[Dec-2025] L6M9 Dumps Full Questions - CIPS Level 6 Professional Diploma Exam Study Guide
Exam Questions and Answers for L6M9 Study Guide
CIPS L6M9 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
NEW QUESTION # 37
Mabel, theOperations Directorat a hotel, is engaged in a debate abouttrade-offs. The CFO believes that efficiency and effectiveness cannot be achieved together. Is this correct?
- A. No - the concept of trade-offs means that the organisation can position itself to achieve both effectiveness and efficiency
- B. Yes - engaging in trade-offs means that continuous improvement methodologies are no longer required
- C. Yes - the hotel must make a trade-off between efficiency or effectiveness, it cannot have both
- D. No - with improvements to technology and communications, there is no need for trade-offs
Answer: A
Explanation:
* Trade-offs involve balancing objectives(cost, quality, speed) toenhance both efficiency and effectiveness.
* Technology helps (D), but trade-offs still existin areas likesustainability and ethical sourcing.
* Continuous improvement (B) remains crucialeven with trade-offs.
(LO 2.2, See p.128-129)
NEW QUESTION # 38
Which of the following can be used to pre-assess the consequences of a network member not meeting the control requirements set by the organisation?
- A. Corporate strategy
- B. Escalation strategy
- C. KPIs
- D. Operations strategy
Answer: B
Explanation:
The key term in this question is"pre-assess."Anescalation strategyidentifies risks in the supply network and outlines how to manage disruptions before they escalate. It ensures control issues are handled efficiently by escalating them to senior management when necessary. (See p.194)
NEW QUESTION # 39
According toFoster's Model of Operational Balance, how shouldbusiness strategybe developed?
- A. Select one member from each department to join a working group and represent the interests of that department
- B. Designed by senior leaders and updated once a year based on feedback from other members of the organisation
- C. Use both formal and informal groups across the organisation
- D. By senior leaders and filtered down through the company hierarchy
Answer: C
Explanation:
Foster'sland management-based approachsuggests thatbusiness strategy should not be dictated from the top down. Instead, it should involveboth formal and informal groupsthroughout the organisation. This helps preventartificial decision-making and misalignmentbetween leaders and employees.
(LO 2.1, See p.77)
NEW QUESTION # 40
A car manufacturing organisation organises formal, regular meetings with itstier one suppliersfor the purpose of collaborating on improvements and changes to the final product. What is this arrangement known as?
- A. Supplier focus group
- B. Supplier association
- C. Supplier improvement project
- D. Supplier forum
Answer: B
Explanation:
This is asupplier association-the key clue in the question is "formal, regular meetings."
* Asupplier improvement projectwould be aone-offinitiative rather than ongoing formal meetings.
* Asupplier forumismore informalthan what is described in the question.
* Asupplier focus groupmeets to discuss specific topics rather than engaging in regular collaboration on improvements.
(See p.191)
NEW QUESTION # 41
Dan is an Operations Manager at a retail organisation. He is keen to understand more about the types of customers his organisation serves and has therefore devised new KPIs (key performance Indicators) with a customer-centric focus. He is particularly keen to understand which customersegments are providing the organisation with the highest ROI (return on investment). Which customer-centric performance measure should Dan look to introduce?
- A. Customer Lifetime Value
- B. Net Promoter Score
- C. Churn Rate
- D. Customer Retention Rate
Answer: A
Explanation:
#Customer Lifetime Value (CLV)measures the total amount a customer is expected to spend over their lifetime with a company, helping identify themost profitable customer segments.
#Other KPIs are not suitable for Dan's needs:
* Churn Rate: Measurescustomer lossover time.
* Net Promoter Score: Measurescustomer satisfaction and loyalty.
* Customer Retention Rate: Focuses onhow many customers stay with the companybut does not indicate ROI.
For more insights onCLV, visit:#Customer Lifetime Value - WallStreetMojo (See LO 2.2, p.97)
NEW QUESTION # 42
Salgo Ltd is an oil refinery organisation that has been in operation for 30 years. It has made increasing profits each year, with the most recent year's takings in excess of £20m. Salgo Ltd uses an Emergent Strategy principle when it comes to resource planning. What are the characteristics of this approach?Select ALL that apply.
- A. The strategy is effective at creating change
- B. The organisation responds to market changes
- C. A new strategy is created each year to replace the old one
- D. There is a lot of forward planning
- E. The strategy is based on historical patterns
Answer: B,E
Explanation:
An emergent strategy is one that has developed over time based on historical patterns of behaviour. It is not planned; it has evolved based on how things have always been done. As a result, there isn't forward planning, and it is not an effective way of creating change. Instead, the organisation must be reactive to market changes.
(See p.153)
NEW QUESTION # 43
Which of the following is considered aprimary activityin theValue Chain?
- A. HR
- B. Technology development
- C. Procurement
- D. Marketing and sales
Answer: D
Explanation:
* Marketing and Salesis aprimary activityinPorter's Value Chain, directly contributing to delivering value to customers.
* Procurement (A), HR (B), and Technology Development (C) are support activities.
(LO 1.2, See p.29)
NEW QUESTION # 44
Giant Gymsis a fitness chain where clientspay a monthly subscriptionfor full access to gym facilities. The company typically experiences ahuge spike in new memberships in Januarydue to New Year's fitness resolutions. However, toreduce this seasonal surge, Giant Gyms introduces apricing structure that makes it cheaper to sign up in November, which is typically itsslowest month.
What is this strategy called?
- A. Demand Smoothing
- B. Lead Strategy
- C. Optimal Capacity
- D. Capacity Expansion
Answer: A
Explanation:
Demand smoothingattempts toinfluence customer behaviorto balancedemand fluctuations. Giant Gyms wants more customers inNovemberrather than inJanuary, preventingseasonal peaks and troughs.
#Note:
* Lead Strategy= expanding capacitybefore demand increases
* Capacity Expansion= increasing production ability
* Optimal Capacity= achieving thebest cost-to-production ratio
(See LO 1.3, p.55)
NEW QUESTION # 45
Gill runs the operations department of amanufacturing organisationin Wales. The departmentemulates best practicesfrom competitors throughbenchmarkingand has recently introducedSix Sigmato prevent operational problems. Which of the following best describes Gill's approach to operations function?
- A. Internally supportive
- B. Internally neutral
- C. Externally supportive
- D. Externally neutral
Answer: D
Explanation:
This aligns withexternally neutral, which includes:
* Benchmarking against competitors
* Adopting best practices(Lean, Six Sigma, BPR, TQM)
* Emulating successful industry models
(LO 2.1, See p.99)
NEW QUESTION # 46
Megan, theDirector of Operationsat Orange Windows Ltd, is concerned aboutovercapacity. Should she be worried?
- A. Yes - overcapacity means that the organisation has wasted resources
- B. No - undercapacity will lead to unsold products
- C. Yes - overcapacity means that some customer orders may not be fulfilled
- D. No - overcapacity means there are unused resources within the operations department
Answer: A
Explanation:
* Overcapacitymeans the organisationhas more production than demand, leading towaste and inefficiency.
* Customer orders will still be fulfilled(eliminating option B).
* Under capacity (D) is incorrect, asovercapacity, not undercapacity, leads to excess stock.
(LO 2.2, See p.115)
NEW QUESTION # 47
The operations department of ABC Ltd has recently launched a new product. The product is manufactured within a large factory and then sent to retailers for sale. The department has a system in place which details the components required for the product and the quantities required to fulfil customer demand. The system works online and links to other areas of the business including HR and finance.
So far, several large orders have been placed for the product from different retailers. The Chief Operations Officer (COO) has decided to programme the completion of the orders based on when the orders were placed.
The benefit of this strategy is that it will give each customer a similar lead time. Thus far no buffer stock has been created as products are only created when orders are received.
Three teams are required to make the product and the product flows from team one to team two to team three, each team adding a component to the product. Unfortunately, team two are short staffed and are completing their work at a slower rate than the other two teams. This is a huge consideration for the COO as it will impact upon the capacity of the organisation.
The retailers have all signed contracts with ABC Ltd and the COO is extremely happy that they are long term contracts. Contract 1 is with retailer X and the price is set for three years. Contract 2 is with retailer Y and is a five year contract where the price will be reviewed annually in line with CPI. Contract 3 has a variable pricing mechanism based on the volume of products ordered.
What production method is used by ABC?
- A. Earliest due date
- B. First in, first out
- C. Similar process
- D. Shortest processing time
Answer: B
Explanation:
The production method isFirst In, First Out (FIFO)because orders are processed based on when they were received. This method ensures fairness in lead times across different customers. (See LO 3.2)
NEW QUESTION # 48
Which of the following statements aboutDemand Chain Management (DCM)areTRUE? SelectALLthat apply.
- A. An organisation can be effective or efficient, but not both
- B. Demand chain management is a strengths-based approach
- C. There is a long-term focus
- D. Key drivers of demand chain management are cash flow and profitability
- E. Demand chain management focuses on cost minimisation
- F. The supply chain uses forecasts and plans to understand customer demand
Answer: B,C,D,F
Explanation:
#Correct statements about DCM:
* (C)Cash flow and profitabilityarekey drivers.
* (D)It is astrengths-basedapproach, focusing onleveraging competitive advantages.
* (E)There is along-term focusrather than just short-term efficiency.
* (F)Usesforecasts and planningto understand customer demand.
#Incorrect statements:
* (A)False - A companyCANbe bothefficient and effective.
* (B)False -Supply Chain Management (SCM)focuses oncost minimisation, whileDemand Chain Management (DCM)focuses oncustomer value.
(See LO 2.3, p.125)
NEW QUESTION # 49
Liedtka (1998) describesfive attributesnecessary for aprocurement professionalto developstrategic thinking. What are these?
- A. Hypothesis driven
- B. Intent focused
- C. Thinking in time
- D. Systems perspective
- E. Risk awareness
- F. Intelligent optimism
Answer: A,B,C,D,F
Explanation:
* Thecorrect five attributesof strategic thinking are:#Systems perspective#Intent focused#Intelligent optimism#Thinking in time#Hypothesis driven
#Option B (Risk awareness) is incorrect-it isnotone of Liedtka's five attributes.
(See LO 2.1, p.65)
NEW QUESTION # 50
Which of the following are Porter's strategies that can help an organisation create competitive advantage in the marketplace?Select ALL that apply
- A. Become an organisation that is meaningfully different from competitors
- B. Ensure a large product range
- C. Become a specialised provider
- D. Provide exceptional customer service
- E. Be a low-cost provider
Answer: A,C,E
Explanation:
Porter's three strategies are low-cost, differentiation, and niche. These options are just worded slightly differently but align with Porter's competitive strategies. (See p.151)
NEW QUESTION # 51
Maxi Ltd is a medium-sized manufacturing organisation in the automotive industry that creates engines for cars. It has traditionally worked well with its suppliers, with strong relationships and regular meetings. There are currently around 15 suppliers who provide parts to Maxi Ltd.
Due to changing customer demands, Maxi Ltd will, from next month, modify the manufacturing of some of its products. Product X is being made more environmentally friendly, with output of CO2 being reduced by 32%. The product will take longer to produce, but there will be no additional cost to customers for this.
Maxi ltd are considering outsourcing the manufacturing of Product Y as it is not a product which is routinely ordered by customers. This will allow Maxi Ltd to focus on other products which generate higher revenues for the company. The concern within the Board of Directorsis that if demand increases for this product, an outsourced company may not be able to cope with higher numbers of orders.
Product Z is an extremely popular item and oftentimes Maxi Ltd does not have the capacity to fulfil all orders. Consideration has been given to increasing the size of the factory, but this has been discarded as risky as demand is not guaranteed. The product has been available on the marketplace for a short amount of time and sales are continuing to increase, but the company believes this will soon plateau. To deal with current demand, the marketing team is working on campaigns to invite customers to make orders for this product at certain times of the year when product X is not being created in the factory.
This means resources can be reallocated to the creation of product Z.
What is themain concernregarding the option to outsource the manufacturing of product Y?
- A. Finance
- B. Cost
- C. Scalability
- D. Competence
Answer: C
Explanation:
The main concern with outsourcingproduct Yis whether theoutsourced companycanhandle a potential increase in demand. This issue is related toscalability, as an external supplier may struggle to ramp up production if demand rises. (LO 1.2)
NEW QUESTION # 52
XYZ Ltd is a perfume manufacturer based in France. They have created a new perfume and research has shown that demand for the perfume will outstrip supply. The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are meeting to discuss this. The COO believes that the organisation needs to reallocate resources in order to meet demand. Are there any exceptions to when this may be the case?
- A. No - this would negatively affect the profit the organisation could make
- B. No - organisations should always aim to meet customer demand or resources will be underutilised
- C. Yes - there are exceptions, but these are always outside of the organisation's control
- D. Yes - there are occasions when an organisation would choose not to fulfil customer demand
Answer: D
Explanation:
While organisations generally try to fulfil customer demand, there are times when theystrategicallychoose 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)
NEW QUESTION # 53
XYZ Ltd is aretail organisationselling various hair care products. Themarketing teamis reviewingsales figuresfrom the past year and wants to determinewhich products should receive extra marketing.
One product haslow market sharebut exists in ahigh-growth market.
According to theBoston Consultancy Group (BCG) Matrix, which category does this product fall under?
- A. Dog
- B. Problem Child
- C. Cash Cow
- D. Star
Answer: B
Explanation:
#Problem Child(also calledQuestion Mark) refers to a product withlow market sharein ahigh-growth market.
#BCG Matrix Categories:
* Dog##Low market share, low market growth
* Cash Cow##High market share, low market growth
* Star##High market share, high market growth
* Problem Child (Question Mark)##Low market share, high market growth
#Exam Tip:The BCG Matrix is frequently tested. Be aware that "Problem Child" is sometimes called
"Question Mark"in other versions of the matrix!
(See LO 2.3, p.130)
NEW QUESTION # 54
Which of the following arenotcharacteristics of good information?
- A. Accurate
- B. Analysed
- C. Relevant
- D. Timely
- E. Interpreted
Answer: B,E
Explanation:
Analysed and interpreted arenotcharacteristics of good information. The key characteristics of good information are accuracy, reliability, timeliness, relevance, and completeness. (See p.178)
NEW QUESTION # 55
......
Supply Network Design Free Update With 100% Exam Passing Guarantee: https://www.itcertmagic.com/CIPS/real-L6M9-exam-prep-dumps.html
Real Exam Questions and Answers - CIPS L6M9 Dump is Ready: https://drive.google.com/open?id=1zMiP69KNu1J_caFAE3lsyJmT5v657lnT