Explanation

E-sourcing.

Try to be clear on the difference between e-sourcing and e-auctions.

Other related e-terms include e-contracting, e-procurement, and possibly more.

Explanation

SPQR is a symbol of the Roman Empire, not a quality management concept.

Failure Mode and Effects Analysis, Total Quality Management and Statistical Process Control are all concepts which relate to quality management.

Explanation

Suboptimal

Less than optimum.

Explanation

Lifetime costing is of greatest applicability when an asset has a long life.

Explanation

Early buyer involvement

Explanation

Pareto Analysis is sometimes known as the 80-20 Rule. It is the basis of ABC Analysis.

'in any series of elements to be controlled, a selected small factor [say 20%] in terms of number of elements almost always accounts for a large factor [say 80%] in terms of effort'. The figures in square brackets are illustrative - Pareto did not include these numbers and the % can be otherwise. The principle that a small percentage of 'things' will soak up a large amount of resource is what actu-ally matters.

For example, if you have 100 suppliers, a disproportionate amount of energy / time / spend will be devoted to a small number of them. Similarly if you have 100 staff members. Or a stock range of thousands. Similarly for customers. And so on.

A relatively simple concept, worth it's weight in gold in my opinion - my favourite management concept.

Explanation

This is a definition of extortion.

The other terms shown as possible answers are within the syllabus for this course and may be the subject of other questions within this test.