Question 1

Productivity relates the outputs generated by an activity to the resources consumed by the activity and is usually expressed as a ratio; for example, units produced per labor hour.

Accepted Answer

Productivity measures the efficiency of a production process by comparing the amount of output produced to the amount of input used, often expressed as a ratio such as units produced per labor hour.

Question 2

A well-designed supply chain measurement system provides information feedback regarding all of the following except _________.
A) customer requirements
B) the company and its suppliers' capabilities
C) the probable success of collaborative initiatives
D) the project management status of new product introduction

Accepted Answer

A well-designed supply chain measurement system is primarily focused on evaluating the efficiency and effectiveness of the supply chain itself, including aspects like customer requirements, supplier capabilities, and the success of collaborative initiatives. The project management status of new product introduction, while important, is more directly related to internal project management processes rather than the broader supply chain performance.

Question 3

Traditional customer service measurement which has relied on internally generated statistics regarding such measurements as fill rates, on-time delivery, and response time to inquiries does not provide a clear understanding of customer ________.
A) quality
B) specifications
C) minimum requirements
D) expectations

Accepted Answer

Traditional customer service measurements focus on internal metrics and do not necessarily reflect what the customer expects or desires from the service, making it difficult to understand customer expectations.

Question 4

In the SC functions of purchasing, production, and logistics, five performance areas are regarded as essential to accomplishing customer service and profitability goals. They include asset management, cost, customer service, ________, and quality.
A) inventory turns
B) productivity
C) shipments rejected
D) employee turnover

Accepted Answer

Productivity is one of the five essential performance areas in supply chain functions, alongside asset management, cost, customer service, and quality, to achieve customer service and profitability goals.

Question 5

________ is the formal process of comparing the attributes of one organization to those of another and is a critical component of a company's performance assessment arsenal.
A) ABC analysis
B) Benchmarking
C) Pareto analysis
D) Balance scorecard

Accepted Answer

Benchmarking is the process of comparing the business processes and performance metrics of one organization to industry bests or best practices from other companies. This helps in identifying areas for improvement and implementing strategies to enhance performance.

Question 6

Supply management professionals increasingly measure the percent of certified suppliers and the percent of orders (or dollars spent) from certified suppliers.

Accepted Answer

Supply management professionals often measure the percent of certified suppliers and the percent of orders (or dollars spent) from certified suppliers as part of their efforts to ensure quality, sustainability, and compliance with industry standards. This helps in managing risks and improving the supply chain's overall performance.

Question 7

A key performance measure for a company's "Sourcing" function is ________.
A) customer complaints
B) defects per million of procured product
C) units shipped per employee
D) inventory turns

Accepted Answer

Defects per million of procured product is a direct measure of the quality and effectiveness of the sourcing function, as it reflects the quality of the materials or products sourced by the company.

Question 8

Measurement can be used to create alignment. Three areas should be considered: alignment between strategy and measurement, alignment among measures used across functional areas, and alignment of measures employed up and down the supply chain.

Accepted Answer

Measurement ensures that strategic objectives are clearly defined and communicated across different levels and functions within an organization, and that performance is tracked consistently, facilitating alignment in strategy execution, functional integration, and supply chain coordination.

Question 9

All of the following are steps in "benchmarking" except ________.
A) define the attribute and identify best-in-class
B) qualitative data from benchmark company candidates
C) document benchmark company process at strategic and operational levels
D) develop a strategy for adopting the best practices

Accepted Answer

Benchmarking typically involves quantitative data collection for comparison rather than relying primarily on qualitative data. The process focuses on measurable outcomes and practices that can be adapted and implemented.

Question 10

Non-competitive (or non-restricted) benchmarking entails looking to companies in ________ industries for examples of best practice.
A) their
B) Fortune 500
C) other
D) related

Accepted Answer

Non-competitive benchmarking involves comparing processes and practices with those of companies in different industries to identify best practices.

Question 11

Measurement shapes behavior. Tom Peters suggests, "What gets measured, gets ________."
A) control limits
B) done
C) reported to all levels of management
D) is always prioritized

Accepted Answer

Tom Peters famously said, "What gets measured, gets done," highlighting the importance of measuring performance as a way to ensure tasks are completed.

Question 12

________ links costs directly to the activities that drive them, helping managers understand the nature of important processes.
A) Expense reporting
B) Activity-based costing
C) Common cost analysis
D) A budget

Accepted Answer

Activity-based costing links costs directly to the activities that drive them, helping managers understand the nature of important processes.

Question 13

Just-in-time or lean management substitutes information for inventory throughout the supply chain, requiring accurate information on a real-time basis.

Accepted Answer

Just-in-time (JIT) or lean management emphasizes reducing inventory levels and relying on accurate, real-time information to ensure that materials and products are available when needed, thus substituting information for inventory throughout the supply chain.

Question 14

The typical balanced scorecard emphasizes total order performance by including measures of five critical dimensions-cost, quality, delivery, responsiveness, and _________.
A) compliance
B) profit
C) delinquencies
D) innovation

Accepted Answer

The typical balanced scorecard includes measures of cost, quality, delivery, responsiveness, and innovation to provide a comprehensive view of an organization's performance. Innovation is crucial for staying competitive and adapting to market changes.

Question 15

Each of the following is a characteristic of an excellent measurement system except________.
A) helps managers understand critical value-added processes
B) quantitative analysis can be routinely performed
C) delivers high levels of targeted results
D) communicates expectations and promotes correct behavior

Accepted Answer

The answer of Each of the following is a characteristic...

Question 16

A key performance measure for a company's "Operations" function is ________.
A) percent suppliers certified
B) complete orders
C) direct labor costs
D) document/invoicing accuracy

Accepted Answer

The answer of A key performance measure for a company's...

Question 17

A company's ability to monitor and manage its value-added processes as well as those of its SC partners depends on its measurement capability.

Accepted Answer

A company's measurement capability is crucial for monitoring and managing its own value-added processes and those of its supply chain (SC) partners, as it allows for the assessment of performance, identification of improvement areas, and facilitation of better decision-making.

Question 18

Measurement performs three vital roles: It creates understanding, shapes behavior, and leads to operational improved information systems.

Accepted Answer

The answer of Measurement performs three vital roles: It creates...

Question 19

The downside of activity based costing is that enables decisions outside of the standard business accounting system.

Accepted Answer

Activity-based costing (ABC) is designed to provide more accurate cost information to managers, thereby enhancing decision-making within the standard business accounting system. It does not enable decisions outside of it; rather, it improves the quality of information within the system.

Question 20

Just-in-time or ________ management substitutes information for inventory throughout the supply chain, requiring accurate information on a real-time basis.
A) sourcing
B) logistics
C) operations
D) lean

Accepted Answer

Just-in-time management is a key principle of lean manufacturing, which focuses on reducing waste within manufacturing systems while simultaneously increasing productivity. This approach emphasizes the importance of having the right materials, at the right place, at the right time, by using accurate, real-time information to ensure efficient production and inventory management.

Quiz 13: Performance Measurement

Productivity relates the outputs generated by an activity to the resources consumed by the activity and is usually expressed as a ratio; for example, units produced per labor hour.

A well-designed supply chain measurement system provides information feedback regarding all of the following except _________.

Traditional customer service measurement which has relied on internally generated statistics regarding such measurements as fill rates, on-time delivery, and response time to inquiries does not provide a clear understanding of customer ________.

In the SC functions of purchasing, production, and logistics, five performance areas are regarded as essential to accomplishing customer service and profitability goals. They include asset management, cost, customer service, ________, and quality.

________ is the formal process of comparing the attributes of one organization to those of another and is a critical component of a company's performance assessment arsenal.

Supply management professionals increasingly measure the percent of certified suppliers and the percent of orders (or dollars spent) from certified suppliers.

A key performance measure for a company's "Sourcing" function is ________.

Measurement can be used to create alignment. Three areas should be considered: alignment between strategy and measurement, alignment among measures used across functional areas, and alignment of measures employed up and down the supply chain.

All of the following are steps in "benchmarking" except ________.

Non-competitive (or non-restricted) benchmarking entails looking to companies in ________ industries for examples of best practice.

Measurement shapes behavior. Tom Peters suggests, "What gets measured, gets ________."

________ links costs directly to the activities that drive them, helping managers understand the nature of important processes.

Just-in-time or lean management substitutes information for inventory throughout the supply chain, requiring accurate information on a real-time basis.

The typical balanced scorecard emphasizes total order performance by including measures of five critical dimensions-cost, quality, delivery, responsiveness, and _________.

Each of the following is a characteristic of an excellent measurement system except________.

A key performance measure for a company's "Operations" function is ________.

A company's ability to monitor and manage its value-added processes as well as those of its SC partners depends on its measurement capability.

Measurement performs three vital roles: It creates understanding, shapes behavior, and leads to operational improved information systems.

The downside of activity based costing is that enables decisions outside of the standard business accounting system.

Just-in-time or ________ management substitutes information for inventory throughout the supply chain, requiring accurate information on a real-time basis.