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Advanced Procurement Management (1) for Competitive Advantage with Basic Internal Control Principles

HRODC Postgraduate Training Institute

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Course Description

Course ObjectivesBy the conclusion of the specified learning and development activities, delegates will be able to:Discuss the scope of purchasingIdentify the purchasing cycle conceptDiscuss purchasing and supply as a service activityDiscuss the changing role of purchasing and supplyExplain how purchasing might develop from an independent function to an integrated activityIdentify the internal and external influences which have affected the evolution of purchasingExamine the ?total acquisition cost? conceptConsider the adoption of relationships based on mutual benefits as an alternative to the traditional transactional, adversarial approachHighlight the evolution of concepts relating to purchasing developmentIdentify key practices encountered in developed strategic purchasingProvide mini-case studies demonstrating how companies are developing their purchasing functionsTo explain the growth in the strategic role of procurement, purchasing and supplyExplain the concept of strategic managementIdentify various forms of purchasing strategy aimed at gaining competitive advantage and to examine influences on strategic choice Examine the issues of how decentralized v. Centralized departmental organisations and support services affect the structure of the purchasing teamAppreciate the importance of purchasing within the organization?s structureConsider the placing of purchasing in various types of organisations Consider the central role of contract management in the virtual organization Discuss the concept of outsourcingHighlight the basics of a best practice approach to outsourcing, including outsourcing methodologiesOutline the pitfalls of outsourcingOutline the use of service level agreements (SLAs)Indicate the move away from quality control (inspection techniques) towards quality assurance (prevention of defective work)Discuss statistical process control (SPC) and off-line controlIntroduce the concept of failure mode and effect analysisExamine the different approaches to producing a specification and the role of value analysis, including the idea of early supplier involvementConsider the fact that total quality management requires the involvement of all suppliers and subcontractors, ideally at an early stage, and to outline the concept of concurrent engineeringComment on the benefits of standardization Introduce the standards BS EN ISO 9000 on quality assuranceDiscuss Value analysis (VA) and Value engineering (VE)Comment on the economics of qualityIdentify what drives make-or-buy decisionsConsider provisioning systems for stock and production purposesExamine positive and negative reasons for holding stock and approaches to reducing inventoriesIdentify methods of stock control and their applicationExplain the EOQ conceptDiscuss the usefulness and limitations of forecasting in the supply contextDevelop an appreciation of MRP, MRP2, DRP and ERP systems Discuss ?just-in-time? and related philosophiesExplain late customization as a provisioning policyEmphasize the importance of responsiveness to customer needsConsider differing perceptions of ?lead time?Explain the importance of lead time variabilityOutline the component parts of lead timesExplain the need for expediting, how it is prioritised and organised and how it can be reducedIntroduce network analysis and gantt chartsConsider the inclusion of liquidated damages, penalty and force majeure clauses in a contractSuggest the attributes of a good supplierExamine the ?relationships spectrum?, and the move towards more mutuality in appropriate buyer/seller relationshipsDiscuss the advantages and disadvantages of different procurement policiesExamine the factors influencing pricing decisionsCompare ?price analysis? with ?cost analysis?Analyse the ways in which major contracts might be pricedExplain contract price adjustment clausesExplain the use of incentive clauses in relation to price and costExplain the effect of the ?learning curve? on the cost of production.Understand negotiating as a ?mutuality of wants, resolved by exchange?Identify the activities carried out during the different stages of negotiationAnalyze the characteristics of a skilled negotiatorRecognize the key points of discussion stage behaviour and recognise negotiating ploysIntroduce the concept of body language and how it can be interpretedView how negotiating technique is influenced by long-term interestsCourse Contents, Concepts and IssuesPart I ? Purchasing Scope and DevelopmentThe Changing Role of Purchasing and SupplyProactive PurchasingProcurement PositioningTotal Acquisition Cost and Total Cost OwnershipNon-Manufacturing OrganisationsThe Supply Chain ConceptPurchasing DevelopmentBest Practices in Strategic Supply ManagementPart II ? Strategic Procurement and Supply Chain ManagementStrategic ProcurementThe Concept of StrategyThe Mission StatementLevels of StrategyCategory ManagementStrategic ManagementStrategic AnalysisStrategic DevelopmentStrategic ImplementationObjectives for PurchasingStrategies and Their ScopeSelecting a StrategyEffective Supply and Market StrategyPurchasing and Supply in the Different Types of OrganizationOrganisation of the ActivityPurchasing In the Organisation Structure Purchasing DevolutionThe Supply ChainImproving Efficiency of the Supply ChainType of Supply ChainStrategic Development of PurchasingKey Procurement IssuesPart III ? OutsourcingOutsourcingOutsourcing MethodologiesOutsourcing ?PitfallsHow to Avoid PitfallsPart IV ? Quality ManagementWhat Is Quality?Statistical Process ControlTaguchi Methods for the Off-Line Control Failure Mode and Effect AnalysisSpecificationProducing a SpecificationEarly Supplier InvolvementConcurrent EngineeringStandardisationSupplier AssessmentEconomics of QualityQuality CirclesThe Seven WastesValue Analysis/Value EngineeringMake-Or-Buy DecisionPart V ? Inventory ManagementProvisioning SystemsOrder Quantities and Stock ControlOrder Quantities for ProductionMaterials Requirements Planning (MRP)Manufacturing Resource Planning (MRP2)Distribution Resource Planning (DRP)Enterprise Resource Planning (ERP)Just-In-Time (JIT)Vendor Managed Inventory (VMI)Late CustomisationPart VI ? Lead Time and Time CompressionTime and Competitive AdvantageOn-Time DeliveryExpeditingLiquidated DamagesPart VII ? Sourcing Strategies and RelationshipThe Nature of the Sourcing DecisionAttributes of a Good SupplierDifferent Types of SourcingSourcing DecisionsThe Sourcing ProcessSource LocationSources of Information on Potential SuppliersSupplier EvaluationThe Right RelationshipOther Aspects of OutsourcingPartnering Part VII ? Sourcing Strategies and RelationshipThe Nature of the Sourcing DecisionAttributes of a Good SupplierDifferent Types of SourcingSourcing DecisionsThe Sourcing ProcessSource LocationSources of Information on Potential SuppliersSupplier EvaluationThe Right RelationshipOther Aspects of OutsourcingPartnering Part VIII ? Price and Total Costs of OwnershipFactors Affecting Pricing DecisionsHow Buyers Obtain PricesAuctionsPrice Analysis and Cost AnalysisPricing Major ContractsInvestment AppraisalLearning Curves and Experience CurvePart IX ? NegotiationsNegotiationNegotiating SkillsPreparationThe Introductory StageDiscussion StageAgreement StageThe Post-Negotiation StageCompetition and Co-Operation in NegotiationBody LanguageNegotiation StrategiesNegotiation MixPart X ? Internal ControlAn overview of internal controlWhat is internal control?Internal control and accounting systemManagement?s responsibility for internal controlThe need for internal control Financial and administrative controlPrinciples of internal controlElements of an internal control systemFeatures of a sound internal control systemOrganisational structureLevels of authorityReporting systemEmployment proceduresReliable proceduresSegregation of operating and accounting functionsLimitations of internal controlApplication of an internal control system in a small businessFraud

Course ObjectivesBy the conclusion of the specified learning and development activities, delegates will be able to:Discuss the scope of purchasingIdentify the purchasing cycle conceptDiscuss purchasing and supply as a service activityDiscuss the changing role of purchasing and supplyExplain how purchasing might develop from an independent function to an integrated activityIdentify the internal...

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