CPPB - Domain 1 Procurement Administration
Questions With Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Good performance measures need to be meaningful for all participants including:.
ANSWER -Procurement professionals, clients and suppliers
Good performance measures need to be stated in terms of the higher-level objectives
of the central procurement office or else they will lose:. ANSWER -their impact
Good performance measures need to be:. ANSWER -fair, easy to collect, consistent
and objective
Performance measure activities must be measured against a metric. Metrics include:.
ANSWER -Inputs, outputs, outcomes, efficiency measures and effectiveness measures
Inputs:. ANSWER -Measure resources used. They include labor, materials, equipment
and supplies. Demand for services may also be considered
Outputs:. ANSWER -Record activity or effort that can be expressed in a quantitative
or qualitative manner. Consider: total number of new contracts, total number of
employees who obtained professional certification, total spend.
Cycletime. ANSWER -Time to produce a PO, Inventory turnover
,Customer Satisfaction. ANSWER -Number of Disputes subtract Number of change
orders
Outcomes. ANSWER -Assess results of an activity and show whether expected
results were achieved (customer service, improved performance of supplier, employee
retention)
Efficiency Measures. ANSWER -Represent the ratio of inputs to outputs or outcomes
Effectiveness Measures. ANSWER -Reflect how long it takes to process a request for
procurement (purchase orders, bids, etc.)
The following are examples of methods that may be used to measure procurement
performance:. ANSWER -Performance reviews, regular staff meetings,
benchmarking, performance indicators, performance targets and quality management
tools
Seven rights of procurement are:. ANSWER -Right materials, right quantity, right
time, right place, right source, right service and right price
Common performance indicators:. ANSWER -Cost reduction, supplier/industry
development, supplier performance, efficiency of internal procurement systems and
customer satisfaction
ERP stands for:. ANSWER -Enterprise Resource Planning (automated procurement
system)
, When considering an automated procurement system one should factor in these
elements:. ANSWER -Functional requirements, hardware and software support,
installation and training, maintenance and one-time costs and recurring costs
The framework for good record keeping includes:. ANSWER -The values and guiding
principles of transparency and accountability
Solicitation files serve as:. ANSWER -Official factual record of events, information
required under freedom of information laws, information required by the contract
administrator and information required for a pre or post award audit.
What is a critical function of managing the procurement process:. ANSWER -The
maintenance of document files
What should the contract files contain:. ANSWER -Executed contract, required
bonds, conflict forms, post-award documentation, notice to proceed,
approvals/disapprovals of contract, documentation of performance monitoring,
modifications, documentation to delivery date or contract price, documentation for
settlement claims/disputes, stop work/suspension of work notices,
inspection/acceptance documentation and contract closeout
Basic factors to consider regarding procurement records retention include:. ANSWER
-Legal or statutory requirements, historical requirements and administrative
requirements
Cooperative procurement refers to:. ANSWER -The action taken when two or more
entities combine their requirements to obtain advantages of volume purchases
including administrative savings and other benefits
Questions With Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Good performance measures need to be meaningful for all participants including:.
ANSWER -Procurement professionals, clients and suppliers
Good performance measures need to be stated in terms of the higher-level objectives
of the central procurement office or else they will lose:. ANSWER -their impact
Good performance measures need to be:. ANSWER -fair, easy to collect, consistent
and objective
Performance measure activities must be measured against a metric. Metrics include:.
ANSWER -Inputs, outputs, outcomes, efficiency measures and effectiveness measures
Inputs:. ANSWER -Measure resources used. They include labor, materials, equipment
and supplies. Demand for services may also be considered
Outputs:. ANSWER -Record activity or effort that can be expressed in a quantitative
or qualitative manner. Consider: total number of new contracts, total number of
employees who obtained professional certification, total spend.
Cycletime. ANSWER -Time to produce a PO, Inventory turnover
,Customer Satisfaction. ANSWER -Number of Disputes subtract Number of change
orders
Outcomes. ANSWER -Assess results of an activity and show whether expected
results were achieved (customer service, improved performance of supplier, employee
retention)
Efficiency Measures. ANSWER -Represent the ratio of inputs to outputs or outcomes
Effectiveness Measures. ANSWER -Reflect how long it takes to process a request for
procurement (purchase orders, bids, etc.)
The following are examples of methods that may be used to measure procurement
performance:. ANSWER -Performance reviews, regular staff meetings,
benchmarking, performance indicators, performance targets and quality management
tools
Seven rights of procurement are:. ANSWER -Right materials, right quantity, right
time, right place, right source, right service and right price
Common performance indicators:. ANSWER -Cost reduction, supplier/industry
development, supplier performance, efficiency of internal procurement systems and
customer satisfaction
ERP stands for:. ANSWER -Enterprise Resource Planning (automated procurement
system)
, When considering an automated procurement system one should factor in these
elements:. ANSWER -Functional requirements, hardware and software support,
installation and training, maintenance and one-time costs and recurring costs
The framework for good record keeping includes:. ANSWER -The values and guiding
principles of transparency and accountability
Solicitation files serve as:. ANSWER -Official factual record of events, information
required under freedom of information laws, information required by the contract
administrator and information required for a pre or post award audit.
What is a critical function of managing the procurement process:. ANSWER -The
maintenance of document files
What should the contract files contain:. ANSWER -Executed contract, required
bonds, conflict forms, post-award documentation, notice to proceed,
approvals/disapprovals of contract, documentation of performance monitoring,
modifications, documentation to delivery date or contract price, documentation for
settlement claims/disputes, stop work/suspension of work notices,
inspection/acceptance documentation and contract closeout
Basic factors to consider regarding procurement records retention include:. ANSWER
-Legal or statutory requirements, historical requirements and administrative
requirements
Cooperative procurement refers to:. ANSWER -The action taken when two or more
entities combine their requirements to obtain advantages of volume purchases
including administrative savings and other benefits
