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| Topic |
Details |
| Topic 1 |
- Stakeholder Engagement: The section covers cooperating and communicating effectively with internal and external stakeholders impacted by supply chain choices.
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| Topic 2 |
- Strategy Development: This section covers creating and carrying out long-term supply management plans to meet organisational objectives.
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| Topic 3 |
- Corporate Social Responsibility and Ethics: This domain covers incorporating ethical and sustainable practices into decision-making and supply chain processes.
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ISM Leadership and Transformation in Supply Management Sample Questions (Q18-Q23):
NEW QUESTION # 18
A company restructures its supply management department by creating commodity management teams with representatives from procurement, engineering, quality and production. These new teams have complete responsibility for their assigned commodities, including sourcing, quality, inventory planning and risk/cost management. Six months later, there is significant progress in a few commodity areas, but some teams are still not working smoothly together. To assess the impact of the commodity teams, which of the following measurements will offer the MOST useful information?
- A. Purchase price
- B. Total cost
- C. Delivery to schedule
- D. Inventory turns
Answer: B
Explanation:
* Comprehensive Metric: Total cost is a comprehensive metric that includes all aspects of cost management, such as purchase price, inventory costs, quality costs, and logistics costs.
* Assessing Team Impact: Evaluating total cost allows the organization to assess the overall impact of the commodity management teams on the company's cost structure and financial performance.
* Holistic View: Unlike individual metrics like inventory turns, purchase price, or delivery schedules, total cost provides a holistic view of the efficiency and effectiveness of the commodity teams.
* Continuous Improvement: Monitoring total cost helps identify areas for improvement across the entire supply chain, facilitating continuous improvement initiatives and cost-saving strategies.
* Reference: The importance of total cost measurement is emphasized in supply chain management literature and best practices, such as those outlined in "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl, and guidelines from the Institute for Supply Management (ISM).
NEW QUESTION # 19
The staff profile at IHG, Inc., a U.S. company, reveals the following:
Age Range 20-29 30-39 40-49 50-59 60 - over
Male 15 15 15 2 0
Female 1 1 1 0 0
Age Range 20-29 30-39 40-49 50-59 60 - over
Caucasian 10 14 14 2 0
Hispanic 4 1 1 0 0
African American 2 1 1 0 0
Due to expanding operations, IHG has decided to conduct a search for a new junior level purchasing professional. In the past, the company advertised positions on its web site, and while this was successful, it did not yield a very diverse applicant pool.
Which of the following should the company do when seeking applications for this new position?
- A. Advertise the position in the professional purchasing channels, and ensure that the ad states a minority candidate will be selected for the position
- B. Advertise the position in channels that will encourage female, Hispanic, African American and aged applicants, and ensure the criteria are tailored to select the best person for the job
- C. Advertise the position through the company website, as this has proven successful in the past, and ensure the criteria are tailored to select the best person for the job
- D. Advertise the position in channels that will encourage female, Hispanic, African American and aged applicants, and ensure the ad states that a minority candidate will be selected for the position
Answer: B
Explanation:
To increase diversity in the applicant pool for a new junior level purchasing professional position, IHG, Inc. should advertise in channels that reach a diverse audience, including females, Hispanics, African Americans, and aged applicants. This approach ensures that the company attracts a broad range of candidates, thereby enhancing diversity. However, it is also crucial to tailor the criteria to select the best person for the job, ensuring that the hiring process remains merit-based and focused on selecting the most qualified candidate. Leadership and transformation management documents underscore the importance of diversity and inclusion in recruitment strategies, while also emphasizing the need for maintaining high standards and fairness in the selection process. Reference from these documents provide best practices for achieving diversity without compromising on the quality of hires.
NEW QUESTION # 20
CDE, Inc. designates a team comprised of finance and procurement professionals to develop and implement a "No PO/No Pay" policy for the organization. The goal is for the firm to have 100% purchase order (PO) usage. The team spends twelve months re-structuring processes, defining metrics, and conducting employee training sessions on the policy. However, six months after launch, the level of PO adoption shows only a modest increase from 9% to 12%. Which of the following could the team have done to BEST ensure greater success in this initiative?
- A. Set a more reasonable target goal, as the policy and processes are new to most end-users
- B. Included stakeholders on the initial project team to foster buy-in and promote ownership
- C. Spent more time developing the policy, re-structuring related processes, and defining metrics
- D. Offered more robust training prior to launch to make it easier for end-users to adapt to the change
Answer: B
Explanation:
To ensure greater success in implementing the "No PO/No Pay" policy, the team should have included stakeholders on the initial project team to foster buy-in and promote ownership. Leadership and transformation management documents emphasize the importance of stakeholder engagement in change management initiatives. By involving stakeholders from the beginning, the team can gain valuable insights, address concerns, and build a sense of ownership among those affected by the policy. This approach increases the likelihood of successful adoption and compliance. Reference highlight that stakeholder involvement is crucial for overcoming resistance to change and ensuring that new policies are effectively integrated into organizational practices.
NEW QUESTION # 21
A manufacturer of multi-media equipment plans to expand into new product areas requiring materials and components the firm has not previously purchased, as well as greater reliance upon global suppliers. The timeline for the project will be very demanding. The firm's supply manager has experience with enterprise resource planning (ERP) and believes ERP will be helpful for the new project. The firm has never before invested in such technology and does not have the resources to do so. Given this situation, which of the following actions should the supply manager take?
- A. Manage the project using the firm's current process
- B. Train supply management staff in material optimization concepts
- C. Hire additional staff with ERP expertise
- D. Present top management with justification for the cost of the new system
Answer: D
Explanation:
* Project Demands: The expansion into new product areas with global suppliers and demanding timelines requires robust and integrated management tools.
* ERP Benefits: Enterprise Resource Planning (ERP) systems offer comprehensive solutions for managing complex supply chains, improving efficiency, and providing real-time data.
* Justification: The supply manager should present a business case to top management, detailing the benefits of ERP, such as improved coordination, cost savings, and enhanced decision-making capabilities.
* Cost-Benefit Analysis: The presentation should include a cost-benefit analysis, demonstrating the long-term value and return on investment of implementing an ERP system.
* Strategic Alignment: Emphasizing how the ERP system aligns with the firm's strategic goals and growth plans can help secure management support.
* Reference: Industry case studies and ERP implementation frameworks (e.g., SAP, Oracle) provide evidence of the effectiveness of ERP systems in similar scenarios.
NEW QUESTION # 22
A firm's supply manager surveys stakeholders to rate the performance of supply management along several key factors and to determine what factors matter most to the stakeholders. The results of the survey (with scale values ranging from 1 for Low to 5 for High), are as follows:
Factors Rating Priority
Speed of order processing 4 2
Supply management knowledge 4 3
Quality 2 4
On-time delivery 4 3
Supplier innovation 4 4
Product and market awareness 2 5
Cost control 4 2
Which of the following conclusions is MOST strongly supported by the survey results?
- A. Product and market awareness need more emphasis.
- B. Order processing time should be streamlined.
- C. Supplier innovation is less important than on-time delivery.
- D. Cost control efforts are valued by internal customers.
Answer: D
Explanation:
The survey results indicate that cost control is highly rated (4) and given a high priority (2), suggesting that internal customers place significant value on cost control efforts. Leadership and transformation management principles underline the need to align supply management activities with stakeholder priorities. The survey results reveal that stakeholders prioritize cost control, speed of order processing, and supply management knowledge, with cost control being particularly valued. Reference from leadership documents emphasize the importance of understanding and responding to stakeholder needs to ensure that supply management efforts are focused on areas that provide the most value to the organization.
NEW QUESTION # 23
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