Free Online CIPS L6M9 Practice Test

Blue Bear Ltd is a multifunctional manufacturing organisation with a global supply chain and customers in over 30 different countries. There are many different functions within the organisation who all have their own supply networks and relationships. For each function, select which part of the Value Chain this represents and the type of Supply Network the function uses.

Function 1: This function is a support activity responsible for ensuring the other functions have the right number of resources to complete work. The function has a complex structure with both horizontal and vertical reporting lines. Each person working within the function has separate, clear objectives to achieve.

Function 2: This support activity ensures that the Five Rights are achieved by the organisation. The function makes key strategic decisions which are followed by other departments. Power is centralised here with staff on-hand to support other parts of the business as and when required.

Function 3: Staff within this function describe themselves as ‘the people that get stuff done’. The function is a Primary Activity in the Value Chain responsible for turning raw materials into finished products. The function has a supply network both upstream and downstream which is highly valued and decisions are made jointly with supply partners.

Function 4: This department, although a Primary Activity of the Value Chain, is not well organised and the relationships in the supply network are informal and rely on trust rather than contracts. Information is shared based on ‘good will’ and there are no clear boundaries. The function is responsible for warehousing and transportation.

Function 5: This area of the business has a one-sided supply network. It is considered a Primary Activity of the Value Chain and deals directly with customers.

Complete the table below by listing the Value Chain Activity and the Supply Network Type. Some answers may not be used: HR, Operations, Outbound Logistics, Technology Development, Procurement, Marketing and Sales, Symmetrical, Asymmetrical, Proprietary, Social, Centralised, Bureaucratic.

Below are brief descriptions of 5 organisations operating in the manufacturing sector. Each organisation creates a different product and is engaging in a different operational strategy. For each organisation, select the product type described as per the Boston Consultancy Group Matrix and the organisational strategy.

Organisation 1: This is a new product which has just launched into the market. It currently has a small market share but the business is confident that it has a high potential for market growth. There is a long-term commitment to improving quality with an emphasis on manufacturing infrastructure.

Organisation 2: This product has been on the marketplace for many years and the organisation believes that there is no further room for growth in market share. As it is currently the market leader, the organisation benefits from economies of scale. The manufacturing process has, over the course of the years, eliminated all waste from the processing of the item which has contributed to a high profit margin.

Organisation 3: This product has a high relative market share and high potential for growth. The organisation is required to invest heavily in this product to ensure its continued success. They have therefore created a specialist team to create innovative ideas to improve quality and reduce waste in the manufacturing process.

Organisation 4: The organisation is carefully considering whether to continue to make this product as it has a low return on investment, low market share and low potential for growth. The company is considering starting from scratch in order to streamline production and decision making.

Organisation 5: This product is difficult to manage. It has the potential to become a market leader and sales are increasing, but there is heavy competition. The organisation will use a process technology strategy which will include all staff and all departments and have an impact on the development of systems and procedures.

Complete the table below. Some answers may be used more than once: Star, Problem Child, Dog, Cash Cow, Total Quality Management, Six Sigma, Business Process Reengineering, Lean.

Which of the following will you put into box 5?

A cupcake manufacturing organisation use a 'management by exception' technique when it comes to planning and control. What does this mean?

LTL Ltd is a manufacturing organisation that produces made to order equipment for the construction industry such as bespoke windows and doors. The Head of Operations has received four large orders of windows and doors and is considering the sequencing of when the orders should be made. Which of the following should the company do?