PROCUREMENT MANAGEMENT

INSTITUTE FOR PROFESSIONAL AND EXECUTIVE DEVELOPMENT

SYLLABUS

2011 www.iped-uk.com

IPED UK-Learning Resource Centre Pacific House-Parkhouse-Carlisle-CA3 0LJ-England

T: 00441228406393 F: 00441228406392 E: Info@iped-uk.com

Subject title Aim

PROCUREMENT MANAGEMENT
This unit seeks to help the learner understand contemporary issues in procurement management including analysis of the purchasing cycle, preparation of purchasing specification, supplier selection, an evaluation of the formal bidding process and an examination of how purchase quantities affect procurement management. The learner will understand the nature of strategic procurement and supply chain management. Key issues relating to outsourcing, inventory management, international sourcing, e-procurement systems and performance management are also covered in this unit. 30 credits equivalent to 300 hours of teaching and learning (10 hours is equivalent to 1 credit) Guided learning hours (GLH) = 50 hours GLH includes lectures, tutorials and supervised study. This may vary to suit the needs and requirements of the learner and the approved centre of study. Directed learning = 50 hours: This includes advance reading and preparation, group study, and undertaking research tasks. Self-managed learning = 200 hours: This includes completing assignments and working through the core and additional reading texts. It also includes personal research reading via other physical and/or electronic resources. Written examination under clocked supervised conditions. Maximum 3 hours Examination questions will be practical, application-based and be focused at an operational level. According to the nature of the subject matter, a variety of question styles and approaches will be included in the examination. Questions might be based on case study materials and require a discursive answer, a report or a series of shorter answers. Students will typically be required to explore and compare the technical aspects of an issue or topic or to apply their understanding to, for example, solve a problem or provide a recommended solution Examinations will be set, administered, assessed and internally verified by IPED UK in the United Kingdom by IPED UK assessors and internal verifiers. Lectures: Formal lectures to be provided at and by an approved centre Class discussions: which should include analysis and review of various case studies Group discussions: where students are advised to actively engage and contribute GCSE or WASSCE (with passes in English and Maths) The course will be monitored by internal verifiers of IPED UK. The work of the tutors/assessors will be closely monitored by IVs and the IPED UK Learning Resource Centre England. The IPED Suggestion and Feedback Policy (system) will be used to collect information from learners and users of the programme to make informed decision on quality improvement strategies

Credit value 30

Assessment methods

Additional assessment information Methods for teaching and learning

Minimum entry requirement Course monitoring and review

Learning outcome (Learner will) 1.0 Understand the key issues procurement management

Assessment criteria (Learner can) 1.1 Explain the function of procurement 1.2 Examine the purchasing cycle 1.3 Evaluate the roles in the purchasing organization for a large project 1.4 Analyse the contribution of shipping and freight forwarding agents in procurement management 1.5 Analyse the stages in the purchase of equipment for a large international project 1.6 Describe the stages involved in the preparation of purchase specifications: - Enquiry stage - Purchase order stage 1.7 Examine key issues relating to supplier selection 1.8 Examine the impact of the European Directives on public sector purchasing 1.9 Analyse the formal bidding procedure and discuss the following: - How to deal with suppliers queries during the bidding process - How to deal with late tenders - Bid evaluation 1.11 Discuss the nature and relevance of purchase requisition 1.12 Explain what is meant by expediting and discuss its importance in procurement management 1.12.1 Explain what is meant by the lead time and examine the factors that affect it. 1.12.2 Discuss ways of improving the lead time 1.13 Examine how purchase quantities affect procurement management 1.14 Analyse the considerations that must be made in making purchase order amendments 1.15 Examine the implications of: - Supplying a project entirely from stocked materials - Supplying a project entirely from special purchases - Project purchasing as a condition of contract 1.16 Explore the importance of marking and labelling goods before transit 1.17 Discuss the changing role of purchasing and supply

2.0 Understand the nature of strategic procurement and supply chain management

2.1 Explain the meaning of strategic procurement 2.2 Explain the concept of strategy 2.2.1 Examine the importance of mission statement 2.3 Explore the nature of strategic management 2.3.1 Discuss the following: - Strategic analysis - Strategic development - Strategy implementation 2.4 Evaluate the nature of effective supply market strategies 2.5 Discuss the function of purchasing and supply in different types of organizations 2.6 Explain what is meant by the supply chain 2.7 Discuss the ways of improving the efficiency of the supply chain 2.8 Explore the characteristics of the types of supply chain 3.1 Examine the nature of outsourcing 3.1.1 Explain what is meant by outsourcing 3.1.2 Describe the methodologies of outsourcing 3.1.3 Discuss the drawbacks of outsourcing and analyse ways of avoiding or managing such drawbacks 4.1 Explain the meaning of inventory management 4.2 Explain what is meant by order quantities and stock control, and evaluate their importance in procurement management 4.3 Give an account on the following: - Materials requirements planning - Manufacturing resource planning - Distribution resource planning - Enterprise resource planning 4.4 Discuss the nature of stores administration and management with respect to the following: - Accommodation - Labelling - Location and retrieval - Physical pre-allocation of project materials - Preservation - Security - Stores records and information system 4.5 Explain the Just-In-Time (JIT) system 4.5.1 Evaluate the advantages and disadvantages of JIT 4.6 Explain the meaning of Economic Order Quantity and evaluate its significance in inventory 5

3.0 Understand key issues relating to outsourcing

4.0 Understand the nature of inventory management

management 4.6.1 Calculate the economic order quantity using the following information - Annual usage of an item - Ordering cost - Unit cost - Holding cost per unit for one year 4.7 Discuss the nature of vendor managed inventory (VMI) and examine its advantages and disadvantages 5.0 Understand the nature of negotiations in procurement management 5.1 Explain the project managers role in negotiations 5.2 Discuss the nature of good negotiation skills 5.3 Evaluate the stages involved in negotiation: - Preparation - The introduction stage - The discussion stage - The Agreement stage - The post negotiation stage 5.4 Evaluate the nature of competition and cooperation in negotiation 5.5 Identify and discuss the strategies of negotiation 5.6 Give an account on the negotiation mix 6.1 Explain what is meant by global sourcing and international procurement 6.2 Discuss the reasons why organizations source internationally 6.3 Give an account on the problems associated with international sourcing and recommend solutions 6.4 Examine the nature of arbitration in international sourcing 6.5 Discuss the implications of customs and countertrade in global sourcing 7.1 Explain what is meant by an e-procurement system 7.2 Evaluate the benefits of e-procurement 7.3 Examine the barriers to e-procurement 7.4 Explore how the benefits of e-procurement can be effectively measured 7.4.1 Identify the key indicators for measuring the benefits of e-procurement

6.0 Understand the nature of international and global sourcing

7.0 Understand the nature and importance of eprocurement systems

8.0 Understand the nature and significance of performance measurement in procurement

8.1 Explore the ways of measuring the procurement function using indicators such as: - Cost savings - Quality - Purchasing improvements - Transportation improvements - Etc. 8.2 Evaluate the benefits of measuring procurement

Recommended learning resources

Textbook(s) Core textbook(s) Dennis Lock 2007, Project Management 9th Edition; Gower Publishing, England. ISBN 978-0-566-08772-1 Peter Bailey et 2008; Procurement, Principles and Management. Prentice Hall MTCN: 978-0273713791 Other recommended resources Kenneth Lysons et al 2008; Excellence in Procurement: How to optimise costs and add value. ISBN: 978-1903499405 Access to other credible online resources and publications is encouraged Learning Aid A learning resource material is provided to guide the learner/tutor and to serve as a quick reference point for contents of the programme. The student is advised not to be over reliant on the study guide but to access the relevant textbooks or other academic materials as much as possible to help him/her with the course. Important information: Please note that if the study guide provided does not cover any part(s) of the syllabus, it is the responsibility of the tutor and the learner to access the relevant information from the core textbook(s) and suggested further reading material(s). For help on accessing such information, kindly contact IPED UK.

Duration

The entire Level 4 Diploma in Project Management must be completed in a minimum of 24 weeks (6 months), spread over two semesters within a year with each semester consisting of 12 weeks minimum. However it can be completed in an intensive 6 month period if preferred depending on the learning abilities of the student and/or the availability of resources at the training centre. Whichever option is adopted, a minimum of 50 GLH must be used for each module.

Grading system
[All figures are expressed in percentage (%)] Grade A Grade B Grade C Grade D Grade F 70-100 60-69 50-59 40-49 39-0 Distinction Merit Pass Marginal pass Fail

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