Question 1

All aspects of performance lend themselves to quantitative measurement.

Accepted Answer

A) True 
 B)False  False

Question 2

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)   All of these choices. A

Question 3

Transportation costs can be measured only in total dollars and not as a percentage of cost of goods sold or sales revenue.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Joint participation means that the personnel responsible for each measure participate in developing the measure or establishing the measure's performance objective.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A sound measurement and evaluation system provides sporadic or as-needed reporting of performance results.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A common misconception is that a performance evaluation system should not measure every activity.

Accepted Answer

A) True 
 B)False

Question 16

Having too little data is the most common problem an organization has with its measurement system.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   efficient measure
B)   qualitative measure
C)   quantitative measure
D)   nonmanipulable measure
E)   None of these choices.

Question 18

____ 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.

Accepted Answer

A)   First insight measures
B)   Standardization measures
C)   Responsiveness measures
D)   Cycle time reduction measures
E)   All of these choices.

Question 19

____ 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.

Accepted Answer

A)   Benchmarking
B)   TCO
C)   TQM
D)   Effectiveness
E)   Efficiency

Question 20

____ 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 these choices.

Exam 19: Performance Measurement and Evaluation

All aspects of performance lend themselves to quantitative measurement.

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

Transportation costs can be measured only in total dollars and not as a percentage of cost of goods sold or sales revenue.

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

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

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

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

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

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

Joint participation means that the personnel responsible for each measure participate in developing the measure or establishing the measure's performance objective.

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

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

A sound measurement and evaluation system provides sporadic or as-needed reporting of performance results.

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

A common misconception is that a performance evaluation system should not measure every activity.

Having too little data is the most common problem an organization has with its measurement system.

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

____ 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.

____ 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.

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