POPLMB1 Assignment MEMO 2022

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POPLMB1 Assignment memorandum 2022

MCQ:

1.Which of the following is not a theory of the total quality management structures?
a. System approach to management
b. Continual improvement
c. Proactive Management
d. All are theories of TQM structures

2.Identify the statement that does not benefit supply alliances?


a. Lower total costs
b. Increased inspection levels
c. Reduced time to market
d. Trust in relationships

3.Which is not a characteristic of alliances?


a. Continuous improvement
b. Contracts that are difficult to interpret
c. Interdependence and commitment
d. Long term commitment

4.Which is not an attribute of alliances?


a. Ethics take precedence over expediency
b. Adaptable in the face of change
c. Penalties are used to guide performance
d. Information sharing

5.Which is not one of the issues that affect a supplier's assessment of a buying firm?
a. Cash Flow
b. Professionalism
c. Gifts and gratuities
d. Reputation
6.Which is not included when writing specifications?
a. Country of source for the part or component in the design
b. Supply management's requirement to procure material
c. Production control's and supply management's requirement to substitute materials
d. All are included

7.The aim of purchasing is:


a. Right Quality, Quantity, Price, Time, Place
b. Reduction in non-value costs
c. Includes managing relationships with suppliers
d. Best quality buying

8.The objective of lean thinking is to reduce the total cost of ownership and therefore demand:
a. Quality, Quantity, Price, Time, Place
b. Reduction in non-value costs
c. Includes managing relationships with suppliers
d. Best quality buying

9.Supply management can significantly advance a firm’s return on investment through:


a. The reduction of post ownership costs
b. The decrease of acquisition cost
c. Every rand saved in purchasing is equal to a new rand of profit
d. None of these

10. Identify the activity which is not recommended when investigating the procurement
requirements with respect to quality
a. Study the quality requirements
b. If possible, ensure that specifications are written in a manner that permits
competition among potential suppliers
c. Buy a sample and try it out to confirm the product meets quality requirements
d. All of these
11. Identify the incorrect option when inspection is needed and a rejection occurs?
a. Return the material to the supplier
b. Keep the material and refuse to pay the supplier
c. Keep some of the acceptable material and return the rest
d. All are correct

12. The quality program should include all of the following points except for one. Identify the
incorrect statement?
a. Participation in the development of specifications
b. Participation in the selection of appropriate quality control, inspection, and test
requirements
c. Leading the design effort with quality, engineering and other functional areas
reporting to the supply manager
d. All should be included

13. Identify the statement that does not reflect a transactional relationship characteristic
a. Long-term contract
b. An absence of concern
c. One of a series of independent deals
d. A constant negotiation

14. Which of the following statements is not a disadvantage of transactional relationships?


a. Lowest Total Cost of Ownership is usually forced out of suppliers
b. Suppliers provide the minimum service required
c. Less effective performance by suppliers
d. Relationships are antagonistic
15. Which of the following statements is not a disadvantage of transactional relationships?
a. Potential for communication difficulties
b. Expediting and monitoring of incoming quality
c. Relationships are not friendly
d. No inspection needed due to low prices

16. Which is not a characteristic purpose of specifications?


a. Communicate what to buy
b. Communicate to suppliers what is required
c. Communicate to upper management the need
d. All are characteristic purposes

17. Which is a complex specification?


a. Performance Specifications
b. Function and Fit Specifications
c. Engineering Drawings
d. Purchase orders

18. Which of the following is a complex specification based on the categorization given in the
textbook?
a. Function and Fit Specifications
b. Material and Method-of-Manufacture
c. Brand or Trade Names
d. All of these

19. Which of the following is a simple specification?


a. Samples
b. Commercial standards
c. Design specifications
d. Technical drawings
20. Which is not an approach to develop a balanced specifications from a supply professional
point of view?
a. Informal Approach
b. Supply Management Coordinator Approach
c. Engineering Approach
d. Analytical approach

21. Which is not a consideration to be included when writing specifications?


a. Design and marketing requirements
b. Accounting requirements
c. Manufacturing requirements
d. Supply chain requirements

22. Which is not a common problem in developing specifications?


a. Lack of Clarity
b. Ignorance of total cost
c. Limiting Competition
d. All are common problems

23. Which is not a savings that can result from simplification?


a. Reduced inventory investment
b. More standard parts carried
c. More competitive prices
d. Simplified ordering processes

24. The execution of logistics management activities comprises of …

a. The allocation and positioning of resources

b. The selection of carriers

c. All of the above

d. None of the above


25. Strategic decision-making is, in general, based on …

a. Disaggregated data

b. Aggregated data

c. Gut feel

d. None of the above

26. The steps in systems analysis forms primarily part of _________

a. Operational management

b. Day to day management

c. Strategic management

d. Tactical management

27. The first step in systems analysis is _________

a. Implementation

b. System selection

c. Role player selection

d. Problem description

28. One of the following actions is not a component of physical distribution?

a. Transport

b. Customer service

c. Warehousing

d. Manufacturing inventory keeping


29. Supply chain management not only includes all logistical activities but also...
a. Manufacturing operations and sales
b. Physical distribution
c. Advertising
d. None of the above

30. Which of the following is not a theory of total quality management structures?
a. Customer focus
b. Leadership
c. Drive for Perfection
d. Management
Part B: Long questions

MEMO

1. Quality control is critical to the purchasing process. In your own words, explain:
a) The concept of quality and quality control (5 marks)
b) The basic elements of the quality requirement verification cycle (10 marks)
c) The types of costs associated with quality assurance (10 marks)

a) Students are expected to use the following to ensure that they provide their own definition

The products that are to be manufactured must remain within certain specifications, and the
purchasing department has to ensure that the suppliers will honour their agreements on other points
such as, delivery times, delivered quantity and the agree price. In this way the purchasing
department makes a contribution to total quality management (TQM).

Quality is the degree to which customer requirements are met. It refers to the quality of a product or
the quality of a service when supplier and customer agree on certain requirements and these
requirements are met.

Quality control is defined as: making sure that the requirements of every transaction are met.

b) 1 mark for identification and 1 ½ per explanation of each of the following terms:

 the basic requirements of the transaction


 the way in which the requirements are to be realized
 how to check that the requirements are (being) fulfilled
 the measures to be taken when the requirements/expectations are not met.

c) 1 mark for identification and 2 marks for OWN explanation of each of the following. 1
additional mark if all are correct

 prevention costs  the costs of preventing errors


 assessment costs  the costs related to the timely recognition of errors
 correction costs  the costs that result from rectifying mistakes.

2. When considering purchasing from a supplier, it often makes sense to enter into a
collaboration (co-makership) agreement with one supplier, rather than trying to transact
with many suppliers
a) Explain the advantages and disadvantages of this type of relationship, in your own
words (10 marks)
b) Describe, in your own words, the cooperation problems that you might encounter
in this type of relationship (5 marks)
a) Students to explain the following - in their own words. Marks only awarded for own explanation

Advantages: Increased involvement of the supplier, Considerable reduction of lead times, Better
relationships between the various echelons, The possibility of streamlining procedures and systems
in the areas of quality control, logistics, administration

Disadvantages: The suppliers losing their competitive edge, Losing touch with the supplier market,
High ‘switching costs’

b) OWN WORDS REQUIRED TO EXPLAIN THE FOLLOWING:

 Suppliers frequently don’t observe the agreed delivery times.


 The delivered products are sometimes of poor quality, because suppliers sometimes lack the
knowledge of modern quality principles.
 The suppliers are not alert in their response to complaints about delivery times and quality.
 The supplier’s customer orientations are inadequate.

3. Explain the concept of EDI and describe the benefits. In your answer you should not just
identify the benefits, but you need to explain how EDI will assist in achieving them (10
marks)

Students need to firstly explain the concept of EDI

Secondly, students should be able to explain HOW the benefits of EDI are to be achived:

 Reduced paperwork
 Improved accuracy
 Increased speed of transmission of the order
 Increased opportunity for proactive contribution by employees
 Reduced costs of order placement and related processing and handling.
 Improved information availability due to speed of acknowledgements and shipment advises.

4. When outsourcing logistics services to a third party, it is important to select the right
outsourcing partner. Critically analyse this statement by describing, in your own words,
what you should look for in an outsourcing partner (5 marks)

Very important that students can explain these in their own words

If you are considering outsourcing your fulfillment services, then you should look for a partner who:

 is dedicated to ensuring that your brand name is properly represented


 understands e-commerce market opportunities and offers reliable back-end technology
to support the fulfillment activities
 has experience in inventory management, logistics, information systems, and customer
service
 is able to move goods effectively and efficiently in order to meet customer needs, both
now and as your business grows
5. Identify and describe each of the transaction elements of customer service in your own
words (15 marks)

Each of the following to be explained in student’s own words

 Stockout level
 Order information
 Elements of order cycle
 Expedited shipments
 Transshipment
 System accuracy
 Order convenience
 Product substitution

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