Through-life management is a approach applied to capital asset. According to Ward and Graves,

Through-life Management involves the life-cycle management of the products, services and activities

required to deliver a fully integrated capability to the customer, while reducing the cost of ownership

for the customer. According to CIPS study guide, through-life management comprises of 6 parts:

1. Design

2. Manufacture

3. Installation

4. In-service support

5. Decommission and disposal

6. Customer support

In this scenario, the company is planning to procure a ship, which is a capital asset. Through life

management is a good approach. Sealines can start with developing through-life specification. This

approach may have several benefits:

- It lowers the costs over the whole life of the asset

- It lowers the risks as there is a single company accountable for costs and service over the life of the

asset

- A closer match between the asset delivered and the users' needs

- Development of capability over the life of the asset as the supplier continues to get experience of

the users' needs and can adapt services to meet them.

Reference:

- CIPS study guide page 130-131;

- Through-life management: The provision of total customer solutions in the aerospace industry, by

Yvonne Ward and Andrew Graves

LO 3, AC 3.2

:

Traditional financial systems operate with a centralised database, usually with a single point of

authority. Blockchain technology, on the other hand, allows for a distributed database that holds a

growing number of records. Instead of existing in one place, the ledger is continually updated and

synchronised across multiple computers in a network. Therefore, any participant in the network with

the proper authorisation can view the entire ledger – without relying on an intermediary or any one

authority.

Another key feature of blockchain technology is a “smart contract,” which is a self-executing protocol

that enforces a previously agreed arrangement. For example, a smart contract could trigger an

automatic refund under certain conditions or the automatic payment of an agreed commission after

a sale. These smart contracts can eliminate delays in traditional Finance processes, while increasing

transparency and reducing reliance on middlemen to follow through on their commitments.

Moreover, like other parts of a blockchain, smart contracts are immutable, so they can enhance

accuracy in the financial statements.

LO 2, AC 2.1

As you can see from the scenario, ABC Group is developing the new product. It might be using value

engineering. The latter sentences confirm this: the cross-functional team in ABC is mapping the

functions and surveying the customers. Their method is known as Kano model.

Reference: CIPS study guide page 171-172

LO 3, AC 3.4

A technical specification details the standards that a product or service must meet. Drawings (often

called engineering drawings or technical drawings) are complementary to technical specifications

Reference: CIPS study guide page 116-117

LO 3, AC 3.1

:

3D-printed parts can replace traditional metal parts. They are also more easily customised to fit

customer's needs. This technology is an example of threat of substitute in Porter's Five Forces model.

Substitute goods or services that can be used in place of a company's products or services pose a

threat. Companies that produce goods or services for which there are no close substitutes will have

more power to increase prices and lock in favorable terms. When close substitutes are available,

customers will have the option to forgo buying a company's product, and a company's power can be

weakened.

Reference:

- CIPS study guide page 85-96

- Porter's 5 Forces Definition: Analyzing Businesses (investopedia.com)

LO 2, AC 2.2

Kano model of excitement and basic quality (Kano et al, 1984; Berger et al, 1993; Matzler et al, 1996)

brings a different perspective for the analysis of improvement opportunities in products and services

because it takes in consideration the asymmetrical and non-linear relationship between performance

and satisfaction. The Kano model classifies customers requirements in three categories (figure 3):

a) Basic Requirements (or Must-be requirement). The basic requirements fulfill the basic func-tions

of a product. If they are not present or their performance is insufficient, customers will be extremely

dissatisfied. On the other hand, if they are present or have sufficient performance, they don't bring

satisfaction. Customers see them as prerequisites. For instance, for luxury automobiles, "air bags"

are considered basic. A customer won't feel satisfied if the automobile has "air bag", however he/she

will not buy it if “air bag” is not present.

b) Performance Requirements (or One-dimensional requirements). As for these requirements,

satisfaction is proportional to the performance level – the higher the performance, the higher the

customer's satisfaction will be and vice-versa. Gas consumption in automobiles is an example of

these requirements. Usually customers explicitly demand performance requirements.

c) Excitement Requirements (or Attractive requirements). These requirements are key to cus-tomer

satisfaction. If they are present or have sufficient performance, they will bring superior satisfaction.

On the other hand, if they are not present or their performance is insufficient, customers will not get

dissatisfied. For instance, a surprise gift at the end of a dinner in a restaurant will certainly bring

satisfaction, but it will not cause dissatisfaction if not offered. These requirements are not demanded

nor expected by customers.

Two other types of requirements may be identified in the Kano model: neutral and reverse ones.

Neutral requirements do not bring either satisfaction or dissatisfaction. Reverse require-ments bring

more satisfaction if absent than if present.

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Reference:

- Integrating Kano model and QFD for Designing New Products

- CIPS study guide page 171-172

Specifications for through-life contracts must be clear. They should use precise technical language

and avoid any ambiguity as much as possible. In most cases, 'good quality' is ambiguous. The con-

tractor doesn't know exactly which product the buying organisation needs and how to supply that

product.

Other notices for description of requirement are:

- Short and simply description

- Clear definitions at the beginning of the documents

- Clarify abbreviations (if any), but abbreviations should be avoided as much as possible

- Avoid any 'slang'

- Use imperative forms of language whenever possible.

LO 3, AC 3.2

The following are typical social criteria in procurement:

• Reducing unemployment

• Preventing the use of child labour

• Preventing discrimination on the grounds of race, religion, disability, sex or sexual orientation

• Encouraging good employment practice

• Reducing local unemployment

• Reducing social exclusion

• Promoting training opportunities for the young or disadvantaged

• Encouraging access to work for people with disabilities

Reference: CIPS study guide page 137

LO 3, AC 3.2