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ISM Leadership and Transformation in Supply Management Sample Questions (Q99-Q104):

NEW QUESTION # 99
XYZ Company has expanded its operations into two new countries over the past six months. Due to the cultural differences within the new countries, the firm's senior manager of procurement believes that qualitative key performance indicators (KPIs) need to be collected along with existing quantitative KPIs in order to accurately measure the success of the firm. XYZ has never used qualitative KPIs in the past. Given this situation, which of the following should the senior manager do before proposing the qualitative KPIs to the executive team?

A. Assemble a team including staff from the new countries and commence a review process
B. Benchmark qualitative KPIs currently used by successful firms in the same industry
C. Review all of the firm's quantitative KPIs and document any weaknesses that currently exist
D. Ask the vice president of procurement for advice about developing the KPIs

Answer: B

Explanation:
Understanding the Context:
XYZ Company has expanded into new countries and recognizes the need to incorporate qualitative KPIs to account for cultural differences and measure success accurately.
Qualitative KPIs provide insights into areas such as employee satisfaction, customer feedback, and cultural integration, which are not captured by quantitative KPIs.
Steps Before Proposing Qualitative KPIs:
Benchmarking: Comparing with industry standards helps ensure the selected KPIs are relevant, effective, and aligned with best practices.
By benchmarking, the senior manager can identify which qualitative KPIs are successfully used by other firms, thus providing a strong foundation for proposing these KPIs to the executive team.
Rationale for Choosing Benchmarking:
Benchmarking provides a clear, evidence-based approach, demonstrating how other successful companies utilize qualitative KPIs.
It helps in gaining executive buy-in by showcasing proven methods and expected outcomes.
Conclusion: Benchmarking qualitative KPIs used by successful firms in the same industry ensures the adoption of effective, industry-aligned metrics.
Reference:
"The KPI Book: The Ultimate Guide to Understanding Key Performance Indicators" by Jeff Smith Articles on KPI benchmarking and best practices from industry sources like Gartner and McKinsey & Company

NEW QUESTION # 100
A supply management audit finds that sole source purchases have increased significantly due to the inexperience of the sourcing team, and that the waiving of competition is not justified in many cases. This has resulted in increased costs, as well as noncompliance with organizational policies requiring competitive solicitations. Which of the following is the BEST way to rectify this situation?

A. Improve audit procedures to identify problem areas sooner
B. Make sole source review a key performance indicator (KPI)
C. Report noncompliance to management in user departments
D. Train staff in solicitation policies and practices

Answer: D

Explanation:
Issue Identification:
Increased sole source purchases due to inexperience of the sourcing team.
Noncompliance with competitive solicitation policies leading to increased costs.
Rectifying the Situation:
Training Staff: Provides the sourcing team with necessary knowledge and skills to understand and follow solicitation policies, reducing the likelihood of noncompliance.
Reporting Noncompliance: Addresses the issue after it occurs but does not prevent future occurrences.
Improving Audit Procedures: Helps identify issues sooner but does not directly address the root cause (lack of training).
Making Sole Source Review a KPI: Encourages monitoring but does not equip the team with the knowledge to comply.
Conclusion: Training staff in solicitation policies and practices addresses the root cause by ensuring the sourcing team is well-informed and capable of complying with competitive solicitation requirements.
Reference:
Procurement training programs and resources from the National Institute of Governmental Purchasing (NIGP) Best practices in procurement and supply chain management from the Chartered Institute of Procurement & Supply (CIPS) Top of Form Bottom of Form

NEW QUESTION # 101
Representatives from various departments at a research center meet to discuss the renovation of a lab. The firm's supply manager has been asked to facilitate the discussion. In preparation, the supply manager outlines each department's role and asks for their priorities. This information is used to show the departments how much they have much in common and how they can assist each other in achieving their goals. Which of the following tools is the supply manager using?

A. Reciprocity
B. Commitment
C. Authority
D. Consensus

Answer: A

Explanation:
Understanding the Situation: The supply manager is facilitating a discussion to ensure departments understand their roles and how they can assist each other.
Tool Used - Reciprocity:
Reciprocity involves mutual exchange where departments recognize their interdependencies and support each other to achieve common goals.
By highlighting shared priorities and roles, the supply manager encourages a collaborative environment where departments help each other.
Conclusion: Reciprocity is the appropriate tool as it fosters mutual assistance and collaboration, enabling departments to work together effectively.
Reference:
"Influence: The Psychology of Persuasion" by Robert B. Cialdini
Articles on collaboration and teamwork from Harvard Business Review

NEW QUESTION # 102
A firm's human resources (HR) department would like to expand a successful training program but does not have funding to do so. The firm's supply manager believes that strategic sourcing of other HR spend categories can reduce costs to provide funding for the training program. Which of the following influencing tactics should the supply manager use FIRST in order to convince HR to employ strategic sourcing?

A. Liking
B. Cooperation
C. Logic
D. Emotion

Answer: C

Explanation:
The supply manager should use logic first to convince HR to employ strategic sourcing. Here's a detailed explanation:
Using Logic:
Data-Driven Argument: Presenting logical, data-supported arguments can effectively demonstrate how strategic sourcing can reduce costs. Logical reasoning appeals to the analytical nature of business decisions.
Cost-Benefit Analysis: Providing a clear cost-benefit analysis showing the potential savings and reallocation of funds to the training program can persuade HR of the practical benefits.
Why Not Other Options?
Liking (A): While building rapport is important, it is less impactful than a logical, data-driven argument in this context.
Cooperation (B): Cooperation is essential but should follow a logical presentation of the benefits.
Emotion (D): Emotional appeals may be less persuasive in a business context focused on financial and operational efficiency.
Reference:
Effective influencing tactics in leadership and management (Cialdini, R.B., Influence: The Psychology of Persuasion, 2006).
Strategic sourcing and its impact on cost management (Monczka, R., Handfield, R., Giunipero, L., Patterson, J., Purchasing and Supply Chain Management, 2015).

NEW QUESTION # 103
CDE, Inc. is a U.S.-based sporting apparel company. CDE contracts with a manufacturer in another country to produce a specialized line of clothing. In the first few months, sales of the new line are very disappointing. It is then discovered that the manufacturer is marketing counterfeit copies of the new line in the U.S. and abroad, thus undercutting CDE's pricing and damaging its reputation. Given this situation, which of the following should CDE do FIRST?

A. File suit against the manufacturer in its home country and the United States
B. Notify the World Trade Organization of copyright breach by the manufacturer
C. Issue a cease and desist notification and reassess production risk
D. File a complaint with U.S. Customs and Border Protection against the manufacturer

Answer: C

Explanation:
When a manufacturer is discovered marketing counterfeit copies of CDE's products, the first course of action should be to issue a cease and desist notification and reassess production risk. This approach is recommended by leadership and transformation management documents, which emphasize the importance of promptly addressing intellectual property breaches while evaluating the associated risks. Issuing a cease and desist notice serves as a formal demand to stop the infringing activities, protecting the company's legal rights and initiating the process of addressing the violation. Reassessing production risk involves evaluating the current supplier's reliability and considering alternative suppliers to mitigate future risks. Reference highlight the necessity of protecting intellectual property and maintaining supplier integrity in global supply chains.

NEW QUESTION # 104
......

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