NIGP CPPO Prep Exam with Complete Solutions

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 - ANSWER-Identifies where the organization wants to be in the future Mission - ANSWER-Identifies why it exists, what it is and how it contributes to the local community. Goals - ANSWER-Identifies what the organization is intending to accomplish and proposes the general end towards which an organization directs its efforts. Objectives - ANSWER-Highly defined targets that require specific action with a shorter time frame. Strategies - ANSWER-Identified methods to achieve specific goals and are used to carry out objectives. Long range plans Performance Measures - ANSWER-The 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 - ANSWER-Monitoring the end results Objectives should be: - ANSWER-SMART-Specific, measurable, assignable, realistic and time based. Types of performance measures - ANSWER-Demand, workload, efficiency and effectiveness Demand - ANSWER-A measure that assesses the severity of a problem or the scope of work to be performed. Workload - ANSWER-A measure that indicates the amount of work which must be performed to accomplish a specific task. Efficiency - ANSWER-A measure that compares resources used with results obtained. Effectiveness - ANSWER-A measure that determines how well a program or activity meets an objective or fulfills a need. Value-added benefits* - ANSWER-Takes into consideration quality, cost, service, TCO (total cost of ownership) and continuity of supply. Policy Manual - ANSWER-Manual that says how we must do it. Defines the general parameters for the organization to follow in carrying out its responsibilities. Procedure manual - ANSWER-Shows 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 - ANSWER-Statements by a governing body to implement, interpret or prescribe law or policy. Automated procurement management information systems - ANSWER-Saves considerable time and effort, reduces overhead and improves schedule by eliminating the repetitive clerical tasks associated with purchasing. Enterprise Resource Planning Systems (ERP) - ANSWER-Business process software systems that manage multiple management systems such as finance, accounting, human resources, purchasing, and inventory. Retention Schedule for documents* - ANSWER-Must save the following: "HAL" Historical, Administrative and Legal Cooperative Purchasing - ANSWER-Two or more agencies combining their requirements to obtain advantages of volume purchasing including administrative savings. Benefits of Cooperative purchasing - ANSWER-Provides 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.