CPPB - Domain 1 Procurement Administration Questions and Answers Already Passed

CPPB - Domain 1 Procurement Administration Questions and Answers Already Passed Good performance measures need to be meaningful for all participants including: 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: their impact Good performance measures need to be: fair, easy to collect, consistent and objective Performance measure activities must be measured against a metric. Metrics include: Inputs, outputs, outcomes, efficiency measures and effectiveness measures Inputs: Measure resources used. They include labor, materials, equipment and supplies. Demand for services may also be considered Outputs: 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 Time to produce a PO, Inventory turnover Customer Satisfaction Number of Disputes subtract Number of change orders Outcomes Assess results of an activity and show whether expected results were achieved (customer service, improved performance of supplier, employee retention) Efficiency Measures Represent the ratio of inputs to outputs or outcomes Effectiveness Measures 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: Performance reviews, regular staff meetings, benchmarking, performance indicators, performance targets and quality management tools Seven rights of procurement are: Right materials, right quantity, right time, right place, right source, right service and right price Common performance indicators: Cost reduction, supplier/industry development, supplier performance, efficiency of internal procurement systems and customer satisfaction ERP stands for: Enterprise Resource Planning (automated procurement system) When considering an automated procurement system one should factor in these elements: Functional requirements, hardware and software support, installation and training, maintenance and one-time costs and recurring costs The framework for good record keeping includes: The values and guiding principles of transparency and accountability Solicitation files serve as: 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. What is a critical function of managing the procurement process: The maintenance of document files What should the contract files contain: Executed