CHAPTER 1 Flashcards
TCO stands for?
Total Cost of Ownership
ESI stands for?
early supplier involvement
1ST MOVER DEFINITION
COMPANY WITH SHORTEST TIME-TO-MARKET
COMPANY WITH SHORTEST TIME-TO-MARKET IS?
1ST MOVER
Purchasing = ___ Procurement
Tactical
Tactical Procurement IS ___ FUNCTION
Purchasing
P-to-P STANDS FOR?
Procure-to-Pay
Category Management DEFINITION
-Managing a commodity group that has significant commonality (Ex. Chemicals, Drill Pipe, Travel, etc.)
Managing a commodity group that has significant commonality (Ex. Chemicals, Drill Pipe, Travel, etc.) IS?
Category Management
Strategic Sourcing (N-step Process) DEFINITION?
precursor to sourcing
precursor to sourcing IS?
Strategic Sourcing
Supply Management DEFINITION
A strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross-functional teams to achieve the organizational mission.
A strategic approach to planning for and acquiring the organization’s current and future needs through effectively managing the supply base, utilizing a process orientation in conjunction with cross-functional teams to achieve the organizational mission IS?
Supply Management
SPEND VISIBILITY DEFINITION
UNDERSTANDING HOW MUCH WE HAVE SPENT
UNDERSTANDING HOW MUCH WE HAVE SPENT IS?
SPEND VISIBILITY
___ is the starting point of strategic sourcing
SPEND ANALYSIS
SPEND ANALYSIS is the starting point of ___
strategic sourcing
SOW STANDS FOR?
statements of work
statements of work ARE?
SERVICE CONTRACTS
SERVICE CONTRACTS ARE?
statements of work
3 Core Purchasing Processes: Strategic Supply Management Roles and Responsibilities CHART
STRATEGIC SOURCING STARTS WITH ___
SPEND ANALYSIS
A statement of an item’s required characteristics
Specification:
SPECIFICATION DEFINITION
A statement of an item’s required characteristics
Specifies the work that is to be completed, when it is needed, and what type of service provider is required
Statement of Work:
STATEMENT OF WORK DEFINITION
Specifies the work that is to be completed, when it is needed, and what type of service provider is required
CENTRALIZATION DEFINITION
DEGREE TO WHICH DECISION MAKING AUTHORITY IS CONCENTRATED AT HIGHER LEVELS IN AN ORGANIZATION
DEGREE TO WHICH DECISION MAKING AUTHORITY IS CONCENTRATED AT HIGHER LEVELS IN AN ORGANIZATION IS
CENTRALIZATION
FORMALIZATION DEFINITION
EXTENT TO WHICH AN ORGANIZATION’S POLICIES, PROCEDURES, JOB DESCRIPTIONS, AND RULES ARE WRITTEN AND EXPLICITLY ARTICULATED
EXTENT TO WHICH AN ORGANIZATION’S POLICIES, PROCEDURES, JOB DESCRIPTIONS, AND RULES ARE WRITTEN AND EXPLICITLY ARTICULATED IS
FORMALIZATION
UPPER LEVEL REPORTS TO
EXECITIVE VP/CPO
MID LEVEL REPORTS TO
EXECUTIVE ONE LEVEL BELOW EXECUTIVE VP/CPO: DIRECTOR, TACTICAL
LOWER LEVEL REPORTS TO
AT LEAST 2 LEVELS BELOW EXECUTIVE VP/CPO: MANAGER
KRALJIC SOURCING MATRIX
MRO STANDS FOR
Maintenance Repair Operations
5 SOURCING KPIs HEIRARCHY
- SAFETY
- ENVIRONMENTAL SUSTAINABILITY
- QUALITY
- DELIVERY
- COST
PONC
Price Of Non Conformance
SIX SIGMA QUALITY IS EXPRESSED AS ___?
3.4 DPMO
DPMO STANDS FOR
DEFECTS PER MILLION OPPORTUNITIES
DMAIC STANDS FOR
DEFINE
MEASURE
ANALYZE
IMPROVE CONTROL
