Procurement Management

Question 1

Procurement Management - Overview

Answer 1

Plan
Conduct procurement’s
Control
Close

Question 2

Source selection criteria

Answer 2

Understanding of need
Life cycle cost (TCO)
Technical capability
Risk
Management approach
Technical approach
Warranty
Financial capacity
Product capacity
Business size and type
Past performance
References
Intellectual property rights
Proprietary rights

Question 3

Contract types

Answer 3

Cost reimbursable
     -CPPC - cost plus percentage of cost
     -CPFF - cost plus fixed fee
     -CPIF - cost plus incentive fee
     -CPAF - cost plus award fee
Time and Material
Fixed price lump sum
     -FPIF - fixed price incentive fee
     -FPEPA - fixed price economic price adjustment

Question 4

Formal requirements

Answer 4

• Oral
• written
• notarized
• Implicit (supermarket)

Question 5

Make or buy decision making

Answer 5

Capabilities at Bosch
Divisional and cross divisional considerations
Profitability study

Core, Standard, and Key capabilities

Question 6

Procurement Management Concept

Answer 6

Preferred supplier
Confidentiality agreement
Concept Competition agreement (co-cooperation)
Logistics
Standardized supply - ship to line
Quality assurance