Deck 9: Purchasing Services

Question 1

In planning the statement of work,all of the following should be considered: statistical process control,process capability analysis,and the sampling methodology.

Answer 1

False

Question 2

The ideal services supplier listens to what users complain about most and then designs service products that supply the market's missing ingredients.

Answer 2

True

Question 3

Which of the following is not one of the four formats for statements of work?

A) Performance S.O.W., which details everything the buyer wants
B) Functional S.O.W., which defines what the buyer is "trying to do"
C) Design S.O.W., which is the most detailed type of statement of work
D) Development S.O.W., which specifies the assistance that a buying firm must provide the supplying firm during the length of the contract
E) Level-of-Effort S.O.W., which is a specialized version of the performance statement of work

Answer 3

D

Question 4

In writing an effective S.O.W.as given in the textbook,the S.O.W.should: limit abbreviations to those in common usage,include procedures and eliminate extraneous statements.

Question 5

Supply Management frequently must assume a far more active role in all phases of services procurement than when purchasing materials.

Question 6

Satisfaction is built into service products rather than added as an afterthought.

Question 7

In writing an effective S.O.W.as given in the textbook,brevity should be used by utilizing as many abbreviations as possible and not including procedures and or extraneous statements.

Question 8

The conventional method and the owner as a contractor are alternative methods of purchasing construction services as presented in the textbook.

Question 9

Which is usually not included in planning the statement of work?

A) Work approvals
B) Process flows in the supplier's facility
C) Use of subcontractors
D) Authorized personnel
E) Exhibits, schedules, and attachments

Question 10

In planning the statement of work,all of the following should be considered: performance measurements,deliverables,delivery schedule,performance schedule and service levels.

Question 11

Supply management frequently must assume a less active role in services procurement than when purchasing materials.

Question 12

The four formats for statements of work given in the textbook are: performance,functional,design and level-of-effort.

Question 13

The procurement of services is a relatively simple assignment in supply management that usually results in lower pay for the supply manager.

Question 14

Satisfaction is cannot be built into service products but must be added as an afterthought.

Question 15

The ideal services supplier focus on cost reduction ahead of customer satisfaction.

Question 16

The procurement of services is one of supply management's most interesting and challenging assignments.

Question 17

The four formats for statements of work given in the textbook are: performance,functional,design and firm fixed price.

Question 18

In writing an effective S.O.W.as given in the textbook,the S.O.W.should not include explanations of the interrelationship between tasks or constraints and limitations.

Question 19

The Constraint-Based Method is one methods of purchasing construction services as presented in the textbook.

Question 20

In writing an effective S.O.W.as given in the textbook,the S.O.W.should explain the interrelationship between tasks,identify all constraints and limitations and be clear about phase requirements.

Question 21

Which is usually not included in writing the SOW?

A) Quality monitoring system
B) Total cost of ownership
C) Personnel plan
D) Performance and payment bonds
E) Metrics

Question 22

Which of the following is not an alternative method of purchasing construction services presented in the textbook?

A) Conventional Method
B) Cost Plus Discretionary Expenses
C) Design and Build, Agreed Price Method
D) Design and Build, Cost-Reimbursable Method
E) The Owner as a Contractor

Question 23

Which of the following is not one of the tips on writing an effective S.O.W.given in the textbook?

A) Limit abbreviations to those in common usage
B) Include procedures
C) Do not over specify or overstate
D) Always integrate escape clauses
E) Eliminate extraneous statements

Question 24

Which of the following is not a tip given in the textbook for selecting service contractors?

A) Minimize assumptions
B) Encourage questions
C) Facilitate comparison
D) Play hardball
E) Plan evaluation

Question 25

Which is usually not included in planning the statement of work?

A) Second and third tier supplier obligations
B) Description of the work
C) Schedule
D) Specifications and requirements
E) Quality requirements

Question 26

Which is usually not included in planning the statement of work?

A) Performance measurements
B) Deliverables
C) Delivery and performance schedule
D) Service levels
E) Local buying requirements

Question 27

Which of the following is not one of the tips on writing an effective S.O.W.given in the textbook?

A) Be clear
B) Use active, not passive tenses
C) Utilize legalese to hide negative issues
D) Be precise
E) Spell out the buyer's obligations carefully

Question 28

Which of the following is not one of the tips on writing an effective S.O.W.given in the textbook?

A) Explain the interrelationship between tasks
B) Identify all constraints and limitations
C) Include standards that will make performance measurement possible and meaningful
D) Include clause for punitive damages to assure compliance
E) Be clear about phase requirements

Question 29

Which of the following is not a tip given in the textbook for selecting service contractors?

A) Partner with users
B) Engage in reciprocity
C) Learn from the past
D) Update specifications
E) Minimize assumptions