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CIPS L4M2 Exam - Topic 10 Question 49 Discussion
Topic #: 10
Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:
The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.
LO 3, AC 3.1
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