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CPPB - Domain 1 Procurement
Administration Questions and Answers
2024/2025
Good performance measures need to be meaningful for all participants including:
Procurement professionals, clients and suppliers
Good performance measures need to be stated in terms of the higher-level objectives of the
central procurement office or else they will lose:
their impact
Good performance measures need to be:
fair, easy to collect, consistent and objective
Performance measure activities must be measured against a metric. Metrics include:
Inputs, outputs, outcomes, efficiency measures and effectiveness measures
Inputs:
Measure resources used. They include labor, materials, equipment and supplies.
Demand for services may also be considered
Outputs:
Record activity or effort that can be expressed in a quantitative or qualitative
manner. Consider: total number of new contracts, total number of employees who
obtained professional certification, total spend.
Cycletime
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Time to produce a PO, Inventory turnover
Customer Satisfaction
Number of Disputes subtract Number of change orders
Outcomes
Assess results of an activity and show whether expected results were achieved
(customer service, improved performance of supplier, employee retention)
Efficiency Measures
Represent the ratio of inputs to outputs or outcomes
Effectiveness Measures
Reflect how long it takes to process a request for procurement (purchase orders, bids,
etc.)
The following are examples of methods that may be used to measure procurement
performance:
Performance reviews, regular staff meetings, benchmarking, performance indicators,
performance targets and quality management tools
Seven rights of procurement are:
Right materials, right quantity, right time, right place, right source, right service and
right price
Common performance indicators:
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Cost reduction, supplier/industry development, supplier performance, efficiency of
internal procurement systems and customer satisfaction
ERP stands for:
Enterprise Resource Planning (automated procurement system)
When considering an automated procurement system one should factor in these elements:
Functional requirements, hardware and software support, installation and training,
maintenance and one-time costs and recurring costs
The framework for good record keeping includes:
The values and guiding principles of transparency and accountability
Solicitation files serve as:
Official factual record of events, information required under freedom of information
laws, information required by the contract administrator and information required for
a pre or post award audit.
What is a critical function of managing the procurement process:
The maintenance of document files
What should the contract files contain:
Executed contract, required bonds, conflict forms, post-award documentation, notice to
proceed, approvals/disapprovals of contract, documentation of performance
monitoring, modifications, documentation to delivery date or contract price,
documentation for settlement claims/disputes, stop work/suspension of work notices,
inspection/acceptance documentation and contract closeout
Basic factors to consider regarding procurement records retention include:
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