Question 1

_____ refers to the extent to which, by choosing a certain course of action, management can meet a previously established goal or standard.

Accepted Answer

A)  Operational benchmarking 
B)  Efficiency 
C)  Support-activity benchmarking 
D)  Effectiveness 
E)  None of the above.

Question 2

Customer defects per supplier is a measure of the number of defects from individual suppliers to indicate comparative quality performance among competing suppliers.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

There is no one best way to measure performance.

Accepted Answer

A) True 
 B)False

Question 5

The measurement system should rely on quantitative data instead of qualitative feelings and assessments.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

Accepted Answer

A) True 
 B)False

Question 8

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 9

_____ measures include tracking actual transportation costs against some preestablished objective, demurrage and detention costs, and premium transportation.

Accepted Answer

A)  Transportation cost avoidance 
B)  PPM 
C)  Field failure rate 
D)  Target prices achieved 
E)  Transportation cost reduction

Question 10

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

Question 11

Which of the following is not one of the common problems in measuring performance?

Accepted Answer

A)  Too much detail. 
B)  Too much and wrong data. 
C)  Measures that are short-term focused. 
D)  Drive the wrong performance. 
E)  Measures of behavior versus accomplishments.

Question 12

A/An _____ is one that personnel cannot inappropriately influence the results of.

Accepted Answer

A)  efficient measure 
B)  qualitative measure 
C)  quantitative measure 
D)  non-manipulable measure 
E)  None of the above.

Question 13

Purchasing requires measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

It is uncommon to have measures that track different aspects of a firm's inventory investment.

Accepted Answer

A) True 
 B)False

Question 16

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

Accepted Answer

A) True 
 B)False

Question 17

The _____ measure expresses a maximum number (in absolute or percentage terms) of level of defects allowable for any particular product, assembly, or service.

Accepted Answer

A)  Effectiveness 
B)  Efficiency 
C)  TQM 
D)  Cost avoidance 
E)  PPM

Question 18

_____ is the process of determining what the external customer is willing to pay for a product or service and then assigning specific cost targets to the components, assemblies, and systems that make up the product or service.

Accepted Answer

A)  Specific costing 
B)  Target pricing 
C)  Total cost analysis 
D)  Cost avoidance 
E)  None of the above.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

_____ 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 the above.

Exam 19: Performance Measurement and Evaluation

_____ refers to the extent to which, by choosing a certain course of action, management can meet a previously established goal or standard.

Customer defects per supplier is a measure of the number of defects from individual suppliers to indicate comparative quality performance among competing suppliers.

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

There is no one best way to measure performance.

The measurement system should rely on quantitative data instead of qualitative feelings and assessments.

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

Transportation costs can be measured only in total dollars and never as a percentage of cost of goods sold or sales revenue.

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.

_____ measures include tracking actual transportation costs against some preestablished objective, demurrage and detention costs, and premium transportation.

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.

Which of the following is not one of the common problems in measuring performance?

A/An _____ is one that personnel cannot inappropriately influence the results of.

Purchasing requires measures that reflect its ability to support overall corporate and functional goals, which means a reduced emphasis on pure efficiency measures and greater emphasis on effectiveness measures.

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

It is uncommon to have measures that track different aspects of a firm's inventory investment.

A single, overall productivity measure representing purchasing and supply chain performance is feasible.

The _____ measure expresses a maximum number (in absolute or percentage terms) of level of defects allowable for any particular product, assembly, or service.

_____ is the process of determining what the external customer is willing to pay for a product or service and then assigning specific cost targets to the components, assemblies, and systems that make up the product or service.

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

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