CPPO Exam
7 Rights of Purchasing - answer To obtain the right material in the right quantity for
delivery at the right time to the right place from the right source(a responsive and
responsible supplier) with the right service at the right price.
Values - answer Enduring beliefs or ideals shared by public procurement about what is
good or desirable and what is not in our actions.
Goals - answer Long-term, tangible, attainable targets for an organization
Policies - answer Plans, courses of action, or governing principles which establishes the
general parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - answer States the purpose of its existence and its core values. it
should be no more than three sentences and identifies the purpose of an organization,
the services it provides, the customers it seeks to serve and the way it serves.
Strategic Plan includes: - answer Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - answerIdentifies where the organization wants to be in the future
Mission - answerIdentifies why it exists, what it is and how it contributes to the local
community.
Goals - answerIdentifies what the organization is intending to accomplish and proposes
the general end towards which an organization directs its efforts.
Objectives - answerHighly defined targets that require specific action with a shorter time
frame.
Strategies - answerIdentified methods to achieve specific goals and are used to carry
out objectives. Long range plans
Performance Measures - answerThe development and alignment of objectives and
mechanisms for measuring the accomplishments of objectives to support the strategic
goals of the organization. Something to evaluate against.
Evaluation - answerMonitoring the end results
Objectives should be: - answerSMART-Specific, measurable, assignable, realistic and
time based.
,Types of performance measures - answerDemand, workload, efficiency and
effectiveness
Demand - answerA measure that assesses the severity of a problem or the scope of
work to be performed.
Workload - answerA measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - answerA measure that compares resources used with results obtained.
Effectiveness - answerA measure that determines how well a program or activity meets
an objective or fulfills a need.
Value-added benefits* - answerTakes into consideration quality, cost, service, TCO
(total cost of ownership) and continuity of supply.
Policy Manual - answerManual that says how we must do it. Defines the general
parameters for the organization to follow in carrying out its responsibilities.
Procedure manual - answerShows in great detail how to do the work. It functions to not
only provide guidance but to set out forms, process requirements ans steps for each
purchasing action.
Regulations - answerStatements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - answerSaves considerable
time and effort, reduces overhead and improves schedule by eliminating the repetitive
clerical tasks associated with purchasing.
Enterprise Resource Planning Systems (ERP) - answerBusiness process software
systems that manage multiple management systems such as finance, accounting,
human resources, purchasing, and inventory.
Retention Schedule for documents* - answerMust save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - answerTwo or more agencies combining their requirements to
obtain advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - answerProvides lower prices for large agencies
volume purchases, lower cost to smaller entities, combines qualities so that each entity
gets a good value and reduces admin costs of purchasing.
,Initial Steps to develop a Co-operative Purchasing Program - answerDiscuss the
advantages, review agency policies and engage legal counsel to assess laws, develop
a whitepaper, research what other authorities are doing.
Cost Avoidance - answerActions taken to avoid having to pay some sort of cost. Also a
dedicated effort on the part of the official to carefully analyze the agencies needs to
prevent unnecessary charges.
Cost Reduction - answerOccurs when the current price to be paid by the buyer is lower
than the previous price paid under similar procurement conditions generally as a result
of a favorable competitive market.
How to measure procurement performance - answerEffectiveness, efficiency,
projections and customer service
Effectiveness - answerHow long it takes to process a request for procurement.
Efficiency - answerDefined as the ratio between inputs and outputs.
Projections - answerDerived from historical baselines of the key objectives and actual
outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - answerSelf Actualization
The costs of maintaining an inventory of supplies (e.g. the costs of invested funds,
insurance, storage, obsolescence, deterioration, equipment and labor) are known as: -
answerCarrying Costs
One of the benefits of using Requests for Proposals is recognizing that the best
solutions can come from field experts who deal on a daily basis with conflicts we are
trying to solve. This benefit is known as: - answerValue Engineering
In preparing to write a specification or scope of work, we may want to consider one of
two methods of gathering facts or details from potential vendors. We can invite several
of them to come to our agency and make a presentation or we can cast a wider net with
this technique. - answerRequest for Information
The city has had a term contract in place for two years. The original term of the contract
was for up to three years. Usage of the contract has declined to almost nothing. The city
purchasing manager has decided to cancel the contract. Which of the following methods
best addresses this action? - answerTermination for convenience
, Laws governing public records, open meetings and freedom of information are known
by this illuminating phrase. - answerSunshine law
Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - answerShow cause notice
Why is the Request for Proposal (RFP) process often perceived as problematic by an
agency's leadership? - answerThe award decision is based on qualitative variables.
Examples of audits are: - answerFinancial, compliance and management
Examples of three types of audit reports are:* - answerIntradepartmental,
interdepartmental, higher level management
Intradepartmental means:* - answerDesigned to inform the management in your
department concerning departmental matters.
Interdepartmental means: * - answerDistribution to other departments, outside of your
department, on a need to know basis.
Higher Level Management:* - answerreports issued to senior management and other
key personnel.
eCommerce means: - answerThe integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive electronic
based system of procurement functions.
eProcurement or eSourcing - answerIs the process of using electronic technologies for
purchasing goods and services and includes conducting all or some of the functions
over the internet.
The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - answerCost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time technology.
Some of those benefits include: - answerGreater effectiveness and efficiency
Making significant benefits in the process and output improvements
Reduction in operating costs
Improved customer service
7 Rights of Purchasing - answer To obtain the right material in the right quantity for
delivery at the right time to the right place from the right source(a responsive and
responsible supplier) with the right service at the right price.
Values - answer Enduring beliefs or ideals shared by public procurement about what is
good or desirable and what is not in our actions.
Goals - answer Long-term, tangible, attainable targets for an organization
Policies - answer Plans, courses of action, or governing principles which establishes the
general parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - answer States the purpose of its existence and its core values. it
should be no more than three sentences and identifies the purpose of an organization,
the services it provides, the customers it seeks to serve and the way it serves.
Strategic Plan includes: - answer Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - answerIdentifies where the organization wants to be in the future
Mission - answerIdentifies why it exists, what it is and how it contributes to the local
community.
Goals - answerIdentifies what the organization is intending to accomplish and proposes
the general end towards which an organization directs its efforts.
Objectives - answerHighly defined targets that require specific action with a shorter time
frame.
Strategies - answerIdentified methods to achieve specific goals and are used to carry
out objectives. Long range plans
Performance Measures - answerThe development and alignment of objectives and
mechanisms for measuring the accomplishments of objectives to support the strategic
goals of the organization. Something to evaluate against.
Evaluation - answerMonitoring the end results
Objectives should be: - answerSMART-Specific, measurable, assignable, realistic and
time based.
,Types of performance measures - answerDemand, workload, efficiency and
effectiveness
Demand - answerA measure that assesses the severity of a problem or the scope of
work to be performed.
Workload - answerA measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - answerA measure that compares resources used with results obtained.
Effectiveness - answerA measure that determines how well a program or activity meets
an objective or fulfills a need.
Value-added benefits* - answerTakes into consideration quality, cost, service, TCO
(total cost of ownership) and continuity of supply.
Policy Manual - answerManual that says how we must do it. Defines the general
parameters for the organization to follow in carrying out its responsibilities.
Procedure manual - answerShows in great detail how to do the work. It functions to not
only provide guidance but to set out forms, process requirements ans steps for each
purchasing action.
Regulations - answerStatements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - answerSaves considerable
time and effort, reduces overhead and improves schedule by eliminating the repetitive
clerical tasks associated with purchasing.
Enterprise Resource Planning Systems (ERP) - answerBusiness process software
systems that manage multiple management systems such as finance, accounting,
human resources, purchasing, and inventory.
Retention Schedule for documents* - answerMust save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - answerTwo or more agencies combining their requirements to
obtain advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - answerProvides lower prices for large agencies
volume purchases, lower cost to smaller entities, combines qualities so that each entity
gets a good value and reduces admin costs of purchasing.
,Initial Steps to develop a Co-operative Purchasing Program - answerDiscuss the
advantages, review agency policies and engage legal counsel to assess laws, develop
a whitepaper, research what other authorities are doing.
Cost Avoidance - answerActions taken to avoid having to pay some sort of cost. Also a
dedicated effort on the part of the official to carefully analyze the agencies needs to
prevent unnecessary charges.
Cost Reduction - answerOccurs when the current price to be paid by the buyer is lower
than the previous price paid under similar procurement conditions generally as a result
of a favorable competitive market.
How to measure procurement performance - answerEffectiveness, efficiency,
projections and customer service
Effectiveness - answerHow long it takes to process a request for procurement.
Efficiency - answerDefined as the ratio between inputs and outputs.
Projections - answerDerived from historical baselines of the key objectives and actual
outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - answerSelf Actualization
The costs of maintaining an inventory of supplies (e.g. the costs of invested funds,
insurance, storage, obsolescence, deterioration, equipment and labor) are known as: -
answerCarrying Costs
One of the benefits of using Requests for Proposals is recognizing that the best
solutions can come from field experts who deal on a daily basis with conflicts we are
trying to solve. This benefit is known as: - answerValue Engineering
In preparing to write a specification or scope of work, we may want to consider one of
two methods of gathering facts or details from potential vendors. We can invite several
of them to come to our agency and make a presentation or we can cast a wider net with
this technique. - answerRequest for Information
The city has had a term contract in place for two years. The original term of the contract
was for up to three years. Usage of the contract has declined to almost nothing. The city
purchasing manager has decided to cancel the contract. Which of the following methods
best addresses this action? - answerTermination for convenience
, Laws governing public records, open meetings and freedom of information are known
by this illuminating phrase. - answerSunshine law
Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - answerShow cause notice
Why is the Request for Proposal (RFP) process often perceived as problematic by an
agency's leadership? - answerThe award decision is based on qualitative variables.
Examples of audits are: - answerFinancial, compliance and management
Examples of three types of audit reports are:* - answerIntradepartmental,
interdepartmental, higher level management
Intradepartmental means:* - answerDesigned to inform the management in your
department concerning departmental matters.
Interdepartmental means: * - answerDistribution to other departments, outside of your
department, on a need to know basis.
Higher Level Management:* - answerreports issued to senior management and other
key personnel.
eCommerce means: - answerThe integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive electronic
based system of procurement functions.
eProcurement or eSourcing - answerIs the process of using electronic technologies for
purchasing goods and services and includes conducting all or some of the functions
over the internet.
The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - answerCost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time technology.
Some of those benefits include: - answerGreater effectiveness and efficiency
Making significant benefits in the process and output improvements
Reduction in operating costs
Improved customer service
