CLL CLL Supply Chain & Lean Procurement 2 — Questions and Answers
Question 1: What is the purpose of a supplier scorecard in lean procurement?
- To rank suppliers by company size
- To track and communicate supplier performance on quality, delivery, and cost metrics (Correct answer)
- To satisfy regulatory auditing requirements only
- To identify suppliers for elimination without discussion
Correct answer: To track and communicate supplier performance on quality, delivery, and cost metrics
Scorecards provide transparent, data-driven feedback that guides joint improvement planning between the buyer and supplier.
Question 2: Which practice reduces incoming inspection waste by ensuring supplier processes are capable and controlled?
- 100% final inspection at receiving dock
- Supplier quality certification and process audits (Correct answer)
- Adding safety stock as a buffer
- Requiring dual sourcing for all parts
Correct answer: Supplier quality certification and process audits
Certifying supplier processes using capability studies and audits eliminates the need for redundant incoming inspection, reducing waste.
Question 3: In lean thinking, which type of inventory is considered the most wasteful form to carry in the supply chain?
- Cycle stock
- Pipeline inventory
- Safety stock held to compensate for unreliable suppliers (Correct answer)
- Consignment inventory at the point of use
Correct answer: Safety stock held to compensate for unreliable suppliers
Safety stock held to buffer supplier unreliability masks the root problem and represents pure waste; lean seeks to eliminate the cause, not the symptom.
Question 4: What lean tool is used to map all value-adding and non-value-adding steps across the entire supply chain from supplier to customer?
- SIPOC diagram
- Extended value stream map (Correct answer)
- FMEA
- Pareto chart
Correct answer: Extended value stream map
An extended value stream map reveals waste, delays, and handoff points across the full supply chain, enabling systemic improvement.
Question 5: How does a lean leader apply the concept of 'leveled production' (heijunka) to benefit the supply chain?
- By scheduling large monthly batch orders to maximize discounts
- By smoothing order volume and mix over time to reduce supplier demand spikes (Correct answer)
- By concentrating all orders at quarter end
- By pushing excess inventory to distribution centers
Correct answer: By smoothing order volume and mix over time to reduce supplier demand spikes
Heijunka levels the production schedule so suppliers receive predictable, steady demand instead of disruptive peaks and valleys.
Question 6: Which of the following best describes a consignment inventory arrangement in a lean supply chain?
- The buyer pays upon ordering regardless of usage
- Supplier-owned inventory held at the buyer's facility; payment triggered only upon consumption (Correct answer)
- A penalty clause for late deliveries
- A long-term purchase agreement with fixed annual pricing
Correct answer: Supplier-owned inventory held at the buyer's facility; payment triggered only upon consumption
Consignment shifts inventory ownership to the supplier until parts are consumed, reducing the buyer's carrying costs while keeping material available.
CLL CLL Supply Chain & Lean Procurement 2
What is the purpose of a supplier scorecard in lean procurement?