CPP Quality Management in Procurement 2

Question 1

The Pareto Principle applied to quality management suggests that approximately what percentage of defects are caused by a small percentage of causes?

Accepted Answer

80% of defects from 20% of causes

Answer

50% of defects from 50% of causes

Answer

90% of defects from 10% of causes

Answer

70% of defects from 30% of causes

Question 2

Which of the following best describes 'incoming inspection' in a procurement quality program?

Accepted Answer

Inspecting materials or goods upon receipt to verify they meet specifications before acceptance

Answer

Auditing a supplier's factory before contract award

Answer

Reviewing invoices for billing accuracy

Answer

Monitoring production in real time at the supplier's facility

Question 3

A procurement contract that requires a supplier to deliver zero defects and assigns financial liability for any defective units is best described as which type of quality clause?

Accepted Answer

Liquidated damages clause tied to quality performance

Answer

Best-efforts clause

Answer

Material safety data clause

Answer

Force majeure clause

Question 4

Statistical Process Control (SPC) uses control charts primarily to:

Accepted Answer

Monitor a process over time to detect variation and prevent defects

Answer

Set supplier payment schedules

Answer

Calculate total cost of ownership

Answer

Rank suppliers by delivery performance

Question 5

Which term describes the practice of having a supplier self-certify its quality systems as a condition of doing business, reducing the need for buyer-conducted audits?

Accepted Answer

Supplier self-certification or qualification

Answer

Supplier-managed inventory (SMI)

Answer

Third-party certification

Answer

Vendor-managed quality (VMQ)

Question 6

What is the primary purpose of a supplier quality audit conducted by the buying organization?

Accepted Answer

To verify that the supplier's quality systems and processes comply with specified requirements

Answer

To negotiate lower prices based on observed inefficiencies

Answer

To assess the supplier's marketing capabilities

Answer

To determine if the supplier should be acquired

Question 7

A 'non-conformance report' (NCR) in procurement is used to:

Accepted Answer

Document instances where received goods or services fail to meet specified requirements

Answer

Track on-time delivery performance

Answer

Record supplier financial changes

Answer

Log changes to purchase order terms