Intro to Management Quizzes 5-8 + HW2:

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

False

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

False

In the context of Total Cost of Manufacturing (TCM), in general terms, procurement, manufacturing, inventory, warehousing, and transportation per unit costs each go down as volume goes up. True False

False

Products with low profit margin, relatively stable demand, and high levels of competition, are known as Innovative Products. True False

False

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

False

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 False

False

In which sourcing category would an item typically be classified, if it is considered to be high value, low risk, and there are multiple potential suppliers? Leverage Strategic Bottleneck Non-Critical

Leverage

All of the following are included in the eight wastes EXCEPT? Overspending Overproducing Waiting Extra-Processing

Overspending

Which quality expert is credited with introducing the concepts of zero defects? Kaoru Ishikawa Joseph Juran Philip Crosby W. Edwards Demming

Philip Crosby

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as? Supply Management Supplier Inspection Quality Systems Certification Supplier Certification

Supplier Certification

In-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations. True False

True

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

True

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

Vendor Managed Inventory

In which sourcing category would an item typically be classified, if it is considered to be low value, high risk, and there are a small number of alternative suppliers? Strategic Non-Critical Leverage Bottleneck

Bottleneck

Which one of the following is NOT a reason for buying or outsourcing? Due to insufficient capacity to make the item internally in your company-owned operations To achieve a cost savings Due to a lack (i.e., shortage) of procurement personnel To take advantage of better quality

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

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

Efficient Consumer Response

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

Expediting

Benefits of implementing an effective supplier certification program include all of the following EXCEPT? Increasing the supplier base Recognizing excellence Reducing time spent on incoming inspections Building long-term relationships

Increasing the supplier base

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

Leverage

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

True

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

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 False

True

Candidates for a Supplier Certification Program include suppliers who meet one or more of the following criteria, EXCEPT? A supplier who has no incoming product rejections for a specified time period A supplier who has a fully documented process and quality system with cost controls and continuous improvement capabilities A supplier whose processes are determined to be stable and in control A supplier who has a minimal number of significant negative quality related incidents for a specified time period

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

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? James Bond Performance Bond Payment Bond Bid Bond

Bid bond

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

Detachment

The primary goals of purchasing include all of the below, EXCEPT? Improve the quality of the finished goods produced Ensure the uninterrupted flow of materials and services at the lowest total cost Develop as many good quality suppliers as possible for each material or service Optimize customer satisfaction

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

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

Due to insufficient capacity in your company operations

In a Spend Analysis, purchases that involve items representing a low percentage of the firm's total spend and having very little supply risk, are categorized as Leverage Purchases. True 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 False

False

To make or process raw materials into finished products, especially by means of a large-scale industrial operation, is called what? Manufacturing Mass Customization Work-in-Process Inventory Management

Manufacturing

The goal of a good supplier performance evaluation system is to provide metrics that are: Understandable, qualitative, and focused on performance-related results Understandable, quantitative, and focused on cost-related results Understandable, quantitative, and focused on quality-related results Understandable, easy to measure, and focused on real value-added results

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

Which one of the following is among the most important elements of the LEAN manufacturing philosophy? Waste reduction and continuous improvement Large inventories and large batch sizes Quality inspections and a standardized product line Fully automated assembly lines and a large supplier base

Waste reduction and continuous improvement

Which one of the following is NOT a reason to have a single supplier? To spread the risk of a supply disruption To establish a good relationship To achieve transportation economies To have less quality variability

To spread the risk of a supply disruption

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

Prevention Costs

The practice of Supplier Co-location involves a supplier's employee being embedded in a buyer's purchasing department to forecast demand, monitor inventory and place orders for the item(s) provided by the supplier. True False

True

The purchasing function is one of the most value-enhancing functions in any organization, however, it is still necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks. True False

True

What is the term for starting the production of finished goods only after a customer's order is received? Make-to-Stock Make-to-Order Mass Customization Economic Order Quantity

Make-to-Order

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

True

Products with short product life cycles, volatile demand, high-profit margins, and relatively little competition, are known as Functional Products. True False

False

Which one of the following is NOT part of the eight (8) wastes identified through LEAN Manufacturing? Non-Utilized Talent Insufficient Capacity Extra-Processing Overproduction

Insufficient Capacity