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Unit content guide

RevisedcontentSeptember2009

Graduate diploma inpurchasing and supplyThe units that make up the award are:

• Leading and influencing in purchasing• Strategic supply chain management• Supply chain management in practice –

integrative unit

Plus a choice of two optional units:

• Legal aspects in purchasing and supply• Advanced project management• Finance for purchasers• Strategic public sector programme management• Public sector stakeholders and governance

CIPS_L6_UnitContGuide:Layout 2 9/7/09 10:05 Page 2

The content (including references, names and acronyms) are correct at the time of publication, June 2009. Copyright CIPS ©


The Chartered Institute of Purchasing& Supply qualifications ladder has sixlevels of awards. For details of theentry requirements for each level,please refer to www.cips.org

The CIPS Graduate diploma inpurchasing and supply is a Level 6higher level qualification. It has beenaccredited by the the Office ofQualifications and ExaminationsRegulator (Ofqual) and appears on theNational Database of AccreditedQualifications (NDAQ). Please refer towww.accreditedqualifications.org.uk

The Level 6 Graduate diploma inpurchasing and supply consists ofthree compulsory units. One of these,Supply chain management in practice,is an integrative unit which isdesigned to draw together theknowledge and understanding

achieved in the other two compulsoryunits and to demonstrate how theseunits combine and integrate in aworking environment. The integrativeunit should be taken after thecompulsory units have beencompleted. Additionally you mustchoose two optional units from achoice of five.

Assessment for each unit is byexamination, with the exception of theintegrative unit when there is a choicefor students in the UK. If your studycentre has been approved you canchoose either an open bookexamination or a work-based project.

If you wish to study for this award it isexpected that you will undertake 50guided learning hours per unit, ie atotal of 250 guided hours. Thedefinition of guided learning hours is:

“A measure of the amount of inputtime required to achieve thequalification. This includeslectures, tutorials and practicals,as well as supervised study in, forexample, learning centres andworkshops.”

You will find that study centres vary onthe exact format for delivery of thestudy programme. Additionally CIPSwould recommend that you alsocommit 80 hours per unit of self-study,including wider reading of the subjectareas and revision to give yourself thebest chance of successful completionof the award.

Below is a list of the units, their NDAQreference numbers and CIPS referencecode which is used to identify the unitfor examination purposes.

Graduate diploma in purchasing and supplyIntroduction

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LEVEL 6 – GRADUATE DIPLOMA IN PURCHASING AND SUPPLY NDAQ QUALIFICATION NUMBER 100/6114/9

Leading and influencing in purchasingStrategic supply chain managementSupply chain management in practice – integrative unit

Plus choose two optionsLegal aspects in purchasing and supplyAdvanced project managementFinance for purchasersStrategic public sector programme managementPublic sector stakeholders and governance

F/500/1720J/500/1721L/500/1722

R-/500/1723Y/500/1724D/500/1725K/500/5373M/500/5374

CIPS ref code L6-01CIPS ref code L6-02CIPS ref code L6-03

CIPS ref code L6-10CIPS ref code L6-11CIPS ref code L6-12CIPS ref code L6-13CIPS ref code L6-14


AssessmentAssessment is the way in whichCIPS will measure whether or not astudent is able to demonstrate theirknowledge, understanding andability to apply their learning in anygiven situation.An assessment could be anexamination, assignment orproject.

Business essentialsThese are commonly occurringthemes through the CIPSqualifications, that do not warranta unit in their own right, but thatare important holistically to thelearning undertaken within CIPSqualifications.

They are areas of importance,innovation and some emergingthemes, such as:• Quality management• International issues• Business finance• Information management• External factors

Command wordsCommand words are generallyverbs that are used to indicate thelevel of learning undertaken. Theytend to be hierarchical in nature.For example, at Level 3, acommand word will be‘demonstrate’ or ‘explain’, whereasa command word at Level 6 will be‘synthesise’, or ‘critically evaluate’. These words reflect the level ofcomplexity of your learning andultimately your assessment at thatlevel.

Compulsory unitsThese are units that you must takeeither through CIPS or analternative awarding body thatconstitute necessary knowledgeand understanding to fulfil learningrequirements for CIPSqualifications.

If you have undertaken equivalentlearning or have equivalent relatedexperience to the compulsory unitsfrom somewhere else you mayeither be exempt from learning, orgain accreditation for prior learningor experience.

Entry levelThis is the point at which you willenter the CIPS qualifications ladder.This entry will be based upon pre-requisite knowledge,understanding and experience.

ExemptionsStudents who have successfullycompleted certain post-schoolstudies may apply for exemptionsfrom equivalent courses in theirprogramme of study. To earn anexemption from either levels ofqualifications or option units withinqualifications you should contactCIPS or see www.cips.org

Please note that gaining anexemption, does not mean that yougain an exit award at that level,rather that you bypass that level oflearning because of equivalentlearning and achievement gainedelsewhere.

Graduate diploma in purchasing and supplyGlossary of terms

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Exit awardAn exit award is in essence aqualification. CIPS has six exitawards in total. • Introductory certificate in

purchasing and supply • Certificate in purchasing and

supply• Foundation diploma in

purchasing and supply• Advanced diploma in purchasing

and supply• Graduate diploma in purchasing

and supply• Executive diploma in purchasing

and supply

For each qualification you study,you will receive a certificate ofachievement confirming your exitaward.

Indicative contentThe knowledge required in order tofulfil the learning objectives andachieve the learning outcomes – inother words what you need toknow.

Integrative unitsIntegrative units are intended tohelp students see connectionsbetween all aspects of theirlearning within a particular level ofqualification. For the purpose ofCIPS qualifications, awards atlevels 3 and 6 will have anintegrative unit.

Learning objectivesDetermines the level of learningyou must undertake in order toachieve the learning outcomes.

LevelThe level determines thecomplexity of learning, the depth oflearning and the comparison oflearning with other qualifications.CIPS has qualifications at levels 2to 7. The levels are as follows:

• Level 2Introductory Level – this is forsomebody new to thepurchasing and supplyprofession and often in a juniorcapacity

• Level 3Junior technical – alsopotentially new to learning

• Level 4Operational/juniormanager/new to the profession

• Level 5Manager/specialist role

• Level 6Senior managers/specialistprofessional

• Level 7Senior managers/specialistprofessional

The levels are determined byOfqual, who are the Governmentregulator for education, and enablea clear understanding nationally ofthe level of a person’s learning andability in that field.

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National QualificationsFrameworkThis framework is a governmentframework, where qualificationsthat are approved by Government,as being fit for purpose, andmeeting the quality criteria, arelisted. Qualifications listed withinthis framework are monitoredagainst a variety of measures toensure quality of qualification,associated procedures and delivery.

OfqualOfqual is the Government regulatorfor professional bodies such asCIPS, and act as the caretaker ofqualifications included in theNational Qualifications Framework.

Optional unitsThese are units where you havechoice and opportunity tospecialise in an area of interest.There is an opportunity to selecttwo optional units at advanceddiploma and two optional units atgraduate diploma.

Qualifications ladderThis ladder represents thehierarchical nature of CIPSqualifications. The ladder has sixsteps within it. It starts with anIntroductory Certificate through tothe Graduate Diploma.

Each step of the ladder isrepresented by qualification withan ‘exit award’.

Statements of practiceA goal for attainment, whichindicates what you need to knowand be able to do to complete yourstudies in a particular subject area.

Each unit has six to seven learningoutcomes which outline what youwill achieve as a result of yourlearning in that particular unit.

StudentMember who is studying a CIPSqualification.

UnitA segment of learning within theCIPS qualifications, which has avalue in terms of hours of learning.Each unit is individual, has its owntitle, rationale and content. A unitwill also have an assessmentattached to it in order todemonstrate achievement andconclusion of the learning.

WeightingsWeightings are allocated to eachunit, to determine how the learningcan be sensibly split.

Each unit has a content weightingof 100%. Within each unit, eachsubject area is given a weightingeg 20% or 25%.

This weighting indicates the levelof input and learning required bythe deliverer and the learner inorder to complete the subject area.However, the weightings do notnecessarily reflect the marks thatmay be allocated to a question inthat subject area of the unit.

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ARR • Average rate of returnA method that attempts to comparethe profit of a project with thecapital invested in it. Normallyexpressed as a percentage (Source: Accounting for NonAccounting Students 4th EditionJ.R Dyson, Pitman Publishing).

ASEAN • Association of SouthEast Asian NationsMember countries include Brunei,Cambodia, Indonesia, Laos,Malaysia, Myanmar, Philippines,Singapore, Thailand and Vietnam.The objectives are economicgrowth, social progress and culturaldevelopment, achieved throughjoint endeavours.

CAPEX • Capital expenditureThese are funds used by anorganisation to either purchase anew asset or upgrade an existingone, usually high in value.

CIF • Cost, insurance andfreightCommonly described as anIncoterm. This is CFR with theadditional requirement that theseller procure transport insuranceagainst the risk of loss or damageto goods. The seller must contractwith the insurer and pay theinsurance premium. Insurance isgenerally important in internationalshipping because transportcompanies have restricted liabilityfor loss or damage.

COMESA • The CommonMarket for Eastern andSouthern AfricaA trading area similar to the EU,ASEAN and NAFTA. It has twentymember states stretching acrossAfrica from Libya to Zimbabwe. Itwas formed in December 1994,replacing a Preferential Trade Areawhich had existed since 1981.

CSR • Corporate socialresponsibilityCSR means the commitment to asystematic consideration of theenvironmental, social and culturalaspects of an organisation’soperations. This includes the keyissues of sustainability, humanrights, labour and communityrelations, as well as supplier andcustomer relations beyond legalobligations; the objective being tocreate long-term business valueand contribute to improving thesocial conditions of people affectedby an organisation’s operations.

DCF • Discounted cash flowThe value of a cash flow adjustedfor the time value of money.

DDP • Delivery duty paidAn Incoterm, represents the seller’smaximum obligation. The term DDPis generally followed by wordsindicating the buyer’s premises. Itnotes that the seller bears all risksand all costs until the goods aredelivered. This term can be usedirrespective of the mode oftransport. If the parties wish tomake clear that the seller is notresponsible for certain costs,additional words should be added(for example, “delivered duty paidexclusive of VAT and/or taxes”).

Graduate diploma in purchasing and supplyAcronym guide

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DMAIC • Define, measure,analyse, improve, controlDMAIC is an acronym used for aquality strategy found within thesix sigma approach. It stands fordefine, measure, analyse, improveand control.

EFQM • The EuropeanFoundation for QualityManagementEFQM is based in Brussels andassists European businesses todeliver improved services throughthe effective use of leading edgemanagement practices. The EFQMowns the intellectual property ofthe EFQM Excellence Model. TheEFQM Excellence Model wasintroduced at the beginning of 1992as the framework for assessingapplications for The UK BusinessExcellence Award. It is the mostwidely used organisationalframework in Europe where it hasbecome the basis for the majorityof national and regional qualityawards.

EU • European Union The European Union was created in1992 following the signing of theMaastricht Treaty. Its aim is tocreate an environment for the freemovement of goods, services,labour and capital across themember states. There is also anemphasis on the abolition of trustsand cartels, and the developmentof joint and reciprocal policies onlabour, social welfare, agriculture,transport and international trade.

EXW • Ex worksAn Incoterm. Means the seller’sonly responsibility is to make thegoods available at the seller’spremises, ie the works or factory.The seller is not responsible forloading the goods on the vehicleprovided by the buyer unlessotherwise agreed. The buyer bearsthe full costs and risk involved inbringing the goods from there tothe desired destination. Ex Worksrepresents the minimum obligationof the seller.

FAS • Free alongside shipAn Incoterm. Using FAS requiresthe seller to deliver the goodsalongside the ship on the quay.From that point on, the buyer bearsall costs and risks of loss anddamage to the goods. FAS requiresthe buyer to clear the goods forexport and pay the cost of loadingthe goods.

FOB • Free on boardAn Incoterm. Using FOB the goodsare placed on board the ship by theseller at a port of shipment namedin the sales agreement. The risk ofloss of or damage to the goods istransferred to the buyer when thegoods pass the ship’s rail (ie off thedock and placed on the ship). Theseller pays the cost of loading thegoods.

ICT • Information,communications technologyThis is a broad subject concernedwith technology and other aspectsof managing and processinginformation, especially in largeorganisations.

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Incoterms • Internationalconsignment delivery termsThere are 13 Incoterms developedwhich are intended to makeinternational trade easier and helptraders in different countries tounderstand one another. Using theterm enables those reading them tounderstand who is responsible forrisk, transport and costs as well asother issues.

IPR • Intellectual propertyrightsIs the general term for differenttypes of ideas protected bydifferent legal rights. The sixintellectual property rights consistof confidential information, trademark, copyright, registered design,design right and patent.

IR • Industrial relationsLooks at the relationship betweenmanagement and workers,particularly groups of workersrepresented by a union.

IRR • Internal rate of returnIRR can be used to rank severalprospective projects anorganisation is considering.Assuming all other factors areequal among the various projects,the project with the highest IRRwould probably be considered thebest and undertaken first.

NAFTA • North American FreeTrade AgreementNAFTA was established in 1994and comprises of a free tradeagreement between Canada, USand Mexico. NAFTA was devised tocreate an expanded and securemarket for the goods and servicesin their territories and reducedistortions to trade. It establishedclear rules governing their tradeand built on their respective rightsand obligations under the GeneralAgreement on Tariffs and Trade andother multilateral and bilateralinstruments of co-operation.

NHS • National Health Service Founded in 1948, this organisationprovides the majority of healthcarein the UK. NHS services are largely“free at the point of delivery,” paidfor by taxes. Employing well overone million people, the NHS is thelargest employer in Europe and oneof the largest employers in theworld.

NPV • Net present valueIs a valuation method based ondiscounted cash flows. NPV iscalculated by discounting of aseries of future cash flows andsumming the discounted amountsand the initial investment (anegative amount).

OGC • Office of GovernmentCommerceThe Office of GovernmentCommerce (OGC) is an independentoffice of HM Treasury (UK),established to help the UKGovernment deliver best value fromits spending.

OPEX • OperationalExpenditureOPEX is the funds used to purchaseday-to-day operating goods andservices.

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PEM • Procurement excellencemodelThe procurement excellence modelprovides a guide to applying theEFQM excellence model toprocurement activities to identifyareas of strength on which to buildand opportunities for improvement.The guide provides procurementrelated comment and interpretationto each of the main criteria in orderto give emphasis and directionwhen applying the excellencemodel.

PESTLE • Political, economic,social, technological, legal,environmentalAn analytical tool that aidsorganisations developing strategiesby helping them understand theexternal environment in which theyoperate now and in the future.

PFI • Private finance initiativeAn agreement that promotespartnership between both privateand public sectors which enablesthe utilisation of a wide variety ofassets and services in the privatesector. The objective is to improvethe quality and quantity of publicsector capital products and also toprovide more efficient publicservices.

PLC • Project life cycleA logical sequence of activitieswhich leads to the completion ofproject goals and objectives.

PLT • Purchasing leadershipteamSenior level practitioners with adirect reporting line to the ChiefProcurement Officer

PMBOK • Project managementbody of knowledgeA collection of different processesand knowledge areas seen as bestpractice within the projectmanagement discipline. It is aninternationally recognised standard(IEEE Std 1490-2003) and providesthe fundamentals of projectmanagement, irrespective of thetype of project.

PP • Payback periodAn appraisal tool that is thesimplest tool for appraisingdifferent investment projects.

PPP • Public privatepartnershipAny alliance between publicbodies, local authorities or centralgovernment and private companiesto produce capital projects ordeliver public services.

PRINCE2 • Projects in aControlled EnvironmentA process based approach forproject management providing aneasily tailored and scalable methodfor the management of all types ofprojects. Each process is definedwith its key inputs and outputstogether with the specificobjectives to be achieved andactivities to be carried out.PRINCE2 is Crown copyright.

QCT • The iron triangle –quality, cost and timeMost projects, includingprocurement projects, have threemain objectives to be met, quality,cost and time.

SIPOC • Supplier, input,process, output, customerThis is another six sigma techniqueto give a high level view of aprocess. SIPOC stands forsuppliers, inputs, process, outputs,customers. Its aim is to identify themovement within the system andthe interdependencies.

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SMART • Specific, measurable,achievable, relevant, timeframed is a mnemonic used inproject management at the projectobjective setting stage. It is a wayof evaluating if the objectives thatare being set are appropriate forthe individual project.

SMEs • Small and mediumsized enterprisesA small firm is an independentbusiness, managed by its owner orpart-owners and with less than 50employees. A medium sizedcompany must meet thresholds forannual turnover and have fewerthan 250 employees.

SRO • Senior responsibleownerThis is not a PRINCE2 term, but isused in many organisations. Itsequivalent in PRINCE2 terms wouldbe the ‘Executive’ role. This is asingle individual with overallresponsibility for ensuring that aproject meets its objectives anddelivers the projected benefits.This individual should ensure thatthe project or programmemaintains its business focus, that ithas clear authority and that thework, including risks, is activelymanaged.

SRIE • Senior responsibleindustry executive The SRIE’s role is to work inpartnership with the SRO to ensuremore successful delivery of IT-enabled change programmes ingovernment. The SRO and SRIE areexpected to keep their respectiveteams focussed on theachievement of the desiredbusiness outcomes and to be openwith each other as to issues,problems, constraints and politicswithin their respectiveorganisations.

SWOT • Strengths,weaknesses, opportunities,threatsThis is a strategic planning toolused to evaluate the strengths,weaknesses, opportunities andthreats involved in a project or in abusiness venture or in any othersituation requiring a decision.

TNA • Training needs analysisAn analytical tool that helps anorganisation to establish itstraining requirements. This analysisis undertaken at all levels withinthe organisation.

TUPE • Transfer ofundertakings (protection ofemployment)Legislation that aims to ensure thatan employee whose company istaken over has his existingconditions respected by his newemployer. They also apply in somecases for work transferred tocontractors. This includes hours ofwork, pay, and pension entitlementand so on.

VFM • Value for money Is the optimum combination ofwhole life costs and quality (orfitness for purpose) to meet theuser’s requirements. This is rarelysynonymous with lowest price. (Source: http://www.ogc.gov.uk )

WTO • World TradeOrganisationThe World Trade Organisationexists as the only internationalorganisation responsible foroverseeing the rules of tradebetween nations. The WTOagreements including theAgreement on GovernmentProcurement (GPA) help producers,exporters and importers of goodsand services conduct businessacross those nations which havesigned the agreements.

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Graduate diploma in purchasing and supplyLeading and influencing in purchasing

COMPULSORY UNIT

UNIT CHARACTERISTICSThis unit is designed to developstudents’ leadership skills toenable them to lead, influence andprovide direction to stakeholderswithin the supply chain.

Students should be able to operateat a strategic level. They should beable to lead in their defined area orpart of the organisation and will beexpected to motivate and supportsupply chain members andstakeholders in achievingobjectives and success.Students will be expected to leadin a variety of situations and toensure that they maintain thebalance of power required toachieve success. They should beable to demonstrate effectiveleadership in a variety of contexts,including through change,adversity, conflict and success, inorder to maximise the potential ofthe organisation.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Critically evaluate the

fundamental differencesbetween management andleadership

• Assess a range of leadershipstyles and apply them effectivelywithin the supply chain

• Propose how to develop aninnovative and compelling visionfor the purchasing function

• Determine how to create andmaintain a culture thatencourages and recognisescreativity and innovation

• Evaluate how individuals andteams can be led and influencedeffectively: encouraging,motivating, supporting andrecognising achievement

• Propose how to develop aculture of productivity throughleading others

• Assess and determine effectivecommunication methods andmessages to support change inthe supply chain.

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LEARNING OBJECTIVES ANDINDICATIVE CONTENT

1.0 LEADING ANDMANAGING INPURCHASING(Weighting 15%)

1.1 Critically evaluate thefundamental differencesbetween a leader and amanager• The role of a individual

leader and the activity ofleadership

• The key traits of a leaderthat differentiate from amanager

• What leaders really do(Kotter), Adair’s action-centred leadership

• The close relationshipbetween leadership andmanagement

• The need for a leader alsoto be a good manager

• The roles of leadershipwithin a purchasingfunction

• The role of purchasingleadership in supportingcorporate governance.

1.2 Critically assess thebehavioural traits ofsuccessful leaders• The role of the visionary in

leadership• The key components of

emotional intelligence(Goleman) and the linkwith leadership skills

• The roles of integrity andvalues within leadership

• The place for authenticityas a leadership quality

• Purchasing ethics and thevalue of leading byexample

• Key communication skillsfor leadership.

1.3 Propose leadership stylesand evaluate when it isbest to apply them.• Theory X and Theory Y

(McGregor) and Theory Z(Ouchi)

• The three mainclassifications ofleadership styles:authoritarian, democraticand laissez-faire

• The full continuum ofdifferent leadership stylesfrom facilitative through todirective (Tannenbaum &Schmidt), including telling,selling, consulting andjoining

• The merits of a situationalapproach to leadership

• The four main stages inHersey’s model ofsituational leadership andwhen each stage isappropriate to use in apurchasing context

• Transactional versustransformationalleadership in purchasing

• The impact of differentleadership styles on theoperational function of apurchasing team.

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2.0 LEADING ANDINFLUENCING IN THESUPPLY CHAIN(Weighting 20%)

2.1 Evaluate how to influencestakeholders within thesupply chain• The difference between

influencing and negotiation• Key methods of influencing• The range of internal and

external stakeholders andeffective influencingstrategies for each group

• The importance ofdeveloping relationshipswhen influencing and thekey components in creating‘rapport’

• Stakeholder collaborationand how this may differfrom competition,adversarialism and/oraccommodation

• Appropriate stakeholdermap for a given purchasingactivity and how powerand dependency issues areidentified.

2.2 Critically assess how thedifferent sources of powerare legitimate andacceptable when leadingand influencing areas ofthe supply chain• Five sources of ‘social

power’ (French & Raven)and applying them to thepurchasing context

• Ethical use of power inboth leadership andpurchasing

• Use and abuse of powerand coercion.

2.3 Analyse a range ofinfluencing styles andexplain how to lead andinfluence effectively infour different directions• Manage your manager and

key methods for managingupwards

• A range of influencingstyles for leading directreports and purchasingteams, and understandingof the term ‘readiness’ inrelation to individualsbeing led (Hersey)

• A range of influencingstyles for cross-functionalleadership, both within andoutside the bounds offormal teams

• The relative merits ofescalation as a means ofinfluencing.

2.4 Propose a range of tacticsto effectively influence thesupply chain• Proactive influencing

tactics (Yukl)• Psychological principles of

influence (Cialdini)• Application of influencing

skills to purchasing andsupply management

• Managing the response toinfluence (internalisation,compliance and/orresistance).

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3.0 DEVELOPING A CULTUREOF PRODUCTIVITYTHROUGH LEADINGOTHERS(Weighting 30%)

3.1 Analyse and explain theneed for people to workeffectively, bothindividually and in work-based teams• The range of preferred

styles for workingeffectively (includingpersonality typepreferences) and theirrelative merits in theworkplace

• The classification of teamroles and the role(s) of theleader

• Herzberg’s motivationaland hygiene factors forleadership

• The merits of cross-functional teams and therole of the leader in termsof sponsorship andgovernance

• The role of the leaderduring each stage of teamdevelopment

• The merits of diversitywithin purchasing teams

• The merits of leaderlessteams.

3.2 Propose strategies fordeveloping a consensuson how to work together,identifying potentials forpitfalls and conflictswithin the team• Relative merits of conflict

and/or consensus withinpurchasing teams

• Sources of conflict withinpurchasing teams (Mullins)

• Methods of conflictresolution (Thomas &Ruble).

3.3 Critically assess diversityissues relating to thesuccess of people andpropose approaches tomanaging them• What is meant by the

terms equality, diversityand inclusion

• The benefits of diversity toa high-performance culture

• Impact of discrimination,harassment andvictimisation in thepurchasing function

• Potential areas ofdiscrimination in theworkplace and theregulatory framework toprotect against it:gender,race, religion, disability,sexual orientation and age

• Proactive measuresrequired to promoteequality and diversity inthe workplace: reasonableadjustments, positiveaction and positivediscrimination

• Consequences of failing topursue a proactiveapproach to equality anddiversity.

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3.4 Determine and justifyways of developingorganisationalcompetencies so thatpurchasing can increaseits productivity andeffectiveness• Why it is important to

develop people in theworkplace

• Role of organisationalcompetencies and theneed to align purchasingcompetencies withfunctional and corporatestrategies

• The range of skills andcompetencies forpurchasing and supply thatcan be reliably assessedand measured

• The purpose of trainingneeds analysis (TNA) andskills assessment

• The processes of TNA andthe merits of independentassessment

• Contrast between trainingand development

• A range of training anddevelopment solutions forpurchasing, including themerits of blended learningand action-learning.

4.0 LEADING CHANGE IN THESUPPLY CHAIN(Weighting 35%)

4.1 Propose how to developcompelling and innovativevision, values and culturefor a purchasing function• The meaning of the term

‘vision’ and its need to becompelling

• How vision can be createdand the actions required togain buy-in

• How vision should becommunicated andreinforced

• The meaning of the term‘culture’ in the context ofthe purchasing function

• Role of the leader inpromoting cultural change

• An appropriate range ofvalues and organisationalbehaviours for thepurchasing function andthe benefits of havingexplicit value statements

• The importance ofcorporate socialresponsibility (CSR) andethics in buildingsustainable values withinthe purchasing function.

4.2 Critically evaluatedifferent models of changemanagement in thepurchasing function andthe wider organisation asa whole• Factors driving change and

their impact• The relative merits of

evolutionary versusrevolutionary change(Balogun & Hope Hailey)and the respectiveimplementation strategiesthese require in thepurchasing context

• Lewin’s models for plannedchange and behaviouralmodification

• The merits of employingexternal resources to leadorganisational change.

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4.3 Critically evaluate stylesfor leading and managingstrategic change withinthe purchasing function• Crainer’s seven skills

required for managingchange

• The importance ofstakeholder involvement

• Principal methods ofconsultation andengagement ofpurchasing’s stakeholders,and the role ofcommunication as avehicle to assist thechange process

• Methods of resolvingconflict with stakeholders.

4.4 Assess how to delegateresponsibility effectivelyfor the implementation ofchange within apurchasing function• What is meant by

delegation• The requisite leadership

behaviours that enableeffective delegation withinpurchasing

• Link to Hersey’s model ofsituational leadership

• Process of delegation,monitoring and feedback

• Developing appropriaterewards and recognitionassociated with thesuccessful delivery ofdelegated activities

• How a leader might takecorrective action and re-direct activities that havepreviously been delegated.

4.5 Evaluate the forces andbarriers to change anddetermine what needs tobe done to develop andassist change• Why many change

programmes fail (Kotter)• How individuals personally

respond to change (Kubler-Ross)

• Forcefield analysis (Lewin)• The principal barriers to

effective change and themitigating actions requiredto overcome resistance(Kotter and Schlesinger).

4.6 Evaluate how to negotiateeffectively in difficultleadership andmanagement situations • The term industrial

relations and the contextsin which such relations areappropriate

• When and how thepurchasing function maybecome involved in IRsituations

• How to approach an IRnegotiation and the keydifferences from acommercial negotiation.

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COMPULSORY UNIT

UNIT CHARACTERISTICSThe supply chain manager isresponsible for specific activitiesand processes which cancontribute to achieving corporatestrategic goals.

This unit is designed to providestudents with an understanding ofstrategic aspects of supply chainmanagement.

Students will analyse the supplychain to identify where value isadded within it, identifying whereand how strategic competitiveadvantage can be achieved.

Students will be able to propose arange of innovative proposalswhich will allow supply chainstakeholders to effectively interactand contribute towards developingand exploiting opportunities togrow and expand the business,through new product and servicedevelopment, innovation ,diversification and differentiationstrategies.

STATEMENTS OF PRACTICE On completion of this unit, studentswill be able to:• Analyse the concept of strategy

and the process of developingcorporate strategy

• Identify how strategy isconverted into action througheffective alignment andimplementation

• Explain the contribution ofstrategic supply chainmanagement to corporatestrategy

• Understand the nature of supplychains

• Assess the role of strategicsupply chain management inachieving competitiveadvantage

• Distinguish and assess variousmodels of supply chainstructures and relationships.

Graduate diploma in purchasing and supplyStrategic supply chain management

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1.0 THE CONCEPT OFSTRATEGY AND THEPROCESS OF DEVELOPINGCORPORATE STRATEGY(Weighting 25%)

1.1 Evaluate the concepts ofstrategy, strategicplanning, deliberate andemergent strategies andstrategic management• Definitions of strategy

(Grant, Ohmae, Johnsonand Scholes, Mintzberg)

• Strategic planning models(Ansoff, Bryson, Mintzberg)

• Rational and incrementalapproaches to formulatingstrategy

• Deliberate and emergentstrategies (Quinn,Mintzberg)

• Levels and components ofstrategic management.

1.2 Assess and evaluatemodels of the strategyprocess • Models of the strategy

process• The position, choice, action

(PCA) model of strategicmanagement (Johnson andScholes)

• Rational planning modelsand strategic management

• The logical incrementalmodel (Quinn) andstrategic management

• Strategic management anddeliberate and emergentstrategies

• Strategic management insmall businesses,multinational corporations,manufacturing, services,and the public sector.

1.3 Conduct a strategicanalysis of the supplychain• Techniques for analysing

the external environment:PESTLE analysis, Porter’s 5forces analysis.

• Techniques for analysingthe internal environment:SWOT analysis, resourceaudit, skills audit,knowledge audit, portfolioanalysis

• Stakeholder mapping(internal and external).

1.4 Assess the importance oforganisational structures,cultures, and power to thedevelopment andimplementation ofcorporate strategy• Characteristics of

organisational structures:simple, functional, matrix,network, machine andprofessional bureaucracy

• Centralisation anddecentralisation

• Nature of power in theorganisations: overt, covertand structural

• Sources and indicators ofpower in organisations

• Organisational culture andthe cultural web

• The role and influence ofstakeholders

• The importance of ethicsand corporate socialresponsibility.

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1.5 Critically evaluateinnovative strategies fororganisational growth andexpansion• Generic strategies: price,

differentiation and focus• Directional strategies:

consolidate or withdrawfrom a market, penetratefurther into a market,product or marketdevelopment,diversification.

• Methods of developingstrategies: internaldevelopment, mergers andacquisitions, joint ventures,strategic alliances.

1.6 Analyse the means ofmanaging and controllingresources to supportcorporate strategy• The resource-based

approach to corporatestrategy

• Resources to support keycorporate strategies:financial, human,intellectual, physical,informational

• Resource planning(forecasting, developing,and allocating resources)

• Methods of controllingresources: planningsystems, supervision,performance targets, socialand cultural control, marketmechanisms, self-control

• Management informationas a key resource.

1.7 Review and evaluate thecorporate strategy process• Corporate strategy review

and evaluation• Methods of testing the

suitability of corporatestrategies

• Methods of testingacceptability of corporatestrategies

• Methods of testingfeasibility of corporatestrategies

• Ways of improvingcorporate strategies

• Selection of appropriatecorporate strategies.

18


2.0 CONVERTING STRATEGYINTO ACTION THROUGHEFFECTIVE ALIGNMENTAND IMPLEMENTATION(Weighting 15%)

2.1 Analyse the methods ofachieving commitment tocorporate strategy acrossall functions and levels ofthe organisation• Purpose and value of

corporate visions andmission statements

• Integration of functionaland corporate plans

• Internal and externalcommunications policy andprocesses

• Rewards and sanctionsreinforcing commitment tocorporate goals.

2.2 Assess the need foralignment betweenstrategy and structure • The 7S framework:

strategy, structure, super-ordinate goals, staff, style,skills and systems

• Alignment of strategy andstructure

• Alignment of strategy withsuper-ordinate goals, staff,style, skills and systems.

2.3 Diagnose resistance tochange and strategic drift,and identify how toaddress them throughchange managementprocesses• Types of strategic change:

incremental andtransformational, managedand imposed

• Symptoms of strategic drift• Forces blocking and

facilitating change• Change management

styles through education,collaboration, intervention,direction, coercion

• Role of symbolic andpolitical processes inmanaging change

• Strategic change roles:change agent, middlemanager, otherorganisational member,stakeholder or outsider.

3.0 THE CONTRIBUTION OFSTRATEGIC SUPPLYCHAIN MANAGEMENT TOCORPORATE STRATEGY(Weighting 15%)

3.1 Analyse the relationshipsbetween functional,business and corporatestrategies, and theintegration of supply chainstrategies with corporateand business strategies• Relationships between

functional, business andcorporate strategies

• Integration of supply chainstrategies with corporateand business strategies

• Formal and informalprocesses through whichsupply chain strategiesmay be integrated withcorporate strategy:involvement in planningprocesses, role of mainboard, supportive chiefexecutive.

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3.2 Assess the contribution ofstrategic supply chainmanagement to corporatestrategy • Contribution of strategic

supply chain managementto corporate strategy: costreduction, quality,innovation, delivery

• Contribution of strategicmake, do or buy decisionsto corporate strategy

• Core competence analysis:core, complementary andresidual competences

• Relational competenceanalysis (Cox).

3.3 Analyse and alignorganisational structuresand processes, withsupply chain strategies• Alignment of

organisational structuresand processes withstrategic supply chainstrategies

• Centralised, decentralisedand mixed structures

• Future trends in purchasingorganisation and processes(Carter and Narasimhan,VanWeele and Rozemeijer)

• Use of cross-functionalteams to support supplychain strategies

• Use of inter-organisationalnetworks to achieve supplychain strategies.

3.4 Propose innovative supplychain strategies to meetcorporate and businesstargets• Benefits and difficulties in

developing better supplierrelationships

• Methods of cost reductionand cost improvement

• Strategies for qualityimprovement

• Strategies for repositioningthe organisation on thesupply or value chain.

4.0 THE NATURE OF SUPPLYCHAINS(Weighting 15%)

4.1 Assess the validity of thesupply chain concept bothin terms of the nature ofsupply and the chainmetaphor• Concepts of supply and

supply chain• Assumptions about the

nature of supply (Lammingand Cox 1997)

• Supply chain metaphors:chain, pipeline, network,channel

• Critiques of the supplychain concept (New andRamsay 1997)

• Types of supply networksand supply chain models:internal supply chains,dyadic supplyrelationships, inter-business chains, inter-business networks(Harland 1996)

• Arguments and evidencefor and against theapplication of supply chainmanagement.

20


4.2 Analyse internal andexternal supply chainsand the flows acrossorganisational boundariesupstream and downstream• Internal and external

supply chains• Interface and integrated

models (Syson 1992)• Roles of internal and

external customers withinsupply chains

• Flows acrossorganisational boundariesupstream and downstream

• Problems with forecastingdemand accurately withinsupply chains.

4.3 Compare and contrast thenature of supply chains indifferent sectors • Nature of supply chains in

the manufacturing, retailand financial sectors

• Nature of supply chains indifferent public sectororganisations: health andsocial care, defence,transportation.

4.4 Diagnose drivers ofchange in global supplychains and proposestrategies to address them• Nature and impact of

globalisation• Drivers of change in global

supply markets:competition, costreduction, technologicaladvances, speed of newproduct

• Development, changingcustomer demand,environmental factors,collaborations and jointventures, outsourcing

• Impact of drivers of changein global supply markets

• Strategies to addressdrivers of change in globalsupply chains.

5.0 THE ROLE OF STRATEGICSUPPLY CHAINMANAGEMENT INACHIEVING COMPETITIVEADVANTAGE(Weighting 15%)

5.1 Assess the validity ofglobal sourcing as ameans of achievingcompetitive advantage• The global supply market

as a source of competitiveadvantage

• Arguments for and againstlocal, regional, nationaland global sourcing

• Regulation of the globalsupply market by WTO, EU,NAFTA, ASEAN

• Obstacles to trade imposedby national or regionalanti-competitive policies

• Cultural barriers to trade inglobal supply markets.

5.2 Evaluate the concept oflean supply as a means ofachieving competitiveadvantage • The concept of lean• The seven types of waste• Critique of the lean

approach (New andRamsay 1997)

• Alternatives to lean(agility) and hybridapproaches (leagility).

21


5.3 Critically evaluate theconcepts of value, addedvalue and value chain• Concepts of value and

added value• The value chain concept• Porter’s (1985) value chain

model• Critiques of Porter’s model

(Hines 1993)• Strategies for adding

value: repositioning on thevalue chain, valueconstellations.

5.4 Analyse the sources,nature and role of powerin supply chains• Sources of power in supply

chains• Nature and role of power

in supply chains• Ways in which power may

be exercised in supplychains: overt, covert andstructural

• Power relationshipsbetween large customersand small suppliers insupply chains.

5.5 Evaluate the use of supplychains to deliver ethicaland socio-economicoutcomes alongsidecommercial goals• Ethical considerations in

supply chains• Types of socio-economic

goals pursued throughsupply chains:environment, employment,equality, small and mediumenterprises, promptpayment

• Arguments for and againstthe use of supply chains topursue non-commercialgoals.

6.0 MODELS OF SUPPLYCHAIN STRUCTURES ANDRELATIONSHIPS.(Weighting 15%)

6.1 Assess the validity of thedevelopment of a "bestpractice" strategic supplychain model• Arguments for and against

the existence of a "bestpractice" strategic supplychain model

• Contingent approach tostrategic supply chainmanagement (Cox andLamming 1997)

• Network sourcing as a"best practice" strategicsupply chain model (Richand Hines 1997).

22


6.2 Compare thecharacteristics ofadversarial and co-operative strategiesand analyse theirappropriateness indifferent circumstances• Characteristics of

adversarial and co-operative strategies

• Partnership• Appropriateness of

adversarial and co-operative strategies indifferent circumstances.

6.3 Understand and applycompetence-basedapproaches fordetermining supply chainstructures andrelationships• Hamel and Prahalad’s core

competence model• Core, complementary and

residual competences• The resource based view,

especially in relation toreplicable and non-replicable competences.

6.4 Assess the lean supplymodel as a prescription forsupply relationships• Partnership and lean

supply• Trust in buyer-supplier

relationships• Appropriateness of lean

supply and partnership fordifferent organisations.

23


Please note that Supply chainmanagement in practice has two separatebriefs, one for the case study option andone for the work-based project.

COMPULSORY ANDINTEGRATIVE UNITWORK-BASED PROJECT

Currently only students who areregistered with a UK StudyCentre approved by CIPS, will beable to choose this method ofassessment.

UNIT CHARACTERISTICSThis unit is designed to enablestudents to gain a deeperunderstanding of supply chaintheory and practice by examininghow particular theories relate toreal-world situations or howparticular theories offer advantagesover others. As the unit is project-based and requires the submissionof a report, the student will alsodevelop investigative, analyticaland communication skills, includingthe use of primary and secondaryresearch where appropriate.

Where students are likely toundertake a work-basedproject This can take two alternativeforms: either (i) it will seek to testthe explanatory power of anexisting body of theoreticalknowledge against a case example;or (ii) it will seek to test theexplanatory power of an existingbody of theoretical knowledge tomake predictions about the likelyoutcome of an impending test case.

If it is not possible to undertake awork-based project, then studentscan opt for a desk-based version.Again, there are two alternativeformats: either (i) it will critique anexisting theory in order to developa better explanation of a set ofphenomena; or (ii) it will critique aset of competing theories in orderto say which has the greaterexplanatory power.

It is important to remember that theproject is driven by theory. Studentsmust identify a theory or set oftheories by referring to the learningoutcomes of the other two Level 6units: Leading and influencing inpurchasing and Strategic supplychain management.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Synthesise conceptual and case

study data into a coherentstructure

• Diagnose supply chain problemswithin a case study situation

• Research and investigate issuesarising within supply chainmanagement, using analyticaland communications skills

• Critically evaluate the validityand applicability of a range ofpossible solutions

• Predict the consequences ofeach alternative course of action

• Judge the appropriateness ofsupply chain principles to aparticular supply chain context

• Solve problems with referenceto supply chain principles

• Propose solutions that willenable the case studyorganisation to operate moreeffectively

• Justify the solutions in terms oftheir feasibility andappropriateness

• Develop a suitable plan forimplementing the proposedcourse of action.

Graduate diploma in purchasing and supplySupply chain management in practice

24


Work-based project:• Diagnose supply chain problems

within the test case organisation• Propose solutions to

organisational problems withreference to supply chaintheories through the use ofresearch activities

• Propose solutions that willenable the organisation tooperate more effectively.

Desk-based project:• Judge the appropriateness of

supply chain theories toparticular organisationalcontexts

• Use a range of researchinformation/data gathered andpredict how supply chaintheories can explain certainphenomena

• Critique supply chain theories inrelation to each other.

The project reportThe project report has a maximumof 6,000 words and should bepresented to a professionalstandard and format.

The content of the project reportshould include:a) Introduction, including the

background, rationale andobjectives (600 words)Weighting 10%

b) Review of the theory and thedevelopment of a set ofpredictions, supported withprimary and secondary research(1,300 words)Weighting 25%

c) Case analysis, includingapplication and synthesis (3,000words)Weighting 50%

d) Conclusions andrecommendations (600 words)Weighting 10%

e) Reflective learning statement(500 words)Weighting 5%

It is important that the project report:• Contains a logical structure

divided into sections• Consists of proper paragraphs• Is supported by an approved

system of references• Contains evidence of primary and

secondary research whereappropriate

• Contains a full bibliography ofliterature and research sources

• Has a high standard of English• Is properly proof-read.

Learner approachA study centre-based support tutorwill be appointed who will be able tooffer general help and advice, andgeneric report writing andreferencing classes or materialsshould also be offered by thecollege. It is not envisaged thatclasses or workshops on specificsupply chain subjects are offered.This is because students will beselecting subject areas that arecovered in the other two Level 6units, Leading and influencing inpurchasing and Strategic supplychain management. Students aretherefore strongly advised tocomplete these other two unitsbefore attempting the project.

25


Please note that Supply chainmanagement in practice has two separatebriefs, one for the case study option andone for the work-based project.

COMPULSORY ANDINTEGRATIVE UNITCASE STUDY OPTION

UNIT CHARACTERISTICSThis unit is designed to givecandidates an examination-basedalternative to the work-basedproject unit. The case studyapproach facilitates hands-onexperience of complex supply chainissues by replicating real-lifesituations in a controlledenvironment. It will enablecandidates to gain a widerunderstanding of supply chainissues by examining how a rangeof concepts and principles can beapplied to real-world problems andsituations in order to improve bestpractice.

The unit consists of a substantivecase study which corresponds asclosely as possible to one whichmight be met in real life. It isdesigned to test the ability of thecandidate to analyse supply chainsituations and to write clearly andeffectively on them. The case studyis circulated prior to theexamination, which enablescandidates to analyse the casestudy situation, conductsupplementary investigations andprepare appropriate solutions inadvance. Assessment is by meansof a three-hour, open-bookexamination with unseenquestions.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill have achieved the followinglearning outcomes.• Synthesise conceptual and case

study data into a coherentstructure

• Diagnose supply chain problemswithin a case study situation

• Evaluate the validity andapplicability of a range ofpossible solutions

• Predict the consequences ofeach alternative course of action

• Judge the appropriateness ofsupply chain principles to aparticular supply chain context

• Solve problems with referenceto supply chain principles

• Propose solutions that willenable the case studyorganisation to operate moreeffectively

• Justify the solutions in terms oftheir feasibility andappropriateness

• Develop a suitable plan forimplementing the proposedcourse of action.

26


DELIVERY OF THE UNITThe role of the college provider islikely to be as a facilitator. Classesshould focus on case analysistechniques and practice basedaround past papers, as well asgeneral help and advice. It is notenvisaged that classes orworkshops on specific supply chainsubjects are offered for this unit.This is because examinationquestions are based on the contentof the other two Level 6 units:Leading and influencing inpurchasing and Strategic supplychain management.

Suggested case study analysistechniqueStep one: Determine the problemThe case should be read severaltimes, starting with a quick reviewof the overall situation andculminating in a detailedidentification of the problemsinvolved and a thoroughunderstanding of the organisationalcontext. The important aspect ofthis step is to determine whether aparticular occurrence is a problemor whether it is a symptom of thereal problem. Determination ofproblems invariably requiresdelving beneath the surface of thecase to uncover factors that arerelevant but not obvious in a casualreview.

Step two: Determinealternative courses of actionDuring this step there is a greatdeal of brainstorming in an attemptto account for as many alternativesas possible. Obviously not allalternatives will be equally viablebut it is important not to arbitrarilydiscard any at this stage.

Step three: Evaluate alternativecourses of actionAfter identifying alternativecourses of action, it is necessary toevaluate the strengths andweaknesses of each alternative.Some will obviously have moremerits than others but the mainpoint is to determine thealternative that addresses the caseproblem with respect to both theshort term and the long term. It iscritical that the consequences ofeach alternative are consideredbecause what may appear to be anobvious course of action now, maylead to dysfunctional effects in thefuture.

Step four: Select and justifyalternativesAfter weighing the pros and cons ofeach alternative, it is then necessaryto select the alternative that hasemerged as the most attractivecourse of action for dealing with theparticular problems at hand. It isimportant that factual ammunition isobtained that will enable a clearjustification for the choice that ismade.

Step five: Implement selectedalternativeThe case analysis process is notconcluded until a suitable plan hasbeen developed for implementing theselected course of action. Improperimplementation will negate the timeand effort spent up to this point.

Case study examinationThe case study assessment is via athree-hour open-book examination.The examination questions will drawon material from the other two Level6 units: Leading and influencing inpurchasing, and Strategic supplychain management. Students aretherefore strongly advised tocomplete all other units beforeattempting the case study. Theexamination is testing the ability ofthe candidate to apply relevantprinciples to address particularcircumstances and solve specificproblems.

27


OPTIONAL UNIT

UNIT CHARACTERISTICSThis unit seeks to familiarisestudents with the law thatregulates the purchasing function.

The purchasing and supplymanager needs to understandwhere legal issues may impact onthe organisation and when to takeaction to avoid risk. They shouldalso be able to recognise situationswhen the appropriate action wouldbe to seek legal expertise.

The content provides an essentialoverview of different legal issueswith particular emphasis oncontractual issues and sale ofgoods legislation. Other areascovered include the legal aspectsof outsourcing, competition law,intellectual property law, electronictrading and international trade. It isdesigned to assist professionalswho work in either the public orprivate sector.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Analyse the process of contract

formation and assess thevalidity of a range of contractclauses

• Assess the legal rules governingthe sale of goods and services,third party rights and agencyarrangements

• Diagnose the impact of specificUK and EU regulations on thepurchasing and supply function

• Analyse the statutory provisionsapplicable to a range ofintellectual property rights (IPRs).

Graduate diploma in purchasing and supplyLegal aspects in purchasing and supply

28



1.0 CONTRACT LAW (Weighting 35%)

1.1 Analyse the legal problemsthat may arise from theprocess of contractformation and the problemsof reconciling the buyer’sterms and conditions withthose of the seller whenfaced with the battle of theforms• Offer and acceptance• Consideration• Battle of the forms• Letters of intent • Letters of comfort• Electronic contracting.

1.2 Distinguish betweendifferent types ofcontractual terms andassess the legal validity ofspecific types ofcontractual clauses• Expressed and implied terms• Conditions, warranties and

innominate terms• Exclusion and limitation

clauses• Indemnity clauses• Force majeure clauses• Penalty and liquidated

damages clauses• Retention of title clauses.

1.3 Determine the factors thatmay vitiate consent to acontract• Duress misrepresentation• Mistake• Undue influence.

1.4 Evaluate the differentcommon law methods bywhich a contract isterminated and theremedies available shoulda contract be breached • Performance• Frustration• Agreement including

variation of a contract• Breach• Assessment of

unliquidated damages• Equitable remedies.

1.5 Evaluate the alternativemethods of resolvingcommercial disputes• Litigation• Arbitration• Mediation• Conciliation• Adjudication• Expert determination• International arbitration.

2.0 SALE AND SUPPLY OFGOODS AND SERVICES,INCLUDING THIRD PARTYRIGHTS AND OBLIGATIONS (Weighting 30%)

2.1 Define different types ofcontract and analyse thestatutes applicable toeach type• Contracts for goods and

services • Contracts for the sale of

goods• Contracts for work and

materials• Contracts for services • Contracts of hire • Sale of Goods Act 1979 (as

amended)• Supply of Goods and

Services Act 1982.

29


2.2 Differentiate betweenownership, risk, deliveryand acceptance of goodsand analyse when eachpasses from the seller tothe buyer• S16 - S20 Sale of Goods

Act 1979 (ownership andrisk)

• S30 - Sale of Goods Act1979 (Delivery)

• S31 - Sale of Goods Act1979 (Instalmentdeliveries)

• Common law rules relatingto instalment deliveries

• S34 - S35 Sale of GoodsAct 1979 (Acceptance).

2.3 Analyse the rules relatingto the passing of title by anon-owner underlegislation and theexceptions to these rules• The Nemo dat rule• Romalpa clauses• Estoppel• Sale by a mercantile agent• Sale under a voidable title• Sale by a seller in

possession• Sale by a buyer in

possession• Sale of a motor vehicle on

hire purchase• Sale under a court order.

2.4 Evaluate the variousmethods for circumventingthe problems created byprivity of contract• Collateral contracts and

warranties• Negligence• Indemnity clauses• Agency arrangements • Consumer Protection Act

1987 part one • Contract (Rights of Third

Parties) Act 1999• Assignment and novation

of rights and obligations toa third party.

2.5 Identify and analyse thelegal principles that applyto agency and bailment• Creation of agency• Rights and duties of agents

and principals• Relationship of principal

/agent with third parties• Responsibilities that arise

from a bailmentrelationship.

3.0 SPECIFIC UK AND EUREGULATIONS AFFECTINGTHE PURCHASINGFUNCTION (Weighting 25%)

3.1 Determine the collaterallegal obligations that arisefrom a tendering process(including e-tendering) • Tendering processes• Legal status of the

tender bid• Open and closed tenders• Duty to consider all

compliant tenders• Equal and timely access to

information• Fair treatment and good

faith• Post award negotiations• Avoidance of the battle of

the forms.

30


3.2 Analyse the mainprovisions of the PublicContract Regulations 2006and explain how it affectsthe purchasing function• Thresholds, time limits,

advertising• Evaluation criteria• Right to feedback• Framework agreements• Open, restricted, negotiated

and competitive dialogueprocedure

• E-procurement mechanisms• Central purchasing bodies• Social and environmental

considerations• Standstill procedure• Common vocabulary.

3.3 Analyse the mainprovisions of the Freedomof Information Act 2000 andexplain how it affects thepurchasing function• Publication scheme• Right to request

information• Absolute exemptions• Qualified exemptions• Partial disclosure.

3.4 Assess whetheroutsourcing a service oroperation is compliantwith legal requirements• TUPE • Consultation• Redundancy law• Alternatives to redundancy.

3.5 Analyse and explain thecircumstances when anti-competitive behaviour andabuse of a dominantmarket position can be abreach of legalrequirements in the UK and EU• Competition Act 1998• Article 81 EC Treaty• Article 82 EC Treaty• Enterprise Act 2002.

4.0 INTELLECTUAL PROPERTYRIGHTS(Weighting 10%)

4.1 Analyse the statutoryprovisions applicable to arange of intellectualproperty rights (IPR)• Patents• Trade marks• Design rights• Copyright• IPR protection through

contractual clauses.

4.2 Examine the common lawrules relating toconfidentiality and theprotection of trade secretsin English law and analysetheir importance inpurchasing and supply• Tort of passing-off• Solus agreements• Breach of confidence• Restraint of trade clauses.

31


OPTIONAL UNIT

UNIT CHARACTERISTICSProjects can range fromconstruction to refurbishment ofpremises, introduction of newinformation technology systems tooutsourcing/offshoring of workpreviously tackled in-house, and re-design or re-engineering ofproducts, services and processes.At the same time projects shouldalign and contribute to the overallstrategic objectives of theorganisation.

This unit will help students todevelop a knowledge of theprinciples, practices and techniquesvital to the successful leadershipand commercial management ofprojects, with a particular emphasison the role of the purchasing andsupply chain professional.

Purchasing and supply chainspecialists in both the private andpublic sectors should have a pivotalrole in the initiation, planning andcontrol of projects, and in thedevelopment and on-goingmanagement of resulting contracts.

Project management is concernedwith achieving objectives relatingto quality, cost and time.Purchasing specialists often have akey role to play in the managementof projects: this may includedeveloping the procurementstrategy for the project, and theoperational activities of planningand monitoring supplierperformance.

Students also need to understandthe architecture and culture ofproject-orientated organisations.The focus is subsequently directedtowards roles such as projectmanager, project planner andprocurement specialists from theproject management point of view.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Identify and evaluate

organisational and strategicmanagement issues concernedwith project management

• Assess and justify the approachto managing projects using avariety of methodologies, toolsand techniques

• Apply a range of practicalproject management tools andtechniques to the overallmanagement of a project frominitiation to completion

• Evaluate key success factors insuccessful project management.

Graduate diploma in purchasing and supplyAdvanced project management

32



1.0 ORGANISATIONALAND STRATEGICMANAGEMENT ISSUESCONCERNED WITHPROJECT MANAGEMENT(Weighting 20%)

1.1 Explore various definitionsof a ‘project’ and evaluatethe implications of the‘iron triangle’ (QCT)concept• Project Management

definitions - PMBOK, Burke(1999), Meredith andMantel (2003), Maylor(2003)

• The balance betweenquality, cost, time on aproject

• Impact on projectobjectives, Slack et al(2004).

1.2 Critically assess how thestructure of anorganisation can impacton the performance ofproject management• Functional structures• Pure-project structures• Mixed structures• Matrix structures.

1.3 Assess the different sortsof activities which can beimplemented as projects,and distinguish between‘hard and soft’ projects• New product/process

development• Re-design of products and

processes• Infrastructure development• Technology project

development• People-based approaches

to culture, structure,training and development.

1.4 Analyse the externalbusiness environmentwithin which a project isundertaken• Political, environmental,

social, technological, legaland environmental(PESTLE) factors

• Resource constraints• Time constraints• Strategic fit with business

strategy and environment.

1.5 Explore and evaluate thedifferent contractingoptions and policies opento a project manager• Project management

strategy• Relationships with main

contractors• ‘Make or buy’ decisions• Project staffing strategies

– in-house/contract staff.

33


2.0 ASSESS AND JUSTIFYAPPROACHES TOMANAGING PROJECTS (Weighting 20%)

2.1 Critically evaluatePRINCE2 and justify atailored approach suitablefor projects in differentorganisational contexts• PRINCE2, Projects in

controlled environments.

2.2 Analyse alternativeapproaches to managingprojects and justify anapproach suitable forpurchasing and logisticsprojects in differentindustry sectors• PMBOK, Project managers

body of knowledge• Critical Chain methodology,

Goldratt (1997).

2.3 Evaluate, select and applya variety of problemsolving approaches to aproject scenario• Thought showers/

meta-planning• Ishikawa Fishbone analysis• Cause-effect-cause• Decision tree.

2.4 Assess and criticallyevaluate the benefits ofvarious electronic andcomputer-based toolsavailable to a projectmanager• Project management

software• Communications tools

(synchronous/asynchronous)

• Web based systems.

2.5 Critically evaluate andapply the principles ofknowledge management,knowledge communities,and organisationallearning to projects• Knowledge management

and links to projectmanagement goodpractice, especially inpurchasing and logistics

• ‘The learning organisation’,Senge (1990)

• Knowledge communitiesand knowledge creation,Nonaka I and Tageuchi H(1995).

3.0 THE APPLICATION OFPRACTICAL PROJECTMANAGEMENT TOOLSAND TECHNIQUES TO THEMANAGEMENT OF APROJECT FROMINITIATION TOCOMPLETION (Weighting 40%)

3.1 Analyse the project lifecycle (PLC) model, and itscontribution to projectmanagement• 3-stage PLC, Meredith and

Mantel (2003)• 4-stage PLC, Maylor (2003)• 5-stage PLC, Weiss and

Wysocki (1992).

34


3.2 Develop a project plan,working through thevarious phases of aproject, and the activitiesto be considered in eachphase

3.2.1 Initiation and definition • Stating the problem• Identifying project goals

and objectives• Defining the scope of work • Determining preliminary

resources• Identifying assumptions

and risks• Developing project

initiation document (PID).

3.2.2 Planning• Identifying activities (work

breakdown structure)• Estimating time and cost• Sequencing activities in

network diagram• Applying critical path

analysis• Developing Gantt charts

and baselines.

3.2.3 Organisation andimplementation• Determining personnel

needs• Recruiting project manager• Recruiting project team• Creating the organisation

breakdown (management)structure

• Assigning work packages.

3.2.4 Measurement, monitoring,control and improvement• Establishing project

tracking and controlmechanisms

• Reviewing project progressand costs expendititure

• Implementing remedialactions (crashing) wherenecessary

• Issuing change orders.

3.2.5 Project closure• Obtaining client

acceptance• Installing deliverables• Conducting project

audit/lessons learned• Communicating the review,

evaluation and learning.

3.3 Select and use projectmanagement concepts,models, tools andtechniques, which arerelevant to purchasing andsupply chain projects indifferent organisationalcontexts• Assessing the

characteristics ofpurchasing and logisticsprojects

• Applying concepts topurchasing and logisticsprojects

• Applying models topurchasing and logisticsprojects

• Applying tools andtechniques to purchasingand logistics projects.

• Applying project softwareto purchasing and logisticsprojects.

35


4.0 KEY SUCCESS FACTORSIN SUCCESSFUL PROJECTMANAGEMENT (Weighting 20%)

4.1 Analyse the importance ofthe human aspects ofproject management,including leadership,management, teamworkand communication• The role and skills of the

project manager. Maylor,Meredith and Mantel, Lock

• Leading and managingprojects. Managing in FourDirections, Buchanan andBoddy (1992)

• Effective teamworktheories applied toprojects, Belbin (1981),Tuckman (1965).

4.2 Critically evaluate theconcept of power andinfluence relating to aproject• Project stakeholder

assessment andmanagement

• Stakeholder mapping,Mendelow (1991)

• Changing stakeholderpositioning over the life ofa purchasing and logisticsproject.

4.3 Analyse and evaluate thekey distinctions betweenleadership andmanagement relating toprojects• Bennis and Nanus (1985)

efficiency and effectiveness• Kotter (1990) leadership

versus management• Mintzberg (1977) ten roles

of leadership.

4.4 Evaluate and explain howto apply risk managementtechniques in projectmanagement• Greer (1999) Ten ways that

projects fail• A structured approach to

project risk management(identification, analysis –impact/probabilityassessment – andresponse)

• Risk logs and riskmanagement as acontinual process.

36


OPTIONAL UNIT

UNIT CHARACTERISTICSPurchasing managers areresponsible for specific activitiesand processes which cancontribute to achieving corporatestrategic goals.

This unit is designed to providestudents with an understanding ofstrategic aspects of finance inrelation to the decision-makingprocess and detailed analysisnecessary to deliver effectiveprocurement.

Students will understand how tonavigate around the world offinance in an effective and efficientmanner so they can identify thewhere, when, how, and what aprofessional purchaser needs, inorder to use and interpret the keyfinancial models and tools requiredto deliver robust and sustainableprocurement solutions.

Students will be expected topropose a range of tried and testedmodels, as well as innovative toolsand techniques, which will allowkey business stakeholders tointeract and contribute towardsdeveloping and exploitingopportunities to grow and expand abusiness, through new supplyarrangements, channels to market,diversification, outsourcing anddifferentiation strategies.

It will help students to develop anunderstanding of the terminologyand different sectors within thefinancial and accounting professionwhich allows an engagement andexchange that will guide andbenefit the decision-makingprocess in an efficient manner.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Evaluate the appropriate cost

and benefit models for a widevariety of scenarios

• Evaluate and assess reports thathave their origins in finance andaccounting and relate them backto the business

• Compare the value andrelevance of financialinformation in the context of thedecision-making process forevaluation and selection ofsupplier and service providers

• Use the wide variety of financeand accounting terminology

• Propose financial managementtools and techniques and beable to apply these in relation tothe total procurement andsupply chain process

• Evaluate the elements thatmake up a complex businesscase for a capital acquisition,including downstreammaintenance, service provisionsfor the life of the acquisition,and disposal

• Assess the non-financial factorsthat are interrelated withfinancial modelling and analysis,and predict their impact.

Graduate diploma in purchasing and supplyFinance for purchasers

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1.0 FINANCIALMANAGEMENT TOOLS(Weighting 10%)

1.1 Evaluate the differencebetween managementaccounting and financialaccounting• Management accounts• Company secretaries• Financial accountants• Cost accountants.

1.2 Assess the importance ofcorporate governance,regulation and corporatesocial responsibility (CSR)and sustainability inrelation to economicperformance and valuecreation• Examples of CSR and

sustainability in practice• Importance of CSR and

sustainability to customersatisfaction

• Contemporarydevelopments in the areaof CSR and sustainability

• Regulatory mechanisms –EU Directives forProcurement.

1.3 Understand and use theterminology associatedwith finance andaccounting • Accounting standards and

their role• International issues in

accounting standards• Effects of the convergence

of accounting standardsand practices.

1.4 Identify which goods andservices can becategorised as capital andwhich will be expenseitems• Capital items – plant and

equipment, buildingvehicles, high value officeequipment, construction

• Expense items – cleaningmaterials, stationery, officesupplies, consumables,cleaning services, servicescontracts.

2.0 FINANCIAL AND NON-FINANCIAL FACTORS INDECISION-MAKING(Weighting 20%)

2.1 Analyse key financialstatements to informdecisions• Profit and loss accounts/

income statements• Balance sheet• Cash flow statement• Five-year summary.

2.2 Use descriptive andinferential statistics• Definitions• How and when to use

them• Assess the outcomes of

analysis.

2.3 Determine alternativepricing strategies andassess their impact upontransfer pricing within anorganisation• Market price• Total cost• Transfer pricing• Variable cost• Negotiated price.

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2.4 Use contribution analysisand marginal costing toevaluate a range ofdecision-makingsituations• Cost-volume-profit and

break-even analysis• Make or buy decisions• Deciding on product range• The analysis, and most

profitable use, of limitingfactors.

3.0 SOURCES OF FINANCEAVAILABLE FORBUSINESS AND MAJORCAPITAL ACQUISITIONSAND PROJECTS(Weighting 10%)

3.1 Analyse the use of thedifferent types ofexpenditure• Capital expenditure

(CapEx)• Operational expenditure

(OpEx)• Public sector expenditure.

3.2 Evaluate and select arange of sources offinance to assessing fundsfor capital acquisitionsand projects• Retained profit • Controlling working capital • Sale of assets• Factoring• Overdrafts • Grants• Venture capital• Debentures• Share issues• Bank loans - medium or

long term• Leasing• PPP/PFI• Public borrowing for public

sector (Bank of Englandand HM Treasury).

4.0 BUDGET AND COSTMANAGEMENT CONTROLPROCEDURES(Weighting 25%)

4.1 Explain how to developand management budgetsto achieve targetperformance• The importance of setting

and controlling budgets toachieve performancetargets

• The importance of settinga realistic budget

• Financial objectives• Motivational objectives• SMART objectives• How to create and present

a budget to support abusiness plan

• The importance of financialforecasting.

4.2 Analyse resourcerequirements and theirapplication in purchasingactivities• Time• People• Money• Quality.

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4.3 Communicate findings andrecommendationseffectively • Target audience: finance

professionals and otherparts of a business

• Budget presentation• Presenting the business

case.

4.4 Develop process andplans for managing costs• Estimating• Controls• Review stages• Contingency planning• Who should be involved• Tools and techniques• Procurement spend

authorities.

4.5 Develop a plan to managethe cost base of thepurchasing function• The principles of cost

management• Planning• Co-ordination• Control• Reporting• Effective programme and

project management.

5.0 EFFECTIVE CAPITALPURCHASING PLANS (Weighting 20%)

5.1 Evaluate the nature andimportance of investmentdecision-making for homeand international markets • Accounting rate of return

(ARR)• Payback period (PP)• Discounted cash flow (DCF)• Net present value (NPV)• Internal rate of return (IRR)• Opportunity costs of capital• The impact of depreciation

on running costs.

5.2 Assess the impact ofexternal factors upon thedecision-making processand how these might befactored into themodelling and ultimatebusiness case• Inflation• Customs and Excise• Taxation• Exchange rates and

currency management• Social and political factors• CSR and sustainability• PESTLE and regulatory

factors.

5.3 Evaluate the mostappropriate decision-making tools for projectsacross a variety of sectors• Whole life costing • Target costing• Value engineering• Value for Money (VFM).

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5.4 Evaluate the roles of thefunctions of anorganisation in thereduction and control ofcosts• Design and engineering• Purchasing• Marketing• Distribution• Finance.

6.0 FINANCIAL RISK INPROCUREMENT(Weighting 15%)

6.1 Assess the different typesof risk and their impact oneach of the following:• Suppliers • Own organisation• Customers.

6.2 Carry out a financialappraisal and riskanalysis of suppliers, ownorganisation, andcustomers, using a rangeof financial performanceratios:• Profitability ratios• Efficiency ratios• Liquidity ratios• Investment ratios.

6.3 Evaluate and selectfinancial risk managementoptions.• Debt• Futures and derivatives• Insurance.

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OPTIONAL UNIT

UNIT CHARACTERISTICSThis unit provides a strategicoverview of how the public sectormanages major programmes andprojects. Students will need todemonstrate a critical appreciationof managing major programme andproject risks, the importance ofknowledge management as aculture not a process, and strategicsupplier communications, inparticular relating to Public privatepartnerships (PPP) and Privatefinance initiative (PFI) projects andthose projects with high riskratings.

There is a particular focus upon thecritical analysis of funding methodsand financial models, and theselection of programme and projectmanagement techniques, includingthe use of OGC Gateway ™ and/orother gateway processesapplicable to the public sector.

By the end of this unit, therefore,students should be able todemonstrate their ability tomanage major public sectorprogrammes effectively, taking intoaccount the complexities ofmanaging significant resources,stakeholders and activities.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Critically examine programme

and project managementstructures and processes formajor service, IT or constructionprojects

• Analyse major programme andproject risks and theirmanagement throughknowledge management andstrategic supplier relationshipsin the public sector

• Arguments and principlesunderlying the selection offunding methods and financialmodels for major projects

• Justify the selection of majorprogramme and projectmonitoring and managementstrategies.

Graduate diploma in purchasing and supplyStrategic public sector programme management

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1.0 PROGRAMME ANDPROJECT MANAGEMENTSTRUCTURES ANDPROCESSES FOR MAJORCOMPLEX PROJECTS(Weighting 25%)

1.1 Critically evaluate thedifferences betweenmajor programmes andprojects, the relationshipbetween them and thesimilarities anddifferences in theirmanagement• Understand the different

contexts for programmes inCentral and LocalGovernment, NationalHealth Service (NHS),Defence, Non-departmental public bodies(NDPBs,) and other publicsector organisations

• Management connectionsbetween project managersand programme managers.

1.2 Analyse models designedto ensure rigorous andethical programme andproject managementprocedures and principlesare in place andadhered to• Major projects are

delivered to time, cost,quality standards and withminimum disruption toservices

• The reasons for ensuringproper programme andproject managementprocedures and principles

• Programme and projectmanagement tools andmodels

• Public sector track recordof project delivery andfailures of delivery

• Political and practicalconsequences of publicsector project failures.

1.3 Critically evaluate theeffectiveness ofprogramme and projectboards, project sponsors,senior responsible owners(SRO) for various kinds ofmajor complex projects• Composition and

membership of projectboards within all thedifferent public sectororganisations

• Composition andmembership of programmeboards in different publicsector organisations

• SRO (senior responsibleowner) and their role andeffectiveness

• SRIE (senior responsibleindustry executive) andtheir role andeffectiveness.

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1.4 Develop proposals forimprovement inprogramme managementthrough the application ofgood practice principles• Thorough project plans

with realistic objectivesand timescales

• Risk management• Clear roles and

responsibilities• Senior manager

responsible for the project• Clear shared

understanding of therequirement betweenclient, potential contractorsand other parties

• Regular reviews ofprogress

• Skilled, experienced andqualified staff.

2.0 RISK MANAGEMENT ANDMITIGATION FORKNOWLEDGEMANAGEMENT ANDSTRATEGIC SUPPLIERRELATIONSHIPS IN THEPUBLIC SECTOR(Weighting 25%)

2.1 Critically evaluatetheories of risk, models ofrisk management, policyguidance and from theacademic literature,policy guidance andpractice• Risk management theories

and systems• Risk management in

practice• Appropriate risk and issues

registers.

2.2 Assess evidence frommajor public sectorprogrammes and projectson the successfulidentification, assessmentand allocation of majorproject risks• Types of risk including:

design and construction;commissioning andoperating; technology andobsolescence; regulation;project financing;contractor default

• Transfer of risks betweenpublic, voluntary andprivate sectors andbetween different parts ofthe public sector

• Managing risks throughincentivisation ofcontracts.

2.3 Critically assess existingfinancial and managementinformation against theneed for availableinformation• Spend with each

contractor• Information on specific

contracts• Spend against plan• Milestone information• Variations of cost and time• Management of disputes

and claims.

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2.4 Analyse client-contractorrelationships where therequirement cannot beclearly specified inadvance• The need for senior level

involvement by the client,contractor and otherparticipants

• Frequent and structuredinteraction between client,contract manager andcontractor project managerand other relevant levels

• The provision of financialand managementinformation appropriate toeach level of interaction ina timely manner.

3.0 PRINCIPLES UNDERLYINGTHE SELECTION OFFUNDING METHODS ANDFINANCIAL MODELS FORMAJOR PROJECTS(Weighting 25%)

3.1 Critically assess thearguments and principlesunderlying the selection ofconventional or privatelyfinanced funding for majorprojects• PPP/PFI rules and guidance• Types of projects eg IT,

building and civilengineering

• Other quasi-public fundingsources eg grants, awards,lottery funds

• Proposals for improvingguidance and proceduresfor the selection ofconventional or privatefinance, drawing upon bestpractice and evidence fromcompleted projects.

3.2 Critically evaluate themost appropriate financialmodels for major projects• Estimating whole life costs• Benefits and income

streams of completedprojects to determinecorrectness of assumptions

• The accuracy of forecastsand robustness of the dataon which they are based

• Non-quantifiable factorswhich may have impactedon the project.

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4.0 THE SELECTION OFMAJOR PROGRAMMEAND PROJECTMONITORING ANDMANAGEMENTSTRATEGIES(Weighting 25%)

4.1 Justify the rationale andcriteria for the selectionof:• PRINCE2 (projects in

controlled environment)• Management of risks• Managing strategic

programmes (MSP).

4.2 Critically evaluate theprinciples underlying theOGC Gateway ™ and othergateway type processes• Risk profile assessment

(RPA)• The significance of each

‘gate’• The roles of both internal

and external participants inthe process

• OGC’s changing role in theOGC Gateway ™ process.

4.3 Justify the selection ofspecific major programmeand project monitoringand managementtechniques• The nature, scale and

complexity of the project• Clarity of and agreement

on objectives and targetsbetween stakeholders

• The availability of skillseither in-house or bought-in

• The extent to which projectdecisions areprogrammable andquantifiable or require theregular exercise ofqualitative judgement bydecision makers

• Differences betweenprogramme and projectmonitoring in differentparts of the public sector.

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OPTIONAL UNIT

UNIT CHARACTERISTICSThe focus of this unit is on thestrategic management of key andcritical stakeholders of the publicsector. This unit looks at providingtools and techniques for developinga range of relationship strategies,including:• Communication strategies• Collaborative strategies• Conflict management strategies

The unit also examines thesignificance of changing social andpolitical agendas, such ascorporate social responsibility(CSR) and the small mediumenterprises (SME) agenda, for yourprocurement organisation andprocesses.

By the end of this unit, studentsshould be able to demonstrate theability to critically evaluate theabove strategies and agendas, aswell as to analyse governance ofthe procurement process and theeffectiveness of financialaccountability and performanceevaluation arrangements.

STATEMENTS OF PRACTICEOn completion of this unit, studentswill be able to:• Investigate relationships with

key and critical stakeholdersrelevant to public procurement

• Develop conflict managementstrategies to resolve differenceswith stakeholders

• Critically evaluate thesignificance of changing socialand political agendas for publicprocurement

• Analyse the effectiveness ofgovernance and oversightarrangements for procurement

• Critically evaluate methods andprocesses of performanceevaluation of procurement.

Graduate diploma in purchasing and supplyPublic sector stakeholders and governance

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1.0 RELATIONSHIPS WITHSTAKEHOLDERSRELEVANT TO PUBLICPROCUREMENT.(Weighting 30%)

1.1 Identify and evaluatecritical internal andexternal stakeholdersrelevant to publicprocurement• Rationale for distinguishing

between internal andexternal stakeholders

• Internal stakeholders:clients, budget holders,finance, audit

• External stakeholders:elected representatives,suppliers, trade unions,industry organisations,community groups.

1.2 Assess the role, interestsand resources of internaland external stakeholdersin relation to procurement• Stakeholder identification

model - Mendelow (1991)• Stakeholder analysis

methods and systems • Weighting the resources

and influence ofstakeholders.

1.3 Analyse approaches forinfluencing and managingstakeholders by engagingthem at an early stage inprocurement plans andspecific strategicprocurements• The benefits of

incorporating stakeholdersinto the planning processat an early stage

• Managing diversityamongst stakeholders

• Reasons for project failureswhere stakeholders werenot fully informed.

1.4 Critically evaluatecommunication andcollaborative strategiesthat may be developed toimprove relationships withinternal and externalstakeholders• Theories, models, policy

documents and practice inrelation to communicationand collaborativestrategies

• The importance ofdeveloping communicationand collaborativestrategies to improverelationships

• The concept of sharedservices in the publicsector.

1.5 Critically assess theeffectiveness of thepurchasing organisation’sinternal and externalcommunications policyand processes• How to devise and apply

tests of communicationeffectiveness

• The importance ofdemonstrating theeffectiveness of chosencommunication policiesand processes

• Methods of review ofcommunications incomparable organisations

• Learning from examples ofeffective communicationsdemonstrated in othersectors and industries.

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1.6 Critically evaluatemarketing communicationmethods to improveinternal and externalstakeholder awareness ofthe role and purpose ofprocurementorganisations• The importance of

collecting anddisseminating ‘good newsstories’ about procurementsuccess

• The impact of collectingand broadcastingconvincing data on theimportance of goodprocurement fororganisational success

• The importance of andhow to evaluate thesuccess of marketingactivities.

1.7 Analyse and explain howpartnerships withappropriate stakeholdersmay be developed• The nature and purpose of

partnerships• Appropriate stakeholders

with which to developpartnerships

• How to build partnershipswith appropriate internaland external stakeholders.

2.0 CONFLICT MANAGEMENTSTRATEGIES TO RESOLVEDIFFERENCES WITHSTAKEHOLDERS(Weighting 20%)

2.1 Critically evaluatetheories, models, policydocuments and practice inrelation to conflictmanagement strategies• Causes and types of

conflict• Methods of handling

conflict• Examples of successful

and unsuccessful conflictmanagement in variouscontexts: public and privatesectors, central, localgovernment and the NHS.

2.2 Assess the effectivenessof procedures forresolving differences withinternal and externalstakeholders• Internal procurement

procedures and methods ofdisseminating changes toprocedures in relation toresolving differences withstakeholders.

• Methods of conflictresolution in contractualand non-contractualsituations.

• Effective procedures forresolving differences withstakeholders.

• The importance of andhow to assess theeffectiveness ofprocedures for resolvingdifferences with internalstakeholders.

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2.3 Critically assess theeffectiveness ofprocedures for resolvingdifferences with externalstakeholders in thecontracting process• The effectiveness of

referring up managementinformation systems (MIS)queries and managementissues for senior levelaction

• The ‘two pyramids’ ofmanagement structureswithin client and contractororganisations and how tobridge them

• The importance of andhow to assess and applylessons from experiencesof the effect of high-levelinvolvement on successfulprojects: ministers,members of parliament,industry leaders, themedia.

3.0 THE SIGNIFICANCE OFCHANGING SOCIAL ANDPOLITICAL AGENDAS FORPUBLIC PROCUREMENT(Weighting 15%)

3.1 Critically evaluate thesignificance of CSR and‘conscience procurement’for procurementorganisation, policy andprocedures, internal andexternal stakeholders• CSR and ‘conscience

procurement’• The implications of CSR

and ‘conscienceprocurement’ forprocurement organisation,policy and procedures

• How to involve internaland external stakeholdersin developing policy andprocedures in relation toCSR and ‘conscienceprocurement’ and why thisis important

• The impact of changes inpolicy: SimmsSustainability Task ForcePolicy.

3.2 Critically assess thesignificance of the SMEagenda for procurementpolicy and procedures.• The role and significance of

SMEs in the UK andinternational markets

• Strategies for engagingSMEs in public procurementin conjunction with internaland external stakeholders

• How to identify and applymethods and procedures forengaging minority ownedSMEs in public procurement:Supply2.gov.uk

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3.3 Analyse and explain howplans can be developed totake appropriate action toaddress the issues arisingfrom the sustainabilityagenda together withinternal and externalstakeholders.• The sustainability agenda and

its implications forprocurement

• How strategies may bedeveloped for sustainableprocurement in conjunctionwith internal and externalstakeholders

• The differences betweenlocal, regional, and nationalpolicy agendas in relation tosustainability.

4.0 GOVERNANCE ANDOVERSIGHTARRANGEMENTS FORPROCUREMENT(Weighting 20%)

4.1 Critically evaluaterelevant theories, models,policy documents andpractice in relation togovernance arrangementsfor procurement • The role of internal and

external stakeholders inthe governance ofprocurement

• The roles of electedrepresentatives at national,regional and local levels inoversight arrangements forprocurement

• The effectiveness of theprovision of advice andguidance for ministers,council leaders, keydecision makers andcommittee members

• The effectiveness ofgovernance arrangementsfor procurement.

4.2 Critically evaluate theeffectiveness of financialaccountability arrangementsfor procurement• The role of finance in public

sector organisations and itsrelationships withprocurement

• The procedures in place to giveassurance to PermanentSecretaries and ChiefExecutives in their exercise ofpersonal accountability

• The effectiveness of financialaccountability arrangementsfor procurement.

4.3 Analyse the adequacy androbustness of procurementfinancial and managementinformation systems• Sources of procurement

financial and managementinformation

• The robustness ofprocurement financial andmanagement information

• The usefulness andappropriateness ofprocurement financial andmanagement informationavailable to various levels ofmanagement and stakeholders

• How to identify and proposeimprovements to procurementfinancial and managementinformation systems toimprove performance.

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5.0 METHODS ANDPROCESSES OFPERFORMANCEEVALUATION OFPROCUREMENT(Weighting 15%)

5.1 Critically evaluate therelevance of excellencemodels• Total quality management

(TQM), EuropeanFoundation for QualityManagement (EFQM) andthe ProcurementExcellence Model (PEM)models

• The importance ofstakeholder commitmentto, and involvement in, thedevelopment andapplication of performanceevaluation

• Compare and contrast PEMwith other relevant models

• The value of adaptingperformance evaluationmodels to suit differentorganisations and types ofprocurement functions.

5.2 Critically evaluate themethods and outcomes ofperformance evaluation ofprocurement againstappropriate models andremedy any weaknesses • Models of process or

outcomes• Data validation models for

procurement effectiveness• How to plan for delivering

improvements to identifiedweaknesses

• How and why tobenchmark againstorganisations with similarprocurement functions.

5.3 Develop and apply aprocess with internal andexternal stakeholders,which incorporates theirfeedback on theperformance of aprocurement organisation• How to gather and assess

stakeholder views ofprocurement performance

• How distinguish betweenmore influential /significant and lessinfluential / significantstakeholder views andreact accordingly

• How to engage withstakeholders who arecritical of procurement tounderstand their views andimprove performance.

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Email: [email protected] • Web: www.cips.org

ED22/PP/V3/06/09


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