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CIPS Exam L4M2 Topic 3 Question 25 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 25
Topic #: 3
[All L4M2 Questions]

Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing a piece of laboratory equipment. Was this the correct course of action?

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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

Contribute your Thoughts:

Shawna
3 days ago
D? Transactional costs? Nah, that's not the focus of whole life asset management. It's all about the bigger picture, not just the little details.
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Ricarda
9 days ago
Haha, choosing the cheapest option is never the way to go! Whole life asset management is definitely the way to go, so I agree with answer B.
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Virgina
15 days ago
I'm not sure about this one. I was thinking C might be the right answer, as it mentions the costs of quality, which is an important factor in asset management.
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Lashawna
15 days ago
A) Yes, because this focuses only on the price of the equipment
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Lauran
18 days ago
I think B is the correct answer. Whole life asset management considers all the associated costs, not just the initial price of the equipment.
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Willodean
18 days ago
C) No, because this considers the costs of quality
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Timothy
19 days ago
B) Yes, because this considers all associated costs
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