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CIPS L4M2 Exam - Topic 10 Question 49 Discussion

Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:
C) To shape and manage supply market
A) To determine the value of each component used
B) To decide whether there will be sufficient surplus funds to reinvest in the business
D) To provide an outline business case for the specification
E) To find cost reduction opportunities by optimising the components used

CIPS L4M2 Exam - Topic 10 Question 49 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 49
Topic #: 10
[All L4M2 Questions]

Which of the following are typically reasons why an organisation implements value analysis? Select TWO that apply:

Show Suggested Answer Hide Answer
Suggested Answer: C

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

by Chaya at Oct 21, 2024, 06:03 PM

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Adolph
9 months ago
Not sure about A, seems too basic for value analysis.
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Jaime
9 months ago
Wait, is D really a reason? That’s surprising!
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Barbra
10 months ago
C seems relevant too, but not as much as A and E.
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Valentin
10 months ago
I think B is also important, though.
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Nell
10 months ago
Definitely A and E!
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Elke
10 months ago
I’m a bit confused, but I feel like D could relate to value analysis since it involves specifications.
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Willie
11 months ago
I practiced a question similar to this, and I think B is more about financial planning rather than value analysis.
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Jovita
11 months ago
I remember something about determining the value of components, so A might be correct too, but I’m not entirely sure.
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Launa
11 months ago
I think value analysis is mainly about finding cost reduction opportunities, so I’m leaning towards E.
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Glenn
11 months ago
This is a good test of my understanding of value analysis. I'll methodically go through each option and choose the two that best fit the question.
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Derrick
11 months ago
I'm confident I know the main reasons for value analysis, but I'll double-check the options to make sure I don't miss anything.
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Nada
11 months ago
Okay, let's see here. I think A and E are the two most relevant reasons based on the question. I'll select those.
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Twanna
11 months ago
Hmm, I'm a bit unsure about this one. I'll need to carefully read through the options and think about which two make the most sense.
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Glen
11 months ago
This looks like a straightforward value analysis question. I'll focus on identifying the key reasons an organization might implement it.
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Emogene
1 year ago
Wait, is this exam sponsored by the 'Department of Redundancy Department'? A and E sound pretty much the same to me!
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Alesia
1 year ago
Ah, I see now. C and E are the way to go. Value analysis is all about shaping the supply market and finding cost optimization opportunities.
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Ettie
1 year ago
It's important to focus on those aspects to ensure efficiency and effectiveness in the business.
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Katheryn
1 year ago
Definitely, those are the main goals of value analysis in an organization.
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Alesia
1 year ago
I agree, shaping the supply market and finding cost reduction opportunities are key reasons for implementing value analysis.
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Merilyn
1 year ago
Haha, I bet the person who wrote this question was trying to trick us. B is totally off-base - value analysis is not about determining if there are surplus funds!
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Vivan
1 year ago
Yeah, I agree. B doesn't make sense at all in the context of value analysis.
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Brynn
1 year ago
E) To find cost reduction opportunities by optimising the components used
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Peggie
1 year ago
A) To determine the value of each component used
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Alexia
1 year ago
Hmm, I'm not so sure about B and D. Those options seem more like high-level business considerations rather than the typical reasons for value analysis.
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Paris
1 year ago
E) To find cost reduction opportunities by optimising the components used
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Tamesha
1 year ago
C) To shape and manage supply market
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Wai
1 year ago
A) To determine the value of each component used
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Osvaldo
1 year ago
I think A and E are the correct answers. Value analysis is all about finding ways to optimize the components used and drive cost reductions.
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Derick
1 year ago
I'm not sure about E. I think it could also be D for the business case.
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Luis
1 year ago
I agree with Maxima. A and E make sense for value analysis.
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Maxima
1 year ago
I think the reasons are A and E.
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