Question 1

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not one of the benefits of benchmarking?

Accepted Answer

A)  Helps identify the best business or functional practices to include in a firm's business plans. 
B)  Determines internal customer needs and wants. 
C)  Breaks down a reluctance to change. 
D)  Serves as a source of market intelligence. 
E)  Uncovers previously unrecognized technological breakthroughs. 
A)  Helps identify the best business or functional practices to include in a firm's business plans. 
B)  Determines internal customer needs and wants. 
C)  Breaks down a reluctance to change. 
D)  Serves as a source of market intelligence. 
E)  Uncovers previously unrecognized technological breakthroughs.

Question 3

The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.

Accepted Answer

A) True 
 B)False

Question 4

According to Kaplan and Norton,a balanced scorecard includes all of the following key performance measurement areas except ____.

Accepted Answer

A)  customer satisfaction perspective 
B)  operational excellence perspective 
C)  innovation perspective 
D)  human resource perspective 
E)  financial perspective 
A)  customer satisfaction perspective 
B)  operational excellence perspective 
C)  innovation perspective 
D)  human resource perspective 
E)  financial perspective

Question 5

Measurement seldom motivates and directs behavior toward desired end results.

Accepted Answer

A) True 
 B)False

Question 6

Salaries traditionally take the largest share of the purchasing administrative budget.

Accepted Answer

A) True 
 B)False

Question 7

All of the following are examples of customer order measures except ____.

Accepted Answer

A)  percentage of on-time delivery 
B)  total time from customer order to customer delivery 
C)  returned orders 
D)  warranty claims 
E)  inventory turns 
A)  percentage of on-time delivery 
B)  total time from customer order to customer delivery 
C)  returned orders 
D)  warranty claims 
E)  inventory turns

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Measuring and evaluating performance historically has had certain problems and limitations.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

A performance objective should reflect the realities of the firm's competitive environment.

Accepted Answer

A) True 
 B)False

Question 12

A ____ is the increase or decrease in cost resulting from a change in purchasing strategy or practice brought about by an individual or a group.

Accepted Answer

A)  cost change 
B)  cost avoidance 
C)  target cost 
D)  target price 
E)  purchase price variance 
A)  cost change 
B)  cost avoidance 
C)  target cost 
D)  target price 
E)  purchase price variance

Question 13

____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.

Accepted Answer

A)  Strategic benchmarking 
B)  Effectiveness 
C)  Efficiency 
D)  Operational benchmarking 
E)  None of these choices. 
A)  Strategic benchmarking 
B)  Effectiveness 
C)  Efficiency 
D)  Operational benchmarking 
E)  None of these choices.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

For consistency,all locations of an organization must use the same performance objectives or performance criteria.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  Functional benchmarking 
B)  Strategic benchmarking 
C)  Operational benchmarking 
D)  Support-activity benchmarking 
E)  None of these choices. 
A)  Functional benchmarking 
B)  Strategic benchmarking 
C)  Operational benchmarking 
D)  Support-activity benchmarking 
E)  None of these choices.

Question 17

Some individuals resist the benchmarking process because of a reluctance to recognize the value of a competitor's way of doing business - the "not invented here" syndrome.

Accepted Answer

A) True 
 B)False

Question 18

An effective performance objective should be so easy that it requires minimal effort to achieve.

Accepted Answer

A) True 
 B)False

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

Which of the following is not one of the benefits of benchmarking?

The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.

According to Kaplan and Norton,a balanced scorecard includes all of the following key performance measurement areas except ____.

Measurement seldom motivates and directs behavior toward desired end results.

Salaries traditionally take the largest share of the purchasing administrative budget.

All of the following are examples of customer order measures except ____.

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

Measuring and evaluating performance historically has had certain problems and limitations.

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.

A performance objective should reflect the realities of the firm's competitive environment.

A ____ is the increase or decrease in cost resulting from a change in purchasing strategy or practice brought about by an individual or a group.

____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.

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

For consistency,all locations of an organization must use the same performance objectives or performance criteria.

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

Some individuals resist the benchmarking process because of a reluctance to recognize the value of a competitor's way of doing business - the "not invented here" syndrome.

An effective performance objective should be so easy that it requires minimal effort to achieve.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Purchasing and Supply Strategy Trends

Filters

Exam 19: Performance Measurement and Evaluation

On-time delivery or responsiveness measures indicate the degree to which suppliers are able to meet customer schedule requirements.

Which of the following is not one of the benefits of benchmarking?

The problem with measuring behavior is that there is no guarantee the behavior will lead to desired results.

According to Kaplan and Norton,a balanced scorecard includes all of the following key performance measurement areas except ____.

Measurement seldom motivates and directs behavior toward desired end results.

Salaries traditionally take the largest share of the purchasing administrative budget.

All of the following are examples of customer order measures except ____.

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

Measuring and evaluating performance historically has had certain problems and limitations.

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.

A performance objective should reflect the realities of the firm's competitive environment.

A ____ is the increase or decrease in cost resulting from a change in purchasing strategy or practice brought about by an individual or a group.

____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.

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

For consistency,all locations of an organization must use the same performance objectives or performance criteria.

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

Some individuals resist the benchmarking process because of a reluctance to recognize the value of a competitor's way of doing business - the "not invented here" syndrome.

An effective performance objective should be so easy that it requires minimal effort to achieve.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Purchasing and Supply Strategy Trends

Filters