CPPB - Domain 1 Procurement Administration Questions and Answers 100% accurate!!

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