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course - Advanced Procurement Management

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  • Objectives
    CONTENTS, CONCEPTS AND ISSUES





    Part 1 – Advanced Procurement Management for Competitive Advantage with Internal Control Principles





    Objectives and Development



    - Purchasing Scope and Development



    - Strategic Procurement and Supply Chain Management





    Key Procurement Issues



    - Outsourcing



    - Quality Management



    - Inventory Management



    - Lead Time and Time Compression



    - Sourcing Strategies and Relationship



    - Price and Total Costs of Ownership



    - Negotiations



    - Internal Control







    Part 2 – Advanced Procurement Management: Applications, Electronic System and Contract Management



    Applications

    - Project Procurement
    - Procurement of Commodities
    - International and Global Outsourcing
    - Capital Procurement
    - Retail Procurement and Efficient Consumer Response (ECR)
    - Services Procurement
    - Corporate Social Responsibility (CSR)

    E-procurement Systems and Contract Management

    - Part VIII – E-procurement Systems
    - Part IX – Contract Management and Performance Measurement
  • Practical experience
    Use of Video Cases; Written Cases; Simulations and Industrial Visits.
  • Entry requirements
    1st Degree or Equivalent Qualification
  • Academic Title
    Diploma - Postgraduate in Advanced Procurement Management (Quad Credit)
  • Course description
    By the conclusion of the specified learning and development activities, delegates will be able to:

    Discuss the scope of purchasing

    Identify the purchasing cycle concept

    Discuss purchasing and supply as a service activity

    Discuss the changing role of purchasing and supply

    Explain how purchasing might develop from an independent function to an integrated activity

    Identify the internal and external influences which have affected the evolution of purchasing

    Examine the ‘total acquisition cost’ concept

    Consider the adoption of relationships based on mutual benefits as an alternative to the traditional transactional, adversarial approach

    Highlight the evolution of concepts relating to purchasing development

    Identify key practices encountered in developed strategic purchasing

    Provide mini-case studies demonstrating how companies are developing their purchasing functions

    To explain the growth in the strategic role of procurement, purchasing and supply

    Explain the concept of strategic management

    Identify various forms of purchasing strategy aimed at gaining competitive advantage and to examine influences on strategic choice

    Examine the issues of how decentralised v. Centralised departmental organisations and support services affect the structure of the purchasing team

    Appreciate the importance of purchasing within the organisation’s structure

    Consider the placing of purchasing in various types of organisation

    Consider the central role of contract management in the virtual organisation

    Discuss the concept of outsourcing

    Highlight the basics of a best practice approach to outsourcing, including outsourcing methodologies

    Outline the pitfalls of outsourcing

    Outline 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 control

    Introduce the concept of failure mode and effect analysis

    Examine the different approaches to producing a specification and the role of value analysis, including the idea of early supplier involvement

    Consider 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 engineering

    Comment on the benefits of standardisation

    Introduce the standards BS EN ISO 9000 on quality assurance

    Discuss Value analysis (VA) and Value engineering (VE)

    Comment on the economics of quality

    Identify what drives make-or-buy decisions

    Consider provisioning systems for stock and production purposes

    Examine positive and negative reasons for holding stock and approaches to reducing inventories

    Identify methods of stock control and their application

    Explain the EOQ concept

    Discuss the usefulness and limitations of forecasting in the supply context

    Develop an appreciation of MRP, MRP2, DRP and ERP systems

    Discuss ‘just-in-time’ and related philosophies

    Explain late customisation as a provisioning policy

    Emphasise the importance of responsiveness to customer needs

    Consider differing perceptions of ‘lead time’

    Explain the importance of lead time variability

    Outline the component parts of lead times

    Explain the need for expediting, how it is prioritised and organised and how it can be reduced

    Introduce network analysis and gantt charts

    Consider the inclusion of liquidated damages, penalty and force majeure clauses in a contract

    Suggest the attributes of a good supplier

    Examine the ‘relationships spectrum’, and the move towards more mutuality in appropriate buyer/seller relationships

    Discuss the advantages and disadvantages of different procurement policies

    Examine the factors influencing pricing decisions

    Compare ‘price analysis’ with ‘cost analysis’

    Analyse the ways in which major contracts might be priced

    Explain contract price adjustment clauses

    Explain the use of incentive clauses in relation to price and cost

    Explain 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 negotiation

    Analyse the characteristics of a skilled negotiator

    Recognize the key points of discussion stage behaviour and recognize negotiating ploys

    Introduce the concept of body language and how it can be interpreted

    View how negotiating technique is influenced by long-term interests

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