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CIPS L4M7 Exam covers a range of topics related to asset management, including the principles of asset management, the asset lifecycle, risk management, and financial management. L4M7 exam also covers practical aspects of asset management, such as asset tracking, maintenance scheduling, and disposal procedures.
CIPS L4M7 Certification Exam is recognized globally as a benchmark for excellence in the field of asset management. It is a rigorous exam that tests candidates' knowledge and skills across a range of areas, including technical knowledge, management skills, and communication skills. Candidates who pass the exam are recognized as experts in the field of whole life asset management and are highly sought after by employers around the world.
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CIPS Whole Life Asset Management Sample Questions (Q141-Q146):
NEW QUESTION # 141
Decommissioning, removal and disposal of assets may have impact on the environment. An organisation should have policies and procedures in place to enhance its environmental performance. Which standard family provides the guidance on environmental policies and procedures?
- A. ISO 27000 family
- B. ISO 22000 family
- C. ISO 9000 family
- D. ISO 14000 family
Answer: D
Explanation:
The ISO 14000 family of standards are developed by ISO Technical Committee ISO/TC 207 and its various subcommittees. For a full list of published standards in the series see their standards catalogue. ISO 14001 provides requirements with guidance for use that relate to environmental systems. Other standards in the family focus on specific approaches such as audits, communications, labelling and life cycle analysis, as well as environmental challenges such as climate change.
ISO 27000 family of standards concerns information technology, with the goal of improving security and protecting company assets. Started in 2005, the two most popular standards are ISO 27001:2013 and 27002:2013. 27001 is management-based system, whereas 27002 is a technical document, focused on the individual and putting a code of conduct in place. Organizations can choose either standard; ISO 27001 has over 22,000 certifications worldwide. It is a broad standard, and for this reason the certification can be customized to fit the needs of the organization, and is not mandatory.
ISO 22000 sets out the requirements for a food safety management system and can be certified to it. It maps out what an organization needs to do to demonstrate its ability to control food safety hazards in order to ensure that food is safe. It can be used by any organization regardless of its size or position in the food chain.
ISO 9001 is a family of quality management standards, there are fourteen in total. Of these, ISO 9001:2015 is the only one that can be certified to. It was first published in 1987, and has since been updated about every 7 years. The standard details how to put a Quality Management System (QMS) in place to better prepare your organization to produce quality products and services. It is customer focused, and places an emphasis on continuous improvement and top management processes that extended throughout the organization.
Reference:
- ISO website
- Top 10 Most Popular ISO Standards
- CIPS study guide page 193
LO 3, AC 3.3
NEW QUESTION # 142
Which of the following are features of dependent demand items of stock?
* They depend on the production levels of the user departments
* They depend on the production capacity of the supplier
* They can be managed using JIT (Just-in-Time) systems
* They become obsolete within a short time
- A. 2 and 3 only
- B. 1 and 3 only
- C. 3 and 4 only
- D. 1 and 2 only
Answer: B
Explanation:
Dependent demand items rely on the internal production requirements of an organization. These items:
* Depend on user department production levels: Demand is driven by the needs of the production line.
* Can be managed using JIT systems: Just-in-Time inventory helps optimize stock levels based on immediate production needs, reducing holding costs and minimizing waste.
Dependent demand items differ from independent demand items, where demand is customer-driven rather than production-driven, emphasizing demand predictability and timely procurement.
NEW QUESTION # 143
Is it correct to state that the accuracy of demand forecasts depends on the accuracy of the available information?
- A. No, the only information determining the accuracy of demand forecasts is extracted from stock issue notes
- B. Yes, and that information can only be verified and approved by the suppliers
- C. No, considerations such as the skill and objectivity of the forecasters are always more important
- D. Yes, including other considerations such as the validity and reliability of the information
Answer: D
Explanation:
Demand forecasting accuracy relies on the validity and reliability of available data. Forecasting is strengthened when information sources are credible, accurate, and consistently updated. In whole-life asset management, precise forecasting minimizes excess inventory and aligns inventory levels with demand, reducing holding costs and improving supply chain efficiency.
NEW QUESTION # 144
In a manufacturing facility, which types of inventory have the lowest value?
1. Finished goods
2. Secondary components
3. Work in progress
4. Raw materials
- A. 1 and 3 only
- B. 3 and 4 only
- C. 1 and 2 only
- D. 2 and 4 only
Answer: D
Explanation:
Raw materials are basic input materials - they are only processed limitedly or have not been pro-cessed at all.
Their values are equal to acquisition cost and are the lowest value of stock held.
Secondary components are the products that are combined with others to produce the finished goods. They are acquired in the processed state. Their value is higher than raw materials, but still at acquisition cost.
Work in progress is the stock part-way through manufacture that has not been finished. It is typically not completed yet, so it doesn't have full value. But the costs of processing already carried out makes it more valuable than materials and components.
Finished goods are completed and ready to be used or sold. Finished goods are the most expensive and need to be stored in good conditions.
NEW QUESTION # 145
Which of the following are essential aspects that are required for the successful implementation of Just-In- Time (JIT)? SelectTWOthat apply.
- A. All parts arriving must be of a quality standard which is usable and free from defects
- B. The cost of carrying increased parts inventory to meet customer demand is transferred to the customer
- C. Parts must arrive where they are needed, when they are needed, and in the exact quantity needed
- D. The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT
- E. Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand
Answer: A,C
NEW QUESTION # 146
......
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