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CIPS Exam L4M2 Topic 5 Question 37 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 37
Topic #: 5
[All L4M2 Questions]

XYZ Ltd is the largest consumer of brass in the country. It consumes 48% of all brass manufactured, while the second-largest consumes less than 10% of brass manufactured. Which force or power does XYZ Ltd possess?

Show Suggested Answer Hide Answer
Suggested Answer: A

Cracks on the jet engine is a closed-end problem. A typical problem solving process has 8 steps:

Step 1: Define the Problem

- What is the problem?

- How did you discover the problem?

- When did the problem start and how long has this problem been going on?

- Is there enough data available to contain the problem and prevent it from getting passed to the next process step? If yes, contain the problem.

Step 2: Clarify the Problem

- What data is available or needed to help clarify, or fully understand the problem?

- Is it a top priority to resolve the problem at this point in time?

- Are additional resources required to clarify the problem? If yes, elevate the problem to your leader to help locate the right resources and form a team.

- Consider a Lean Event (Do-it, Burst, RPI, Project).

- Ensure the problem is contained and does not get passed to the next process step.

Step 3: Define the Goals

- What is your end goal or desired future state?

- What will you accomplish if you fix this problem?

- What is the desired timeline for solving this problem?

Step 4: Identify Root Cause of the Problem

- Identify possible causes of the problem.

- Prioritize possible root causes of the problem.

- What information or data is there to validate the root cause?

Step 5: Develop Action Plan

- Generate a list of actions required to address the root cause and prevent problem from getting to others.

- Assign an owner and timeline to each action.

- Status actions to ensure completion.

Step 6: Execute Action Plan

- Implement action plan to address the root cause.

- Verify actions are completed.

Step 7: Evaluate the Results

- Monitor and Collect Data.

- Did you meet your goals defined in step 3? If not, repeate th 8-Step Process.

- Were there any unforeseen consequences?

- If problem is resolved, remove activities that were added previously to contain the problem.

Step 8: Continuously Improve

- Look for additional opportunities to implement solution.

- Ensure problem will not come back and communicate lessons learned.

- If needed, repeat the 8-Step Problem Solving Process to drive further improvements.

ANA has already known what is going on, the next step they should adopt is collecting more infor-mation on the problem. If the airline is hurry to the solution, it may choose 'Generate options ad-dressing the issue'. The crack on turbine blade can be welded, or the airline replaces a new blade. However, jumping to solution without knowing the root cause does not completely solve the prob-lem. The root cause is unaddressed, then it may occur in the future. Therefore, the airline should still collect information to find the root cause, then remove it.


LO 1, AC 1.1

Contribute your Thoughts:

Rasheeda
2 days ago
I'm going with C. Buyer bargaining power. If I was a brass supplier, I'd be pretty nervous about losing 48% of my business to XYZ!
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Caren
12 days ago
Haha, this is a no-brainer. Of course, it's buyer bargaining power. XYZ must have the brass suppliers on speed dial, negotiating like a boss.
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Andra
13 days ago
I bet the answer is C. Buyer bargaining power. With that kind of market share, XYZ can probably call the shots when it comes to brass prices and supply.
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Celeste
14 days ago
Hmm, I'm not sure. Buyer bargaining power seems logical, but I'm wondering if it could also be supplier bargaining power since XYZ is the largest consumer.
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Denny
20 days ago
This is easy, XYZ Ltd has buyer bargaining power since it consumes 48% of all brass manufactured. That's a huge market share!
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Daryl
20 days ago
Maybe it's a combination of market rivalry force and supplier bargaining power.
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Lucille
25 days ago
I think XYZ Ltd has a strong buyer bargaining power.
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Millie
26 days ago
XYZ Ltd has a lot of market power.
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