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CIPS L4M7 Certification Exam is open to professionals from all industries, including finance, healthcare, manufacturing, and transportation. Candidates who successfully pass the exam will receive the CIPS L4M7 certification, which is recognized globally as a mark of excellence in asset management.
CIPS L4M7 exam is an important certification for professionals in the field of asset management. L4M7 Exam is designed to test the knowledge and understanding of whole life asset management principles and practices. It covers a range of topics including sustainability, risk management, maintenance, and replacement management.
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CIPS Whole Life Asset Management Sample Questions (Q28-Q33):
NEW QUESTION # 28
MRP system is the most suitable IT system to manage which type of items?
- A. Construction projects
- B. Independent demand
- C. Dependent demand
- D. Fast moving components
Answer: C
Explanation:
Material requirement planning (MRP) is a production planning and material (inventory) control system used in manufacturing. Objectives of MRP are to ensure materials are available for production while minimising inventory and to plan production and procurement activities.
Bill of materials (BOM) is an important component of MRP. BOM is also known as product struc-turer. This lists all the items that comprise each assembly and sub-assembly that make up the final product or end item. Therefore, MRP is commonly used to manage dependent demand stock.
Reference:
LO 2, AC 2.3
NEW QUESTION # 29
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 22000 family
- B. ISO 14000 family
- C. ISO 9000 family
- D. ISO 27000 family
Answer: B
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 customerfocused, and places an emphasis on continuous improvement and top management processes that extended throughout the organization.
NEW QUESTION # 30
MRP software is applied to schedule which of the following?
- A. Tax accounting
- B. Executive meetings
- C. Human resource management
- D. Production processes
Answer: D
Explanation:
Material Requirements Planning (MRP) software manages material requirements for manufacturing processes.
LO 2, AC 2.3
NEW QUESTION # 31
A manufacturer has discovered that some of the stock in its storeroom is obsolete and now wishes to take the appropriate action. Should the manufacturer write the stock off?
- A. Yes, this will increase the sales for the period
- B. No, it should be included with the closing stock
- C. Yes, as it has no value it must be written off
- D. No, the best approach would be to leave the stock where it is
Answer: C
NEW QUESTION # 32
Inventory may be classified into direct and indirect supplies. Which of the following is a characteristic of indirect supplies?
- A. Indirect supplies refer to stock that is partway through manufacture
- B. Indirect supplies have a significant impact on the quality of the final product
- C. Indirect supplies are costs that have an impact on the operating cost of the business
- D. Indirect supplies are the sub-assemblies required in the final product
Answer: C
Explanation:
Indirect supplies support operations without becoming part of the final product. They impact operating costs (e.g., maintenance supplies), supporting the production environment but not the end product. Managing indirect supplies is crucial in whole-life asset management to control overhead costs and ensure uninterrupted operations.
NEW QUESTION # 33
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