Systems Technology Exam Questions
Systems Technology Exam Questions
1. Which of the following are costs incurred in order to reduce appraisal costs by preventing or reducing defects
or failures produced by the process?
A. Appraisal costs C. Prevention costs
B. Internal failure costs D. External failure costs
2. What is the difference between planned and actual spend called?
A. A budget C. A target
B. A forecast D. A variance
3. Which of the following is effectively written confirmation of fulfillment of an order?
A. Purchase requisition C. Inspection form
B. Goods received note D. Purchase order
4. A lead time can be measured using the invoice date and which other date?
A. The date of the catalogue C. The date of the purchase order
C. The date of the goods received note D. The date of the requisition
5. Who can access intranets?
A. Anyone with extranet access C. Anyone who has been given access
D. Anyone with internet access D. Employees in an organisation
6. Which of the following describes prevention costs in an organisation?
A. Costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
B. Costs incurred in order to reduce appraisal costs by preventing or reducing defects or failures produced
by the process
C. Costs arise from quality failure, where the problem is identified and corrected before the finished product
finished product or service reaches the customer
D. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer
7. What is e-tendering used for?
A. To pay outstanding invoices C. To raise a purchase order
B. To publish a contract register D. To run a sourcing process
8. A contract notice is an e-notice that is used by an organisation to do what?
A. Ask suppliers for information about a requirement
B. Warn suppliers about a future sourcing process for a requirement
C. Tell suppliers that a sourcing process has started
D. Tell suppliers that a contract has been awarded
9. What is the purpose of a transactional processing system?
A. To collect, store and process data C. To share information
B. To coordinate information about people or organisations D. To analyse data
KCM 1
10. Which of the following is an example of a P2P system?
A. E-marketplace C. Groupware
B. E-sourcing web portal D. Spend analytics
11. Which of the following describes appraisal costs in an organisation?
A. Costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
B. Costs incurred in order to reduce appraisal costs by preventing or reducing defects or failures produced
by the process
C. Costs arise from quality failure, where the problem is identified and corrected before the finished product
finished product or service reaches the customer
D. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer
12. Which of the following is not a factor under systems technology and databases contribution to effective
procurement?
A. Help an organisation with sourcing and contracting
B. Increase the cost of doing business in the organisation
C. Help an organisation to use the requisition process to set rules
D. Provide an efficient way for an organisation to place an order with suppliers
13. Which of the following describes external failure costs in an organisation?
A. Costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
B. Costs incurred in order to reduce appraisal costs by preventing or reducing defects or failures produced
by the process
C. Costs arise from quality failure, where the problem is identified and corrected before the finished product
finished product or service reaches the customer
D. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer
14. Which of the following is not part of the stages that are used under systems technology in procurement and
supply?
A. Analyzing C. Alignment
B. Sourcing D. Contracting
15. Which of the following defines the process using data to understand what an organisation has spent, which
suppliers it has used and what it needs to buy in the future?
A. Paying C. Analyzing
B. Sourcing D. Contracting
16. Which of the following is a system that helps to standardize workflows and reduce deviations from the
processes?
A. Manual procurement C. Electronic procurement
B. Standard procurement D. Regulated procurement
KCM 2
17. Which of the following can quality control do?
A. Cause defects C. Measure defects
B. Detect defects D. Prevent defects
18. Reworks are a quality cost of what?
A. Appraisal C. Internal failure
B. External failure D. Prevention
19. What does the value stream element of the lean model identify?
A. The flow of a process
B. The quality of a process
C. The quality of resources of resources needed in a process
D. The time required for process
20. The use of electronic systems when doing business activities is referred to as which of the following?
A. Systems technology C. Systems programming
B. Systems servicing D. Systems upgrading
21. Systems technology and database are used in the analysing stage for effective procurement and supply because
they …..
A. Help to compare what actually happens with what was planned
B. Help organisations to find and communicate with suppliers
C. Help the organisation to decide on the supplier or group of suppliers that it plans to buy from
D. Allow performance relating to lead times to be measured and reported
22. Which of the following refers to costs associated with paying more for materials or components which are
better quality or more complex than they need to be in order to be fit for purpose?
A. Quality costs C. Over specification costs
B. Under specification cost D. Ineffective specification cost
23. Sourcing under systems technology in procurement and supply refers to which of the following?
A. A database that help the organisation to store contract information
B. E-procurement system to start the buying process.
C. A process which seeks to find, evaluate and engage suppliers
D. Understand what an organisation has spent and what it needs to buy in the future
24. Which of the following describes internal failure costs in an organisation?
A. Costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
B. Costs incurred in order to reduce appraisal costs by preventing or reducing defects or failures produced
by the process
C. Costs arise from quality failure, where the problem is identified and corrected before the finished product
finished product or service reaches the customer
D. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer
KCM 3
25. A process called the three-way match takes place in which of the following stages used under systems
technology in procurement and supply?
A. Analyzing C. Paying
B. Contracting D. Requisitioning
26. What is an advantage of using the internet search engine to locate supplier information?
A. The information is reliable, relevant and up to date.
B. The most suitable suppliers will be listed first.
C. Low cost, fast and convenient method of information search.
D. There will be no need to conduct further research on the supplier
27. The costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
are referred to as which of the following?
A. Appraisal costs C. Prevention costs
B. Internal failure costs D. External failure costs
28. Which of the following refers to costs associated with specifying materials or components which are not
enough for the purpose for which they are required?
A. Quality costs C. Over specification costs
B. Under specification cost D. Ineffective specification cost
29. What is a disadvantage of using the internet to identify potential suppliers?
A. Some small suppliers may not have a website or internet presence.
B. May locate small, niche global players.
C. Could damage the relationship with existing suppliers.
D. There are few search engines and portals that can be used.
30. Which of the following systems can avoid the need for a supplier to produce an invoice?
A. The internet C. Bill of materials
B. Self-billing D. Materials requirement planning
31. Which of the following describes how the internet is helpful in locating supplier information?
A. It replaces face-to-face communication
B. It allows confidential communication
C. It analyses a supplier’s performance
D. It allows access to a wide range of suppliers
32. A major risk in the use of electronic sourcing systems is…..
A. data security C. Unfamiliarity with technology
B. Lack of competition D. Increased supplier costs
33. XZ Hi-tech Corporation (XZHC) is based in the US. Which of the following is likely to be the greatest
challenge to XZHC in establishing an e-sourcing system?
A. Accessing the internet C. Training staff
B. High set up costs D. Locating computer equipment
KCM 4
34. A systematic, formal approach to the analysis of practice performance and efforts to improve performance in
an organisation is referred to as which of the following?
A. Quality planning C. Quality improvement
B. Quality assurance D. Quality inspection
35. Costs arising from quality failure, where the problem is identified and corrected before the finished product
finished product or service reaches the customer are referred to as which of the following?
A. Appraisal costs C. Prevention costs
B. Internal failure costs D. External failure costs
36. Which of the following refers to costs associated with specifying the wrong materials or components or failing
to specify clearly and accurately enough?
A. Quality costs C. Over specification costs
B. Under specification cost D. Ineffective specification cost
37. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer are which of the following?
A. Appraisal costs C. Prevention costs
B. Internal failure costs D. External failure costs
38. Which of the following is an advantage of using the internet to identify potential suppliers?
A. There will be no need to conduct further research on the supplier
B. Information is reliable, relevant and up todate
C. The suitable suppliers will be listed first
D. Facilities for direct contact, e.g via e-mail
39. Which of the following describes how internet search results are displayed?
A. Local organizations first.
B. Largest organization first-by turnover.
C. Most suitable and capable organizations first.
D. By other criteria dependent upon the search engine
40. Which of the following is a major advantage of using the internet to undertake a search of the market?
A. It contains only approved suppliers
B. It contains only objective information
C. It contains a wider range of potential suppliers
D. It contains only subjective information
41. How have electronic sourcing systems helped procurement?
A. By eliminating risks C. By streamlining processes
B. By managing suppliers D. By communicating with stakeholders
42. How are blogs, wikis, and social networks used in the workplace?
A. To acquire information C. To replace Websites.
B. To enhance customer relations. D. To connect employees and their families
KCM 5
43. A pre-qualification questionnaire (PQQ) is used to:
A. Authorise payment to suppliers
B. Assess the resources and capabilities of a supplier
C. Confirm receipt of goods from the supplier
D. Acknowledge the buyer’s order by the supplier
44. Which of the following documents is used for the same purposes as a delivery note?
A. The supplier’s invoice C. The consignment note
B. The goods received note D. The bill of materials
45. Today the most popular social networking site is….
A. My Space C. Twitter
B. Weibo D. Facebook
46. What is an essential requirement of JIT
A. Zero defects C. Computerized planning and ordering
B. High stocks D. Global suppliers
47. When writing a professional e-mail, you should consider:
A. Checking your grammar and spelling errors in a document program
B. Who will be reading your e-mail
C. Timeliness of your response
D. All of the above
48. Economic order quantity can be described as…
A. The minimum quantity that can be bought to achieve a discount
B. The quantity to be ordered that minimizes total costs
C. The quantity to order to maximize space used and minimise service level
D. The quantity to order to avoid all costs of finance and maintain supply
49. What is an advantage of Intranet?
A. It can help develop communications with internal and external stakeholders.
B. In large organizations with many locations it can help ensure access to stock records and avoid over
ordering.
C. Suppliers are able to access customer databases and information on sales and adjust delivery to suit
usage.
D. Information for the wider community can be made available.
50. Information for the wider community will be made available on
A. The company website C. The organisation’s extranet
B. The organisation’s intranet D. On both the intranet and extranet
51. Which of the following is an online gateway to search, modify, submit and archive data on tenders?
A. Tender database C. Tender intranet
B. Tendering online D. Tender portal.
KCM 6
52. What is an advantage of an intranet?
A. It facilitates two way communication with the organisation and suppliers
B. It can provide suppliers with real time access to inventory demand information
C. It supports multidirectional communication and data sharing
D. It can lead to improved communication with people outside the organisation
53. Which of the following is a key technique of quality control which involves examining, measuring, testing as
well as evaluating an item?
A. Quality planning C. Quality assurance
B. Quality inspection D. Quality control
54. Which of the following describes over specification costs in an organisation?
A. Costs associated with paying more for materials or components which are better quality or more complex
than they need to be in order to be fit for purpose
B. Costs associated with specifying materials or components which are not enough for the purpose for
which they are required
C. Costs associated with specifying the wrong materials or components or failing to specify clearly and
accurately enough
D. Costs arises from quality failure identified and corrected after the finished product or service reaches the
customer
55. An organisation wishes to place confidential information on a computer system for its staff to access. Which
of the following should be used?
A. An extranet C. An internet blog
B. An intranet D. An internet search engine
56. Which of the following is an online gateway to search, modify, submit and archive data on tenders?
A. Tender database C. Tender intranet
B. Tender online D. Tender portal
57. Which of the following describes how an intranet can improve communication?
A. They give suppliers real time access to demand information
B. Provides a single user interface between business partners
C. Assists in achieving improved supply chain integration
D. They can link remote sites and workers in ‘virtual’ teams
58. Which of these is a e-commerce facility?
A. A ‘trolley’ C. A credit check
B. A credit card D. Guaranteed delivery
59. Which of the following describes an IT system that is set up to coordinate information about people or
organisations and is used to record the contact that an organisation has with third parties?
A. Transactional processing system C. Relationship management system
B. Business intelligence system D. Knowledge management system
KCM 7
60. Which of the following describes a benefit of an intranet?
A. They give all stakeholders wider access to corporate information
B. They give selected suppliers access to purchasing policies and procedures
C. They give employees wider access to corporate information
D. They give supply partners wider access to corporate information
61. Training personnel, creating benchmarks for product quality, and testing products to check for statistically
significant variations are activities that can take place in which of the following processes?
A. Quality planning C. Quality assurance
B. Quality management system D. Quality control
62. Which of the following describes under specification cost in an organisation?
A. Costs associated with paying more for materials or components which are better quality or more complex
than they need to be in order to be fit for purpose
B. Costs associated with specifying materials or components which are not enough for the purpose for
which they are required
C. Costs incurred in order to reduce appraisal costs by preventing or reducing defects or failures produced
by the process
D. Costs associated with specifying the wrong materials or components or failing to specify clearly and
accurately enough
63. Which of the following systems may include the ability to support order delivery scheduling?
A. An extranet C. E-POS system
B. E-catalogues D. E-auctions
64. Which of the following facilitates substantial communication about an organisation’s commitment to
Corporate Social Responsibility?
A. Use of website C. Really simple syndication feeds
B. Use of extranet D. Blogs
65. Which of the following is a benefit of an extranet?
A. It facilitates supplier appraisal and vendor rating
B. It provides a single user interface between business partners
C. All people are allowed access to the same information
D. It can be used by marketers when promoting new products or services
66. Which of the following describes all the factors to be considered when developing an extranet?
A. Training costs C. All costs and benefits
B. Equipment costs D. Maintanance costs
67. Suppliers who are not known to others and also not known to the organisation are described as which of the
following under the Johari Window model?
A. Shared C. Hidden
B. Unknown D. Blind
KCM 8
68. Which of the following describes an extranet?
A. It is an intranet that has been extended to give selected outside users access to the organisation’s website
and/or information systems
B. It is an intranet that has access to the intranet so that users within the organisation can access supplier
information
C. Integration of all significant resources planning systems in an organisation that integrates planning and
control with other functions
D. An expansion of MRP to include greater integration with information from other parts of the
organisation. It is closed loop MRP with financial control
69. If the purchaser is intending to hold an e-auction this should be stated where?
A. E-marketplace C. E- catalogue
B. E-tender D. E-notice
70. What is the major benefit of using an interactive electronic technical manual?
A. Allows users to locate information more quickly than was the case with paper manuals
B. It allows large amounts of data to be compressed and sent by e-mail
C. It strips out unnecessary files such as videos and photographs to speed up access
D. All users can access manual online and work as virtual project teams
71. Which of the following processes is used by a business to seek to ensure that product quality is maintained or
improved with either reduced or zero errors?
A. Quality planning C. Quality assurance
B. Quality management system D. Quality control
72. Which of the following describes ineffective specification cost in an organisation?
A. Costs associated with paying more for materials or components which are better quality or more complex
than they need to be in order to be fit for purpose
B. Costs associated with specifying materials or components which are not enough for the purpose for
which they are required
C. Costs incurred as part of the inspection process in order to ensure that materials are of the ‘right quality’
D. Costs associated with specifying the wrong materials or components or failing to specify clearly and
accurately enough
73. What information about potential suppliers is difficult to find from the internet?
A. Email and contact details C. Financial information
B. Company product information D. Management capability
74. Which of the following can be used to compare purchase order and goods received data, to speed up payments
to suppliers?
A. PO reconciliation system C. Electronic data interchange
B. Electronic payment D. Automatic invoice matching
KCM 9
75. Which of the following is a function or tool of an e-sourcing system?
A. Paying suppliers for accepted deliveries
B. Issuing requests for quotation to suppliers
C. Expediting deliveries from suppliers after contract award
D. Booking in deliveries of goods from suppliers
76. What happens at the end of a tender exercise, using e-tendering?
A. Successful and unsuccessful bidders are automatically notifies
B. An e-pre-qualification questionnaire is issued
C. Supplier site visits are carried out by the buyer
D. An e-invoice is issued by the purchasing organisation
77. Within e-sourcing, which of the following is used to define the purchaser’s requirements?
A. E-terms and conditions C. E-catalogue
B. E-specification D. E-commerce
78. Which of the following is true when issuing a purchase order to a supplier through a purchase ordering
system?
A. The supplier can change it once it has been issued
B. The supplier can decide on the quantity of goods to deliver
C. It will create a contract between the buyer and supplier
D. Terms and conditions do not apply to purchase orders
79. Which of the following systems refers to practices, strategies and technologies that companies use to manage
and analyze customer interactions with the goal of improving customer service relationships?
A. Customer relationship management C. Knowledge management system
B. Transactional processing D. Business intelligence
80. The measurement of a production run, comparison against expectations, an investigation into why variations
have occurred and a gradual reduction of variations is done using which of the following?
A. Quality assurance C. Control chart
B. Quality management system D. Quality control
81. An approach which is based on the belief that continuous, incremental improvement adds up to substantial
change over time is referred to as which of the following?
A. Kaizen C. Just in time
B. Quality management D. Six sigma
82. Which of the following has been a key driver of the use of electronic sourcing systems?
A. An increase in suppliers C. Improved supplier relationships
B. Less clear specifications D. Need for cost savings
83. The use of e-sourcing can achieve which of the following benefits for the purchaser?
A. Elimination of management information C. Reduced lead times
B. Removal of supply chain risks D. Use of larger suppliers
KCM 10
84. What is the point at which the transaction is closed on a purchase ordering system?
A. After agreeing terms with the supplier
B. After goods and supplier invoice have received
C. After issuing the purchase order
D. After dealing with discrepancies
85. Using e-sourcing, bids from suppliers are obtained via which of the following?
A. E-catalogue C. E-tendering
B. E-contract D. E-specification
86. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance is refeed to as which of the following?
A. Quality planning C. Quality assurance
B. Quality management system D. Quality control
87. Kaizen approach is based on which of the following?
A. Engaging suppliers so as to improve quality in the organisation
B. Continuous, incremental improvement which adds up to substantial change over time
C. Doing activities at the right time
D. Inspection of products after production to evaluate quality
88. Within e-sourcing, which of the following is used to define the purchaser’s requirements?
A. E-terms and conditions C. E-catalogue
B. E-specification D. E-commerce
89. Within a purchase ordering system, which document starts the purchasing cycle?
A. Purchase order C. Requisition
B. Invoice D. Specification
90. Which of the following is a benefit of the use of e-tendering?
A. Increased consistency of procedures
B. Supplier prices are always lower
C. Pre-qualification of suppliers is not necessary
D. Supply chain risks are reduced
91. Which of the following concepts is JIT linked to?
A. Problem solving C. Push control
B. Lean supply D. Global sourcing
92. What is a supplier benefit of electronic fund transfer within the P2P (purchase to pay) process?
A. Automatic reconciliation with requisitions C. Lower cost payments
B. Ease of undertaking expediting activities D. A shorter cash cycle
93. Which type of specification could take the form of a recipe for a chemical formula?
A. Performance C. Operational
B. Conformance D. Quality
KCM 11
94. A method used in an organisation as a way of preventing mistakes or defects in manufactured products and
avoiding problems when delivering solutions or services to customers is referred as which of the following?
A. Quality planning C. Quality assurance
B. Quality inspection D. Quality control
95. Which of the following is an example of a ‘conformance specification’?
A. A specification stating the required levels of achievement for the product or service
B. A specification containing key performance indicators
C. A specification that is used only for service contracts
D. A specification which includes requirements to meet stated industry or international standards
96. A performance specification includes….
A. Details of the use of the product by the buyer on receipt
B. Drawings showing the construction of the product
C. The chemical composition of the product and its components
D. A list of standards to which the product’s design relates
97. A supplier sourcing portal assists purchasers with which of the following?
A. Preparing the specification C. Identifying key stakeholders
B. Sourcing new products and services D. Monitoring contract performance
98. A brand name product would be included in a …….
A. Conformance specification C. Compliant specification
B. Performance specification D. Functional specification
99. A greater share of specification risk is borne by the supplier when the buyer uses a ……..
A. Conformance specification C. Compliant specification
B. Performance specification D. Technical specification
100. Which of the following is true about a technical specification?
A. It gives the supplier enough room for innovation when producing products.
B. The purchaser can use the specification to verify that what is supplied meets all the requirements.
C. Can be useful where it is difficult to specify the product as it gives a comparative basis on which to
assess the performance or suitability of the supplied product.
D. It allows testing verification against the required composition.
101. Communication to change the attitude of someone else, for example in a negotiation, is known as which of
the following?
A. Relationship building C. Discussion
B. Building rapport D. Persuasion
102. Which of the following under the Johari Window model describes the type of suppliers who are not known
to others but are known to the organisation?
A. Hidden C. Unknown
B. Shared D. Blind
KCM 12
103. The last stage of a tendering process for most bidders will be…..
A. Specification C. Pre-qualification
B. Evaluation D. Incentivisation
104. Which of the following best describes the term quality improvement?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A systematic, formal approach to the analysis of practice performance and efforts to improve
performance
C. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
D. A key technique of quality control which involves examining, measuring, testing as well as evaluating
an item
105. Lean philosophy is based on which of the following?
A. Implement a quality model that focuses on improving processes and reduce the total cost of a process.
B. Continuous, incremental improvement which adds up to substantial change over time
C. Inspection of products after production to evaluate quality
D. Engaging suppliers so as to improve quality in the organisation
106. Which of these documents would a purchasing Department translate into purchase order?
A. A request for quotation C. A suppliers invoice
B. A requisition D. A goods received note
107. In the purchasing to pay (P2P) system, which of the following represents a legal commitment from the
organization to buy goods or services?
A. Purchase order C. Appraisal questionnaire
B. Request for quotation D. Invitation to tender
108. Effective purchase to pay (P2P) systems relies on….
A. Accurate forecasting
B. Paper –based processing as a contingency
C. A small number of suppliers
D. Locally based supplier only
109. Why should a buyer avoid sending out request for quotations if there is no genuine intent to purchase?
A. It is not reasonable C. It is not ethical
B. It is not permitted D. It is not possible
110. Which of the following is a common feature of an e-tendering system?
A. Bids are visible to all tenderers
B. Online negotiation with all tenderers
C. Supplier prices reduce throughout the tender process
D. Automatic notification of the contract award
KCM 13
111. Which of the following best describes the term quality inspection?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A method used in an organisation as a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers
C. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
D. A key technique of quality control which involves examining, measuring, testing as well as evaluating
an item
112. An approach which is based on implementing a quality model that focuses on improving processes and
reduce the total cost of a process is referred to as which of the following?
A. Kaizen C. Lean
B. Quality management D. Six sigma
113. Which of the following describes the nature of suppliers who are known to others but not known to the
organisation under the Johari Window model?
A. Unknown C. Shared
B. Blind D. Hidden
114. When analyzing tenders it is necessary to…
A. Compare the logo and design of the supplier’s document
B. Check the arithmetic accuracy of each tender
C. Reject all tenders that are difficult to read
D. Send a detailed copy of all supplier tenders received to other suppliers
115. Which of the following documents is provided by a supplier to provide price and product availability?
A. Requisition C. Specification
B. Quotation D. Invitation to tender
116. What is the sequence in which documents are issued in the purchasing cycle?
A. Enquiry, quotation, purchase order, acknowledgement, delivery note
B. Purchase order, enquiry, acknowledgement, quotation, delivery note
C. Quotation, delivery note, acknowledgement, enquiry, purchase order
D. Acknowledgement, delivery note, enquiry, quotation, purchase order
117. At which stage in the purchasing cycle is an RFQ most likely to be used?
A. Contract award C. Inviting quotations or tenders.
B. Analyzing quotations D. Defining the contractual terms.
118. In which of the following electronic auction systems do suppliers lower their prices competitively during the
period of the auction?
A. Standard auction C. Spanish auction
B. Reverse auction D. Collaborative auction
KCM 14
119. In what ways does selective tendering differ from open tendering?
A. In selective tendering, potential suppliers are neither pre-qualified nor short listed.
B. In selective tendering, all potential suppliers are invited to submit tenders.
C. In open tendering, potential suppliers are prequalified and short listed.
D. In selected tendering, potential suppliers are prequalified and short listed.
120. Which of the following is the main reason why open tendering is an expensive process?
A. Supplier quotes are always higher with open tendering.
B. Certified buyers are required to complete the process.
C. The purchasing organization is bound to provide tender documentation to all suppliers which request
them.
D. Tenders can only be received from ISO9001 approved suppliers which are more expensive to use.
121. Which of the following pieces of information should be included on the buyer’s purchase order?
A. Anticipated stock level C. Total acquisition
B. Economic order quantity D. Delivery date required
122. Which of the following is a recognized reason for ‘pre-qualification questionnaires’?
A. To agree prices and terms and conditions of contract with a supplier
B. To agree a delivery schedule and key performance indicators with potential suppliers
C. To find out the list price and availability of products from a supplier
D. To find out the suitability, capacity and capability of potential suppliers
123. Using the Johari Window model, suppliers that are known to the organisation and also known to others are
referred to as which of the following?
A. Shared C. Blind
B. Hidden D. Unknown
124. A computer database system that balances and controls purchases of goods and services within a business
network is known as which of the following?
A. Relationship management system C. Business intelligence system
B. Transactional processing system D. Knowledge management system
125. Negotiations, prior to contract award, will be most necessary for ….
A. High-value contracts C. Frequent low-value purchases
B. Routine purchases D. Repeat orders, re-buys
126. Which of the following documents is prepared and provided in the buying organisation?
A. Order acknowledgement C. Goods received note
B. Delivery note D. Consignment note
127. Which of the following is likely to be a feature of an ‘interactive e-catalogue’ that will not feature in a simple
e-catalogue?
A. Product codes and descriptions C. Product prices
B. Product specifications D. Stock availability and location
KCM 15
128. When is a goods received note generated? When:
A. A delivery is made C. An order is placed
B. An invoice is paid D. A tender is received
129. Which of the following defines knowledge management system as used in business operations?
A. A computer database system that balances and controls purchases of goods and services within a business
network
B. Any kind of IT system that stores and retrieves knowledge
C. An IT system that is set up to coordinate information about people or organisations and is used to record
the contact that an organisation has with third parties
D. The technology, methods, and applications used for the integration and presentation of business
information
130. An online publication in which the products and services offered by a company are showed is known as
which of the following?
A. E-terms and conditions C. E-catalogue
B. E-specification D. E-commerce
131. A specific type of web based supplier catalog that connects to a purchasing organization's e-Procurement
system is known as which of the following?
A. Punch-out catalogues C. E-contracts
B. E-procurement D. E-tender
132. Which of the following best describes the term quality control?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A process through which a business seeks to ensure that product quality is maintained or improved with
either reduced or zero errors.
C. A method used in an organisation as a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers
D. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
133. Which of the following best describes the term quality management systems?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A method used in an organisation as a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers
C. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
D. A key technique of quality control which involves examining, measuring, testing as well as evaluating
an item
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134. Which of the following describes demand-led manufacturing?
A. A push system C. An MRP system
B. A pull system D. Batch manufacturing
135. A document that is used when inspecting products when delivered by a supplier is referred to as which of
the following?
A. Purchase requisition C. Bill of materials
B. Quality inspection forms D. Consignment note
136. Which of the following documents is provided when goods are received and details the items and quantities
supplied?
A. Requisition form C. Order acknowledgement
B. Purchase order D. Delivery note
137. A systematic approach for eliminating errors is referred to as which of the following?
A. Six Sigma C. Just in time
B. Lean D. Kaizen
138. Items that must be shown on a suppliers’ invoice include:
A. The date and name of the supplier’s sales representative
B. The word ‘invoice’ and the supplier’s number of employees
C. The amount, value and currency used in the invoice
D. A description of the goods and mode of transport used for delivery
139. Which of the following establishes an obligation in writing on the purchaser to pay the supplier provided the
supplier has performed as required?
A. Requisition C. Invoice
B. Advice note D. Delivery note
140. Which of the following statements is true?
A. The supplier is solely responsible for the quality of products received
B. It is more difficult to specify service requirements with a supplier than product requirement
C. The best way to ensure good quality from a supplier is to pay less when faults are found
D. Using a supplier with a quality management system will guarantee high quality products
141. Which of the following is a correct approach to quality when a manufacturer sees a higher faulty rate of
products?
A. Redesign product, test new product, introduce new product, re-evaluate quality
B. Establish causes of failure, investigate causes, implement corrective action
C. Increase sampling, advise materials and component suppliers to do the same
D. Re-train production staff, establish new incentive scheme for better quality work
142. The six sigma concept is used for which of the following?
A. Eliminating errors C. Engaging suppliers
B. Negotiating D. Improving quality
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143. In which of the following situations is 100% inbound product testing justified as part of quality and
purchasing management?
A. Where a supplier does not adequately test items before sending them
B. As part of a commitment to Deming principles as part of total quality management
C. Where critical items require in-company certification before use
D. As part of statistical process control procedures
144. Which of the following statements is true?
A. 100% inspection of goods will prevent poor quality from suppliers
B. Sampling should be used where the cost of 100% inspection is high
C. Total quality management eliminates the need for inspection
D. Quality circles can only be used where an organisation has ISO 9001 accreditation
145. Organisations which fully commit to total quality management do not have a target for quality achievement.
This statement is…….
A. false, because cost of quality requires budgets
B. false, because quality requires company-wide audits
C. true, because the system requires annual targets for products with poor quality
D. true, because continual improvement is part of the philosophy
146. Which of the following is an example of an ‘internal failure cost’ in manufacturing?
A. Additional stocks held to cover reworks
B. Collection of returned products from customers
C. Loss of future business from existing customers
D. Loss of reputation and bad publicity
147. Which of the following best describes the term quality assurance?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A method used in an organisation as a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers
C. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
D. A key technique of quality control which involves examining, measuring, testing as well as evaluating
an item
148. How might an organisation’s reputation be enhanced through use of quality management principles?
A. More stakeholders C. New competitors
B. Product differentiation D. Different branding
149. Appraisal costs relate to which of the following?
A. Preventing C. Inspecting
B. Expediting D. Repairing
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150. Which of the following statements regarding service contracts is true?
A. Consistency is highly variable because different people may perform differently
B. It is not possible to create conformance specifications for service contracts
C. Quality assurance techniques do not work with service contracts
D. It is easier to replace a service supplier than product supplier
151. Which of the following statements is true?
A. Reputational risk can be reduced to zero by an effective sampling and reporting system
B. Reputational risk can be enhanced by good quality and damaged by poor quality
C. Reputational risk improvements can be measured by the difference in profits between two years
D. Reputational risk cost is also linked to early supplier involvement
152. Which of the following is responsible for the identification and management of risks to an organisation’s
reputation?
A. All employees C. The quality assurance manager
B. Marketing department D. Quality circle leaders
153. Which of the following is an example of an ‘appraisal cost’ in quality management?
A. Developing specifications
B. Setting up quality assurance processes
C. Checking incoming materials and products
D. Defect prevention training
154. Which of the following describes ‘comparative excellence’?
A. Use of a quality management system
B. Measurement against suitable benchmarks
C. The totality of features provided in products
D. Fit for the purpose
155. Which of the following aspects of product quality means ‘the subjective expectations and perceptions of
buyers’?
A. Perceived quality C. Durability quality
B. Total quality D. Tangible quality
156. The cost of ‘reverse logistics’ to deal with returned products from customers is an example of which of the
following?
A. External failure costs C. Appraisal costs
B. Specification costs D. Assurance response costs
157. Which of the following is an expected result of implementing ‘right first time’ techniques?
A. Increased appraisal and prevention costs, lower total costs
B. Lower staff costs, higher material and products costs
C. Higher rejection rate costs, lower variability of products
D. Additional equipment costs, higher supplier compensation claims
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158. Which of the following is a disadvantage of operating a ‘quality circle’?
A. They do not fit with TQM principles
B. They are just a staff suggestion system
C. They only analyse problems
D. They do not guarantee quality on their own
159. Which of the following is an example of a ‘prevention cost’ in quality management?
A. Quality audits to check that systems are used correctly
B. Inspection of machinery when poor quality is detected
C. Setting up activities to improve processes and systems
D. Checking incoming materials and products
160. Which of the following statements is true?
A. A product can be over-specified, adding to costs
B. Using supplier specifications results in higher quality products
C. Quality circles are the best method of auditing supplier specifications
D. Products with additional features will have published specifications
161. What is the main purpose of a quality management system?
A. To define and manage processes for systematic quality assuarance
B. To develop excellent quality managers and staff
C. To establish who is responsible for poor quality
D. To enable production quality to be optimised
162. Which of the following best describes the term quality planning?
A. A process used in an organisation that is aimed at managing quality and determining what factors are
important to a project and figuring out how to meet those factors
B. A method used in an organisation as a way of preventing mistakes or defects in manufactured products
and avoiding problems when delivering solutions or services to customers
C. A set of co-ordinated activities to direct and control an organisation in order to continually improve the
effectiveness and efficiency of its performance
D. A key technique of quality control which involves examining, measuring, testing as well as evaluating
an item
163. Which of the following defines a ‘bill of materials’?
A. A summarized list of all stock items held in a warehouse
B. A list of items that are to be rejected and are awaiting supplier credit
C. A ‘shopping list’ of parts and components required in manufacturing
D. A combined invoice from a supplier of unfinished stock
164. Which of the following technique is a statistical method used as part of quality managemnt?
A. Early supplier involvement C. Quality chains
B. Business process re-engineering D. Control charts
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165. For which of the following is a ‘statistical process control’ approach appropriate?
A. Analysis of component production quality
B. Analysis of customer opinion about product features
C. Analysis of stock holding value in a warehouse
D. Analysis of supplier specifications prior to purchase
166. In terms of product quality, the ability of a product to perform consistently over time could be best defined
as which of the following?
A. Conformance C. Durability
B. Reliability D. Performance
167. Which of the following terms is used to describe ‘the operating characteristics of a product’?
A. Performance C. Perceived quality
B. Conformance D. Comparative excellence
168. Which of the following is used to analyse variations in individual stages of production?
A. Quality planning map C. User-based approach
B. Statistical process control D. Perceived quality assessment
169. Which of the following describes the term quality assurance?
A. A method of committing staff to understand and work to higher quality performance
B. A method of working in teams to identify quality improvements and eliminate problems
C. A system of preventing quality problems through the design of products, services and processes
D. A systematic approach of mapping a supply chain and identifying where waste occurs
170. What term is used for a technique for managing quality, which ‘relies on the detection and correction of
defects?
A. Knowledge management C. Quality assurance
B. Quality control D. Supply chain mapping
171. A key technique of quality control which involves examining, measuring, testing as well as evaluating an
item is known as which of the following?
A. Quality control C. Quality improvement
B. Quality inspection D. Quality assurance
172. Which of the following describes a systematic, formal approach to the analysis of practice performance and
efforts to improve performance?
A. Quality control C. Quality improvement
B. Quality inspection D. Quality assurance
173. Which of the following is a potential risk of automating procurement processes?
A. Real-time information on the availability of supplies
B. Improved transparency of information throughout the supply chain
C. Reliability of systems during the implementation period
D. Reduced cycle time for the total procurement cycle
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174. Costs of activities required to establish cause of product problems are classified as……
A. Quality culture costs C. Prevention costs
B. Internal failure costs D. Process development costs
175. Why is EFT (electronic funds transfer) beneficial to the supply chain?
A. It generates more business C. It eliminates supply chain risk
B. It speeds up payment D. It identifies new suppliers
176. Which of the following relates to the electronic procurement of products or services via the internet?
A. E-sourcing C. Internet procurement
B. Online procurement D. Instant buying
177. Electronic data interchange (EDI), within the online P2P (process, is used for which of the following?
A. Exchanging documents C. Chasing orders
B. Making payments D. Locating lost packages
178. An online track and trace system, within the P2P (purchase to pay) process, will be helpful for which
activity?
A. Expediting C. Supplier selection
B. Negotiating D. Awarding the contract
179. Which of the following defines a process used in an organisation that is aimed at managing quality and
determining what factors are important to a project and figuring out how to meet those factors?
A. Quality planning C. Quality assurance
B. Quality management system D. Quality control
180. Which of the following documents is used for the same purposes as a purchase requisition?
C. The supplier’s invoice C. The purchase order
D. The goods received note D. The bill of materials
181. Which of the following is a benefit of using an electronic P2P system?
A. Payments to suppliers can be delayed C. Reduced supply chain partners
B. Supplier errors will be eradicated D. Improved interface with suppliers
182. Which of the following documents is provided by a supplier with the goods?
A. Delivery note C. Order acknowledgment
B. Requisition form D. Credit note
183. From the buyer’s perspective, the aim of effective supply chains is to achieve which of the following?
A. Highly satisfied suppliers C. Continuous staff development
B. Added value for customers D. New sub-contracting opportunities
184. Which of the following is true of enterprise resource planning (ERP)?
A. It requires a large IT investment and commitment
B. It requires a small IT investment and commitment
C. It is implemented only in production and finance
D. It requires all legacy system to keep separate data
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185. Which of the following defines the law and regulation on certain requirements on products and services
which may be needed to be taken into account by an organisations when doing their work?
A. Specifications C. Compliance
B. Conformance D. Ethics
186. Which term describes the exchange of transaction documents in a standardized electronic format between
organisations?
A. Electronic document interface C. Electronic document portfolio
B. Electronic data management D. Electronic data interchange
187. Which of the following explains the use of ‘key performance indicators’?
A. Price market research information compared to chosen supplier price to ensure value for money
B. Explanations of delivery times and days that have been agreed between the buyer and supplier
C. Performance measurements included in a contract to check that requirements have been met
D. Quality related dimensions and testing methods to be check by the supplier before supply
188. The optimum combination of whole life cost and the quality necessary to meet customer’s requirements’ is
a definition of which of the following?
A. Value analysis C. Value for money
B. Total cost of acquisition D. The triple bottom line
189. Which of the following terms explains a process under e-tendering where the supplier provides information
on the knowledge or the quality of what they do or can provide?
A. Qualification stage C. Technical stage
B. Commercial stage D. Pricing stage
190. When negotiating for the best price to use for the contract, the range of negotiations must be done for the
price between which of the following?
A. The lowest acceptable price of the supplier and the highest acceptable price of the buyer.
B. The highest acceptable price of the supplier and the highest acceptable price of the buyer.
C. The lowest acceptable price of the supplier and the hoped for price of the buyer.
D. The hoped for price of the supplier and the hoped for price of the buyer.
191. Debriefing, following contract award, will enable:
A. The buyer to apportion blame between the successful tendering organisation before contract award
B. The supplier to conduct a process of legal action against the buyer
C. Unsuccessful tenderers to be consulted, to enable improvement for future bidding
D. Successful suppliers to increase their prices prior to the final award of contract
192. The description of the company highlighting the history, quality of workers, the company’s past, current and
anticipated performance as well as its reputation is referred to as which type of information when using pre-
qualification questionnaires?
A. Company details C. Financial information
B. Quality assurance information D. Health and safety information
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193. Which of the following is used to shows how the company is standing financially, its profits and losses as
well as highlighting if it is operating profitably or not when using pre-qualification questionnaires?
A. Business activities C. Financial information
B. Company details D. Insurance policy
194. Which of the following is true of warehouse insurance premiums?
A. Increase as stock space is used more effectively
B. Decrease as less obsolescent stock is held
C. Decrease as stock space is used more efficiently
D. Increase as stock value increases
195. Which of the following refers to the technology, methods, and applications used by an organisation for the
integration and presentation of business information?
A. Relationship management system C. Transactional processing system
B. Knowledge management system D. Business intelligence system
196. Which of the following best describes an equal opportunities policy of an organisation?
A. A policy which emphasize on non-discrimination and that the supplier must treat his workers in the same
manner
B. A policy which shows whether the organisation is capable to insure or protect the products that we want
from him.
C. A policy that shows what the supplier is doing to preserve and maintain the natural environment
D. A policy which shows how the supplier giving back to the society
197. A policy which shows how the supplier is prepared to protect the health and safety of his workers as well as
the society as a whole is referred to as which of the following?
A. Quality assurance C. Environmental management policy
B. Equal Opportunities policy D. Health and Safety policy
198. Which of the following describes a specific type of web based supplier catalog that connects to a purchasing
organization's e-procurement system?
A. E-catalogue C. Punch-out catalogue
B. Reverse catalogue D. Standard catalogue
199. A concept that is used for continuous improvement within all aspects of an organisation by aiming to
thoroughly transform the organisation through progressive changes in the attitudes, practices, structures and use
of systems is referred to as which of the following?
A. Total quality manage C. Total quality assurance
B. Total defect control D. Total quality investment
200. Which of the following forms confirms all work is completed to the client’s expectations
A. Invoice C. Purchase order
B. Quality inspection form D. Bill of materials
KCM 24