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ISM LEAD Exam Syllabus Topics:

Topic	Details
Topic 1	Strategy Development: This section covers creating and carrying out long-term supply management plans to meet organisational objectives.
Topic 2	Risk and Compliance: This domain covers identifying, assessing, and mitigating potential threats while ensuring adherence to regulations in supply management.
Topic 3	Stakeholder Engagement: The section covers cooperating and communicating effectively with internal and external stakeholders impacted by supply chain choices.
Topic 4	Corporate Social Responsibility and Ethics: This domain covers incorporating ethical and sustainable practices into decision-making and supply chain processes.
Topic 5	People Development and Coaching: In this section, focus is on nurturing talent and fostering skills growth within the supply management team.

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ISM Leadership and Transformation in Supply Management Sample Questions (Q64-Q69):

NEW QUESTION # 64
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. Implement a corporation-wide software solution to improve communication between local plants and headquarters
C. Change procedures so that all material contracts are negotiated globally from 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 # 65
CDE Corporation prides itself on maintaining high standards of social responsibility and expects its suppliers to adhere to similar standards, especially for safety. CDE identifies potential sources and wants to be sure on-site personnel at these suppliers are trained in CDE's procedures. Which of the following is the BEST course of action for CDE to take to ensure suppliers receive safety training in compliance with its expectations?

A. Include an attachment to suppliers' contracts requiring them to acknowledge CDE's safety training plan
B. Deploy a web-based module detailing all safety procedures to each of the suppliers
C. Send a team from its headquarters to conduct classes for the suppliers' employees in each location
D. Engage local trainers to lead classes using curricula specified by CDE

Answer: D

Explanation:
To ensure suppliers receive safety training in compliance with CDE Corporation's standards, the best course of action is to engage local trainers to lead classes using curricula specified by CDE. This approach ensures that training is conducted by individuals familiar with local regulations and cultural nuances while adhering to CDE's standards. Leadership and transformation management documents highlight the importance of localized training to enhance effectiveness and compliance. By providing specified curricula, CDE can ensure that the content meets its high standards of social responsibility and safety. Reference emphasize the benefits of using local resources to implement training programs, which can lead to better engagement and understanding among participants.

NEW QUESTION # 66
A supply manager meets with a group of external auditors presenting a draft of their report on the supply management function. Which of these findings should be of GREATEST concern to the supply manager?

A. "General descriptions rather than detailed ones are used."
B. "The organization chart does not include intermediate reporting levels."
C. "Input from stakeholders has been given too much weight."
D. "Teams are cited for their failure to meet performance criteria."

Answer: D

Explanation:
Among the findings presented by the external auditors, the greatest concern for the supply manager should be that "teams are cited for their failure to meet performance criteria." Performance Criteria: Failure to meet performance criteria indicates that the supply management teams are not achieving the expected standards and objectives. This can significantly impact the overall effectiveness and efficiency of the supply management function.
Accountability: Not meeting performance criteria suggests issues with accountability and could reflect poorly on management practices, training, and resource allocation within the supply management department.
Operational Impact: Persistent failure to meet performance criteria can lead to operational inefficiencies, increased costs, and potential disruptions in the supply chain.
Reference:
Kaplan, R.S., & Norton, D.P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
Drucker, P.F. (1954). The Practice of Management. Harper & Row.

NEW QUESTION # 67
A supply manager for JKL Corporation has been working on a large purchase with Supplier A for a new type of widget. During the negotiations, the supply manager asks Supplier A to warrant its products for a year rather than the typical 30 days. However, Supplier A does not accept the extended warranty terms. The supply manager shares this information with JKL's business team. The team wants to proceed with the purchase in any case, but the supply manager would still like for the team to reconsider its position. Which of the following would be the MOST appropriate way for the supply manager to influence the team?

A. Alert someone higher on the approval channel about the risks in Supplier A's proposal
B. Communicate the risks involved at each level of approval in the process so that it is clear to all
C. Ensure that no one approves the purchase order until Supplier A complies with the request
D. Enter the requisition and wait to route it until Supplier A agrees to comply with the request

Answer: B

Explanation:
* Risk communication: Clearly outlining the risks associated with the supplier's warranty terms ensures informed decision-making.
* Influence strategy: Providing detailed risk information at each approval level helps in building a consensus and potentially reconsidering the decision.
* Leadership principles: Transparent communication and advocacy for what is best for the organization are key tenets of effective supply management.
* Reference: "Influence: The Psychology of Persuasion" by Robert Cialdini emphasizes the importance of clear communication in influencing decisions.

NEW QUESTION # 68
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. Consult human resources for advice on how to improve relationships between the regional and global teams
B. Launch a change management initiative and develop a detailed plan to achieve the desired changes
C. Hold a team meeting to highlight the successful outcomes of prior global projects and recognize key contributors
D. Address the matter with each direct report and tie improvement targets to individual performance goals

Answer: C

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 # 69
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