D2 - 2.0 Specifications & Kpis

Front 1

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

Back 1

Output specifications are:

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

Front 2

Outline FIVE characteristics of an effective specification.

Back 2

- Clear and unambiguous

- concise and comprehensive

- compliant with laws/regs

- unbiased

- free from jargon

- logically structured

- proper version control

Front 3

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

Back 3

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

Front 4

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

Back 4

* 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

Front 5

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

Back 5

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

Front 6

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

Back 6

- 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

Front 7

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

Back 7

Advantages:
• experience
• knowhow
• innovation

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

Front 8

Explain the reasons for using standards within specifications.

Back 8

- 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

Front 9

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

Back 9

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

Front 10

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

Back 10

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

Front 11

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

Back 11

* 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

Front 12

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

Back 12

* 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

Front 13

What are the key questions when drawing up a spec?

Back 13

Procurements five rights;

1. Quantity

2. Price

3. Product

4. Quality

5. Place/timing

Front 14

List types of conformance specifications

Back 14

1. technical drawing

2. chemical formula

3. brand

4. sample

5. market grade

6. standard

Front 15

What is the process of developing KPIs?

Back 15

1. identify critical success factors

2. identify measures of each factor

3. develop and agree KPI

Front 16

What is benchmarking?

Back 16

- Comparing company performance to best in class

- stimulate improvements

Front 17

List the types of benchmarking?

Back 17

1. internal: within same org

2. compeitior

3. functional: same function different industry

4. generic: leaders in an attribute