NIGP CPP Module A Latest Update - 150

NIGP CPP Module A Latest Update - 150 Questions and 100% Verified Correct Answers Actual Exam Guaranteed A+

A KPI is a quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance. - CORRECT ANSWER: What is a KPI

A major goal of strategic procurement planning is to link resource allocation decisions with the entity's objectives in a priority-setting model. Some of the most common

benefits associated with strategic procurement planning are that it: - CORRECT

ANSWER: focuses attention on the entity's mission and links tactical procurement decisions to overall strategy.

provides a framework to review strategy implementation and control.

allows procurement professionals to verify the legitimacy of procurement strategy consistent with the entity's strategy.

assists in designing future procurement strategies.

assists in designing or redesigning the structure of the procurement functions and processes.

allows procurement resources to be assigned according to opportunities and risks.

facilitates a better understanding of the implications of cross-functional problems and projects arising out of procurement decisions.

creates a framework for communicating with suppliers and cross-functional team members. 1 / 3

facilitates the identification of opportunities and threats for future procurement decisions.

A procurement profile - CORRECT ANSWER: takes a spend analysis a few steps

farther. Fundamentally, a procurement profile will provide baseline information that identifies where the entity is spending its resources. In essence it provides a picture of what an entity is buying, from whom, when, how, and for how much.

A spend analysis answers the questions: - CORRECT ANSWER: What am I really spending?

With whom am I spending it?

Am I getting what's been promised for that spend?

A strategic plan is a course of action to achieve long-range goals, generally up to five years. Strategic plans reflect the company's direction and its purpose as stated in its mission statement. To develop strategic plans, top management must develop and use summary reports on finances, operations, and the external environment. - CORRECT

ANSWER: Strategic Plan

A tactical plan is a course of action to achieve short-term goals, generally within a year or less. Tactical plans are concerned with what the units beneath top management must do, how they must do it, and who has the responsibility. These plans have shorter time frames and narrower scopes than strategic plans. - CORRECT ANSWER: Tactical Plan

Administrative Law - CORRECT ANSWER: Rules, regulations and executive orders,

promulgated by governmental administrative or regulatory entities. Generally enacted to make statutes and ordinances more specific. Has the force and effect of law.

Administrative laws - CORRECT ANSWER: Are written rules, regulations, and entity policy, developed and promulgated by administrative and regulatory governmental entities. Administrative Law, provided by the applicable regulatory entity, has equal force 2 / 3

and effect as legislative law, as long as it does not supersede the context of legislative law.

Advantages of Leasing - CORRECT ANSWER: Minimize risk of obsolescence.

Equipment can be made available on a short-term basis for projects that do not justify a large and immediate outlay of funds.

The burden of the investment is shifted to the lessor.

The entire expense of the lease can sometimes be treated as an operating expense, minimizing taxable income and thus the entity's total tax obligation.

Assessing and Mitigating Contractual Risk - CORRECT ANSWER: Contract should

specify:

Who has the authority to make changes, how changes will be made in writing, and what changes will be unilateral.How disputes will be resolved if a mutual agreement cannot be reached.The breach notification process and detail how action that will be taken to remedy a breach.

Assessing and Mitigating Performance Risk - CORRECT ANSWER: In assessing

performance risks, expectations for acceptable performance are set.The criteria for acceptable performance and inspections should be clearly defined in the contract.Procedures for rejection and resubmission should also be defined clearly along with the responsibilities of each party.

Benchmarking is defined as the act of measuring a process, service, or good against the characteristics of the recognized leaders in the given area of review. Benchmarking is a study, review, or process whereby a procurement entity identifies world-class entities with which to compare its practices, policies, and performance outcomes. An

• / 3