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ISM Leadership and Transformation in Supply Management Sample Questions (Q155-Q160):
NEW QUESTION # 155
A supply manager conducts an audit of a supplier for a proprietary material and finds safety deficiencies in the supplier's plant. Which of the following is the FIRST course of action the supply manager should take?
- A. Notify the supplier of the contract breach and provide a thirty day period to cure
- B. Qualify an alternate supplier to manufacture the proprietary material
- C. Source a substitute product for the proprietary material
- D. Work with the supplier to improve working conditions
Answer: D
Explanation:
When safety deficiencies are found in a supplier's plant, the first course of action should be to work with the supplier to improve working conditions. This collaborative approach helps address safety issues while maintaining the supplier relationship and ensuring continuity of supply. Leadership and transformation management principles advocate for working with suppliers to achieve mutual improvements and fostering long-term partnerships. This approach not only helps rectify the immediate issues but also strengthens the overall supply chain by promoting better practices and compliance with safety standards. Reference from transformation management documents highlight the importance of cooperation and continuous improvement in supplier management to enhance overall supply chain resilience and performance.
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NEW QUESTION # 156
BCD, Inc. is a worldwide household appliance maker that is distinguished in the marketplace by its reputation for customer service. In recent months, BCD has found its competitive position slipping due to increased order fulfillment time and slower response time to distributor requests for parts. Inquiries at the company's local facilities suggest that the problem is a combination of unreliable delivery and erratic production scheduling. Given this situation, which of the following should BCD do FIRST?
- A. Create a special planning group to review and revise plant production schedules
- B. Change procedures so that all material contracts are negotiated globally from headquarters
- C. Implement a corporation-wide software solution to improve communication between local plants and headquarters
- D. Establish quantitative time-phased targets for ongoing performance improvement
Answer: A
Explanation:
Given the issues of unreliable delivery and erratic production scheduling, the most effective first step for BCD, Inc. is to create a special planning group to review and revise plant production schedules.
Root Cause Analysis: By focusing on production schedules, BCD can address one of the root causes of increased order fulfillment time and slower response times.
Expert Focus: A dedicated planning group allows for a focused, expert-driven approach to identify and rectify scheduling issues, ensuring that production aligns better with demand.
Immediate Impact: Revising production schedules can provide a relatively quick improvement in operational efficiency and reliability, directly impacting order fulfillment and response times.
Reference:
Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson Education.
Stevenson, W.J. (2018). Operations Management. McGraw-Hill Education.
NEW QUESTION # 157
The compliance division within EFG, Inc. is reviewing the company's procedures for monitoring and addressing employee fraud. The current system involves employees who suspect fraud reporting their concerns to an internal company email mailbox. Many of the firm's employees are concerned about the confidentiality of this process. Which of the following would be the BEST course of action for EFG to take in order to reduce this concern?
- A. Announce through the intranet the company's commitment to non-retaliation in fraud reporting
- B. Develop a training program that emphasizes the risks caused by employee fraud and the importance of proper reporting
- C. Explore opportunities to outsource the reporting function to an independent third party
- D. Change the reporting policy and have employees report concerns directly to their individual managers
Answer: C
Explanation:
* Confidentiality Concerns: Employees are worried about the confidentiality of the current fraud reporting process. Addressing these concerns is crucial to ensure that employees feel safe reporting potential fraud.
* Independent Reporting: Outsourcing the reporting function to an independent third party can enhance confidentiality and impartiality, making employees more comfortable reporting fraud.
* Credibility and Trust: An independent third party can provide a neutral and trusted channel for reporting, which can increase the credibility of the fraud reporting system.
* Best Practices: Using third-party services for reporting fraud is a common best practice in compliance and risk management to ensure anonymity and reduce the fear of retaliation.
* Reference: This approach is supported by guidelines from the Association of Certified Fraud Examiners (ACFE) and best practices in corporate governance and compliance management.
NEW QUESTION # 158
Which of the following is the BEST example of a corporate social responsibility audit procedure?
- A. Checking chemical safety data sheets regularly
- B. Enhancing talent management skills
- C. Conducting diversity awareness training
- D. Creating an intranet forum to discuss organizational objectives
Answer: A
Explanation:
* Corporate Social Responsibility (CSR) Audits: CSR audits assess a company's adherence to ethical standards and regulatory requirements in areas such as environmental protection, workplace safety, and social responsibility.
* Chemical Safety Data Sheets: Regularly checking chemical safety data sheets ensures that the company is compliant with safety regulations and that employees are aware of the hazards and proper handling procedures of chemicals used in operations.
* Relevance to CSR: Ensuring chemical safety is a critical aspect of corporate responsibility, as it directly impacts employee health and safety and environmental protection.
* Reference: This practice is supported by guidelines from organizations such as the Occupational Safety and Health Administration (OSHA) and environmental protection agencies, which emphasize the importance of regular safety audits and compliance checks.
NEW QUESTION # 159
A chief procurement officer (CPO) notices that while buyers in regional offices work well together, tension mounts between the regional and global buying teams at the inception of any new global project. The CPO believes there is a need to improve trust and collaboration between the teams. Which of the following is the FIRST step the CPO should take to improve the situation?
- A. Hold a team meeting to highlight the successful outcomes of prior global projects and recognize key contributors
- B. Launch a change management initiative and develop a detailed plan to achieve the desired changes
- C. Consult human resources for advice on how to improve relationships between the regional and global teams
- D. Address the matter with each direct report and tie improvement targets to individual performance goals
Answer: A
Explanation:
Situation Analysis:
Tension exists between regional and global buying teams during new global projects.
The CPO aims to improve trust and collaboration.
First Steps to Improve Collaboration:
Consulting HR: Valuable for long-term strategies but not immediate action.
Launching Change Management Initiative: Effective but time-consuming and may not address immediate concerns.
Holding a Team Meeting: Immediate action to build trust and showcase successful collaboration.
Addressing with Direct Reports: Targets individuals but does not address team dynamics immediately.
Best First Step:
Holding a Team Meeting: Celebrates past successes, recognizes contributions, and fosters a sense of unity and shared purpose. This can immediately boost morale and encourage collaboration.
Conclusion: A team meeting is an effective initial step to highlight successes, recognize contributions, and promote a collaborative culture.
Reference:
"Leading Teams: Setting the Stage for Great Performances" by J. Richard Hackman Team building and collaboration strategies from Harvard Business Review
NEW QUESTION # 160
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