GSCM 350 test 5

Which of the seven rights of purchasing is most frequently measured?

At the right price

Which of the following is NOT a step in the process for developing a buyer appraisal system?

Autocratically choose the most important criteria.

The term BATNA stands for . . .?

Best Alternative to a Negotiated Agreement

A negotiation that is arm's length, adversarial, and even confrontational is called a . . .?

Distributive negotiation

Which of the following is NOT a common "process" negotiating mistake?

Failing to ask

After completing a negotiation, you learn that your first offer was above the supplier's RV. This was probably a good first offer.

False

As a rule, supplier certification programs require very little time, effort, or resource dedication.

False

ISO 9000 is a quality certification that assures that your suppliers produce the highest-quality products.

False

If you are unable to make an apples-to-apples comparison, then competitive bidding is a better option than negotiation.

False

You are negotiating with a supplier, and the supplier makes a very aggressive first offer. The best strategy is to . . .?

Tell the supplier that it appears that you are looking at the deal in different ways, and give the supplier an opportunity to make a more reasonable offer.

Not everyone uses balanced scorecards because you need a rare combination of vision and discipline to make the scorecarding process work.

True

Sometimes design engineers specify tolerances that are really tighter than needed (we call this behavior guardbanding). This may be a sign that engineers don't trust you to buy high-quality parts.

True

Supplier scorecards are like a report card; that is, your selected criteria and scales tell suppliers what you will be grading them on.

True

What gets measured gets done.

True

Which of the following is a key dimension of the balanced scorecard?

a. Customer expectations b. Operational excellence c. Future capability development d. Financial Performance e. All of the above

Which of the following is NOT a step in the process for developing a buyer appraisal system?

a. Distinguish objective from subjective criteria. b. Establish weights via "Penny Experiment." c. Define measurement scale for each criterion. d. Assess group influence to adjust weights. e. None of the above; that is, they are all steps in the process.

Which of the following is a reason or rationale for the development of the balanced scorecard concept?

a. Existing measures were too short-term focused. c. Existing measures were too financially oriented

Which of the following are buyer benefits from supplier certification?

a. Higher-quality parts b. Better buyer/supplier relationships c. Lower transaction costs d. Simplified receiving e. All of the above

Which of the following should be considered when sharing co-created value with the supplier?

a. How each party to the negotiation values the different benefits of the relationship b. How much the relationship's success depends on your supplier's capabilities. c. Your willingness to take a more liberal approach to sharing in the short term.

As a supply manager, by making an aggressive first offer, you can form a/n _______ which might help to drive down price.

Anchor

Suppose that the design engineering team set the specifications for length of a stamped sheet-metal part at 10 inches (T) with acceptable tolerances of ±.05 inches (USL and LSL). The average length of the products produced by the actual stamping process is 9.995 inches (m) with a standard deviation of .005 inches (). What is your Cpk?

3.0

Suppose that the design engineering team set the specifications for length of a stamped sheet-metal part at 10 inches (T) with acceptable tolerances of ±.05 inches (USL and LSL). The average length of the products produced by the actual stamping process is 9.995 inches (m) with a standard deviation of .005 inches (). What is your Cp?

3.33

The longer parties negotiate, the more willing they are to make concessions. The discussion mentions that roughly ___% of the concessions in a negotiation are made during the last ___% of the negotiation:

80/20

One major challenge in the design of supplier scorecards is that managers keep them too simple. Most effective scorecards are really quite complex and detailed. Good scorecards typically consist of 20 categories/criteria or more.

False

Quality is an important supplier-selection criterion that is found on about 25% of all supplier-selection/evaluation scorecards.

False

The process for designing/developing a supplier scorecard must be different and distinct from the process you use to develop buyer appraisal criteria.

False

Threats can help you move the negotiation forward whether you are ready to end the negotiation or not.

False

Negotiations that involve both value creation and value claiming are referred to as . . .?

Integrative negotiations

Which of the following is your best approach to creating value in a negotiation?

Introducing more than one issue into the negotiation

If, during the negotiation, you discover information that substantially changes the negotiation landscape, you should . . .?

Pause the negotiation

Which of the following is NOT a tactic that you would use during a distributive negotiation?

Pursue interests

In a buyer-supplier negotiation, the top of the ZOPA is formed by:

The Buyers RV

Which of the following best describes purchase-price variance?

The difference between what you pay and the budgeted price.

Under which of he following circumstances is competitive bidding a better option than negotiating?

There are an adequate number of suppliers that want to compete for your business

Which of the following is NOT a key role of a supplier scorecard?

They are very hard to use.

Integrative negotiations are also sometimes referred to as:

Win-win

Which of the following is NOT an appropriate scenario for pursuing ISO 9000 certification?

You are a supplier and want to demonstrate that your processes actually produce products of outstanding quality (i.e., PPM defects).

The ceiling of the ZOPA is formed by . . .?

Your RV

The ZOPA is formed by . . .?

Your RV and the other party's RV

If you are confident about the _____, it is generally best to make the first offer.

Zopa

Which of the following should you ask to develop an effective negotiation plan?

a. Are you claiming value? b. What are the facts? c. What are the issues? d. How strong are your positions? e. What concessions are you willing to make? f. All of the above

Which of the following is something you should expect a great buyer to do?

a. Build productive relationships with internal customers. b. Understand supply and demand for the items/categories they buy. c. Scan actively; that is, track risks and emerging technologies. d. Design processes for making standard buys (e.g., p-cards and web catalogues). e. Help suppliers continuously improve their own processes. f. All of the above

What is the key to pursuing interests?

a. Probe b. Explore possibilities

Which is the following a tactic that you would use to move a negotiation toward an integrative negotiation?

a. Pursue interests b. Explore possibilities c. Build trust d. Share benefits e. All of the above

Which of the following is true of dock-to-stock suppliers?

a. You no longer perform incoming inspections. c. Incoming shipments go straight to inventory or to the production floor.

If you discover that a supplier's process is not capable of consistently producing within your required design specifications, which of the following actions should you consider taking?

b. Evaluate the specifications to make sure they are not tighter than they really need to be. c. Work to improve the process to reduce variability. d. Find a new supplier that operates better, more consistent processes.

Which of the following is NOT one of the steps in W. Edward Deming's PDCA cycle?

b. Procrastinate e. Calculate

At the end of the day, as a supply professional you will negotiate for two basic reasons: 1) to claim value your company, and 2) to lower price.

false

Competitive bidding and negotiation are appropriate tools to help you achieve your cost goals for buys that are in the Routine quadrant of the Strategic Sourcing Matrix.

false

If you are involved in an integrative negotiation, you focus on value creation and avoid value claiming at all costs

false

Negotiations often lead to a decreased understanding of a supplier—and as a result, less cooperation.

false

If suppliers are unwilling to bid, then negotiation is a better option than competitive bidding.

true

Supply managers are responsible for ensuring that they get the best products and services from their suppliers.

true

Supply managers negotiate for many reasons.

true

The best place for you to start certifying suppliers is in the "leverage" or "critical" quadrants of the purchasing portfolio matrix.

true