CPPB DOMAIN II – PROCUREMENT
PLANNING & ANALYSIS EXAM
Strategic Procurement Planning (SP2) - Answer The transformation of the
entity's missions, aims, and objectives into measurable actions for use in
planning, budgeting, and managing the procurement function.
SWOT Analysis - Answer In any planning circumstance, procurement experts
should be prepared to examine the many elements an entity may encounter
(strengths, weaknesses, opportunities, threats).
The Pareto Principle - ANSWER 20% of people yield 80% of production, but
80% of people yield just 20% of the production. A small group of people
produces the majority of the work, while a huge group of people produces the
least amount of work.
Performance Metrics: Inputs - Answer. Resources used are measured, including
labor, materials, equipment, and supplies. The demand for goods and services
may also be evaluated.
Performance Metrics: Outputs - ANSWER Records measurable activities (for
example, total spend, total number of new contracts, total number of certified
personnel).
Performance Metrics: Outcomes - Answer Assess the results of an action to
determine whether the intended results were met (client service levels, enhanced
supplier performance, employee retention).
Performance metrics: Efficiency - Answer Measures the input-to-
output/outcome ratio. More efficiency is generated when outputs increase and
inputs drop. Reduced administrative time on PO, etc.
, Performance Metrics: Effectiveness - Answer Assesses the quality and
effectiveness of the outputs. The time it takes to complete a request or the
turnaround time for receiving goods or services.
Common Procurement Delivery Outcomes - Answer: Right supplier, services,
place, price, materials, quantity, time (SS/PP/MQT).
Benchmarking - Answer Measuring a process, service, or product against the
characteristics of the recognized leaders in the industry under consideration.
(Procurement identifies world-class businesses against which to assess its
processes, policies, and performance results).
Procurement Profile: ANSWER Adds decision-making knowledge to a spend
analysis via Spend Analysis (the range of goods and services available), Market
Analysis (the marketplaces that deliver them), and Supply Positioning (market
risks that may affect the entity's operations).
Supply Positioning - Answer Analyzing the supply marketplace's complexity
and impact on entity service delivery.
There are two key elements influencing government procurement: 1) the
difficulty of obtaining a supply of products and services. 2) The amount spent
on each commodity and service consumed by the entity.
Buying Plan - Contains four basic components: ANSWER Demand Analysis,
Market Analysis, Supplier Analysis, and Value Analysis.
Demand Analysis: ANSWER Used to predict annual requirements based on
the previous year's usage and anticipated consumption for the coming year.
PLANNING & ANALYSIS EXAM
Strategic Procurement Planning (SP2) - Answer The transformation of the
entity's missions, aims, and objectives into measurable actions for use in
planning, budgeting, and managing the procurement function.
SWOT Analysis - Answer In any planning circumstance, procurement experts
should be prepared to examine the many elements an entity may encounter
(strengths, weaknesses, opportunities, threats).
The Pareto Principle - ANSWER 20% of people yield 80% of production, but
80% of people yield just 20% of the production. A small group of people
produces the majority of the work, while a huge group of people produces the
least amount of work.
Performance Metrics: Inputs - Answer. Resources used are measured, including
labor, materials, equipment, and supplies. The demand for goods and services
may also be evaluated.
Performance Metrics: Outputs - ANSWER Records measurable activities (for
example, total spend, total number of new contracts, total number of certified
personnel).
Performance Metrics: Outcomes - Answer Assess the results of an action to
determine whether the intended results were met (client service levels, enhanced
supplier performance, employee retention).
Performance metrics: Efficiency - Answer Measures the input-to-
output/outcome ratio. More efficiency is generated when outputs increase and
inputs drop. Reduced administrative time on PO, etc.
, Performance Metrics: Effectiveness - Answer Assesses the quality and
effectiveness of the outputs. The time it takes to complete a request or the
turnaround time for receiving goods or services.
Common Procurement Delivery Outcomes - Answer: Right supplier, services,
place, price, materials, quantity, time (SS/PP/MQT).
Benchmarking - Answer Measuring a process, service, or product against the
characteristics of the recognized leaders in the industry under consideration.
(Procurement identifies world-class businesses against which to assess its
processes, policies, and performance results).
Procurement Profile: ANSWER Adds decision-making knowledge to a spend
analysis via Spend Analysis (the range of goods and services available), Market
Analysis (the marketplaces that deliver them), and Supply Positioning (market
risks that may affect the entity's operations).
Supply Positioning - Answer Analyzing the supply marketplace's complexity
and impact on entity service delivery.
There are two key elements influencing government procurement: 1) the
difficulty of obtaining a supply of products and services. 2) The amount spent
on each commodity and service consumed by the entity.
Buying Plan - Contains four basic components: ANSWER Demand Analysis,
Market Analysis, Supplier Analysis, and Value Analysis.
Demand Analysis: ANSWER Used to predict annual requirements based on
the previous year's usage and anticipated consumption for the coming year.
