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It is thought that the cause of a negative variance in the materials budget is the poor negotiation skills of procurement staff. Which of the following (select two) would be a move in the right direc-tion to remedy this situation?
Surety of supply is not in question; cost of supply is.
Sacking the Head of Procurement is probably a rash move, unless there is much more going on.
Using competition, and ensuring effective skills are in place would seem to be good options in the circumstances.
A short definition of quality sometimes used (including in some UK legislation), said originally to come from Joseph Juran, is:
Is it fit for purpose? Can it do the job required? This is one definition of quality.
The nearest answer to this would have been 'fitness for sale' perhaps, but this has no legal or such a strong traditional standing.
The abbreviation 'PDCA' represents the words:
The Plan-Do-Check-Act cycle, attributed to Deming, stresses the need for action in improving quali-ty. Plan Do Check and Assess would have been close to the correct answer, but not quite close enough.
The other responses shown here are simply made up to fit the letters.
'A high degree of skill or expertise'
This is a definition of 'proficiency'.
In a manufacturing business, there are two important materials budgets. One is called 'materials pur-chases budget' and the other is called 'materials XXX budget'. What is the missing word?
It's the 'materials usage budget'.
This budget would help monitor whether the usage of materials was in line with forecast (budget), or whether there was a variance.
