CPPB - Domain II Questions With Complete
Solutions
Graded A+
QUESTIONS AND ANSWERS
Strategic Procurement Planning (SP2). ANSWER -The transformation of the entity's
mission, goals, and objectives into measurable activities to be used to plan, budget,
and manage the procurement function within the entity. The ultimate goal is to
effectuate positive change in entity culture, systems, and operational processes.
Strategic Sourcing. ANSWER -A methodology and process that enables procurement
professionals to analyze what and how they acquire goods and services, with the
objectives of lowering costs to the entity and improvements in supply fulfillment from
the producer level to the end user (supply chain).
SWOT analysis. ANSWER -Strengths, Weaknesses, Opportunities, Threats).
The Pareto Principle. ANSWER -80% of procurement cost is created by 20% of the
purchase orders issued
Inputs. ANSWER -Measure resources used. They include labor, materials, equipment,
and supplies. Demand for goods and services may also be considered an input metric.
Outputs. ANSWER -Record activity or effort that can be expressed in a quantitative
or qualitative manner (e.g., total spend, total number of new contracts, total number
of employees who obtained professional certification).
, Outcomes. ANSWER -Assess results of an activity and show whether expected
results were achieved. (e.g., client service levels, improved performance of suppliers,
employee retention). Outcomes must be benchmarked against other
departments/divisions and outside entities. A benchmark is simply a point of
reference that can be used as a standard to compare effectiveness and efficiency
measurements.
Efficiency. ANSWER -Measures represent the ratio of inputs to outputs or outcomes.
When outputs are increased and inputs are decreased, more efficiency is generated
(e.g., lowered purchase order administrative costs, reduced requisition to P.O.
turnaround time).
Effectiveness. ANSWER -Measures reflect how long it takes to process a request for
procurement (e.g., purchase orders, bids/proposals, etc.) or the turnaround time to
receive goods or services. Effectiveness essentially measures quality and affects client
satisfaction. It should be tied back to the key objective.
Performance Audits. ANSWER -Means of ensuring that those entrusted with
management of public services and programs are held accountable
In order to perform such an audit or evaluation, data must be collected. Data can be
divided into several categories:. ANSWER -• quantitative or objective data
• qualitative or subjective data
• primary data
• secondary data
• longitudinal data (repeated observations over time)
• cross-sectional data (data collected by observing many subjects at the same point in
time)
Solutions
Graded A+
QUESTIONS AND ANSWERS
Strategic Procurement Planning (SP2). ANSWER -The transformation of the entity's
mission, goals, and objectives into measurable activities to be used to plan, budget,
and manage the procurement function within the entity. The ultimate goal is to
effectuate positive change in entity culture, systems, and operational processes.
Strategic Sourcing. ANSWER -A methodology and process that enables procurement
professionals to analyze what and how they acquire goods and services, with the
objectives of lowering costs to the entity and improvements in supply fulfillment from
the producer level to the end user (supply chain).
SWOT analysis. ANSWER -Strengths, Weaknesses, Opportunities, Threats).
The Pareto Principle. ANSWER -80% of procurement cost is created by 20% of the
purchase orders issued
Inputs. ANSWER -Measure resources used. They include labor, materials, equipment,
and supplies. Demand for goods and services may also be considered an input metric.
Outputs. ANSWER -Record activity or effort that can be expressed in a quantitative
or qualitative manner (e.g., total spend, total number of new contracts, total number
of employees who obtained professional certification).
, Outcomes. ANSWER -Assess results of an activity and show whether expected
results were achieved. (e.g., client service levels, improved performance of suppliers,
employee retention). Outcomes must be benchmarked against other
departments/divisions and outside entities. A benchmark is simply a point of
reference that can be used as a standard to compare effectiveness and efficiency
measurements.
Efficiency. ANSWER -Measures represent the ratio of inputs to outputs or outcomes.
When outputs are increased and inputs are decreased, more efficiency is generated
(e.g., lowered purchase order administrative costs, reduced requisition to P.O.
turnaround time).
Effectiveness. ANSWER -Measures reflect how long it takes to process a request for
procurement (e.g., purchase orders, bids/proposals, etc.) or the turnaround time to
receive goods or services. Effectiveness essentially measures quality and affects client
satisfaction. It should be tied back to the key objective.
Performance Audits. ANSWER -Means of ensuring that those entrusted with
management of public services and programs are held accountable
In order to perform such an audit or evaluation, data must be collected. Data can be
divided into several categories:. ANSWER -• quantitative or objective data
• qualitative or subjective data
• primary data
• secondary data
• longitudinal data (repeated observations over time)
• cross-sectional data (data collected by observing many subjects at the same point in
time)
