CIPS L6M9 Exam Practice Test Instant Access

Question 1

When would an organisation use a VRIO analysis?

ATo identify internal resources that provide competitive advantage

BTo monitor performance of the operations department against predetermined criteria

CTo benchmark the organisation against similar organisations in the market

DTo create a vision and mission statement for the organisation

Answer : A

VRIO analysis helps an organisation identify internal resources that give it a competitive advantage.

VRIO stands for Value, Rarity, Imitability, Organisation---factors that determine whether a resource can sustain a competitive edge.

It does not focus on benchmarking (C) or performance monitoring (B).

(LO 2.2, See p.103)

Question 2

Gill runs the operations department of a manufacturing organisation in Wales. The department emulates best practices from competitors through benchmarking and has recently introduced Six Sigma to prevent operational problems. Which of the following best describes Gill's approach to operations function?

AInternally neutral

BExternally neutral

CInternally supportive

DExternally supportive

Answer : B

This aligns with externally neutral, which includes:

Benchmarking against competitors

Adopting best practices (Lean, Six Sigma, BPR, TQM)

Emulating successful industry models

(LO 2.1, See p.99)

Question 3

According to Foster's Model of Operational Balance, how should business strategy be developed?

ABy senior leaders and filtered down through the company hierarchy

BSelect one member from each department to join a working group and represent the interests of that department

CUse both formal and informal groups across the organisation

DDesigned by senior leaders and updated once a year based on feedback from other members of the organisation

Answer : C

Foster's land management-based approach suggests that business strategy should not be dictated from the top down. Instead, it should involve both formal and informal groups throughout the organisation. This helps prevent artificial decision-making and misalignment between leaders and employees.

(LO 2.1, See p.77)

Question 4

Which area of operations strategy is concerned with information management systems, automation, and productivity?

ACapacity

BSupply network design

CProcess technology

DDevelopment and organisational design

Answer : C

Process technology refers to information management systems, automation, and productivity tools.

Capacity (A) is related to resource planning.

Supply network design (B) deals with supplier relationships and logistics.

Development and organisational design (D) is about people, structures, and hierarchies.

(LO 2.1, See p.71)

Question 5

Carla is an Operations Manager at a bank. Customers are requesting more digitalisation of services, and Carla is considering a radical approach that streamlines decision-making and creates efficiency in the organisation's structural resources. What is this approach best known as?

ATotal quality management

BBusiness process reengineering

CLean

DSix Sigma

Answer : B

The keyword here is 'radical', which is a key feature of business process reengineering (BPR).

Total quality management (A) is incorrect because TQM focuses on gradual quality improvements.

Lean (C) is incorrect because it focuses on waste reduction, which is not mentioned.

Six Sigma (D) is incorrect because it focuses on process improvement through data and system development, but it is not considered radical.

(LO 2.1, See p.68)

Question 6

Which of the following describes a Proprietary Network?

AA privately owned and controlled group

BThe sharing of materials in an informal setting

CA network that has both horizontal and vertical structures

DA relationship that is one-sided

Answer : A

A Proprietary Network is a privately owned and controlled group.

Option B refers to a Social Network

Option C describes a Bureaucratic Network

Option D refers to an Asymmetric Network

Tip: Learn these definitions well, as they frequently appear in exam questions! (See LO 1.1)

Question 7

A simple supply chain consists of three commercial roles. What are these?

ABuyer

BSupplier

COrganisation

DDistributor

EManufacturer

Answer : A, B, C

A basic supply chain consists of three key roles:

Supplier Provides materials or products to the organisation

Organisation The business that processes/manages the product

Buyer The final customer who purchases the product

Distributor and Manufacturer exist in more complex supply networks, but they are not part of the simplest supply chain model. (See LO 1.1, p.3)

CIPS L6M9 Supply Network Design Exam Practice Test