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L4M1 - Scope of Influence of Procurement & Supply > L4M1 > Flashcards

Flashcards in L4M1 Deck (11)
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1

What are the Carter's 10 C's?

Competence
Commitment
Capacity
Compliance
Cost
Communication
Control
Cashflow
Consistency
Compatibility

2

What are the 5 R's?

Price
Place
Quality
Quantity
Time

3

What are the 4 D's for Conflict of Interest?

Distance
Delegate
Disclose
Disassociate

4

What are the Codes of Ethical Conduct?

Values
Principles
Personal Responsibility
Compliance
Reporting

5

Functions of an IT-based Inventory Management System

MANAGING DEMAND - the right quantities and time to satisfy need
FORECASTING DEMAND: Avoid over/under stock
CONTROL STOCK LEVELS
ENSURING COMPLIANCE WITH PROCUREMENT POLICIES - e.g. triggering automatic acquisitions
CAPTURING GOODS IN INFORMATION ACCURATELY - stock balance, contract management, pay systems
CONTROLLING: receipts, inspections, storage & issuing of supplies to users

Examples of this include: MRP, MRP2, Kanban, WMS

6

Describe areas where waste can be eliminated as part of a Supply Chain Management system?

TIMWOOD
Transportation
Inventory
Motion
Waiting
Over-production
Over-processing
Defects

7

What are the various functions of procurement strategy?

CLIP SWAQ

Procurement is the strategic function of an organisation that involves obtaining something - either tangible or intangible

ADDED VALUE
COST
INVENTORY
LOGISTICS
PURCHASING (plus ordering and expediting)
QUALITY
SUPPLY (plus delivery)
WASTE MANAGEMENT

8

Organisational costs may be made up of...

TIME
MATERIAL
EFFORT
OPPORTUNITY

Of which these would be:

DIRECT - directly associated with a job or contract e.g. bricks, cement, timber
INDIRECT - not directly associated with a job or contract e.g. salary of support staff, rent, broadband contracts
FIXED - these do not change with the output e.g. salaries of management team, insurance, rent
VARIABLE - these change related to the output e.g. raw materials, haulage, wages for temp staff

9

Name the 11 costs that are typical for an organisation

CAPITAL PURCHASES
INSURANCE
MARKETING
RAW MATERIALS
R&D
SALARIES/PENSIONS
SERVICES (eg cleaning, catering, IT support)
SUNDRY ITEMS (eg stationery, cleaning products, uniforms)
TRAINING
UTILITIES
VEHICLES/TRANSPORT

10

Outline FIVE steps of the PROCUREMENT CYCLE?

1. Understand need - ensure the need is as per the consumer's requirements and is clearly defined to potential suppliers

2. Pre-procurement, market testing and engagement - review demographics and trends and evaluate the life cycle stage of the need

3. Develop documentation: RFQ/ITT - give the suppliers a chance to provide an offer

4. Supplier selection – Supplier visits/Pre-Qualification Questionnaire/ Carter’s 10 C’s, the TCO approach - ensure the buyer can fulfil the need

5. Contract performance review-contract management /SLA’s/KPI’s - develop relationships, manage change, maintain strategy

11

How is the Kraljic Matrix used to help manage the supplier relationships associated with each type of procurement?

High cost, high risk = Strategic suppliers (e.g. major project supplier)
High cost, low risk = Leverage suppliers (e.g. utilities)
Low cost, high risk = Bottleneck suppliers (e.g. Monopoly in marketplace)
Low cost, low risk = Routine suppliers (e.g. stationery)