CPPB Domain 1 Procurement Administration Exam Questions and Answers A Grade

CPPB Domain 1 Procurement Administration Exam Questions and Answers A Grade Good performance measures need to be meaningful for all participants including: - Answer-Procurement professionals, clients and suppliers Good performance measures need to be stated in terms of the higher-level objectives of the central procurement office or else they will lose: - Answer-their impact Good performance measures need to be: - Answer-fair, easy to collect, consistent and objective Performance measure activities must be measured against a metric. Metrics include: - Answer-Inputs, outputs, outcomes, efficiency measures and effectiveness measures Inputs: - Answer-Measure resources used. They include labor, materials, equipment and supplies. Demand for services may also be considered Outputs: - Answer-Record activity or effort that can be expressed in a quantitative or qualitative manner. Consider: total number of new contracts, total number of employees who obtained professional certification, total spend. Cycletime - Answer-Time to produce a PO, Inventory turnover Customer Satisfaction - Answer-Number of Disputes subtract Number of change orders Outcomes - Answer-Assess results of an activity and show whether expected results were achieved (customer service, improved performance of supplier, employee retention) Efficiency Measures - Answer-Represent the ratio of inputs to outputs or outcomes Effectiveness Measures - Answer-Reflect how long it takes to process a request for procurement (purchase orders, bids, etc.) The following are examples of methods that may be used to measure procurement performance: - Answer-Performance reviews, regular staff meetings, benchmarking, performance indicators, performance targets and quality management tools Seven rights of procurement are: - Answer-Right materials, right quantity, right time, right place, right source, right service and right price Common performance indicators: - Answer-Cost reduction, supplier/industry development, supplier performance, efficiency of internal procurement systems and customer satisfaction ERP stands for: - Answer-Enterprise Resource Planning (automated procurement system) When considering an automated procurement system one should factor in these elements: - Answer-Functional requirements, hardware and software support, installation and training, maintenance and one-time costs and recurring costs The framework for good record keeping includes: - Answer-The values and guiding principles of transparency and accountability Solicitation files serve as: - Answer-Official factual record of events, information required under freedom of information laws, information required by the contract administrator and information required for a pre or post award audit.