Q-organisations will typically do a price analysis using market forces as strategic cost management
approach…
1-unique products
2-generics
3-commodities
4-critical products
Q-As part of strategic cost management, longer-term agreements get finalised during the …stage of the
product life cycle
1-intial cost target
2-final cost target
3-contract baseline
4-cost/price continous improvement
Q-Strategic cost management approaches will vary according to the stage of the product life cycle. In the
initial concept development stage, purchasing will often act proactively to establish cost targets by means
of
1 target pricing
2 value engineering
3 target costing
4 competitive bidding
Q-Since barriers to supplier development may originate in the interface between the buyer and supplier,
solutions have to be found. Organisations should create a supplier ombudsman if ______ .
1 confidentiality inhibits information sharing
2 the supplier does not trust the buying organisation
3 the supplier is reluctant to share information on costs or processes
4 organisational cultures are poorly aligned
Q-there are several barriers to overcome in supplier development. For example, when the importance of a
purchased item does not justify development efforts, organisations should
1-standardise and use single sourcing
2-pursue small wins
3-take a longer term focus
4-prove the benefits
Q-This formal approach to supply base rationalisation provides all suppliers, regardless of their
performance history, a chance to remain in the supply base. it involves notifying suppliers that they have a
specified period of time in which to meet new performance requirements –from improved quality levels and
delivery performance to lead time and cost reductions, or any other key performance indicator
1-20/80 rule
2-‘improve or else’ approach
3-triage approach
4-competency staircase approach
Q-which of the following factors are possible risks of maintaining fewer suppliers?
a-use of full service suppliers
b-reduction of supply base risk
c-supplier dependency
d-absence of competition
e-ability to pursue complex supply management strategies
f-overaggressive supply reduction
1-ac
,2-abe
3-cdf
4-cde
Q-which of the following factors are advantages of a rationalised and optimised supply base
a-use of full service suppliers
b-reduction of supply base risk
c-supplier dependency
d-absence of competition
e-ability to pursue complex supply management strategies
f-overaggressive supply reduction
1-ac
2-abe
3-cdf
4-cde
Q-identify the factors affecting supply management’s role in managing supplier quality
a-the resources available to support supplier quality management and improvement
b-the buyer’s ability to collect and analyse quality related data
c-the ability of a buying organization practices world class quality
d-the willingness of employees to contribute to improved operations
e-the organisation’s current and projected CO2 emissions
1-all of the above
2-none of the above
3-abde
4-abc
Q-what market structure exists when only one supplier can provide a product or service?
1-oligopoly
2-perfect competition
3-monopoly
4-recession
Q-which are the correct conditions to go for bidding rather than negotiations?
a-when the buyer requires early supplier involvement
b-when the supplier cannot determine risks and costs
c-when adequate time is available for suppliers to evaluate the request for quotation
d-when the specification or requirements are clear to the seller
1-ab
2-cd
3-abd
4-all of the above
Q-Identify the most irrelevant statement regarding contracts.
[1] With a firm fixed price contract the supplier’s risk is low and the buyer’s risk is high.
[2] Cost-based contracts are applicable when the goods or services procured are expensive, complex and
important to the purchasing party.
[3] A fixed-price contract with incentives is typically utilised under conditions of high unit cost and relatively
long lead times.
[4] When deciding on a type of contract the total rand value of a purchase will be one of the considerations.
, Q-under which circumstances will you use the learning curve
a-when downturns in market demand occur
b-for individual products and services that are set to enhance the sales of the overall product line
c-when a supplier uses a new production process
d-when a supplier produces a new part for a aircraft
1-ab
2-cd
3-abd
4-bc
Q-which of the following are supply chain’s strategic cost management processes?
a- supplier suggestion programmes
b- supply chain compression
c- cross-enterprise cost improvement
d- joint brainstrorming for cost improvement
1-abc
2-bcd
3-ad
4-abcd
Look at the information provided below and answer questions 5+6
a-taxes
b- down time costs
c- warranty costs
e-risks costs
f-financing costs
g-administration costs
Q5-examples of acquisition costs are
1- abc
2- ce
3- dfg
4- ag
Q6-examples of usage costs are
1- adg
2- bcf
3- efg
4- ae
Q-which of the following are characteristics of a transactional relationship
a-long term contract
b-an absence of concern
c-one of a series of independent deals
d-parties work together to develop designs
e-costs, data and forecasts are not shared
f-price is the focus of the relationship
1-abce
2-bcef
3-bcde
4-acdf
, Q-identify the incorrect option regarding six sigma
1-six sigma is a board and comprehensive system for building and sustaining business performance,
success and leadership
2-the key focus is on process
3-measurement of both processes and products is critical to six sigma
4-six sigma calls for zero defects
___________________________________________________________________________________
Q-The letter G represent the ….function
1-quality assurance
2-accounting and finance
3-engineering
4-suppliers
approach…
1-unique products
2-generics
3-commodities
4-critical products
Q-As part of strategic cost management, longer-term agreements get finalised during the …stage of the
product life cycle
1-intial cost target
2-final cost target
3-contract baseline
4-cost/price continous improvement
Q-Strategic cost management approaches will vary according to the stage of the product life cycle. In the
initial concept development stage, purchasing will often act proactively to establish cost targets by means
of
1 target pricing
2 value engineering
3 target costing
4 competitive bidding
Q-Since barriers to supplier development may originate in the interface between the buyer and supplier,
solutions have to be found. Organisations should create a supplier ombudsman if ______ .
1 confidentiality inhibits information sharing
2 the supplier does not trust the buying organisation
3 the supplier is reluctant to share information on costs or processes
4 organisational cultures are poorly aligned
Q-there are several barriers to overcome in supplier development. For example, when the importance of a
purchased item does not justify development efforts, organisations should
1-standardise and use single sourcing
2-pursue small wins
3-take a longer term focus
4-prove the benefits
Q-This formal approach to supply base rationalisation provides all suppliers, regardless of their
performance history, a chance to remain in the supply base. it involves notifying suppliers that they have a
specified period of time in which to meet new performance requirements –from improved quality levels and
delivery performance to lead time and cost reductions, or any other key performance indicator
1-20/80 rule
2-‘improve or else’ approach
3-triage approach
4-competency staircase approach
Q-which of the following factors are possible risks of maintaining fewer suppliers?
a-use of full service suppliers
b-reduction of supply base risk
c-supplier dependency
d-absence of competition
e-ability to pursue complex supply management strategies
f-overaggressive supply reduction
1-ac
,2-abe
3-cdf
4-cde
Q-which of the following factors are advantages of a rationalised and optimised supply base
a-use of full service suppliers
b-reduction of supply base risk
c-supplier dependency
d-absence of competition
e-ability to pursue complex supply management strategies
f-overaggressive supply reduction
1-ac
2-abe
3-cdf
4-cde
Q-identify the factors affecting supply management’s role in managing supplier quality
a-the resources available to support supplier quality management and improvement
b-the buyer’s ability to collect and analyse quality related data
c-the ability of a buying organization practices world class quality
d-the willingness of employees to contribute to improved operations
e-the organisation’s current and projected CO2 emissions
1-all of the above
2-none of the above
3-abde
4-abc
Q-what market structure exists when only one supplier can provide a product or service?
1-oligopoly
2-perfect competition
3-monopoly
4-recession
Q-which are the correct conditions to go for bidding rather than negotiations?
a-when the buyer requires early supplier involvement
b-when the supplier cannot determine risks and costs
c-when adequate time is available for suppliers to evaluate the request for quotation
d-when the specification or requirements are clear to the seller
1-ab
2-cd
3-abd
4-all of the above
Q-Identify the most irrelevant statement regarding contracts.
[1] With a firm fixed price contract the supplier’s risk is low and the buyer’s risk is high.
[2] Cost-based contracts are applicable when the goods or services procured are expensive, complex and
important to the purchasing party.
[3] A fixed-price contract with incentives is typically utilised under conditions of high unit cost and relatively
long lead times.
[4] When deciding on a type of contract the total rand value of a purchase will be one of the considerations.
, Q-under which circumstances will you use the learning curve
a-when downturns in market demand occur
b-for individual products and services that are set to enhance the sales of the overall product line
c-when a supplier uses a new production process
d-when a supplier produces a new part for a aircraft
1-ab
2-cd
3-abd
4-bc
Q-which of the following are supply chain’s strategic cost management processes?
a- supplier suggestion programmes
b- supply chain compression
c- cross-enterprise cost improvement
d- joint brainstrorming for cost improvement
1-abc
2-bcd
3-ad
4-abcd
Look at the information provided below and answer questions 5+6
a-taxes
b- down time costs
c- warranty costs
e-risks costs
f-financing costs
g-administration costs
Q5-examples of acquisition costs are
1- abc
2- ce
3- dfg
4- ag
Q6-examples of usage costs are
1- adg
2- bcf
3- efg
4- ae
Q-which of the following are characteristics of a transactional relationship
a-long term contract
b-an absence of concern
c-one of a series of independent deals
d-parties work together to develop designs
e-costs, data and forecasts are not shared
f-price is the focus of the relationship
1-abce
2-bcef
3-bcde
4-acdf
, Q-identify the incorrect option regarding six sigma
1-six sigma is a board and comprehensive system for building and sustaining business performance,
success and leadership
2-the key focus is on process
3-measurement of both processes and products is critical to six sigma
4-six sigma calls for zero defects
___________________________________________________________________________________
Q-The letter G represent the ….function
1-quality assurance
2-accounting and finance
3-engineering
4-suppliers
