Chap 5-8

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

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

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

Building independent objectives

Total Quality Management (TQM) is an integrated organizational effort to improve quality at every level. Which one of the following is NOT part of TQM? Continuous Improvement Customer Focus Management Commitment Customer Segmentation

Customer Segmentation

Benefits derived from implementing an e-procurement system include all of the following EXCEPT? Trackability Real Time Access Time Savings Decentralizing Purchasing

Decentralizing Purchasing

The best supplier candidates for Supplier Relationship Management (SRM) include all of the following EXCEPT? -Suppliers that provide lesser quantities of a crucial products/services -Developmental suppliers that need to make improvements -Preferred Suppliers -Suppliers that provide high volumes of products or services

Developmental suppliers that need to make improvements

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

FALSE

Lean is an operating philosophy or mindset that attempts to minimize the impact of supply variability and flaws in forecasting through the use of safety stock inventories True or False

FALSE

Sourcing Sustainability is described as the ability to meet the current needs of the supply chain without costing the company any additional time or money. 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

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. True or False

False

The keys to developing successful supply partnerships include all of the following EXCEPT? Performance Metrics Personal Relationships Mutual Benefits and Needs Individualized Objectives

Individualized Objectives

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? Strategic Bottleneck Non-Critical Leverage

Leverage

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

Multi-source

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

Philip Crosby

The process commonly utilized in continuous improvement is known as? Ready, Set, Go Plan, Source, Make, Deliver Plan, Do, Check, Act Specific, Measurable, Achievable, Relevant, Time-Oriented (S.M.A.R.T.)

Plan, Do, Check, Act

Backward Vertical Integration refers to a company acquiring one or more of their sources of supply. TRUE or FALSE

TRUE

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

TRUE

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 or False

TRUE

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

True

The process of requiring pre-qualifying suppliers to enter a website and at pre-designated time and date to try to underbid one another is known as? Competitive Bidding Process Reverse Auction Request-for-Proposal (RFP) Solicitation

Reverse Auction

Which cost of quality category includes performing audits to confirm that the quality system is operating properly? Internal Failure Costs External Failure Costs Appraisal Costs Prevention Costs

Appraisal Costs

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 Make to Stock Make to Order Engineer to Order

Assemble to Order

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 moves on to the next stage? Continuous Flow Production Batch Production Job Shop Production Line Flow Production

Batch Production

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? Bottleneck Strategic Leverage Non-Critical

Bottleneck

The application of ethical principles in business situations is known as? Profit-Leverage Effect Sustainability Corporate Social Responsibility Business Ethics

Business Ethics

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

FALSE Refers to a company acquiring one or more of their customers.

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

FALSE The Profit-Leverage Effect states that a decrease in purchasing expenditures directly increases profit

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. True or False

False This is the goal of LEAN methodology

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

Insufficient Capacity

In which item category would the sourcing strategies of consolidating volumes as a negotiation tool, using the competitive marketplace to reduce costs, and automating supplier interfaces to minimize process related costs, be appropriate? Bottleneck Items Strategic Items Non-Critical Items Leverage Items

Leverage Items

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

Manufacturing

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

Purchase Requisition

Performance Measures should be S.M.A.R.T. which is an acronym that means? -Significant, Memorable, Appropriate, Reasonable, Time-tested -Substantial, Meaningful, Accurate, Rational, Time-sensitive -Suitable, Marketable, Applicable, Remarkable, Time-based -Specific, Measurable, Achievable, Relevant, Time-oriented

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 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 or FALSE

TRUE

Which of the following is NOT one of the primary goals of Purchasing Increase the supplier base Improve the quality of the finished goods produced Ensure the uninterrupted flow of materials and services at the lowest total cost Optimize customer satisfaction

Increase the supplier base

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

To spread the risk of a supply disruption

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

FALSE theyre known as tariffs

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

False

In which item category would the sourcing strategies of ensuring availability of supply, focusing on relationship building, encouraging process integration and innovation, frequent communications, and establishing mutually agreeable supplier performance criteria, be appropriate? Bottleneck Items Non-Critical Items Leverage Items Strategic Items

Strategic Items