Question

Which of the following is not a stage in the prevention approach to supplier quality assurance?

	a.	Sample inspection procedure.
	b.	Preliminary qualification of (potential) suppliers.
	c.	Preparing the purchase order specification.
	d.	Checking on any quality awards claimed by the supplier.

Which of the following best explains ‘time and materials contracts’?

	a.	The buyer agrees to pay the supplier all material costs and employee hours against pre-determined hourly rates and margins for services.
	b.	The buyer agrees to pay the supplier all material costs and employee hours.
	c.	The buyer agrees to pay the supplier all employee hours against pre-determined hourly rates and margins for services.
	d.	The buyer agrees to pay the supplier all material costs.

Which of the following terms is an operational management process?

	a.	Screening and selection of project partners.
	b.	Evaluating supplier development capabilities and performance.
	c.	Evaluating supplier proposals and ways of working.
	d.	How to assess inter-systems compatibility and operability.

Answer 1

Answer 1: Option C

Explanation: Checking the sample for inspection of quality, preliminary screening of the potential suppliers and checking for any quality awards are a step in supplier quality assurance while preparing the purchase order happens when the order is being given to the supplier at a later stage.

Answer 2: Option B

Explanation: The buyer in a Time and materials contract agrees to pay the contractor for all the material used and the employee hours spent in completing the task, regardless of the task. It is used for the projects for which determining the material and time required are not easy.

Answer 3: Option D

Explanation: How to assess inter-systems compatibility and operability is a process in the operations management which is used to check whether the sub-systems are compatible with each other so that they can work in congruence with each other.