ISM 630-007 pdf dumps

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Exam Code: 630-007
Exam Name: ISM (C.P.M. Module 3: Value Enhancement Strategies)
One year free update, No help, Full refund!
Total Q&A: 285 Questions and Answers
Last Update: 2014-01-29

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NO.1 You work as a purchaser at KillTest. You are negotiating a contract for which
production and delivery will be stretched out over a 24-month period. You want to
get the best price. Which of the following should you include in the contract?
A. A provision to accept all material produced under the contract.
B. A provision to cover changes in rates for material and labor.
C. A provision to eliminate penalties for late deliveries.
D. A provision to cover unforeseen production delays.
Answer. B

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.2 Which of the following do NOT provide economic forecasts?
A. ISM Report On Business(r).
B. Bureau of Labor Statistics.
C. Department of Commerce.
D. Thomas Register.
Answer. D

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.3 KillTest has been experiencing numerous stockouts on a production item.
Which of the following is LEAST likely to cause this problem?
A. Faulty sales forecasts.
B. Incorrect order points.
C. Increased supplier prices.
D. Problems with incoming shipments.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.4 Which of the following is the FIRST step in standardization?
A. Collecting data.
B. Simplifying standards.
C. Establishing objectives.
D. Publicizing the program.
Answer. A

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.5 Which of the following represents the BEST strategy for minimizing price risk in a
falling market?
A. Hedging.
B. Forward buying.
C. Hand-to-mouth buying.
D. Buying to requirements.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.6 When is the timing of purchases MOST important?
A. When a market has price and supply stability.
B. When a market has price and supply instability.
C. When a market has unstable supply with predictable prices.
D. When a market has reasonably stable supply with substantial fluctuation in prices.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.7 Which of the following should generally make a "make-or-buy" decision?
A. Engineering Management.
B. Purchasing Management.
C. Production Management.
D. General Management.
Answer. D

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.8 When would a purchasing manager generally use a third-party lease as a financing
instrument?
A. When purchasing equipment from the manufacturer with someone else's money.
B. When acquiring equipment from one party and maintenance from another.
C. When arranging an assignment agreement with a bank.
D. When transferring the asset to the internal customer.
Answer. A

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.9 Which of the following should a purchaser utilize when there is a need to minimize
financial risk in a sensitive market?
A. Cash flow management.
B. Long-term relationships.
C. Market demand analysis.
D. Hedging using futures contracts.
Answer. D

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.10 Which of the following can be used to spot abnormalities in a process, as well as
compare actual measurements to customer or engineering specifications, and show
if a distribution is centered at an expected place?
A. Pareto charts.
B. Area graphs.
C. Histograms.
D. Pie graphs.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.11 Which of the following criteria would a project or process targeted for improvement
generally NOT meet?
A. It is in the process of change.
B. It is relevant to a key product or service issue.
C. It is within the control or influence of the team.
D. It is likely to contribute to organizational goals.
Answer. A

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.12 Which of the following is the MOST commonly sought-after piece of inventory
information?
A. The date the inventory is taken.
B. The current price of the items.
C. Inventory I.D. numbers.
D. Quantities.
Answer. D

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.13 Which of the following is NOT an appropriate consideration when seeking to
mitigate seasonal capacity issues?
A. Safety stock levels.
B. Transportation costs.
C. Forecasting accuracy.
D. Seasonal sales forecasts.
Answer. B

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.14 Which of the following favors making the part in a "make-or-buy" decision?
A. When design secrecy is required.
B. When volume requirements are small.
C. When production facilities are limited.
D. When there is a desire to maintain a multiple-source policy.
Answer. A

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.15 Which of the following are the two basic categories of costs associated with
inventories from a management point of view?
A. Supplies and services costs.
B. Storage and incremental costs.
C. Carrying costs and acquisition costs.
D. Obsolescence and deterioration costs.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.16 Which of the following represents the MAIN reason why a fully documented
permanent summary record of a "make-or-buy" analysis should be maintained?
A. To respond to charges of favoritism by unsuccessful bidders.
B. To serve as a useful source of information in future situations.
C. To support cost-of-goods-sold (CGS) figures for tax purposes.
D. To justify the participation of all departments that were involved in the analysis.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.17 Which of the following statements is FALSE?
A. An operational lease has a non-cancelable term varying from hours to years.
B. An operational lease is a total financial commitment by the lessor.
C. In operational leases, payments are fixed payments per period.
D. Operational leases stress service.
Answer. B

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.18 Which of the following BEST describes the difference between evaluation of a
product and value analysis?
A. Value analysis is more concerned with "make-or-buy" issues.
B. Evaluation of a product is more concerned with cost issues.
C. Value analysis focuses more on economy and efficiency.
D. Value analysis is more concerned with product liability.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.19 What is generally the PRIMARY motivation for outsourcing in the health care
sector?
A. To reduce technological risk.
B. To shift patient liability.
C. To reduce labor costs.
D. To implement JIT.
Answer. C

ISM exam   630-007 certification training   630-007 answers real questions   630-007   630-007   630-007 exam

NO.20 Which of the following represents the MOST common reason for a public or
nonprofit corporation to use lease/purchase agreements to obtain equipment?
A. To gain tax advantages.
B. To avoid capital expenditures.
C. To reduce maintenance needs.
D. To gain depreciation advantages.
Answer. B

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Exam Code: 630-007
Exam Name: ISM (C.P.M. Module 3: Value Enhancement Strategies)
One year free update, No help, Full refund!
Total Q&A: 285 Questions and Answers
Last Update: 2013-11-01

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NO.1 Which of the following BEST describes the difference between evaluation of a
product and value analysis?
A. Value analysis is more concerned with "make-or-buy" issues.
B. Evaluation of a product is more concerned with cost issues.
C. Value analysis focuses more on economy and efficiency.
D. Value analysis is more concerned with product liability.
Answer. C

ISM   630-007   630-007

NO.2 You work as a purchaser at KillTest. You are negotiating a contract for which
production and delivery will be stretched out over a 24-month period. You want to
get the best price. Which of the following should you include in the contract?
A. A provision to accept all material produced under the contract.
B. A provision to cover changes in rates for material and labor.
C. A provision to eliminate penalties for late deliveries.
D. A provision to cover unforeseen production delays.
Answer. B

ISM   630-007   630-007

NO.3 Which of the following represents the MOST common reason for a public or
nonprofit corporation to use lease/purchase agreements to obtain equipment?
A. To gain tax advantages.
B. To avoid capital expenditures.
C. To reduce maintenance needs.
D. To gain depreciation advantages.
Answer. B

ISM   630-007   630-007

NO.4 Which of the following represents the MAIN reason why a fully documented
permanent summary record of a "make-or-buy" analysis should be maintained?
A. To respond to charges of favoritism by unsuccessful bidders.
B. To serve as a useful source of information in future situations.
C. To support cost-of-goods-sold (CGS) figures for tax purposes.
D. To justify the participation of all departments that were involved in the analysis.
Answer. C

ISM   630-007   630-007

NO.5 Which of the following is NOT an appropriate consideration when seeking to
mitigate seasonal capacity issues?
A. Safety stock levels.
B. Transportation costs.
C. Forecasting accuracy.
D. Seasonal sales forecasts.
Answer. B

ISM   630-007   630-007

NO.6 When is the timing of purchases MOST important?
A. When a market has price and supply stability.
B. When a market has price and supply instability.
C. When a market has unstable supply with predictable prices.
D. When a market has reasonably stable supply with substantial fluctuation in prices.
Answer. C

ISM   630-007   630-007

NO.7 Which of the following should a purchaser utilize when there is a need to minimize
financial risk in a sensitive market?
A. Cash flow management.
B. Long-term relationships.
C. Market demand analysis.
D. Hedging using futures contracts.
Answer. D

ISM   630-007   630-007

NO.8 Which of the following should generally make a "make-or-buy" decision?
A. Engineering Management.
B. Purchasing Management.
C. Production Management.
D. General Management.
Answer. D

ISM   630-007   630-007

NO.9 Which of the following represents the BEST strategy for minimizing price risk in a
falling market?
A. Hedging.
B. Forward buying.
C. Hand-to-mouth buying.
D. Buying to requirements.
Answer. C

ISM   630-007   630-007

NO.10 Which of the following is the MOST commonly sought-after piece of inventory
information?
A. The date the inventory is taken.
B. The current price of the items.
C. Inventory I.D. numbers.
D. Quantities.
Answer. D

ISM   630-007   630-007

NO.11 Which of the following are the two basic categories of costs associated with
inventories from a management point of view?
A. Supplies and services costs.
B. Storage and incremental costs.
C. Carrying costs and acquisition costs.
D. Obsolescence and deterioration costs.
Answer. C

ISM   630-007   630-007

NO.12 KillTest has been experiencing numerous stockouts on a production item.
Which of the following is LEAST likely to cause this problem?
A. Faulty sales forecasts.
B. Incorrect order points.
C. Increased supplier prices.
D. Problems with incoming shipments.
Answer. C

ISM   630-007   630-007

NO.13 Which of the following can be used to spot abnormalities in a process, as well as
compare actual measurements to customer or engineering specifications, and show
if a distribution is centered at an expected place?
A. Pareto charts.
B. Area graphs.
C. Histograms.
D. Pie graphs.
Answer. C

ISM   630-007   630-007

NO.14 What is generally the PRIMARY motivation for outsourcing in the health care
sector?
A. To reduce technological risk.
B. To shift patient liability.
C. To reduce labor costs.
D. To implement JIT.
Answer. C

ISM   630-007   630-007

NO.15 Which of the following favors making the part in a "make-or-buy" decision?
A. When design secrecy is required.
B. When volume requirements are small.
C. When production facilities are limited.
D. When there is a desire to maintain a multiple-source policy.
Answer. A

ISM   630-007   630-007

NO.16 When would a purchasing manager generally use a third-party lease as a financing
instrument?
A. When purchasing equipment from the manufacturer with someone else's money.
B. When acquiring equipment from one party and maintenance from another.
C. When arranging an assignment agreement with a bank.
D. When transferring the asset to the internal customer.
Answer. A

ISM   630-007   630-007

NO.17 Which of the following statements is FALSE?
A. An operational lease has a non-cancelable term varying from hours to years.
B. An operational lease is a total financial commitment by the lessor.
C. In operational leases, payments are fixed payments per period.
D. Operational leases stress service.
Answer. B

ISM   630-007   630-007

NO.18 Which of the following do NOT provide economic forecasts?
A. ISM Report On Business(r).
B. Bureau of Labor Statistics.
C. Department of Commerce.
D. Thomas Register.
Answer. D

ISM   630-007   630-007

NO.19 Which of the following is the FIRST step in standardization?
A. Collecting data.
B. Simplifying standards.
C. Establishing objectives.
D. Publicizing the program.
Answer. A

ISM   630-007   630-007

NO.20 Which of the following criteria would a project or process targeted for improvement
generally NOT meet?
A. It is in the process of change.
B. It is relevant to a key product or service issue.
C. It is within the control or influence of the team.
D. It is likely to contribute to organizational goals.
Answer. A

ISM   630-007   630-007

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ISM 630-006 questions and answers

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Exam Code: 630-006
Exam Name: ISM (C.P.M. Module 2: Supply Environment)
One year free update, No help, Full refund!
Total Q&A: 285 Questions and Answers
Last Update: 2013-10-07

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NO.1 In a situation where the purchasing and production departments share responsibility for product
fabrication, lead time for delivery of material, work schedules, and selection of sources of supply. Which
responsibilities would be allocated to the production department? (Choose two.)
A. product fabrication
B. lead time for delivery of material
C. work schedules
D. selection of sources of supply
Answer: A, C

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NO.2 Which of the following tools are MOST important for achieving continuous improvements in an
organization's integration with its supplier?
A. Quality inspection at the plant
B. Involvement in product design
C. Suppliers input in forms design
D. Joint examination of costs structure
Answer: B

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NO.3 Which of the following procedures for dealing with businesses that have social or economical
disadvantages, if a purchasing manager considers: (Choose all that apply)
A. That the staff of such businesses may have had limited exposure to technical contract language
B. That exceptions may be needed to accommodate faster payment of invoices from such businesses
C. That goods or services of lower than usual quality may be accepted from such businesses
D. That such businesses may need information on the bidding process
Answer: A, C, D

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NO.4 Which of the following options are key actions that senior management should take into account when
establishing a purchasing department?
A. Select a purchasing system
B. Develop list of suppliers
C. Hire qualified buyers
D. Establish a policies authorizing purchasing authority
Answer: D

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NO.5 If a manufacturer establishes all the population needed for a round-bar machining process being 5.76
centimeters, with a standard deviation of 15. The acceptable quality limits are estimated at about 3
standard deviations. On day one, the sample means are taken by the operator, 5.80, 5.46, and 6.20
centimeters. These means indicate if the process is
A. controlled
B. reckless
C. statistically perfect
D. leaning towards the lower side of the mean
Answer: A

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NO.6 Which of the following approaches focuses on cooperative rather than adversarial relationships with
suppliers?
A. single sourcing
B. cross-functional teams
C. supply base management
D. supplier partnerships
Answer: D

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NO.7 Which of the following phrases are used to refer to the receipt of a functional acknowledgment after
sending a purchase order via EDI?
A. transmission received B. accepted purchase order
C. valid contract exists D. goods have been shipped
Answer: A

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NO.8 With which of the following would purchasing management be MOST concerned in day-to-day
operational control in a manufacturing firm?
A. labor utilization variance
B. materials utilization variance
C. labor cost variance
D. materials cost variance
Answer: D

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NO.9 You work as a buyer at KillTest .com. A piece of capital equipment is designed and specified so as to
force the purchasing department into a sole supplier situation. You still want to affect the procurement
process. Which of the following support items from the sole supplier would you negotiate? (Choose all
that apply)
A. Technical documentation, including data sheets, performance specs, maintenance and operating
manuals, supplier-furnished training programs, and full supplier documentation
B. The initial provisioning of high-risk spare parts for start-up and a one-year period thereafter
C. A promise to maintain equipment on an annual basis by the manufacturer or its authorized service
agent
D. A determination of whether equipment or services are taxable or tax-exempt
Answer: A, B, C

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NO.10 When developing a new product with a supplier, which of the following documents protects a company
from information leaks?
A. Copyright
B. Patent
C. Supplier partnership
D. Confidentiality agreement
Answer: D

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NO.11 Choose two of the following options that are usually amongst the functions of the material manager of?
(Choose two)
A. Stores and receiving
B. Quality control
C. Traffic management
D. Accounts payable
Answer: A, C

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NO.12 Which software type is BEST applicable when using in the analysis of a competitive bid?
A. Application
B. Interface
C. Scientific
D. Operating system
Answer: A

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NO.13 If a purchasing manager is represented by buying an organization in a meeting with a governmental
body. The manager could possibly embark in the following:
A. explaining the organization's new MRP system
B. promoting the business to other participants
C. negotiating for the buying organization
D. discussing the advantages and disadvantages of various types of contractual arrangements
Answer: C

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NO.14 With regard to decision-making capability of cross-functional sourcing teams which of the following is
TRUE?
A. Better decisions than individuals.
B. Quick decisions than individuals.
C. Requiring the input of suppliers.
D. Poor substitute for individual decisions.
Answer: A

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NO.15 Which statement about setting negotiating objectives is FALSE?
A. It should be defined with sufficient specificity to permit measurements.
B. It should be established for each issue or condition to be negotiated.
C. They should establish a supplier's strengths and avoid reference to its weaknesses.
D. It should be based on databases derived from cooperative efforts of purchasing,
production, and engineering.
Answer: C

ISM original questions   630-006   630-006   630-006 original questions   630-006

NO.16 If a supplier's level of quality was unsatisfactory on past orders and the level of quality on current
orders is critical, which of the following options would be the BEST way to handle the situation?
A. Timely inspection by the buyer's company at the supplier's plant
B. Requiring the supplier to supply extra products to cover rejects
C. Require 100% inspection before the products leave the warehouse of the order by the buyer's
company's quality control department
D. Label "Quality of Material is Critical" on the purchase order
Answer: A

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NO.17 Which of the following factors are causing growth in complexity of much procurements leading to an
increased trend towards:
A. suppliers partnering
B. cross-functional teams
C. risk factor management
D. strategic supplier alliances
Answer: B

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NO.18 .Which of the following BEST defines negotiations?
A. reaching an agreement through discussion
B. maximizing one's position over one's opponent
C. reaching an agreement through competitive bidding
D. ensuring that the terms and conditions of a contract are met
Answer: A

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NO.19 Which of the following terms is NOT associated with the Internet?
A. Browsers
B. Home pages
C. Web sites
D. Time sharing
Answer: D

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NO.20 You work as a buyer at KillTest .com. You are curious about the disadvantaged ownership of one of the
companies that supply materials for KillTest .com. When, if ever, can you ask the supplier for this
information?
A. At any time
B. Only when the buyer is purposefully seeking a minority supplier
C. Only when authorized by the courts
D. At no time
Answer: A

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