Topic 13

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?

Automatically choose the most important criteria

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, C, & D only

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

Both B & E

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

False

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

True

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

True

What gets measured gets done

True

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

All of the above

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

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

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

A and C only

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

A and C only

Which of the following are buyer benefits from supplier certification?

All of the above

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

All of the above

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

Which of the following best describes purchase-price variance?

The difference between what you pay and the budgeted price

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

They are very hard to use

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

You are a supplier and want to demonstrate that your processes actually produce products of outstanding quality