have ex-tremely long read ranges as well as large memory banks.
NEW QUESTION # 73
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