CPPB - Domain 1 Procurement
Administration Questions and Answers
Good ||performance ||measures ||need ||to ||be ||meaningful ||for ||all ||participants ||including:
Ans: | | 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:
||
Ans: | | their ||impact
Good ||performance ||measures ||need ||to ||be:
Ans: | | fair, ||easy ||to ||collect, ||consistent ||and ||objective
Performance ||measure ||activities ||must ||be ||measured ||against ||a ||metric. ||Metrics ||include:
Ans: | | Inputs, ||outputs, ||outcomes, ||efficiency ||measures ||and ||effectiveness ||measures
Inputs:
Ans: | | Measure ||resources ||used. ||They ||include ||labor, ||materials, ||equipment ||and ||supplies.
Demand ||for ||services ||may ||also ||be ||considered
,Outputs:
Ans: | | 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
Ans: | | Time ||to ||produce ||a ||PO, ||Inventory ||turnover
Customer ||Satisfaction
Ans: | | Number ||of ||Disputes ||subtract ||Number ||of ||change ||orders
Outcomes
Ans: | | Assess ||results ||of ||an ||activity ||and ||show ||whether ||expected ||results ||were ||achieved
(customer ||service, ||improved ||performance ||of ||supplier, ||employee ||retention)
Efficiency ||Measures
Ans: | | Represent ||the ||ratio ||of ||inputs ||to ||outputs ||or ||outcomes
Effectiveness ||Measures
, Ans: | | 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:
||
Ans: | | Performance ||reviews, ||regular ||staff ||meetings, ||benchmarking, ||performance ||indicators,
performance ||targets ||and ||quality ||management ||tools
Seven ||rights ||of ||procurement ||are:
Ans: | | Right ||materials, ||right ||quantity, ||right ||time, ||right ||place, ||right ||source, ||right ||service ||and
right ||price
Common ||performance ||indicators:
Ans: | | Cost ||reduction, ||supplier/industry ||development, ||supplier ||performance, ||efficiency ||of
internal ||procurement ||systems ||and ||customer ||satisfaction
ERP ||stands ||for:
Ans: | | Enterprise ||Resource ||Planning ||(automated ||procurement ||system)
When ||considering ||an ||automated ||procurement ||system ||one ||should ||factor ||in ||these ||elements:
Administration Questions and Answers
Good ||performance ||measures ||need ||to ||be ||meaningful ||for ||all ||participants ||including:
Ans: | | 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:
||
Ans: | | their ||impact
Good ||performance ||measures ||need ||to ||be:
Ans: | | fair, ||easy ||to ||collect, ||consistent ||and ||objective
Performance ||measure ||activities ||must ||be ||measured ||against ||a ||metric. ||Metrics ||include:
Ans: | | Inputs, ||outputs, ||outcomes, ||efficiency ||measures ||and ||effectiveness ||measures
Inputs:
Ans: | | Measure ||resources ||used. ||They ||include ||labor, ||materials, ||equipment ||and ||supplies.
Demand ||for ||services ||may ||also ||be ||considered
,Outputs:
Ans: | | 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
Ans: | | Time ||to ||produce ||a ||PO, ||Inventory ||turnover
Customer ||Satisfaction
Ans: | | Number ||of ||Disputes ||subtract ||Number ||of ||change ||orders
Outcomes
Ans: | | Assess ||results ||of ||an ||activity ||and ||show ||whether ||expected ||results ||were ||achieved
(customer ||service, ||improved ||performance ||of ||supplier, ||employee ||retention)
Efficiency ||Measures
Ans: | | Represent ||the ||ratio ||of ||inputs ||to ||outputs ||or ||outcomes
Effectiveness ||Measures
, Ans: | | 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:
||
Ans: | | Performance ||reviews, ||regular ||staff ||meetings, ||benchmarking, ||performance ||indicators,
performance ||targets ||and ||quality ||management ||tools
Seven ||rights ||of ||procurement ||are:
Ans: | | Right ||materials, ||right ||quantity, ||right ||time, ||right ||place, ||right ||source, ||right ||service ||and
right ||price
Common ||performance ||indicators:
Ans: | | Cost ||reduction, ||supplier/industry ||development, ||supplier ||performance, ||efficiency ||of
internal ||procurement ||systems ||and ||customer ||satisfaction
ERP ||stands ||for:
Ans: | | Enterprise ||Resource ||Planning ||(automated ||procurement ||system)
When ||considering ||an ||automated ||procurement ||system ||one ||should ||factor ||in ||these ||elements:
