CIPS CIPS L6M9 PDF CIPS CIPS L6M9 PDF Questions Available Here at: https://www.certification-exam.com/en/dumps/cips-exam/l6m9-dumps/quiz.html Enrolling now you will get access to 228 questions in a unique set of CIPS L6M9 Question 1 A cupcake manufacturing organisation uses a 'management by exception' technique when it comes to planning and control. What does this mean? Options: A. Audits and other control activities are completed by an outsourced company to ensure there is no bias in the investigations B. Reporting only takes place when non-compliance occurs C. Plans and control activities are created based on historical performance D. Exceptional performance is rewarded, for example through staff bonus schemes Answer: B Explanation: Management by exception means that reporting only occurs when non-compliance happens or when results are outside the norm. In the case of a cupcake factory, there might be no quality control measures in place, but if an issue arises (e.g., food poisoning complaint), an investigation would be conducted. This is a risky strategy for such an organisation. (See p. 189) Question 2 The Improvement Gap Analysis can be utilised to manage trade-offs in operational strategy. Which of the following is measured by the IGA? Select ALL that apply. Options: A. Churn rate B. Customer return rate CIPS CIPS L6M9 PDF https://www.certification-exam.com/ C. Customer dissatisfaction levels D. Return on investment E. Profit margin Answer: C Explanation: The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137) Question 3 Rayan is the new CFO of an international banking organisation operating in London. He has been invited to a meeting of the top executives regarding corporate strategies and strategic resource planning. He believes that the organisation must be led by the strategy first, with resources then created to meet the requirement. Is this always the case? Options: A. Yes - corporate strategy dictates operational strategy and thus resource allocation B. Yes - resources can only be assembled once objectives have been set C. No - corporate strategies will not assist in resource planning D. No - strategies can be created to fit an organisation's resource capabilities Answer: D Explanation: The question asks if strategy must always come first. The correct answer is no because strategies can also be developed based on available resources. Corporate strategy often influences resource planning, but sometimes an organisation will assess its resources and build a strategy accordingly. (See p. 150) Question 4 Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers. Which of the following stocking policies should be used for this item? CIPS CIPS L6M9 PDF https://www.certification-exam.com/ Options: A. Never be out of stock B. Maintain an average of 3 days stock C. Stock reviewed monthly D. No stock held locally Answer: B Explanation: The item described is a ‘regular seller’—important to customers but not sold in high volumes. Keeping an average of 3 days' stock balances demand with the effort required for stock management. "Never be out of stock" is only for high-demand, critical items, while "monthly stock review" might lead to lost sales. (See p. 158) Question 5 Strategic stocking decisions are likely to change under what circumstances? Select ALL that apply. Options: A. Changes in competitor activity B. Raw materials are vulnerable C. There is a short lead time for the product D. Customer demand is low Answer: A, B Explanation: Strategic stocking decisions change when external factors shift, such as a competitor going out of business (leading to increased demand) or a vulnerability in raw material supply (e.g., a bad harvest). Short lead times and low demand do not necessarily change stocking decisions but rather influence how stock is currently managed. (See p. 159) Question 6 Which of the following are examples of investment appraisal techniques? Select ALL that apply. Options: A. Liquidity B. Gearing CIPS CIPS L6M9 PDF https://www.certification-exam.com/ C. Return on investment D. Cash flow impact E. Payback period Answer: C, D, E Explanation: Investment appraisal techniques help assess whether an investment, such as purchasing new machinery, is financially viable. Return on investment, cash flow impact, and payback period are all investment appraisal methods. Liquidity and gearing assess financial health but do not determine whether to make an investment. (See p.160) Question 7 XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case? Options: A. No - organisations should always aim to meet customer demand or resources will be underutilised B. No - this would negatively affect the profit the organisation could make C. Yes - there are occasions when an organisation would choose not to fulfil customer demand D. Yes - there are exceptions, but these are always outside of the organisation's control Answer: C Explanation: While organisations generally try to fulfil customer demand, there are times when they strategically choose not to. A common reason is maintaining a premium image—limiting supply can increase desirability and justify a higher price. For example, luxury brands often limit product availability. (See p.169) Question 8 Which of the following principles considers the volume of work undertaken by a given resource within an organisation? Options: CIPS CIPS L6M9 PDF https://www.certification-exam.com/ A. Process Control B. Prioritisation C. Sequencing D. Loading Answer: D Explanation: Loading refers to allocating work to a person or machine—essentially "loading" them with tasks. It helps determine workload distribution for maximum efficiency. (See p.180) Question 9 Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients in the construction industry. She has a team of 20 consultants and is considering how many projects each team member should handle. In terms of capacity loading, which factors should Zelda consider when assigning projects? Select ALL that apply. Options: A. Staff member's experience B. Staff member's efficiency C. Staff member's salary D. Staff member's time availability E. Staff member's effectiveness Answer: A, B, D, E Explanation: Capacity loading determines how much work each employee can handle. Key factors include experience, efficiency, time availability, and effectiveness. Salary is not relevant to determining workload capacity—though managers might mistakenly believe higher-paid employees should take on more. (See p.181) Question 10 LTL Ltd is a manufacturing organisation producing made-to-order equipment for the construction industry, such as bespoke windows and doors. The Head of Operations has received four large orders and is considering the sequencing of production. Which of the following should the company do? Options: CIPS CIPS L6M9 PDF https://www.certification-exam.com/ A. Use a First Come, First Serve system to prioritise the orders that were made first, ensuring customer satisfaction B. Sequence the orders in the way that will be the cheapest to produce, creating the highest profit margin C. Create the orders in the most logical, economic, and fastest pattern. This may mean that the first order received is the last to be produced D. Start manufacturing the order that has the longest completion time first so all orders are ready at the same time Answer: C Explanation: Sequencing involves balancing logic, cost, and speed to optimise production. Prioritising orders purely by arrival time (Option A) or cost efficiency (Option B) might not be practical. Similarly, making sure all orders finish at the same time (Option D) isn't always necessary. (See p.183) Would you like to see more? Don't miss our CIPS L6M9 PDF file at: https://www.certification-exam.com/en/pdf/cips-pdf/l6m9-pdf/ CIPS CIPS L6M9 PDF https://www.certification-exam.com/