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Free Practice Questions for the CIPS Level 5 Advanced Diploma in Procurement and Supply L5M9 Exam (2026 Updated)

At Marks4sure, we are dedicated to providing IT professionals with the most accurate and reliable preparation materials for the CIPS L5M9 exam. To support your certification journey, we have made a selection of our premium 2026 CIPS Level 5 Advanced Diploma in Procurement and Supply practice questions and answers available completely free. You can take this practice test as many times as you need. Every question includes a detailed, expertly verified explanation to ensure you fully grasp the core security concepts before test day.

Questions 4

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 7?

Options:

A.

functional layout

B.

cell layout

C.

product layout

D.

fixed-position layout

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Questions 5

What is the principal process-improvement purpose of Six Sigma?

Options:

A.

Increase customer satisfaction without measuring performance

B.

Achieve financial break-even

C.

Reduce harmful process variation and associated defects

D.

Reduce waste without addressing process variation

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Questions 6

Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.

Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.

Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client’s feelings. The objective is now to improve the product’s look and performance to meet these expectations.

Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.

Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.

Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Company

TQM technique

Balanced Scorecard perspective

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 7?

Options:

A.

finance criteria

B.

business process criteria

C.

learning and growth criteria

D.

customer criteria

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Questions 7

Managing the supply chain, inventory and the implementation of Lean processes fall under which category of activity of the Operational Process?

Options:

A.

directing

B.

designing

C.

delivery

D.

developing

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Questions 8

Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?

Options:

A.

anticipation inventory

B.

buffer stock

C.

work-in progress

D.

transit inventory

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Questions 9

Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.

Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo rigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.

Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.

Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don’t understand the information provided.

Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.

Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Department

Functional area

SERVQUAL gap

Department 1

Box 1

Box 5

Department 2

Box 2

Box 6

Department 3

Box 3

Box 7

Department 4

Box 4

Box 8

Which of the following will you put into box 1?

Options:

A.

procurement

B.

finance

C.

sales

D.

production

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Questions 10

Operations Management is concerned with the management of resources in the production of tangible goods. Is this TRUE?

Options:

A.

yes- operations management is ensuring a company has the correct resources to create goods

B.

yes- operations management ensures there are sufficient goods produced to meet customer demand

C.

no - operations management can also be concerned with the creation of intangible goods

D.

no- operations management is concerned with ensuring the organisation is profitable

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Questions 11

Which of the following are operations management activities? Select THREE

Options:

A.

process selection

B.

materials management

C.

development of new products

D.

capacity planning

E.

job design

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Questions 12

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 5?

Options:

A.

functional layout

B.

cell layout

C.

product layout

D.

fixed-position layout

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Questions 13

How can a company measure the dependability of an item it produces? Select TWO

Options:

A.

number of injuries caused by the product

B.

how quickly complaints are resolved

C.

variety of colours offered

D.

gross profit margin

E.

documentation is accurate

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Questions 14

Which of the following is a benefit to a company of introducing TQM?

Options:

A.

higher profit margins

B.

benchmarking is made easier

C.

improved supplier relations

D.

increased customer loyalty

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Questions 15

According to the Taguchi Loss Function there are two types of costs incurred when there is an issue with quality. What are these?

Options:

A.

financial costs and reputational costs

B.

private costs and social costs

C.

social costs and environmental costs

D.

private costs and public costs

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Questions 16

In the SERVQUAL model how many different types of gaps should be identified by a service provider?

Options:

A.

1

B.

3

C.

5

D.

10

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Questions 17

Terrance is an Operations Director at a pharmaceutical company which produces vaccines. He has been made aware of a malfunctioning piece of equipment with a Mean Time between Failures rating of 2 days. What characteristic of the machinery is being measured?

Options:

A.

availability

B.

reliability

C.

cost

D.

durability

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Questions 18

An order-qualifying objective contributes to business success because it guarantees a customer will purchase a product. Is this TRUE?

Options:

A.

Yes, order-qualifying objectives always guarantee a sale.

B.

Yes, order-qualifying objectives mean the product is superior to alternatives.

C.

No, an order qualifier establishes a minimum requirement for consideration but does not guarantee purchase.

D.

No, order qualifying refers to accepting or rejecting customer orders.

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Questions 19

A company should aim to achieve all its performance objectives at the same time to ensure success. Is this TRUE?

Options:

A.

yes- a company should focus on all criteria at each stage of the product lifecycle

B.

yes- focusing on all objectives simultaneously is the only way to achieve a higher profit and market share

C.

no- companies should set performance criteria each month and this may change depending on market conditions

D.

no- companies should select which objectives should take precedent over others depending on the focus of the organisation at that time

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Questions 20

When processing low volumes of a product, specialisation is high and it is therefore possible to create products at a lower unit cost. Is this TRUE?

Options:

A.

yes- staff gain specialities when there is less products to create

B.

yes- when producing low volumes of a product, cost savings can be transferred to the customer

C.

no- creating products in low volumes often leads to a higher unit cost

D.

no- the volume of products created does not impact upon unit costs as these are fixed in advance

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Questions 21

A bread factory is introducing a 'Poka-Yoke' methodology to reduce defects. What will be the focus of this?

Options:

A.

inputs such as the quality of raw materials

B.

outputs- which will be measured against strict criteria

C.

staff- the reduction of human error

D.

machinery- ensuring there is little to no downtime in machinery use

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Questions 22

Paul is conducting a Quality Assessment on the products created at a fabric factory. Among other factors, he believes quality is concerned with conformance and aesthetics. Is Paul correct?

Options:

A.

Yes- other criteria include performance and reliability

B.

Yes- other criteria include cost and speed

C.

No- quality criteria includes performance and reliability

D.

No- quality is not concerned with aesthetics

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Questions 23

Which improvement theory follows the maxim of 'don't automate, obliterate'?

Options:

A.

BPR

B.

Benchmarking

C.

Continuous Improvement

D.

ERP

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Questions 24

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 4?

Options:

A.

flexibility

B.

speed

C.

quality

D.

cost

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Questions 25

Inventory Management is an important focus of operations within the Construction Industry. Is this TRUE?

Options:

A.

yes- its important that materials are ordered to the correct timescale to ensure the project remains on track

B.

yes- this is the most important aspect of managing a construction project

C.

no- inventory management is a key focus in the manufacturing industry only as raw materials are converted into outputs

D.

no- the construction industry does not require the storage of inventory

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Questions 26

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.

Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.

Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.

Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.

Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.

Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventive maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Company

Maintenance approach

Operating-process characteristic

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 6?

Options:

A.

volume

B.

visibility

C.

variation

D.

variety

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Questions 27

Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.

Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.

Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client’s feelings. The objective is now to improve the product’s look and performance to meet these expectations.

Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.

Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.

Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Company

TQM technique

Balanced Scorecard perspective

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 5?

Options:

A.

finance criteria

B.

business process criteria

C.

learning and growth criteria

D.

customer criteria

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Questions 28

Building redundancy into operational procedures increases what for an organisation? Select TWO

Options:

A.

costs

B.

reliability

C.

risk

D.

customer satisfaction

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Questions 29

Total Productive Maintenance and Just in Time are examples of Total Quality Management (TQM). Is this correct?

Options:

A.

yes- other examples include business process re-engineering

B.

yes- other examples include statistical process control

C.

no- TQM includes quality circles and quality function deployment

D.

no- TQM includes Kansei Engineering

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Questions 30

Khaled has recently been hired as an Operations Manager at a company providing consultancy services. This is his first role in the service industry, previously he has worked at companies providing goods. He understands that services are intangible and therefore there is a difference in how Operations may be managed. Which of the following sentences about services are true? Select THREE

Options:

A.

there is a transfer of ownership when purchasing a service

B.

services cannot be stored, unlike goods

C.

it is not possible to return a service

D.

there is no variability in services

E.

production and consumption occur simultaneously

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Questions 31

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 2?

Options:

A.

flexibility

B.

speed

C.

quality

D.

cost

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Questions 32

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.

Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.

Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.

Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.

Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.

Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventive maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Company

Maintenance approach

Operating-process characteristic

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 3?

Options:

A.

preventive maintenance

B.

run-to-breakdown maintenance

C.

condition-based maintenance

D.

mixed maintenance

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Questions 33

What is the end purpose of introducing a Total Quality Management process to the operations department of an organisation?

Options:

A.

customer satisfaction

B.

reducing costs

C.

zero defects

D.

increasing market share

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Questions 34

Sunshine Ltd is a global manufacturer of confectionery with sales of products in over 30 different countries bringing in a revenue of over £5m. Due to different cultures and tastes, they produce similar products for each country market, but tweak the recipe slightly for each customer base. Which type of manufacturing process is used at Sunshine Ltd?

Options:

A.

make to order

B.

mass production

C.

customisation

D.

mass customisation

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Questions 35

Which of the following is not an example of Statistical Process Control?

Options:

A.

Histogram

B.

Check Sheet

C.

Flowchart

D.

Scatter Diagram

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Questions 36

Which of the following are basic performance objectives used for day-to-day operations and ensure staff are working towards tangible achievements? Select TWO

Options:

A.

cost

B.

quality

C.

customer satisfaction

D.

operations agility

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Exam Code: L5M9
Exam Name: Operations Management
Last Update: Nov 14, 2026
Questions: 120

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