Exam 2

​"The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for​ improvement" is the definition of A. spend analysis. B. industry analysis. C. maverick spending. D. core analysis.

A

A company elects to use portfolio analysis to conduct their sourcing strategy. They decide to begin this arduous process with​ Post-it® notes because they are used in every office and at every workstation in the building. Where would this item likely​ fall? A. leverage quadrant B. routine quadrant C. critical quadrant D. bottleneck quadrant

B

A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their​ X-bar chart? Sample​ # 1 2 3 4 5 6 7 8 Item​ #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item​ #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item​ #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item​ #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5 Sum 86.1 88.8 93.4 92.3 86.6 90.4 93.7 92.9 A. ​22.6, 19.5 B. ​24.9, 20.3 C. ​23.8, 21.4 D. ​21.1, 17.6

B

The college of business faculty was evenly​ split; half preferred chalk and blackboards and the other half preferred dry erase markers and whiteboards.​ Reluctantly, the purchasing agent agreed to handle supply of these items. One professor​ didn't want chalk or plain dry erase​ markers; he went directly to a specialty producer of scented dry erase markers. His motto had always been that it was better to ask forgiveness than ask permission. His path around the normal purchasing channel is known as A. rule circumvention. B. maverick spending. C. scofflaw ordering. D. unauthorized ordering.

B

The standard used by companies seeking to establish a management system that provides confidence in the conformance of their products and services to established or specified requirements is A. ISO​ 9004:2009. B. ISO​ 9001:2008. C. ISO​ 9004:2004. D. ISO​ 9001:2004.

B

Which of the following advantages is gained by a firm that has a multiple sourcing​ strategy? A. per unit costs are usually lower B. risk is spread C. a stronger relationship is built between the companies D. ​per-unit transportation costs are usually lower

B

A technique used to translate customer requirements into technical requirements is A. continuous improvement. B. statistical quality control. C. quality function deployment. D. quality assurance.

C

Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced. Breezy submits a bid of​ $40 per​ unit, Lady's bid is​ $50 per​ unit, and​ Spike's bid is​ $30 per unit. If a section of fence​ fails, it costs an average of​ $500 in losses and herding costs to round up all of the capybaras. Dusty believes it will take 500 units to fence in this pasture configuration. What defect rates for the three suppliers would make Dusty indifferent among them from a total cost​ standpoint? A. Breezy​ 1%, Spike​ 3%, Lady​ 2% B. Breezy​ 5%, Spike​ 6%, Lady​ 2% C. Breezy​ 3%, Spike​ 5%, Lady​ 1% D. Breezy​ 2%, Spike​ 3%, Lady​ 4%

C

Firms do not compete only against global​ competitors, but against A. themselves. B. the customers of their competitors. C. their​ competitors' supply chains. D. their suppliers.

C

Flingers Inc. reveals the following information in their annual report for FY 2014. Earnings and Expenses Sales ​$10,000,000 Cost of goods sold ​ $5,000,000 Pretax earnings ​ $500,000 Selected Balance Sheet Items Merchandise inventory ​ $80,000 Total assets ​ $2,000,000 Upper management plans to cut cost of goods sold by​ 5% for the coming year but retain the same sales. What will​ Flingers' return on assets figure be for​ 2015? A. ​26% B. ​29% C. ​38% D. ​33%

C

Flingers Inc. reveals the following information in their annual report for FY 2014. Earnings and Expenses Sales ​$10,000,000 Cost of goods sold ​ $5,000,000 Pretax earnings ​ $500,000 Selected Balance Sheet Items Merchandise inventory ​ $80,000 Total assets ​ $2,000,000 What is​ Flingers' profit​ margin? A. ​2% B. ​16% C. ​5% D. ​4%

C

In the Dittenhoefer fine china​ case, a worker set the polymer coating machine to 190 degrees to clean the machine and forgot to reset the temperature for production. Dittenhoefer destroyed the​ 2,400 defective plates prior to delivery to the customer. The destruction of​ 2,400 plates resulted in which of the following type of quality​ costs? A. appraisal B. prevention C. internal failure D. external failure

C

One international standard for managing quality across the supply chain is A. AQL. B. LTPD. C. ISO 9000. D. ISO 14000.

C

The American Society for Quality has a two part definition of quality. One perspective on quality is​ "a product or service free from​ deficiencies; the product performs as​ intended." This is the​ ____________ perspective on quality. A. reliability B. value C. conformance D. aesthetics

C

Which of the following is required in order to execute a successful spend​ analysis? A. graphics capabilities found in charting packages and Visio B. a minimum of six months uninterrupted work time C. ability to analyze large quantities of data D. a sophisticated statistical software package such as SPSS or SAS

C

In the Dittenhoefer fine china​ case, workers visually inspected finished items for defects such as chips or cracks. The time and labor cost associated with this inspection resulted in which of the following type of quality​ costs? A. external failure B. prevention C. internal failure D. appraisal

D

Which of the following is a principle of TQM that assumes there will always be room for​ improvement, no matter how well an organization is​ doing? A. quality assurance B. employee empowerment C. quality function development​ (QFD) D. continuous improvement

D

_______________ are terms and conditions for a purchased service that​ indicate, among other​ things, what services will be performed and how the service provider will be evaluated. A. ​Procure-to-pay cycles B. Electronic funds transfers​ (EFT) C. Purchase orders​ (PO) D. Statements of work​ (SOW)

D

​__________ is the dimension of quality that addresses the additional characteristics of the product or service beyond the base operating features. A. Reliability B. Aesthetics C. Performance D. Features

D

​_______________ is the purchased cost of goods from outside suppliers. A. Merchandise inventory B. Profit margin C. Return on assets​ (ROA) D. Cost of goods sold​ (COGS)

D

​_______________ is used when a product or service is proprietary or when there is a perceived advantage to using a particular​ supplier's products or services. A. Description by performance characteristics B. Description by market grade C. Description by specification D. Description by brand

D

Appraisal costs can occur when a company has NOT produced any defective items. True False

True

Joseph​ Juran's definition of quality as​ "fitness for​ use" is an example of the value perspective of quality. True False

True

Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers. True False

True