Planning & Analysis Exam Questions
and Answers 100% Pass
Strategic Procurement Planning (SP2) - ✔✔Transformation of the entity's missions,
goals, and objectives into measureable activities to be used to plan, budget, and manage
the procurement function within the entity.
SWOT - ✔✔In any planning situation, procurement professionals should be prepared to
analyze the various factors an entity could potentially face (strengths, weaknesses,
opportunities, threats)
The Pareto Principle - ✔✔20% of people yield 80% of production, while 80% of people
yield only 20% of the production (80% of procurement cost is from 20% of purchase
orders issued) a small amount of people produce most of the work and a large amount
of people produce the least amount of work.
Performance Metrics: Inputs - ✔✔Measures resources used: labor, materials, equipment,
and supplies. Demand for goods and services may also be considered.
Performance Metrics: Outputs - ✔✔Records activity that can be measured (e.g. total
spend, total number of new contracts, total number of employees who obtained
certification).
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, Performance Metrics: Outcomes - ✔✔Assess results of an activity and show whether
expected results were achieved (client service levels, improved performance of
suppliers, employee retention).
Performance Metrics: Efficiency - ✔✔Measures ratio of inputs to outputs/outcomes.
When outcomes are increased and inputs are decreased, more efficiency is generated.
Less administrative time on PO, etc.
Performance Metrics: Effectiveness - ✔✔Measures the quality and effects of the
outcomes. How long it takes to process a request or turnaround time to receive goods or
services.
Common Procurement Delivery Outcomes - ✔✔Right source, services, place, price,
materials, quantity, time (SS/PP/MQT)
Benchmarking - ✔✔Measuring a process, service, or good against the characteristics of
the recognized leaders in the given area of review. (Procurement identifies world class
entities with which to compare its practices, policies, and performance outcomes).
Procurement Profile - ✔✔Adds decision making intelligence to a spend analysis
through Spend Analysis (range of goods and services available), Market Analysis (the
markets that provide them), Supply Positioning (risks in the market that could affect the
entity's operations).
Supply Positioning - ✔✔Analyzing the complexity of the supply marketplace and its
impact on entity service delivery.
Two major forces impacting government procurement - ✔✔1) difficulty of securing a
supply of goods and services 2) the amount expended for each good and service
consumed by the entity.
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