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SYLLABUS
© 2011
www.iped-uk.com
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IPED UK-Learning Resource Centre
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Subject title PROCUREMENT MANAGEMENT
Aim This unit seeks to help the learner understand contemporary issues in
procurement management including analysis of the purchasing cycle,
preparation of purchasing specification, supplier selection, an evaluation of the
formal bidding process and an examination of how purchase quantities affect
procurement management. The learner will understand the nature of strategic
procurement and supply chain management. Key issues relating to
outsourcing, inventory management, international sourcing, e-procurement
systems and performance management are also covered in this unit.
Credit value 30 credits equivalent to 300 hours of teaching and learning
30 (10 hours is equivalent to 1 credit)
Additional assessment Examinations will be set, administered, assessed and internally verified by
information IPED UK in the United Kingdom by IPED UK assessors and internal verifiers.
Methods for Lectures: Formal lectures to be provided at and by an approved centre
teaching and Class discussions: which should include analysis and review of various case
learning studies
Group discussions: where students are advised to actively engage and
contribute
Minimum entry GCSE or WASSCE (with passes in English and Maths)
requirement
Course monitoring The course will be monitored by internal verifiers of IPED UK. The work of the
and review tutors/assessors will be closely monitored by IVs and the IPED UK Learning
Resource Centre England. The IPED Suggestion and Feedback Policy (system)
will be used to collect information from learners and users of the programme
to make informed decision on quality improvement strategies
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Learning outcome Assessment criteria
(Learner will) (Learner can)
1.0 Understand the key issues procurement 1.1 Explain the function of procurement
management 1.2 Examine the purchasing cycle
1.3 Evaluate the roles in the purchasing
organization for a large project
1.4 Analyse the contribution of shipping and
freight forwarding agents in procurement
management
1.5 Analyse the stages in the purchase of
equipment for a large international project
1.6 Describe the stages involved in the
preparation of purchase specifications:
- Enquiry stage
- Purchase order stage
1.7 Examine key issues relating to supplier
selection
1.8 Examine the impact of the European
Directives on public sector purchasing
1.9 Analyse the formal bidding procedure and
discuss the following:
- How to deal with suppliers’ queries during
the bidding process
- How to deal with late tenders
- Bid evaluation
1.11 Discuss the nature and relevance of
purchase requisition
1.12 Explain what is meant by expediting and
discuss its importance in procurement
management
1.12.1 Explain what is meant by the lead time and
examine the factors that affect it.
1.12.2 Discuss ways of improving the lead time
1.13 Examine how purchase quantities affect
procurement management
1.14 Analyse the considerations that must be
made in making purchase order amendments
1.15 Examine the implications of:
- Supplying a project entirely from stocked
materials
- Supplying a project entirely from special
purchases
- Project purchasing as a condition of
contract
1.16 Explore the importance of marking and
labelling goods before transit
1.17 Discuss the changing role of purchasing and
supply
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2.0 Understand the nature of strategic 2.1 Explain the meaning of strategic procurement
procurement and supply chain management 2.2 Explain the concept of strategy
2.2.1 Examine the importance of mission
statement
2.3 Explore the nature of strategic management
2.3.1 Discuss the following:
- Strategic analysis
- Strategic development
- Strategy implementation
2.4 Evaluate the nature of effective supply market
strategies
2.5 Discuss the function of purchasing and supply
in different types of organizations
2.6 Explain what is meant by the “supply chain”
2.7 Discuss the ways of improving the efficiency
of the supply chain
2.8 Explore the characteristics of the types of
supply chain
3.0 Understand key issues relating to outsourcing 3.1 Examine the nature of outsourcing
3.1.1 Explain what is meant by outsourcing
3.1.2 Describe the methodologies of outsourcing
3.1.3 Discuss the drawbacks of outsourcing and
analyse ways of avoiding or managing such
drawbacks
4.0 Understand the nature of inventory 4.1 Explain the meaning of inventory
management management
4.2 Explain what is meant by order quantities and
stock control, and evaluate their importance in
procurement management
4.3 Give an account on the following:
- Materials requirements planning
- Manufacturing resource planning
- Distribution resource planning
- Enterprise resource planning
4.4 Discuss the nature of stores administration
and management with respect to the following:
- Accommodation
- Labelling
- Location and retrieval
- Physical pre-allocation of project materials
- Preservation
- Security
- Stores records and information system
4.5 Explain the Just-In-Time (JIT) system
4.5.1 Evaluate the advantages and disadvantages
of JIT
4.6 Explain the meaning of Economic Order
Quantity and evaluate its significance in inventory
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management
4.6.1 Calculate the economic order quantity using
the following information
- Annual usage of an item
- Ordering cost
- Unit cost
- Holding cost per unit for one year
4.7 Discuss the nature of vendor managed
inventory (VMI) and examine its advantages and
disadvantages
5.0 Understand the nature of negotiations in 5.1 Explain the project managers role in
procurement management negotiations
5.2 Discuss the nature of good negotiation skills
5.3 Evaluate the stages involved in negotiation:
- Preparation
- The introduction stage
- The discussion stage
- The Agreement stage
- The post negotiation stage
5.4 Evaluate the nature of competition and co-
operation in negotiation
5.5 Identify and discuss the strategies of
negotiation
5.6 Give an account on the negotiation mix
6.0 Understand the nature of international and 6.1 Explain what is meant by global sourcing and
global sourcing international procurement
6.2 Discuss the reasons why organizations source
internationally
6.3 Give an account on the problems associated
with international sourcing and recommend
solutions
6.4 Examine the nature of arbitration in
international sourcing
6.5 Discuss the implications of customs and
countertrade in global sourcing
7.0 Understand the nature and importance of e- 7.1 Explain what is meant by an e-procurement
procurement systems system
7.2 Evaluate the benefits of e-procurement
7.3 Examine the barriers to e-procurement
7.4 Explore how the benefits of e-procurement
can be effectively measured
7.4.1 Identify the key indicators for measuring the
benefits of e-procurement
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8.0 Understand the nature and significance of 8.1 Explore the ways of measuring the
performance measurement in procurement procurement function using indicators such as:
- Cost savings
- Quality
- Purchasing improvements
- Transportation improvements
- Etc.
8.2 Evaluate the benefits of measuring
procurement
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Recommended learning resources
Dennis Lock 2007, Project Management 9th Edition; Gower Publishing, England.
ISBN 978-0-566-08772-1
Learning Aid A learning resource material is provided to guide the learner/tutor and to serve as a
quick reference point for contents of the programme. The student is advised not to
be over reliant on the study guide but to access the relevant textbooks or other
academic materials as much as possible to help him/her with the course.
Important information:
Please note that if the study guide provided does not cover any part(s) of the
syllabus, it is the responsibility of the tutor and the learner to access the relevant
information from the core textbook(s) and suggested further reading material(s).
For help on accessing such information, kindly contact IPED UK.
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Duration The entire Level 4 Diploma in Project Management must be completed in a
minimum of 24 weeks (6 months), spread over two semesters within a year with
each semester consisting of 12 weeks minimum.
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Grading system
[All figures are expressed in percentage (%)]
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