Exam 19: Performance Measurement and Evaluation

_____ focus on achieving standardization of components, systems, and services and application of currently used purchased items or the use of industry-standard versus unique items.

Cost avoidance figures almost always require manual calculation and are sometimes subject to exaggeration.

All aspects of performance lend themselves to quantitative measurement.

Actual prices for similar items should not be compared between plants, divisions, or business units due to differing market conditions.

_____ is the continuous measuring of products, services, processes, activities, and practices against a firm's best competitors or those companies recognized as industry or functional leaders.

_____ involves a comparison of one firm's market strategies against those of another.

Well-defined measures use data that are available and accurate.

Performance measurement systems receiving their data from automated or computerized systems are generally more susceptible to data manipulation.

Although this sounds difficult, it is often easy to develop measures that direct behavior or activity exactly as intended.

The PPM measure indicates the incidence of failures of components, assemblies, and systems or services when actually incorporated into the final product or service and supplied to external customers.

Although firms are increasingly focusing on cost versus price, price performance measures are no long popular.

Purchasing and supply chain managers often use the historical approach with effectiveness-related measures.

A/An _____ is the amount of time (in weeks or months) from concept to first shipment or provision of a product or service to the external customer.

It is difficult to develop performance improvement plans without understanding the areas in which performance falls short.

Few measures drive behavior that is not what is intended or needed.

All of the following are phases in the benchmarking process except _____.

A sound measurement and evaluation system provides sporadic reporting of performance results.

All of the following are examples of e-transaction measures except _____.

Few measures include a standard or target against which to evaluate performance results or outcomes.

Measurement fails to motivate and direct behavior toward desired end results.