Supply Management
Purchasing Descriptions and Specifications
Discussion Questions
1. In the Chili's example, what is the analogy given for supply managers?
2. How might an employee of Chili's prevent the "simple sandwich" problem while on the job?
3. Why is the standardization treated as a philosophy in some companies and supply chains rather than a procedure?
4. What are the purposes of specifications?
5. What does the term "balanced" imply in the balanced specifications?
6. What type of specification is a request for a "white 2002 Ford Explorer Sport with standard features?"
7. What type of specification describes the function to be performed and the way the item is to fit into the larger system, together with several design objectives?
8. In what way does specification by brand name potentially eliminate the competition?
9. Why have samples been called the lazy person's method of describing requirements?
10. When should samples be used as specifications?
11. In buying market graded commodities why is inspection important?
12. What are the situations that require the development of qualified products?
13. Which of the following is usually a more complex specification: brand name, sample, commercial standard, or engineering drawings?
14. What are the potential problems of the informal approach to the development of specifications?
15. Why do the authors of the text no longer use the terminology of EPT?
16. What should a company do before implementing EST?
17. What are the common problems presented in developing specifications?
18. How can specifications limit competition?
19. In the Unreasonable Tolerances Example, what was the source of the problem between the two managers?
20. In the Unreasonable Tolerances Example, do you agree with the senior design engineer's definition of quality?
21. In the Unreasonable Tolerances Example, what are some of the ways the problem could have been prevented five years earlier?
22. What is the difference between industrial and managerial standardization?
23. What were the reasons that Eli Whitney appeared to be behind on his contract?
24. Why did Baltimore's business district "burn to the ground" in 1904, despite the fact that more than enough firefighters were available to stop the fire with the right materials and equipment?
25. How does Dell use standardization to build competitive advantage?
26. When Dell develops a DVD player module, what type of standardization does it utilize?
27. Which type of standard should a designer choose first if a choice if possible?
28. What are the benefits of standardization?
29. How does standardization enable customization?
30. How does standardization improve quality?
31. Is simplification an integral part or corollary of standardization?
32. In developing a standardization program, why is supply management important?
33. How does a materials catalog help reduce design time?
34. How does a materials catalog help reduce both standard and non-standard parts?
35. What are the two ends of the continuum of electronic materials catalogs?
36. What are the benefits of electronic catalogs?
True/False Questions
37. WCSM requires supply management professionals and suppliers to be actively involved in the tactical and strategic development of specifications and standards to proactively reduce total costs of products and services.
Answer: True
38. Industrial standardization is the process of establishing agreement on uniform identifications for definite characteristics of quality, design, performance, quantity, service, and so on.
Answer: True
39. Managerial standardization deals with such things as operating practices, procedures, and systems.
Answer: True
40. Simplification is a corollary of standardization.
Answer: True
41. Simplification means reducing the number of standard items a firm uses in its product design and carries in its inventory.
Answer: True
42. Complex or detailed specifications are descriptions that tell the seller exactly what the buyer wants to purchase.
Answer: True
43. A simple specification for buying ketchup might be "12 ounce plastic bottle of Heinz tomato ketchup."
Answer: True
44. A complex specification for ketchup might include various spices, specific tomato and vinegar grades, filtered water, mixing directions, cooking directions and more!
Answer: True
45. A complex specification often goes beyond the design of a product, to include specifications regarding methodology, packaging, transport, delivery schedules, warranty and service.
Answer: True
46. WCSM requires supply management professionals and suppliers to be actively involved in only the tactical development of specifications and standards. The strategic development of specifications and standards is best left solely to the department developing the requirement.
Answer: False
47. Managerial standardization is the process of establishing agreement on uniform identifications for definite characteristics of quality, design, perfonnance, quantity, service, and so on.
Answer: False
48. Industrial standardization deals with such things as operating practices, procedures, and systems.
Answer: False
49. Simplification is the same thing as standardization.
Answer: False
50. Simplification means reducing the number of non-standard items a firm uses in its product design and carries in its inventory.
Answer: False
51. Complex or detailed specifications are descriptions that tell the seller exactly what the buyer wants to purchase. As such, they are easier to develop than simple specifications.
Answer: False
52. A complex specification for buying ketchup might be "12 ounce plastic bottle of Heinz tomato ketchup."
Answer: False
53. A simple specification for ketchup might include various spices, specific tomato and vinegar grades, filtered water, mixing directions, cooking directions and more!
Answer: False
54. A simple specification often goes beyond the design of a product, to include specifications regarding methodology, packaging, transport, delivery schedules, warranty and service.
Answer: False
Multiple Choice Questions
55. Which of the following is not a typical purpose of specifications?
A) Communicate what to buy
B) Communicate suppliers what is required
C) Establish the intangible services to be provided
D) Establish the standards for inspections, tests, and quality checks
E) Communicate to upper management the need
Answer: E
56. Which of the following is a complex specification based on the categorization given in the textbook?
A) Performance Specifications
B) Function and Fit Specifications
C) Brand or Trade Names
D) Engineering Drawings
E) Samples
Answer: D
57. 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) Market Grades
E) Qualified Products
Answer: B
58. Which of the following is a simple specification based on the categorization given in
the textbook?
A) Samples
B) Commercial Standards
C) Design Specifications
D) Engineering Drawings
E) Material and Method-of-Manufacture
Answer: A
59. Which of the following is not all approach in developing balanced specifications from the perspective of a supply professional?
A) Informal Approach
B) Supply Management Coordinator Approach
C) Engineering Approach
D) Consensus Development Approach
E) Cross-Functional Approach
Answer: C
60. Which of the following bullets is not one of the considerations to include 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) The total firm's requirements for suitable quality at the lowest overall cost
E) The total firm's requirement to use commercial and industrial standard material
Answer: A
61. Which of the following bullets is not one of the considerations to include when writing specifications?
A) Design and marketing requirements
B) Accounting requirements
C) Manufacturing requirements
D) Inspection's requirements to test materials
E) Stores' requirement to receive, store, issue material
Answer: B
62. Which of the following problems is not considered a common problem in developing specifications?
A) Lack of Clarity
B) Ignorance of total cost
C) Limiting Competition
D) Unreasonable Tolerances
Answer: B
63. Which of the following problems is not a "type" of standard?
A) Local standards
B) International standards
C) Industry standards
D) National standards
E) Company standards
Answer: A
64. Which of the following is not an organization that can assist as a source of standards in the United States?
A) American Society for Quality
B) Society of Automotive Engineers
C) Society of Mechanical Engineers
D) American Institute of Electrical Engineers
E) International Society for Standardization
Answer: E
65. Which of the following is not an organization that can assist as a source of standards?
A) International Organization for Standardization
B) National Bureau of Standards
C) American National Standards Institute
D) English Units Society
E) American Society for Testing and Materials
Answer: D
66. Which of the following is not a savings that can result from simplification?
A) Reduced inventory investment
B) More standard parts carried
C) More competitive prices
D) Greater quantity discounts
E) Reduced handling costs
Answer: B
67. Which is generally not one of the ways that materials catalogs, whether paper based or electronic, can aid a firm?
A) Reduction of supply base
B) Reduction in design time
C) Reduction of non-standard parts
D) Reduction of standard parts
E) Reduction of inventory
Answer: A