Exam 2 Intro Supply Chain

Which one of the following is NOT one of the Seven Tools of Quality Control?

Hysterical Charts

Which Lean related process can be described as a strategy to increase the level of services to consumers through close cooperation among retailers, wholesalers, and manufacturers?

Efficient Consumer Response

A purchase order is legally binding once issued by the buyer.

False

A strong supplier partnership requires that both buyer and supplier adopt a strong tactical perspective.

False

An effective supplier certification program may increase the time spent on incoming inspections.

False

Costs incurred in the process of establishing specifications for incoming materials, processes, products, and services, are categorized as which of the following?

Prevention Costs

Forward Vertical Integration refers to a company acquiring one or more of their sources of supply.

False

The Six Sigma 5-Step Plan referred to as DMAIC stands for?

Define, Measure, Analyze, Improve, Control

The primary goals of purchasing include all of the below, EXCEPT?

Develop as many good quality suppliers as possible for each material or service

Which one of the following is NOT a reason for buying or outsourcing?

Due to a lack (i.e., shortage) of procurement personnel

Award-winning suppliers serve as role models for other suppliers and may therefore be exempt from audits and certification programs

False

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tenders.

False

ISO 14000 is a widely accepted management and quality certification standard.

False

Industrial buyers purchase raw materials and other components for conversion into a finished product, but they do not purchase services or capital equipment.

False

Lean is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects and minimizing variability in manufacturing and in business processes

False

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profits

False

Total Quality Management is the term used in business to describe the in-depth process of capturing internal and external customer's expectations, preferences, likes, and dislikes

False

Benefits of implementing an effective supplier certification program include all of the following EXCEPT?

Increasing the supplier base

The keys to developing successful supply partnerships include all of the following EXCEPT?

Individualized Objectives

The operating philosophy that focuses on waste reduction and value enhancement is known as?

Lean

Which Manufacturing Strategy can be described as producing products to put into inventory based on a demand forecast?

Make-to-Stock

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

The goal of a good supplier performance evaluation system is to provide metrics that are:

Understandable, easy to measure, and focused on real value-added results

A key supplier's activities to help the buyer's company reduce cost, improve quality and reduce new product development time beginning with the initial design phase, are known as?

Value Engineering

The term used to describe a debt secured by a bidder for the purpose of providing a guarantee that the successful bidder will accept the contract once awarded, is known as?

Bid Bond

Which quality expert is credited with introducing the concepts of zero defects?

Philip Crosby

The primary design objective of a Lean layout is to reduce wasted movements of workers and/or materials

True

The purchasing tool described as "A detailed capabilities document used to determine a supplier's capability and interest in the production of a product or service" is called a Request for Proposal (RFP).

True

Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity

True

The goal of Six Sigma is the elimination of waste and the minimization of the amount of all resources (including time) used in the operation of a company.

False

What is the term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes?

Voice of the Customer (VOC)

Which tool of quality control is used to study how a process changes over time?

Control Chart

Which of the following are described as Agents licensed by the governmental regulatory authority to conduct business on behalf of importers, for a service fee?

Import Brokers

The sum of all costs associated with every activity in the supply stream of a product, is referred to as?

Total Cost of Ownership

"Supply Management" is a newer term that encompasses all acquisition activities beyond the simple purchase transaction.

True

Forward Vertical Integration refers to a company acquiring one or more of their customer organizations.

True

Successful supplier relationships involve equal decision-making control between both the buyer and the supplier.

True

Which of the following is NOT one of the primary goals of Purchasing?

Increase the supplier base

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT?

A supplier who has a minimal number of significant negative quality related incidents for a specified time period

The process of taking a statistically significant representative sample to be measured against the quality acceptance standard, is known as?

Acceptance Sampling

Which manufacturing strategy is described as a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent?

Assemble to Order

All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one?

Because you want to use existing idle capacity in your own company operations

Which of the following is NOT one of the keys to successful strategic partnerships?

Building independent objectives

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what?

Manufacturing

Buying materials and components from suppliers instead of making them in your company-owned operations, is known as?

Outsourcing

The quality management philosophy that focuses on improving the overall quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes, is known as?

Six Sigma

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly increase profits.

True

Performance Measures should be S.M.A.R.T. which is an acronym that means?

Specific, Measurable, Achievable, Relevant, Time-oriented

Which of the following would be a good reason to outsource (buy) versus make an item?

A firm lacks the technology or expertise to produce an item

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT?

Developmental suppliers that need to make improvements

In public purchasing in the government & non-profit business sector, bidders (i.e., potential suppliers) are generally required to furnish bonds as an incentive to ensure that the successful bidder will fulfill the contract awarded. Which type of bond provides protection against 3rd party liens (i.e., debts) not fulfilled by the bidder?

Payment Bonds

Supplier Relationship Management is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace

False

The process to evaluate a supplier's capabilities, and their capacity to supply a product or service to the buyer, is known as Supplier Certification.

False

When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories.

False