Question 1

Historical data provide great insight about the performance capabilities of competitors or other leading firms.

Accepted Answer

The answer of Historical data provide great insight about the...

Question 2

A performance objective should reflect the realities of the firm's competitive environment.

Accepted Answer

Performance objectives should be aligned with the competitive environment of the firm as they help organizations to stay ahead in the competition, improve operational efficiency and achieve their strategic goals effectively. Setting performance objectives that do not consider the competitive environment may lead to unrealistic goals and failure in achieving them. Therefore, performance objectives must be reflective of the competitive environment of the firm.

Question 3

Some individuals resist the benchmarking process because of a reluctance to recognize the value of a competitor's way of doing business - the "not invented here" syndrome.

Accepted Answer

The statement accurately describes the "not invented here" syndrome, where individuals or organizations resist adopting a competitor's best practices or ideas because they were not developed internally. This can lead to a reluctance to participate in benchmarking, which involves comparing one's own performance against that of leading competitors or industry peers.

Question 4

Purchasing and supply chain managers often use the historical approach with effectiveness measures.

Accepted Answer

The answer of Purchasing and supply chain managers often use...

Question 5

Joint participation means that the personnel responsible for each measure participate in developing the measure or establishing the measure's performance objective.

Accepted Answer

Joint participation is a collaborative approach where all parties responsible for a measure participate in its development or establishment of performance objectives. This promotes ownership and commitment, leading to better outcomes.

Question 6

____ refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal.

Accepted Answer

Efficiency refers to the relationship between planned and actual sacrifices made to realize a previously agreed-upon goal. It measures how well resources (inputs) are used to achieve a desired outcome (output) and is an important factor in evaluating the overall effectiveness of an organization or process.

Question 7

Supply managers should not emphasize purchasing efficiency over purchasing effectiveness as a strict measure of performance.

Accepted Answer

While purchasing efficiency (such as reducing costs, processing time, and paperwork) is important, it should not be prioritized over purchasing effectiveness (such as getting the right quality, quantity, and delivery of goods/services). A supply manager should aim for both efficiency and effectiveness to achieve overall success.

Question 8

____ refers to the extent to which,by choosing a certain course of action,management can meet a previously established goal or standard.

Accepted Answer

The concept described in the question refers to effectiveness, which is the extent to which an action or decision achieves a desired outcome or goal. Operational benchmarking and efficiency are related concepts, but they do not fully capture the idea of meeting established goals or standards. Support-activity benchmarking is also not directly relevant to the question.

Question 9

A sound measurement and evaluation system provides sporadic or as-needed reporting of performance results.

Accepted Answer

A sound measurement and evaluation system provides ongoing and regular reporting of performance results, not sporadic or as-needed reporting.

Question 10

For consistency,all locations of an organization must use the same performance objectives or performance criteria.

Accepted Answer

Performance objectives or criteria can vary based on the specific needs, goals, and context of each location within an organization.

Question 11

Purchasing requires measures that reflect its ability to support overall corporate and functional goals,which means an increased emphasis on pure efficiency measures and a decreased emphasis on effectiveness measures.

Accepted Answer

The statement is incorrect. Purchasing requires measures that reflect its ability to support overall corporate and functional goals, which means an increased emphasis on effectiveness measures and a decreased emphasis on pure efficiency measures. Efficiency measures alone may not align with broader corporate goals and may compromise effectiveness.

Question 12

A single,overall productivity measure representing purchasing and supply chain performance is feasible.

Accepted Answer

It is not feasible to have a single, overall productivity measure representing purchasing and supply chain performance as these are complex and multi-faceted processes that involve multiple factors and variables. It is important to have multiple measures and KPIs that focus on various aspects of purchasing and supply chain performance to accurately assess the overall effectiveness and efficiency of these processes.

Question 13

Measurement is virtually free.

Accepted Answer

Measurement often involves costs related to acquiring measurement tools, training personnel, and maintaining accuracy over time, making it not virtually free.

Question 14

There is no one best way to measure performance.

Accepted Answer

Performance can be measured through various methods, including qualitative and quantitative measures, subjective and objective measures, and individual and team-based measures. The best way to measure performance depends on the specific goals and objectives of the organization and the individual being evaluated.

Question 15

All aspects of performance lend themselves to quantitative measurement.

Accepted Answer

Some aspects of performance, such as creativity, teamwork, and leadership, are qualitative and do not easily lend themselves to quantitative measurement.

Question 16

With the current budget plus adjustment approach,the purchasing administrative budget is a percentage of another measure that reflects purchasing's workload.

Accepted Answer

The answer of With the current budget plus adjustment approach,the...

Question 17

A measurement system should rely on quantitative data instead of qualitative feelings and assessments.

Accepted Answer

A measurement system should be objective and based on data that can be measured and analyzed, rather than subjective assessments or feelings. Using quantitative data allows for greater accuracy and consistency in measuring performance or outcomes.

Question 18

A common misconception is that a performance evaluation system should not measure every activity.

Accepted Answer

A performance evaluation system should aim to measure every activity to give a comprehensive understanding of an employee's performance. However, the system may prioritize certain activities or competencies based on their relevance to the job role or organizational goals.

Question 19

Well-defined measures use data that are available and accurate.

Accepted Answer

Measures that use data that are available and accurate are considered well-defined.

Question 20

An effective performance objective should be so easy that it requires minimal effort to achieve.

Accepted Answer

An effective performance objective should be specific and challenging but also achievable with reasonable effort and resources. It should not be so easy that it requires minimal effort to achieve because that may not provide enough motivation or opportunities for growth and development.

Quiz 19: Performance Measurement and Evaluation