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CIPS L4M7 Exam focuses on the whole life approach to asset management, which involves managing assets throughout their entire life cycle, from acquisition to disposal. This approach ensures that assets are used efficiently and effectively to achieve the organization's strategic objectives. L4M7 Exam covers a range of topics, including asset management principles, asset management strategies, asset acquisition and disposal, maintenance and repair, and risk management.
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The CIPS L4M7 Exam covers a wide range of topics, including asset identification, valuation, maintenance, and disposal. Candidates will learn how to develop effective asset management strategies that align with organizational goals and objectives. They will also learn how to implement best practices in asset management to ensure that assets are utilized to their fullest potential.
CIPS L4M7 Exam is recognized worldwide as a mark of excellence in the field of asset management. CIPS Whole Life Asset Management certification demonstrates that the candidate has the necessary knowledge and skills to manage assets effectively and efficiently, thereby delivering value to the organization. CIPS Whole Life Asset Management certification is highly valued by employers, who are looking for professionals who can manage their assets effectively and efficiently, thereby reducing costs and maximizing returns. CIPS Whole Life Asset Management Sample Questions (Q215-Q220):NEW QUESTION # 215
Which of the following is the material handling equipment which uses the suction force to lift an item?
A. Vacuum lifter
B. Dolly
C. Pallet stacker
D. Sack truck
Answer: A
Explanation:
VACUUM LIFTER uses the vacuum pad which attaches itself to a product. The suction force al-lows the product to be lifted (and rotated and placed). Vacuum lifters are used for moving and positioning glass sheets, but are also seen lifting boxes, plastic sacks, sheets of building materials and pipework. Some models feature hydraulic arms which allow easy movement of the lifted load. The lifting system will have a number of sucker pads and vacuum capability which determines the maximum weights and largest items that can be lifted.
DOLLY consists of stack and sets of wheels (either casters or rollers) under the stack that allow the dolly and the heavy object on top of it to move easily and smoothly. For moving in a straight line, rollers is ideal. If you want to move manoeuvrability, dolly with sets of casters will let you swivel and turn.
SACK TRUCK (hand truck) is an L-shaped box-moving handcart. It comprises a small base plat-form with two wheels at the base and a larger vertical structure. A small ledge to set objects on flat against the floor when the sack truck is upright. When moving, the truck and object are then tilted backward based on the vertical structure until the weight is balanced over the large wheels, making otherwise bulky and heavy objects easier to move.
PALLET STACKER is designed to lift and stack pallets. This one is fully mobile so can move easily around the warehouse. An operator would typically sit or stand while driving like a counter-balanced, reach or straddle lift truck.
LO 1, AC 1.3
NEW QUESTION # 216
A restaurant needs to buy a new freezer. The owner applies total cost of ownership model to calcu-late the life- time cost of the freezer. This equipment has a price tag of $1,000, the supplier can offer free delivery if the restaurant pays off immediately. Estimated electricity consumption of the freezer is $200 in 5 years. The supplier ascertains that the freezer is very durable, buyer doesn't need to care about maintenance costs.
However, if the restaurant needs better protection from breakdowns, the warranty is free for the first 12 months after the purchase. This warranty package can be extended once for another 24-month period with the cost of $75. After 5 years, the buyer will be able to resell this freezer for $250. What would be the estimated total cost of ownership of this freezer if the restaurant owner buys the extended warranty package?
A. $1,275
B. $1,525
C. $1,025
D. $1,200
Answer: C
Explanation:
The total cost of ownership would be the sum of all estimated costs.
The costs are as the following:
- Purchase price: $1,000
- Electricity consumption: $200
- Extended warranty: $75
Total expense = $1,000 + $200 +$75 = $1,275. Then subtract the resale price from this sum, the total cost of ownership is $1,025.
Reference: CIPS study guide page 136-169
LO 3, AC 3.1
NEW QUESTION # 217
A brewery sells its beer in aluminum cans. It recycles the cans by using contractors to collect and mold the used cans. This is an example of...?
A. Open-loop recycling
B. Closed-loop recycling
C. Carbon recycling
D. Reuse
Answer: B
Explanation:
There are two main processes of recycling - open loop recycling and closed loop recycling.
Open Loop Recycling
Open loop recycling is a method that delays disposal by converting manufactured goods and spent materials into both new raw materials, which can be used for a manufacturing purpose, as a fuel source for a different manufacturing process and waste products.
Typically, materials recycled through open-loop recycling will be used for purposes different from their original purpose.
This means that the input into the recycling process is converted to a new raw material, which can be used as an input into another manufacturing process.
Materials in an open loop recycling process are treated using various forms of treatment including heat, chemical reactions, or physical crushing.
Closed Loop Recycling
Closed loop recycling is a process where waste is collected, recycled and then used again to make the same product it came from. This process is restorative and regenerative by design and aims to keep materials at their highest utility and value always.
Closed loop recycling is focused on resource sustainability, which means that recycling of a material can be done indefinitely without degradation of properties. In this case, conversion of the used product back to raw material allows repeated making of the same product, which helps hazardous waste generators reduce carbon footprint and achieve corporate sustainability initiatives.
Closed-loop recycling is common in specialized industries, such as the computer and battery industries, which use expensive or complex goods that cannot easily be broken down post-consumption into constituent materials.
A prime example of a closed-loop recycling process is the recycling of aluminum cans. Aluminum can be recycled to form new cans with little material degradation or waste creation.
NEW QUESTION # 218
XYZ Inc opens a tender to purchase new forklift trucks for their new established warehouse. In the final round, there are two suppliers remain who offer two different bids. Supplier A's bid has high initial investment. After calculating the net present value, the NPV in year five is positive. On the other hand, supplier B's bid has low purchase price, with the NPV in year five is negative. If the NPV is the sole selection criterion, XYZ Inc should select the bid which has...?
A. Negative NPV
B. Positive NPV
C. Zero NPV
D. The lowest NPV
Answer: B
Explanation:
Net present value (NPV) is the 'today' net value that deprives from 'future' cash flow of an invest-ment or a capital purchase. Net Present Value is a helpful tool for assessing the total lifetime value of an investment.
Procurement professionals or investors can base on this value to make decision to achieve value for money.
Generally, an organisation should select the offer which has the highest NPV among their options. Preferably, the NPV of an capital investment should be positive, which means the investment eventually adds value to the business.
Reference: CIPS study guide page 177
LO 3, AC 3.2
NEW QUESTION # 219
Nuclear Energy Group Limited (NEG) has a number of investment options currently under appraisal. As these are all long-term investments (more than 30 years), NEG is adopting a total cost of ownership approach. It has gathered data on all associated costs over the life of the investment. Which of the following will be regarded as end-of-life costs?
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