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17 Cards in this Set

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Explain FIVE reasons why a purchaser might favour an ‘output’ specification over a ‘conformance’ specification

Output specifications are:



* Easier, quicker, cheaper, shorter
* Places risk on supplier
* Little technical knowledge needed
* Allows for innovation

Outline FIVE characteristics of an effective specification.

- Clear and unambiguous


- concise and comprehensive


- compliant with laws/regs


- unbiased


- free from jargon


- logically structured


- proper version control

Explain THREE reasons in favour of the purchasing function becoming involved in the drafting of a specification.

ensuring that a good response can be obtained from a competitive market, by e.g. providing an independent review of the content and quality of the specification

Explain FOUR reasons why writing a specification for services may be more difficult than writing a specification for physical products.

* Products are tangible, easier to assess for compliance to spec
* Products are more uniform, services are variable
* Assessment of services is more subjective
* Service contracts are longer duration so spec needs to accommodate for future change

Explain THREE reasons why a specification may not be effective in communicating requirements

- Too detailed
- missing important detail
- Poorly structured
- Not version controlled
- Lacks clarity
- Uses vague language


Describe THREE circumstances in which a conformance based specification could be used.

- dimensions and weights are critical
- an exact match to specifications is required
- when level of quality or safety is paramount
- need to fit into existing assemblies
- must match a chemical formula or a recipe
- a particular brand is required
- buyer has the most technical knowledge, or holds IPR


Explain ONE possible advantage and ONE possible disadvantage of involving suppliers in producing a specification.

Advantages:
• experience
• knowhow
• innovation

Disadvantages:
• lock-in
• Bias in the specification, favouring one supplier
• IPR issues


Explain the reasons for using standards within specifications.

- convenience
- reduced time and effort
- specifying common and agreed levels of quality
- facilitating comparison of bids on a like-for-like basis
- reduction in the costs associated with bespoking


facilitating international trade/communications; and variety reduction

Describe FOUR typical key performance indicators (KPIs) and outline how they might be used to measure performance in a contract.

* Delivery
* Lead times
* Quality
* Prices
* Risk management
* Flexibility
* Responsiveness
* Technical support
* Compliance
* Environmental impacts
* Timeliness of invoicing

Explain THREE different purposes of key performance indicators in contracts with suppliers.

* Compare suppliers
* Make suppliers aware of their responsibilities
* Identify underperformance by supplier
* Identify good suppliers for future work

Describe TWO key performance indicators that could be included in a contract for catering services.

* opening hours
* service and food availability
* numbers of customers served
* customer feedback from surveys or other channels
* reports from a ‘mystery shopper’ on quality of service
* portion control
* breadth of menu
* opening hours
* numbers of customer complaints and/or plaudits
* health and safety record; food quality
* venue cleanliness

Describe FOUR typical key performance indicators (KPIs) and outline how they might be used to measure performance in a contract.

* delivery
* lead times
* quality, prices
* risk management
* Flexibility
* Responsiveness
* technical support
* Compliance
* environmental impacts
* accuracy and timeliness of invoicing and other administrative and financial procedures

What are the key questions when drawing up a spec?

Procurements five rights;


1. Quantity


2. Price


3. Product


4. Quality


5. Place/timing

List types of conformance specifications

1. technical drawing


2. chemical formula


3. brand


4. sample


5. market grade


6. standard

What is the process of developing KPIs?

1. identify critical success factors


2. identify measures of each factor


3. develop and agree KPI

What is benchmarking?

- Comparing company performance to best in class


- stimulate improvements

List the types of benchmarking?

1. internal: within same org


2. compeitior


3. functional: same function different industry


4. generic: leaders in an attribute