Test 2 review SCM

The concept of Distributive Negotiations refers to both sides working together to create a "win-win" result or positive outcome for both parties. True or False

False

DMADV stands for

Define, Measure, Analyze, Design, Verify

DMAIC stands for

Define, Measure, Analyze, Improve, Control

They key characteristics to consider in the development and implementation of a Supplier Relationship Management System, include all of the following, EXCEPT? -Collaboration -Visibility -Integration -Detachment

Detachment

occur when the product or service does not meet the designed quality standards, and are identified before the product or service is delivered to the customer.

Internal Failure Costs

DMADV and DMAIC are part of what methodology

Six Sigma

Managing a company's external resources in ways that support the long-term goals of the company can be referred to as?

Strategic sourcing

Which of the following is NOT one of the advantages of e-Procurement? Mobility Inaccuracy Real Time Trackability

Inaccuracy

Which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? -Single Source -Multi Source -Sole Source

Multi-Source

What is the term for an Internal document that defines the need for goods and/ or services? Procurement Purchase Order e-Procurement Purchase Requisition

Purchase Requisition

The process of identifying a company that provides a needed good or service.

Sourcing

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

Specific, Measurable, Achievable, Relevant, Time-Oriented

One of the main reasons to consider purchasing from an international global source is the opportunity to improve quality, cost, and delivery performance True or False

True

The Weighted-Criteria Evaluation System is typically used to select a supplier or to evaluate the performance of a supplier. True or False

True

occur when the product or service does not meet the designed quality standards, but is not detected until after the product or service is delivered to customer.

External Failure Costs

5-S, or the five pillars of the visual workplace, is a systematic process of workplace organization.

sort, set in order, shine, standardize, sustain

The Profit-Leverage Effect states that a decrease in purchasing expenditures will directly decrease profit True or False

False

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.

Strategic Sourcing

The discipline of strategically planning for, and managing, all interactions with the third party organizations that supply goods or services to an organization, in order to maximize the value of those interactions

Supplier Relationship Management (SRM)

Reduction in the supply base to the lowest number of suppliers possible without significantly increasing risk

Supply Base Rationalization

The following are five (5) key characteristics to consider in the development and implementation of an SRM system

automation, integration, visibility, collaboration, optimization

Is an operating philosophy of waste reduction and value enhancement.

LEAN

Strong Supplier Partnerships are based on what perspective

strategic perspective

General Sourcing Categories consists of what kind of items

Bottleneck, Strategic, Leverage, Non-Critical

Which cost of quality category includes performing audits to confirm that the quality system is operating properly? -Appraisal Cost -Prevention cost -Internal failure cost

Appraisal Cost

What is the term that is often used for the acquisition of services?

Contracting

The concept which attempts to bring about positive social change through organizational buying behavior, is known as? -Business Ethics -Sustainability -Ethical Sourcing -Supplier Code of Conduct

Ethical Sourcing

Which element of Lean can be described as moving people and materials when and where needed, and as soon as possible? -Small batch scheduling -Inventory, Setup Time & Changeover Time Reduction -Lean layouts -Waste Reduction

Lean Layouts

Procurement consists of

Purchasing Management, Strategic Sourcing, Supplier Relationship Management

A proposal or quotation submitted in response to a solicitation from a contracting authority.

Bid

Intermittent Production Processes are used to produce a large variety of products with different processing requirements in lower volumes.

True

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 Merchants -Import Brokers -Trading Companies

Import Brokers

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

Control Chart

Refers to a process that leads to self-interested, one-sided outcome

Distributive Negotiations

Which of the following is NOT one of the drivers of Strategic Sourcing? -Focusing on customer -Reducing the delivery lead times -Optimizing the number of global suppliers -Increasing the selling price of the product

Increasing the selling price of the product

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

True

Process steps that transform or shape a product or service which is eventually sold to a customer.

Value Added Process

are associated with the evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications.

Appraisal Costs

Which of the following new technologies can improve the supplier selection and increase the effectiveness of supplier relationship management? -Blockchain -eFulfillment -Artificial Intelligence -The Internet of Things

Artificial Intelligence

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

False

While paperless transactions are now possible through e-procurement and Web-based services, these would NOT be considered sustainable business practices. True or False

False

A decrease in purchasing expenditures directly increases profit before taxes (assuming no decrease in quality or purchasing total cost).

Profit-Leverage Effect

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

All of the following are reasons for MAKING an item in your own company operations, Except for which one? -There is no competent supplier available -Due to insufficient capacity in your company operations -To protect your proprietary technology -To control transportation and warehouse costs

Due to insufficient capacity in your company operations

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? -Quick Response -Efficient Consumer Response -Just in Time -Keiretsu Relationships

Efficient Consumer Response

Which of the following is NOT one of the 12 steps in the basic Purchasing Process? Obtain authorization as necessary Fulfillment Expediting Analysis

Expediting

A purchase order is legally binding once issued by the buyer True or False

False

A robust and long-lasting supplier partnership requires that both the buyer and the supplier adopt a strong tactical perspective True or False

False

ISO 14000 certification is a series of management and quality standards in design, development, production, installation, and service True or False

False

ISO 14000 is a widely accepted quality certification standard True or False

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. True or False

False

The role of workers in Lean is to create the cultural change needed for Lean to succeed. True or False

False

Which general sourcing category comprises items where many alternatives of supply exist, and supply risk is low. Spend is high and there are potential procurement savings? Non-Critical Bottleneck Leverage Strategic

Leverage

Product moves on an assembly line through various stages of production, for standardized products with a limited number of variations

Line Flow Production

The four Major Manufacturing Strategies are

Make to stock, make to order, assemble to order, engineer to order

The process commonly utilized in continuous improvement is known as?

Plan, Do, Check, Act

are related to the design, implementation, and maintenance of the quality management system. They are planned, and experienced before actual products or materials are acquired after.

Prevention Costs

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

Total Cost of Ownership

is a management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations.

Total Quality Management

"Rationalizing the supplier base" typically means that the company is trying to reduce the number of suppliers in its supplier network. True or False

True

Duties, taxes, or customs imposed by the host country for imported or exported goods, are known as Tariffs True or False

True

Outsourcing allows a firm to concentrate on core capabilities and reduce staffing levels True or False

True

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

True

Through collaborative negotiations both side work together to maximize the outcome or create a win-win result. True or False

True

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? -Early Supplier Involvement -Value Engineering -Supplier Development -Supplier Recognition

Value Engineering

Which sourcing concept involves a supplier directly managing the buyer's inventories to reduce the buyer's inventory carrying costs and avoid stockout? -Reverse Auction -Vendor Managed Inventory -Co-Managed Inventory -Supplier Co-Location

Vendor Managed Inventory

Term used in business to describe the in-depth process of capturing internal and external _customer's expectations, preferences, likes, and dislikes

Voice of the Customer

In which type of manufacturing process would each individual item in the group go through one stage of the production process before the whole group movies on to the next stage? -Job Shop Production -Batch Production -Line Flow Production -Continuous Flow Production

Batch Production

All of the following are reasons for Buying or Outsourcing an item from an supplier, Except for which one? -Due to the lack of expertise in your own company operations -Because you want adopt multi-sourcing strategy -Because you want to use existing idle capacity in your own company operations -Because the item is non-strategic

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

A proposal or quotation submitted in response to a solicitation from a contracting authority is known as what? -Bond -Tariff -Countertrade -Bid

Bid

The sourcing strategies including; maintaining safety and/or strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, are appropriate for which item category?

Bottleneck Items

Which of the following is NOT one of the keys to successful strategic partnerships -Developing personal relationships -Gaining commitment from top management -Building independent objectives -Understanding and influencing capabilities

Building independent objectives

Both sides work together to maximize the outcome or create a win-win result. Requires open discussions and a free-flow of information between parties

Collaborative Negotiations

Which element of Lean is described as a system based on making little changes on a regular basis, anywhere changes can be made, to reduce process, delivery,. and quality problems? -Uniform Plant Loading -Lean Supply Chain Relationships -Workforce Empowerment -Continuous Improvement

Continuous Improvement

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. True or False

False

Is a disciplined, statistical-based, data-driven methodology for identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and in business processes

Six Sigma

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as?

Supplier Certification

Is the ability to meet current needs of the supply chain without hindering the ability to meet future needs in terms of economic, social, and environmental challenges.

Sustainability

Creates a custom product for each customer, and undertaken by small specialist businesses

Job Shop Production

Manufacturing of a small fixed quantity of an item in a single production run.

Batch Production

Involves a series of processes which raw materials flow through. These processes are very inflexible, Generally highly automated, and workers act as monitors rather than as active participants, and High capital investment - frequently dedicated to one specific product

Continuous Flow Production

Which manufacturing strategy can be described as producing products to put into inventory based on demand forecast? -Make to stock -Make to order -Assemble to order -Engineer to order

Make-to-Stock

Benefits of Supplier Recognition Programs are

Motivate Suppliers, Improve Supplier Loyalty, Adapt to Company's Culture, Entry Barriers for Competitors, Participation in Product Innovation

Process steps that take time, resources, or space, but do not transform or shape the product or service.

Non-Value Added Process

The four elements of cost are

Quality, Service, Delivery, and Price (QSDP).

Is the complete cost of producing and delivering products to your customers

Total Cost of Manufacturing

Is the sum of all the costs associated with every activity in the supply stream of a product

Total Cost of Ownership

A Supplier Code of Conduct is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier. True or False

True

Pain and Gain Share contract provisions are associated with supplier rewards and recognition programs. True or False

True

Root Cause Analysis is a term that describes a wide range of approaches, tools, and techniques used to uncover causes of problems.

True

Total Cost of Ownership is the sum of the cost elements Quality, Service, Delivery, and Price True or False

True

A procurement process in which bids from competing suppliers, for the right to supply specified materials or services, are requested

Competitive Bidding

Strategic Sourcing is the process of identifying a company that provides a needed good or service. True or False

False

The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks True or False

False