Deck 6: Purchasing Descriptions and Specifications

Question 1

What does the term "balanced" imply in the balanced specifications?

Answer 1

The term "balanced" in the context of balanced specifications typically refers to a set of requirements or design parameters that are well-proportioned and harmonized across different aspects or components of a system, product, or project. In other words, balanced specifications ensure that no single element is overemphasized or underrepresented, leading to a more cohesive and effective outcome.

Here are some key points that illustrate what balanced specifications might imply:

1. **Equitable Distribution of Resources**: Balanced specifications ensure that resources such as time, budget, and materials are allocated in a way that is proportional to the needs of each component or aspect of the project.

2. **Performance Considerations**: They take into account various performance metrics and ensure that the system performs well across all of them, rather than optimizing for one at the expense of others.

3. **Trade-offs Management**: In engineering and design, trade-offs are inevitable. Balanced specifications aim to manage these trade-offs by finding an optimal middle ground that satisfies multiple criteria without extreme sacrifices.

4. **System Integration**: For complex systems, balanced specifications ensure that all parts of the system integrate well with each other, maintaining system integrity and functionality.

5. **User Needs and Expectations**: They consider the diverse needs and expectations of users, aiming to provide a solution that meets a wide range of requirements rather than favoring a particular user group.

6. **Risk Mitigation**: Balanced specifications help in identifying potential risks across various aspects of the project and in implementing measures that mitigate these risks in a balanced manner.

7. **Sustainability**: In the context of environmental sustainability, balanced specifications would ensure that environmental, economic, and social factors are considered and addressed in a harmonious way.

8. **Compliance and Standards**: They ensure that the product or project complies with all relevant industry standards, regulations, and best practices, without over-focusing on one area of compliance at the expense of others.

In summary, balanced specifications are about creating a well-rounded set of requirements that lead to the development of a system or product that is robust, efficient, and meets the needs of all stakeholders in a fair and effective manner.

Question 2

In the Chili's example, what is the analogy given for supply managers?

Answer 2

The analogy given for supply managers in the Chili's example is not provided in the text. Please provide the context or the Chili's example for a specific answer.

Question 3

Why is the standardization treated as a philosophy in some companies and supply chains rather than a procedure?

Answer 3

Standardization is often treated as a philosophy in some companies and supply chains rather than merely a procedure because it embodies a set of guiding principles and values that influence the entire organizational culture and strategic approach. Here are several reasons why standardization can be seen as a philosophy:

1. **Continuous Improvement**: Standardization is not just about creating procedures; it's about constantly refining those procedures to achieve better efficiency, quality, and predictability. This aligns with philosophies like Kaizen, which emphasize continuous improvement in all aspects of an organization.

2. **Consistency and Quality**: By standardizing processes, companies aim to ensure that every product or service delivered is consistent and meets quality standards. This consistency is not just a procedural outcome; it's a core value that reflects the company's commitment to reliability and customer satisfaction.

3. **Scalability and Growth**: Standardization allows for scalability because standardized processes are easier to replicate across different parts of the company or in new locations. This scalability is not just a procedural benefit; it's a strategic philosophy that enables growth and expansion.

4. **Efficiency and Cost Reduction**: Standardized processes often lead to increased efficiency and reduced costs. This focus on efficiency is not just about following steps; it's about a broader philosophy of resource optimization and waste reduction, which can be deeply ingrained in a company's culture.

5. **Employee Empowerment**: When standardization is a philosophy, it empowers employees by providing clear guidelines and expectations. This can lead to a more engaged workforce that understands the importance of their role within the standardized framework.

6. **Risk Management**: Standardization helps in mitigating risks by providing a clear set of procedures to handle various situations. This proactive approach to risk is not just procedural; it's a philosophical stance on maintaining stability and control within the business environment.

7. **Collaboration and Communication**: A philosophy of standardization fosters better collaboration and communication within and between organizations. When everyone follows the same standards, it's easier to work together effectively, which is crucial in supply chain management.

8. **Adaptability and Innovation**: While standardization might seem counterintuitive to innovation, it actually provides a stable foundation from which to innovate. By having standardized processes, companies can more safely experiment with new ideas. This balance between standardization and innovation reflects a deep-seated philosophy that values both stability and progress.

9. **Customer Focus**: Standardization as a philosophy often puts the customer at the center. By ensuring that all processes lead to a consistent and high-quality customer experience, the company is adhering to a customer-centric philosophy.

10. **Globalization**: In a global market, standardization helps companies align with international standards, making it easier to operate across borders. This global perspective is not just procedural; it's a philosophical approach to being a world-class competitor.

In summary, when standardization is treated as a philosophy, it transcends the idea of mere procedures and becomes a foundational element of a company's identity and strategic vision. It influences the mindset of employees, the direction of leadership, and the overall operational excellence of the organization.

Question 4

Which of the following is usually a more complex specification: brand name, sample, commercial standard, or engineering drawings?

Question 5

What are the common problems presented in developing specifications?

Question 6

What should a company do before implementing EST?

Question 7

In buying market graded commodities why is inspection important?

Question 8

What type of specification describes the function to be performed and the way the item is to fit into the larger system, together with several design objectives?

Question 9

In the Unreasonable Tolerances Example, what was the source of the problem between the two managers?

Question 10

Why have samples been called the lazy person's method of describing requirements?

Question 11

Why do the authors of the text no longer use the terminology of EPT?

Question 12

What are the potential problems of the informal approach to the development of specifications?

Question 13

What are the purposes of specifications?

Question 14

In what way does specification by brand name potentially eliminate the competition?

Question 15

How can specifications limit competition?

Question 16

What are the situations that require the development of qualified products?

Question 17

In the Unreasonable Tolerances Example, do you agree with the senior design engineer's definition of quality?

Question 18

What type of specification is a request for a "white 2002 Ford Explorer Sport with standard features?"

Question 19

When should samples be used as specifications?

Question 20

How might an employee of Chili's prevent the "simple sandwich" problem while on the job?

Question 21

When Dell develops a DVD player module, what type of standardization does it utilize?

Question 22

How does a materials catalog help reduce both standard and non-standard parts?

Question 23

How does a materials catalog help reduce design time?

Question 24

Managerial standardization deals with such things as operating practices, procedures, and systems.

Question 25

Industrial standardization is the process of establishing agreement on uniform identifications for definite characteristics of quality, design, performance, quantity, service, and so on.

Question 26

Which type of standard should a designer choose first if a choice if possible?

Question 27

What are the benefits of electronic catalogs?

Question 28

What were the reasons that Eli Whitney appeared to be behind on his contract?

Question 29

WCSM requires supply management professionals and suppliers to be actively involved in the tactical and strategic development of specifications and standards to proactively reduce total costs of products and services.

Question 30

What are the benefits of standardization?

Question 31

How does standardization enable customization?

Question 32

Why did Baltimore's business district "burn to the ground" in 1904, despite the fact that more than enough f

Question 33

What is the difference between industrial and managerial standardization?

Question 34

In the Unreasonable Tolerances Example, what are some of the ways the problem could have been prevented five years earlier?

Question 35

In developing a standardization program, why is supply management important?

Question 36

What are the two ends of the continuum of electronic materials catalogs?

Question 37

Simplification is a corollary of standardization.

Question 38

How does Dell use standardization to build competitive advantage?

Question 39

Is simplification an integral part or corollary of standardization?

Question 40

How does standardization improve quality?

Question 41

WCSM requires supply management professionals and suppliers to be actively involved in only the tactical development of specifications and standards. The strategic development of specifications and standards is best left solely to the department developing the requirement.

Question 42

Complex or detailed specifications are descriptions that tell the seller exactly what the buyer wants to purchase.

Question 43

A complex specification often goes beyond the design of a product, to include specifications regarding methodology, packaging, transport, delivery schedules, warranty and service.

Question 44

Which of the following is a complex specification based on the categorization given in the textbook?

A) Performance Specifications
B) Function and Fit Specifications
C) Brand or Trade Names
D) Engineering Drawings
E) Samples

Question 45

A complex specification for buying ketchup might be "12 ounce plastic bottle of Heinz tomato ketchup."

Question 46

A simple specification often goes beyond the design of a product, to include specifications regarding methodology, packaging, transport, delivery schedules, warranty and service.

Question 47

Which of the following is a complex specification based on the categorization given in the textbook?

A) Function and Fit Specifications
B) Material and Method-of-Manufacture
C) Brand or Trade Names
D) Market Grades
E) Qualified Products

Question 48

Which of the following bullets is not one of the considerations to include when writing specifications?

A) Country of source for the part or component in the design
B) Supply management's requirement to procure material
C) Production control's and supply management's requirement to substitute materials
D) The total firm's requirements for suitable quality at the lowest overall cost
E) The total firm's requirement to use commercial and industrial standard material

Question 49

Simplification means reducing the number of standard items a firm uses in its product design and carries in its inventory.

Question 50

Which of the following is not a typical purpose of specifications?

A) Communicate what to buy
B) Communicate suppliers what is required
C) Establish the intangible services to be provided
D) Establish the standards for inspections, tests, and quality checks
E) Communicate to upper management the need

Question 51

A simple specification for buying ketchup might be "12 ounce plastic bottle of Heinz tomato ketchup."

Question 52

Managerial standardization is the process of establishing agreement on uniform identifications for definite characteristics of quality, design, perfonnance, quantity, service, and so on.

Question 53

A complex specification for ketchup might include various spices, specific tomato and vinegar grades, filtered water, mixing directions, cooking directions and more!

Question 54

Industrial standardization deals with such things as operating practices, procedures, and systems.

Question 55

Simplification means reducing the number of non-standard items a firm uses in its product design and carries in its inventory.

Question 56

Simplification is the same thing as standardization.

Question 57

Which of the following is not all approach in developing balanced specifications from the perspective of a supply professional?

A) Informal Approach
B) Supply Management Coordinator Approach
C) Engineering Approach
D) Consensus Development Approach
E) Cross-Functional Approach

Question 58

Which of the following is a simple specification based on the categorization given in the textbook?

A) Samples
B) Commercial Standards
C) Design Specifications
D) Engineering Drawings
E) Material and Method-of-Manufacture

Question 59

Complex or detailed specifications are descriptions that tell the seller exactly what the buyer wants to purchase. As such, they are easier to develop than simple specifications.

Question 60

A simple specification for ketchup might include various spices, specific tomato and vinegar grades, filtered water, mixing directions, cooking directions and more!

Question 61

Which of the following is not a savings that can result from simplification?

A) Reduced inventory investment
B) More standard parts carried
C) More competitive prices
D) Greater quantity discounts
E) Reduced handling costs

Question 62

Which of the following is not an organization that can assist as a source of standards in the United States?

A) American Society for Quality
B) Society of Automotive Engineers
C) Society of Mechanical Engineers
D) American Institute of Electrical Engineers
E) International Society for Standardization

Question 63

Which of the following problems is not considered a common problem in developing specifications?

A) Lack of Clarity
B) Ignorance of total cost
C) Limiting Competition
D) Unreasonable Tolerances

Question 64

Which of the following problems is not a "type" of standard?

A) Local standards
B) International standards
C) Industry standards
D) National standards
E) Company standards

Question 65

Which is generally not one of the ways that materials catalogs, whether paper based or electronic, can aid a firm?

A) Reduction of supply base
B) Reduction in design time
C) Reduction of non-standard parts
D) Reduction of standard parts
E) Reduction of inventory

Question 66

Which of the following bullets is not one of the considerations to include when writing specifications?

A) Design and marketing requirements
B) Accounting requirements
C) Manufacturing requirements
D) Inspection's requirements to test materials
E) Stores' requirement to receive, store, issue material

Question 67

Which of the following is not an organization that can assist as a source of standards?

A) International Organization for Standardization
B) National Bureau of Standards
C) American National Standards Institute
D) English Units Society
E) American Society for Testing and Materials