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Cip > L4M > Flashcards

L4M Flashcards

Chapter 3

1
Q

Name 3 Procurement Structures

A

Devolved
Hybrid
Centralised

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2
Q

What is a Hybrid Structure?

A

Is a combination of centralised and devolved structures.

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3
Q

What are the 4 forms which Hybrid structures take?

A

Consortium
Shared
Lead buyer structures
Outsourced

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4
Q

Name 6 types of Consortia

A 
Loose
Voluntary
Regional
Profit making
Member-owned
Non profit
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5
Q

Shared services occur when

A

An organization centralises its support functions

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6
Q

Which functions are often shared?

A

Human Resources
Administration
ICT
Finance

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7
Q

What are the advantages and disadvantages of Shared Services?

A 
Reduces costs
Provides high level of skill & knowledge
Puts focus on core activities
Pools resources
Avoids duplication of work

Disadvantages
Risk of breaching departmental confidentiality is increased
Resistance to change from workforce
New process and procedures take time to adopt
Audit more challenging
Information not readily available within departments

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8
Q

Lead Buyer Structures

A

Occur when one organizational department or individual takes the responsibilty for setting the framework or the purchasing of a specific product or service such as ICT or stationery

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9
Q

Outsourced advantages and disadvantages

A 
Advantages
Cost reduction
Reduce training costs
Lower headcount-fewer procurement staff required
Economies of scale
Access to highly skilled buyers

Disadvantages
Changing from internal to outsourced procurement could be difficult in terms of employee relations

Lack of control

Resistance to change from internal staff

Redundancies in current procurement team

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10
Q

What is rapport?

A

Rapport is about finding common ground. It involves mutual trust and understanding build on good communication.

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11
Q

What are the common functions that can be structured as shared services?

A

HR
Administration
ICT
Finance

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12
Q

What are the 4 categories of stakeholders according to Mendelows stakeholder Matrix?

A
  1. Keep satisfied- interest low, power high eg lnvestors, shareholders
  2. Manage closely
    -Key player
    -Interest- high
    -Power-high
    eg- senior managers
  3. Minimum effort
    Power-low
    Interest-low

eg-small customers and suppliers

  1. Keep lnformed
    Interest- high
    Power-low
    eg- local activist group
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13
Q

What are the 4 categories of stakeholders according to Mendelows Stakeholder Matrix?

A

Keep satisfied

Manage closely

Minimum effort

Keep informed

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14
Q

What are the 4 supplier types identified in Kraljic’s Matrix

A
  1. Leverage suppliers-High cost impact yet low risk impact to an organisation
    Vast competition
    Low cost to move suppliers
    Often utility services e.g electricity
  2. Strategic suppliers-high cost and high risk implications

Critical supplier to an organization
Responsible for core products

  1. Routine suppliers-have low cost and low risk impact

Low value items
Lots of work associated with these suppliers
Lots of variety available eg stationery suppliers

  1. Bottleneck supoliers- low cost and high risk impact

Holds monopoly in marketplace
Little or no other options
low value items

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15
Q

Rapport does not always come naturally to people

A

It is progressive, builds overtime and is strongly linked to trust

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16
Q

What methods contribute towards building rapport?

A

Positive body language

Make eye contact

Listen and use positive gestures for emphasis

Ask questions

Be empathetic

Respect all ideas

Remove preconceptions

Be honest

Justify opinions and feedback

17
Q

Customer Service

A

Is the way in which an organisation and its employees conduct themselves

18
Q

Customer Service can be achived by

A

Answering the telephone and responding to emails

Do not make false promises

Do what you say you will do

Delivering good and bad news honestly

Encourage feedback

Aim to resolve complaints efficiently and effectively

Always be helpful and appear willing

19
Q

What is a Maslow’s hierarchy of needs?

A

A motivational theory based on an individual’s physical and psychological needs

SEBSP

Self actualisation (personal growth)

Esteem needs (achievement, status, repetition)

Belonging and Love needs (family affection, relationships, workgroup)

Safety needs (protection, security, order, law, limits, stability)

Biological and physiological needs (basic needs)

20
Q

An individual’s esteem can be gained through what?

A

Customer service across the organisation

21
Q

Customers place orders based on what?

A

Price

Quality of the product

Customer Service

Aftercare

22
Q

What constitutes value for money?

A

The five rights of procurement

Right quantity
Right quality
Right time
Right place 
Right price

They help to achieve value for money when sourcing and purchasing, writing contracts and negotiating with suppliers

23
Q

What are the elements of value for money?

A
  1. The five rights of procurement
    - Price
    - Place
    - Time
    - Quantity
    - Quality
  2. Innovation
  3. Total life cost
  4. Customer service
24
Q

What areas are included in total life costing?

A

It is also known as TCO- Total Cost of Ownmership

  1. TCA
  2. Tooling
  3. Insurance
  4. Operation
  5. Maintanance
  6. Training
  7. Storage
  8. Disposal
25
Q

3.4

What is a P2P system?

A

A system which allows payments from customers and to suppliers to be made more quickly, on time, so this creates an opportunity for buyers to negotiate cost reduction.

26
Q

Apart from faster payments, explain 3 other ways in which P2P has an impact on the sourcing process.

A
  • Reduced errors
  • Reduced waste (anything that does not add value)
  • Reduced costs
  • Continous improvement
  • Enhanced relationships
27
Q

Systems of lnventory management

A

MRP

JIT

Kanban (a method used to improve efficiency in the system)

28
Q

What is Materials requirements planning?

A

MRP is an electronic system which can schedule orders, monitor inventory and manage the production process

It has 3 main obectives:
1. Ensure that the parts needed for manufacturing end products are available

  1. Establish when to place orders and schedule deliveries
  2. Keep inventory value as low as possible

Cip (5 decks)

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