Question 1

The "Voice of the Customer (VOC)"can be defined as the process of capturing a customer's expectations, preferences, and aversions.

Accepted Answer

The "Voice of the Customer (VOC)" is indeed a process that involves capturing and understanding the customer's expectations, preferences, and aversions to improve products or services.

Question 2

High-quality data can have a significant impact on improving employee productivity.

Accepted Answer

High-quality data ensures accurate, relevant, and timely information, which can enhance decision-making, streamline processes, and ultimately improve employee productivity.

Question 3

When organizations are developing systems for obtaining and maintaining high-quality data, identifying how work activities and workers use and interface with the data is referred to as "stewardship."

Accepted Answer

The process of identifying how work activities and workers use and interface with data is typically referred to as "data governance," not "stewardship." Data stewardship is more about managing and overseeing data assets.

Question 4

From an organization's perspective, a positive cash-to-cash cycle would be a good thing, while a negative cash-to-cash cycle would not be good.

Accepted Answer

A negative cash-to-cash cycle is actually beneficial for an organization as it indicates that the company is able to collect cash from sales before it needs to pay its suppliers, improving liquidity and reducing the need for external financing.

Question 5

Economic value-added (EVA) is an estimate of a firm's profit, or simply, the cost of capital has to have a greater benefit than invested capital.

Accepted Answer

Economic value-added (EVA) is an estimate of a firm's economic profit, calculated as the net operating profit after taxes (NOPAT) minus the firm's cost of capital. It measures the value created above the required return of the company's shareholders.

Question 6

A majority of firms are satisfied with the state of their current efforts in developing and implementing supply chain metrics.

Accepted Answer

Many firms often struggle with developing and implementing effective supply chain metrics, facing challenges such as data integration, metric selection, and alignment with business goals.

Question 7

The objective of a perfect order approach is to attempt to eliminate all mistakes or errors except for the very few that occur from time to time.

Accepted Answer

A perfect order approach aims to minimize errors and mistakes in order fulfillment processes, striving to achieve zero defects.

Question 8

The U.S. Department of Defense utilizes cost metrics with respect to their primary mission of providing defense to the United States. They define cost as the price paid for the supply chain resources required to deliver a specific performance outcome.

Accepted Answer

The U.S. Department of Defense uses cost metrics to evaluate the expenses associated with acquiring and managing resources necessary to achieve their defense objectives, aligning with their mission to provide national security.

Question 9

"Order fill rate"is calculated by taking the total orders shipped and dividing that number by total orders, resulting in a percentage that could reach 100 percent if every order was always shipped correctly.

Accepted Answer

Order fill rate is calculated by dividing the total orders shipped by the total orders, resulting in a percentage that could reach 100 percent if every order was always shipped correctly.

Question 10

"Dock-to-stock cycle time"is calculated as total cycle time in hours to process all supplier receipts in a time period divided by the total number of supplier receipts for the time period.

Accepted Answer

Dock-to-stock cycle time measures the efficiency of processing supplier receipts by calculating the average time taken per receipt, which is done by dividing the total cycle time by the number of receipts.

Question 11

One of the core benchmark areas identified by the Supply Chain Consortium is "supply chain planning."Examples of that core area would include metrics such as financial inventory turns, days of purchases outstanding, and perfect order completion.

Accepted Answer

The answer of One of the core benchmark areas identified...

Question 12

APQC's Process Classification Framework (PCF) is an open standard to facilitate improvement through process management and benchmarking regardless of industry, size, or geography.

Accepted Answer

The APQC's Process Classification Framework (PCF) is designed as an open standard to help organizations improve processes and benchmark performance across various industries, sizes, and geographies.

Question 13

The cash-to-cash cycle (C2C) includes measures of days of inventory (DOI), days of payables (DOP), and days of receivables (DOR).

Accepted Answer

The cash-to-cash cycle measures the time taken between outlaying cash for inventory and receiving cash from sales, incorporating DOI, DOP, and DOR.

Question 14

The calculation of the cash-to-cash (C2C) cycle would be: C2C = DOI + DOR + DOP.

Accepted Answer

The correct formula for the cash-to-cash cycle is C2C = DOI + DOR - DOP, where DOI is Days of Inventory, DOR is Days of Receivables, and DOP is Days of Payables.

Question 15

KPIs vary depending on the level in the organization where the metric is being used. For the overall organization, financial metrics such as profitability, supply chain cost, overall inventory levels, and warehouse utilization rates, would be examples.

Accepted Answer

The answer of KPIs vary depending on the level in...

Question 16

Scorecards are literally nothing more than devices used to evaluate the performance of operations and organizations within supply chains.

Accepted Answer

Scorecards are used to evaluate the performance of operations and organizations within supply chains.

Question 17

A benefit of using Balanced Scorecards is that they describe the cause-and-effect relationship of the strategic objectives.

Accepted Answer

Balanced Scorecards help in mapping out strategic objectives and their interconnections, showing how achieving one objective can lead to the fulfillment of another, thus illustrating cause-and-effect relationships.

Question 18

Scorecards are very valuable in assisting supply chain executives in making decisions and they are relatively easy to implement.

Accepted Answer

The answer of Scorecards are very valuable in assisting supply...

Question 19

One of the basic types of scorecards is the cost-based scorecard. This type of scorecard is the most widely used and attempts to quantify the total cost of doing business with a supplier over time.

Accepted Answer

The answer of One of the basic types of scorecards...

Question 20

Balanced scorecards can only be used in large firms and are not feasible to be used by small organizations.

Accepted Answer

Balanced scorecards can be adapted for use by organizations of any size, including small businesses, to align business activities with the vision and strategy of the organization.

Quiz 16: Supply Chain Performance Measurement and Metrics