Deck 10: Purchasing Innovation and Quality Management

Question 1

Which of the following best explains 'idea generation'? 

A) A few new product ideas are generated. 
B) As many new product ideas are generated as possible. 
C) One new product idea is generated. 
D) Discussions take place on how to generate ideas.

Answer 1

  B

Question 2

Which of the following terms is not a stage in the 'innovation funnel'? 

A) Idea generation. 
B) Idea selection. 
C) Divestment. 
D) Concept study.

Answer 2

  C

Question 3

Which of the following terms is a collaboration process? 

A) How to assess inter-systems compatibility and operability. 
B) Pre-selection of potential future technology partners. 
C) Screening and selection of project partners. 
D) Evaluating supplier development capabilities and performance.

Answer 3

  A

Question 4

Which of the following terms is not a stage in the 'innovation funnel'? 

A) Product design. 
B) Prototyping and Testing. 
C) Market introduction. 
D) Sales growth.

Question 5

Which of the following terms is an operational management process? 

A) How to assess inter-systems compatibility and operability. 
B) Screening and selection of project partners. 
C) Evaluating supplier proposals and ways of working. 
D) Evaluating supplier development capabilities and performance.

Question 6

Which of the following terms is not a potential benefit of early supplier involvement? 

A) Shorter development lead times. 
B) Increased profits. 
C) Higher product quality. 
D) Shorter time to market.

Question 7

Which of the following terms is a collaboration process? 

A) Pre-selection of potential future technology partners. 
B) How to work with suppliers in new product development. 
C) Screening and selection of project partners. 
D) Evaluating supplier development capabilities and performance.

Question 8

Which of the following terms is an operational management process? 

A) How to assess inter-systems compatibility and operability. 
B) How to work with suppliers in new product development. 
C) Screening and selection of project partners. 
D) Evaluating supplier development capabilities and performance.

Question 9

Which of the following terms is not a potential short-term advantage of early supplier involvement? 

A) Higher profit margins. 
B) Better product quality. 
C) Lower product costs. 
D) Shorter development time.

Question 10

Which of the following is not an example of the concept of 'open innovation'? 

A) Collaboration on research and development. 
B) Collaboration on new product design and development. 
C) Collaboration with customers. 
D) Collaboration of market introduction.

Question 11

Which of the following best explains 'concept study stage'? 

A) Production requirements are taken into account. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) The new product idea is translated into a first conceptual design.

Question 12

Which of the following best explains the concept of 'closed innovation'? 

A) To develop new products and process without collaboration. 
B) To create close collaboration with competitors. 
C) To create close collaboration with suppliers. 
D) To create close collaboration with parties that share the company's markets.

Question 13

Which of the following terms is a strategic management process? 

A) How to assess inter-systems compatibility and operability. 
B) Screening and selection of project partners. 
C) Evaluating supplier proposals and ways of working. 
D) Evaluating supplier development capabilities and performance.

Question 14

Which of the following best explains 'time and materials contracts'? 

A) The buyer agrees to pay the supplier all material costs and employee hours against pre-determined hourly rates and margins for services. 
B) The buyer agrees to pay the supplier all material costs. 
C) The buyer agrees to pay the supplier all employee hours against pre-determined hourly rates and margins for services. 
D) The buyer agrees to pay the supplier all material costs and employee hours.

Question 15

Which of the following best explains the concept of 'open innovation'? 

A) To create close collaboration with parties that share the company's business interests in such collaboration. 
B) To create close collaboration with competitors. 
C) To create close collaboration with suppliers. 
D) To create close collaboration with parties that share the company's markets.

Question 16

Which of the following terms is a strategic management process? 

A) Deciding on make-or-buy questions. 
B) Screening and selection of project partners. 
C) Evaluating supplier proposals and ways of working. 
D) What contractual agreements to use in technological collaboration.

Question 17

Which of the following terms is used to describe different stages in the new product development process? 

A) Check points. 
B) Barriers. 
C) Turnstiles. 
D) Toll gates.

Question 18

Which of the following terms is not a stage in the product development process for a new pharmaceutical product? 

A) Develop. 
B) Test. 
C) Register. 
D) Evaluation.

Question 19

Which of the following terms is not a potential disadvantage of early supplier involvement? 

A) Higher product costs. 
B) Delayed market introduction. 
C) Increased customer complaints. 
D) Discussions on intellectual property.

Question 20

Which of the following terms is not a potential short-term advantage of early supplier involvement? 

A) Joint research programmes. 
B) Risk sharing. 
C) Reduced customer complaints. 
D) Aligning technology strategies and road maps.

Question 21

Which of the following best explains 'functional specifications'? 

A) Buyer decides to integrate a standard component in their product design and supplier is requested to submit a price proposal and production planning. 
B) Supplier is responsible for submitting a prototype or sample for approval and testing. 
C) The buyer communicates a rough design to the supplier to work out a detailed design and submit this for approval to the buyer.  When approved, the supplier is responsible for prototyping, testing and manufacturing. 
D) Based upon functional specifications for a component or module, the supplier is responsible for conceptual design, prototype, testing and setting up production and assembly processes.

Question 22

Which of the following best explains 'global design'? 

A) Buyer decides to integrate a standard component in their product design and supplier is requested to submit a price proposal and production planning. 
B) Supplier is responsible for submitting a prototype or sample for approval and testing. 
C) The buyer communicates a rough design to the supplier to work out a detailed design and submit this for approval to the buyer.  When approved, the supplier is responsible for prototyping, testing and manufacturing. 
D) Based upon functional specifications for a component or module, the supplier is responsible for conceptual design, prototype, testing and setting up production and assembly processes.

Question 23

Which of the following is not a way in which suppliers may assume responsibility for component design? 

A) Functional specifications. 
B) Standard design. 
C) Outsourcing. 
D) Detailed design.

Question 24

Which of the following best explains 'standard design'? 

A) Buyer decides to integrate a standard component in their product design and supplier is requested to submit a price proposal and production planning. 
B) Supplier is responsible for submitting a prototype or sample for approval and testing. 
C) The buyer communicates a rough design to the supplier to work out a detailed design and submit this for approval to the buyer.  When approved, the supplier is responsible for prototyping, testing and manufacturing. 
D) Based upon functional specifications for a component or module, the supplier is responsible for conceptual design, prototype, testing and setting up production and assembly processes.

Question 25

Which of the following is not a supplier integration strategy? 

A) Collaborative development. 
B) Critical development. 
C) Arm's length development. 
D) Routine development.

Question 26

Which of the following best explains 'quality'? 

A) The degree to which customer requirements are met. 
B) Maintaining the methods and procedures of quality management. 
C) Making sure that the requirements are being met and being able to demonstrate this objectively. 
D) The collection of methods and procedures used for quality management.

Question 27

Which of the following best explains 'production planning stage'? 

A) Production requirements are taken into account. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) The new product idea is translated into a first conceptual design.

Question 28

Which of the following is not a supplier integration strategy? 

A) Strategic development. 
B) Critical development. 
C) Arm's length development. 
D) Collaborative development.

Question 29

Which of the following best explains 'quality management'? 

A) Maintaining the methods and procedures of quality management. 
B) The collection of methods and procedures used for quality management. 
C) The degree to which customer requirements are met. 
D) Making sure that the requirements are being met and being able to demonstrate this objectively.

Question 30

Which of the following is a criterion for developing a 'supplier involvement portfolio'? 

A) Market share. 
B) The development risk. 
C) Trust in the supplier. 
D) Financial health of supplier.

Question 31

Which of the following is not a way in which large manufacturers communicate with their first tier suppliers in product development projects? 

A) Via a purchasing engineer. 
B) Via Early Supplier Involvement (ESI). 
C) Via a Buyer. 
D) Via a Residential Engineer.

Question 32

Which of the following best explains 'purchasing engineer'? 

A) Suppliers invited to participate in the company's development projects at an early stage. 
B) A specialist function in the liaison between the engineering department and the purchasing department. 
C) The co-location of engineers from suppliers within the organization. 
D) Buyers with engineering qualifications.

Question 33

Which of the following best explains 'product development stage'? 

A) Production requirements are taken into account. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) The new product idea is translated into a first conceptual design.

Question 34

Which of the following best explains 'design stage'? 

A) Production requirements are taken into account. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) The new product idea is translated into a first conceptual design.

Question 35

Which of the following best explains 'pilot production stage'? 

A) Several pre-production series are manufactured and investigated and inspected. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) The new product idea is translated into a first conceptual design.

Question 36

Which of the following best explains 'detailed design'? 

A) Buyer decides to integrate a standard component in their product design and supplier is requested to submit a price proposal and production planning. 
B) Supplier is responsible for submitting a prototype or sample for approval and testing. 
C) The buyer communicates a rough design to the supplier to work out a detailed design and submit this for approval to the buyer.  When approved, the supplier is responsible for prototyping, testing and manufacturing. 
D) Based upon functional specifications for a component or module, the supplier is responsible for conceptual design, prototype, testing and setting up production and assembly processes.

Question 37

Which of the following best explains 'quality system'? 

A) The degree to which customer requirements are met. 
B) The collection of methods and procedures used for quality management. 
C) The conceptual design is translated into a technical design. 
D) Making sure that the requirements are being met and being able to demonstrate this objectively.

Question 38

Which of the following best explains 'quality assurance'? 

A) The degree to which customer requirements are met. 
B) The collection of methods and procedures used for quality management. 
C) Maintaining the methods and procedures of quality management. 
D) Making sure that the requirements are being met and being able to demonstrate this objectively.

Question 39

Which of the following is a criterion for developing a 'supplier involvement portfolio'? 

A) Market share. 
B) The period of time collaboration has existed. 
C) Trust in the supplier. 
D) The degree of responsibility for product development that is contracted out to the supplier.

Question 40

Which of the following best explains 'regular production stage'? 

A) Production requirements are taken into account. 
B) The product design is translated into a number of prototypes or laboratory models. 
C) The conceptual design is translated into a technical design. 
D) Production commences and market introduction follows.

Question 41

Which of the following best explains 'product audit'? 

A) Using business consultants as auditors. 
B) Provides an image of the degree to which a company succeeds in making everything run perfectly. 
C) Assessing the internal quality and control system of an organization using a systems approach. 
D) The systematic investigation of the extent to which the technical processes are capable of meeting the established standards in a predictable way.

Question 42

Which of the following best explains 'periodic verification'? 

A) The instructions to the supplier with regards to what process improvements to implement must be checked periodically. 
B) An agreement ending when zero defects have been reached. 
C) A reduction in the level of inspection. 
D) Quality agreement and certification.

Question 43

Which of the following is not a feature of 'the plan-do-check-act cycle'? 

A) Added value. 
B) Realization. 
C) Verification. 
D) Feedback.

Question 44

Which of the following best explains 'process audit'? 

A) Using business consultants as auditors. 
B) Provides an image of the degree to which a company succeeds in making everything run perfectly. 
C) Assessing the internal quality and control system of an organization using a systems approach. 
D) The systematic investigation of the extent to which the technical processes are capable of meeting the established standards in a predictable way.

Question 45

Which of the following best explains 'systems audit'? 

A) Using business consultants as auditors. 
B) Provides an image of the degree to which a company succeeds in making everything run perfectly. 
C) Assessing the internal quality and control system of an organization using a systems approach. 
D) The systematic investigation of the extent to which the technical processes are capable of meeting the established standards in a predictable way.

Question 46

Which of the following is not an example of an internal error cost? 

A) Losses due to product downgrading. 
B) Costs of corrective measures. 
C) Losses due to a reduced speed of production caused by quality deviations in materials or components. 
D) Loss of 'goodwill'.

Question 47

Which of the following is not a stage in the prevention approach to supplier quality assurance? 

A) Delivery of first and subsequent pre-production series. 
B) Manufacture of first production series. 
C) Payment of first invoice to supplier. 
D) Quality agreement and certification.

Question 48

Which of the following is not a stage in the prevention approach to supplier quality assurance? 

A) Preparing the purchase order specification. 
B) Preliminary qualification of (potential) suppliers. 
C) Sample inspection procedure. 
D) Checking on any quality awards claimed by the supplier.

Question 49

Which of the following is not an example of an assessment cost? 

A) Final inspection of products and quality assessment of finished goods. 
B) Costs of processing complaints. 
C) Registration and processing of and reporting on the measuring data. 
D) Incoming or acceptance inspection of purchased goods.

Question 50

Which of the following is not an element in a quality approach towards suppliers? 

A) Preparation of the purchase order specification. 
B) Sample inspection procedure. 
C) Quality Awards. 
D) Periodic verification.

Question 51

Which of the following best explains 'kaizen'? 

A) Using business consultants as auditors. 
B) The concept of continuous quality improvement. 
C) Assessing the internal quality and control system of an organization using a systems approach. 
D) The systematic investigation of the extent to which the technical processes are capable of meeting the established standards in a predictable way.

Question 52

Which of the following is not a feature of 'the plan-do-check-act cycle'? 

A) Requirement. 
B) Realization. 
C) Verification. 
D) Quality accreditation.

Question 53

Which of the following best explains 'ISO 19011:2011'? 

A) This sets out the requirements of a quality management system. 
B) This covers the basic concepts and language of quality assurance. 
C) This focuses on how to make a quality management system more efficient and effective. 
D) This sets out guidance on internal and external audits of quality management systems.

Question 54

Which of the following is not an example of a correction cost? 

A) Conducting systematic product inspections. 
B) Executing process controls. 
C) Registration and processing of and reporting on the measuring data. 
D) Educating, training and motivation of personnel on quality management.

Question 55

Which of the following best explains 'correction costs'? 

A) The cost of preventing errors. 
B) The cost related to the timely recognition lf errors. 
C) The costs that result from rectifying mistakes. 
D) Accreditation costs.

Question 56

Which of the following best explains 'assessment costs'? 

A) The cost of preventing errors. 
B) The cost related to the timely recognition lf errors. 
C) The costs that result from rectifying mistakes. 
D) Accreditation costs.

Question 57

Which of the following is not a type of quality cost? 

A) Prevention costs. 
B) Assessment costs. 
C) Correction costs. 
D) Accreditation costs.

Question 58

Which of the following best explains 'prevention costs'? 

A) The cost of preventing errors. 
B) The cost related to the timely recognition lf errors. 
C) The costs that result from rectifying mistakes. 
D) Accreditation costs.

Question 59

Which of the following best explains 'supplier quality assurance'? 

A) All activities conducted by a company to arrive at a zero-defects quality performance in its relationship with suppliers. 
B) Some activities conducted by a company to arrive at zero-defects quality performance in its relationship with suppliers. 
C) All activities conducted by a company to arrive at improved quality performance in its relationship with suppliers. 
D) All activities conducted by a company to arrive at  a zero-defects quality control system.

Question 60

Which of the following is not an example of an external error cost? 

A) Reputation loss. 
B) Costs of corrective measures. 
C) Costs of processing return shipments from customers. 
D) Loss of 'goodwill'.

Question 61

Which of the following is not an element in a quality approach towards suppliers? 

A) Preparation of the purchase order specification. 
B) Sample inspection procedure. 
C) Using consults to audit systems. 
D) Periodic verification

Question 62

Which of the following is not an element in a quality approach towards suppliers? 

A) Preparation of the purchase order specification. 
B) Sample inspection procedure. 
C) Conclude a quality agreement and certification. 
D) Periodic audits.