L6M9 Practice Questions

A forcefield diagram identifies forces (e.g., people or factors) that support or oppose change. This

model, developed by Kurt Lewin, helps organisations assess and manage resistance to change. (See

p.196)

This is a supplier association—the key clue in the question is "formal, regular meetings."

A supplier improvement project would be a one-off initiative rather than ongoing formal meetings.

A supplier forum is more informal than what is described in the question.

A supplier focus group meets to discuss specific topics rather than engaging in regular collaboration

on improvements.

(See p.191)

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)

The Value Net consists of suppliers, customers, competitors, and complementors. Unlike a supply

chain, which focuses on material and information flow, the Value Net is about creating business

value.

Supplier: Provides goods/services

Customer: Purchases goods/services

Competitor: Competes in the same market

Complementor: A business that enhances your product/service offering

Buyer and distributor are not primary players in the Value Net. (See LO 1.2, p.31)

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)

Six Sigma employs dedicated full-time teams focused on continuous improvement.

Kaizen (A) is an ongoing improvement philosophy but does not require a specialist team.

Employee suggestion schemes (B) are informal.

Value stream mapping (D) is a tool, not a full-time methodology.

(LO 2.3, See p.121)

Overcapacity means the organisation has more production than demand, leading to waste and

inefficiency.

Customer orders will still be fulfilled (eliminating option B).

Under capacity (D) is incorrect, as overcapacity, not undercapacity, leads to excess stock.

(LO 2.2, See p.115)

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)

Function 1: This function is a support activity responsible for ensuring other functions have the right resources to complete work. It has a complex structure with horizontal and vertical reporting lines, and each employee has clear objectives. 🔗Correct Answer: HR | Bureaucratic Explanation: Function 2: This function ensures that the Five Rights are achieved. It makes key strategic decisions that other departments follow. Power is centralised, and staff support other business areas as needed. 🔗Correct Answer: Procurement | Centralised Explanation: Function 3: Staff describe themselves as the "people that get stuff done". This is a Primary Activity in the Value Chain, responsible for turning raw materials into finished products. The function has a highly valued supply network, both upstream and downstream, with joint decision-making. 🔗Correct Answer: Operations | Symmetrical Explanation: Function 4: Although a Primary Activity, this function is not well-organised. It relies on trust-based relationships rather than formal contracts. Information is shared informally. It is responsible for warehousing and transportation. 🔗Correct Answer: Outbound Logistics | Social Explanation: Function 5: This function has a one-sided supply network. It is a Primary Activity and deals directly with customers. 🔗Correct Answer: Marketing and Sales | Asymmetrical Explanation: https://kxbjsyuhceggsyvxdkof.supabase.co/storage/v1/object/public/file-images/CIPS_L6M9/page_24_img_1.jpg