CPPB Prep Domain I Procurement Administration Review Questions with Answers

Inputs Measures resources used. They include labor, materials, equipment, and supplies. Demand for services may also be considered an input metric. Outputs Record activity or effort that can be expressed in a quantitative or qualitative manner. Outcomes Asses results of an activity and show whether expected results were achieved. Must be benchmarked against other departments and outside organizations. A benchmark is simply a point of reference that can be used as a standard to compare effectiveness and efficiency measurements. Efficiency measures Represent the ratio of inputs to outputs or outcomes. When outputs are increased and inputs are decreased, more efficiency is generated. Effectiveness measures Reflect how long it takes to process a request for procurement or the turnaround time to receive a commodity or service. Essentially measures quality and affects customer satisfaction. It should be tied back to the key objective. 7 Rights of Procurement Right materials, right quantity, right time, right place, right source, right service, right place Automated Procurement Systems In-house computerized systems and processes used to perform tasks, store information, and facilitate transactions between procurement and client organizations. ERP Systems Enterprise Resource Planning Systems are business process software systems that manage multiple management systems such as finance, accounting, human resources, procurement, inventory control, and other activities. Cooperative Procurement 1. Action taken when two or more entities combine their requirements to obtain advantages of volume purchases including administrative savings and other benefits. 2. A variety of arrangements whereby two or more public procurement units purchase from the same suppliers using a single IFB or RFP. 3. May result in contracts upon which other entities may "piggyback".