All of the CIPS qualifications have been updated. Please see the new programme listing from the index page -- here --  

Overview - CIPS Qualifications

International Certificate

For Non-UK Students

International Advanced Certificate

For Non-UK Students

Level 3 Certificate

For UK Students only

Level 4 Foundation Diploma

Level 5 Advanced Diploma

Level 6 Graduate Diploma

Level 7 Executive Diploma

Entry Requirements

FAQs

CIPS - Transition

Glossary of Terms

Sample Study Schedule

LEVEL 6 Graduate Diploma in Purchasing and Supply

Please note : Qualifications awarded by CIPS are considered as Professional qualifications and as such cannot necessarily be equated to Academic qualifications. It does not therefore follow that candidates who hold a Bachelors or Masters degree are automatically eligible to join directly onto the CIPS Level 6 Graduate Diploma in Purchasing and Supply.

To study Level 6, candidates should have either successfully completed the preceding levels or applied through a well defined process and been granted exemption by CIPS for the preceding levels of study.

UNIT CONTENT LEVEL 6 Graduate Diploma in Purchasing and Supply

The Graduate Diploma has five units, there are three core units and two options must be chosen from a choice of five. When the Graduate Diploma has been successfully completed, members can apply to become a full Member of CIPS which entitles them to use the designation, MCIPS after their name. 

The units that make up the award are:

• L6-01 Leading and Influencing in Purchasing
• L6-02 Strategic Supply Chain Management
• L6-03 Supply Chain Management in Practice (Integrative unit)

- Work-Based Project
- Case Study Option

Plus two units chosen from the following:

• L6-10 Legal Aspects in Purchasing and Supply
• L6-11 Advanced Project Management
• L6-12 Finance for Purchasers

• L6-13 Strategic Public Sector Programme Management

• L6-14 Public Sector Stakeholders and Governance

Units 13 and 14 have recently been developed by CIPS.

Detailed Syllabus

L6-01 LEADING AND INFLUENCING IN PURCHASING (Compulsory Core Unit)

UNIT CHARACTERISTICS

This unit is designed to develop students’ leadership skills to enable them to lead, influence and provide direction to stakeholders within the supply chain.

Students should be able to operate at a strategic level. They should be able to lead in their defined area or part of the organisation and will be expected to motivate and support supply chain members and stakeholders in achieving objectives and success.

Students will be expected to lead in a variety of situations and to ensure that they maintain the balance of power required to achieve success. They should be able to demonstrate effective leadership in a variety of contexts, including through change, adversity, conflict and success, in order to maximise the potential of the organisation.

LEARNING OUTCOMES

On completion of this unit students will be able to:
• Critically evaluate the fundamental differences between management and leadership
• Assess a range of leadership styles and apply them effectively within the supply chain
• Develop an innovative and compelling vision for the purchasing function
• Solve difficulties and challenges that arise within the supply chain and threaten key relationships
• Create and maintain a culture that encourages and recognises creativity and innovation
• Lead and influence individuals and teams effectively: encouraging, motivating, supporting and recognising
achievement
• Develop a culture of productivity through people
• Successfully employ a range of effective communication methods and messages for the supply chain to support
change

LEARNING OBJECTIVES AND INDICATIVE CONTENT

1.0 Leading and Managing in Purchasing (Weighting 15%)

1.1 Critically evaluate the fundamental differences between leadership and managing.
• The role of a leader and the activity of leadership
• The leader as a visionary, direction-setter and manager, the person who gets things done

• The key traits of a leader that differentiates from a manager
• What leaders actually do, using Adair’s model of action-centred leadership
• The close relationship between leadership and management
• The need for a leader to be a good manager also

• The roles of leadership in a purchasing function including the chief purchasing officer/head of purchasing, the purchasing council and a PLT

1.2 Critically assess the behavioural traits of successful leaders.
• The role of the visionary in leadership
• The terms directive and facilitative and their styles of leadership
• The key components of emotional intelligence (Goleman) and the strong link with leadership skills
• The role of integrity and values within leadership
• Key communication skills for leadership: including promotional, influencing and persuasion and inspirational

1.3 Develop a range of leadership styles and judge when best to use them.
• The three main classifications of leadership styles: authoritarian, democratic and laissez-faire
• McGregor’s Theory X and Theory Y
• A continuum of different leadership styles from facilitative through to directive
• The contrasting methods of tell and sell and the other two broad categories of leadership style: consult and join
• The merits of a situational approach to leadership
• The four main stages in Hersey’s model of situational leadership and when each stage is appropriate to use in a purchasing context
• Transactional leadership and transformational leadership

1.4 Critically evaluate strategic leadership approaches:
• Strategy
• Human Assets
• Expertise
• Control
• Change

2.0 Leading and influencing in the supply chain (Weighting 20%)

2.1 Continually influence stakeholders within the supply chain through using models of influence.
• Collaboration and how this may differ from competition, adversarialism and/or accommodation
• What is meant by influencing
• The difference between influencing and negotiation
• The importance of rapport when influencing and the key components in creating rapport
• Interpersonal sensitivity and its importance in managing key stakeholders
• Appropriate stakeholder map for a given purchasing activity and how power and dependency issues are
identified
• Key methods of influencing

2.2 Critically assess how the different sources of power are legitimate and acceptable when leading and influencing areas of the supply chain.
• Five sources of power and applying them to the purchasing context
• Coercive power
• Referent power
• Expertise power

2.3 Explain how to lead and influence effectively in four different directions.
• Manage your manager and identify key methods for managing upwards
• A range of influencing styles for leading direct reports and teams, and understanding what is meant by the term readiness in relation to individuals being led (Hersey & Blanchard)
• A range of influencing styles for cross-functional leadership, both within and outside the bounds of formal teams
• The range of external stakeholders (including suppliers, customers, collaborators and other third parties) and effective influencing styles
• The relative merits of escalation as a means of influencing

2.4 Develop a range of tactics and definitions to effectively influence the supply chain.
• Rational persuasion
• Inspirational appeal
• Consultation
• Ingratiation
• Exchange
• Personal appeal
• Coalition
• Legitimating
• Pressure

2.5 Critically assess the outcomes of attempts to influence the supply chain.
• Internalisation
• Compliance
• Resistance

3.0 Develop a culture of productivity through people (Weighting 30%)

3.1 Determine the need for people to work effectively, individually and in work-based teams, and justify their
development.
• The range of personal preferred styles for working effectively (including introversion and extraversion) and their relative merits in the workplace
• Team models of the solo leader and the team leader
• F.W. Hertzberg’s motivational and hygiene factors for leadership
• The need to change roles and refresh the status quo on a regular basis
• Critical individual and team roles, characteristics, competencies plus individual roles and expected behaviour patterns
• The merits of cross-functional teams and the role of sponsorship
• The key stages of team development
• The typical roles/responsibilities of a work-based team in a purchasing project
• The classification of team roles
• The merits of diversity within teams
• The merits of leaderless teams (e.g.T-groups)

3.2 Develop a consensus on how to work together, identifying potentials for pitfalls and conflicts within the
team.
• Power
• Politics
• Position
• Lack of resource
• Poor communications
• Poor leadership

3.3 Critically assess diversity issues relating to the success of people and propose approaches to managing them.
• What is meant by the term equality and diversity
• The benefits of diversity to a high-performance culture looking at the advantages and disadvantages
• What is meant by the term equal opportunities, and the issues associated with discrimination
• Potential areas of discrimination in the workplace and the regulatory framework to protect against it (including gender, race, religion, disability and age)
• Proactive measures required to promote equality and diversity in the workplace

• Potential consequences of failing to pursue a proactive approach to equality and diversity (e.g. cultural impact, disaffected staff, reputational damage, potential lawsuits, and ethical issues)

3.4 Determine and justify ways of developing people and increasing their productivity and effectiveness.
• Why it is important to develop people in the workplace
• The purpose of training needs analysis (TNA)

• The basic process of TNA and the need for independent assessment
• A range of skills and competencies for purchasing and supply that can be reliably assessed and measured
• Contrast between training and development
• A range of training and development initiatives
• What is meant by blended-learning and action-learning

3.5 Effectively plan team time, including scheduling, justifying resource, deadlines and delivery dates.
• What is meant by project planning and resource scheduling
• The key components of a project plan and a resource plan
• How a resource plan is developed and monitored for a given purchasing project
• The different capabilities required that comprise a purchasing project (e.g. leadership, planning, research, analysis, strategy, negotiation, implementation, management, communication)
• Development of a case to justify additional resource for a purchasing project

4.0 Lead Change in the Supply Chain (Weighting 35%)

4.1 Develop a compelling and innovative vision, values and culture for the future, justifying reasons and benefits
associated with change, taking into account the relationship between transformational and transactional change.
• The meaning of the term vision
• The need for strategic alignment between mission, objectives, strategy and tactics
• How a vision can be created and the actions required to gain buy-in: education and communication, participation and involvement, facilitation and support, negotiation and agreement, manipulation and cooperation plus explicit/implicit coercion
• The need for vision to be compelling

• How a vision should be communicated and reinforced

• The meaning of the term culture in the context of the purchasing function
• An appropriate range of values for the purchasing function and the benefits of having explicit value statements
• The importance of CSR and ethics in building sustainable values within the purchasing function

4.2 Critically evaluate a range of different models of change management and consider the implications of
implementation of each one for the purchasing function and the wider organisation as a whole.
• Factors driving change and their effect using appropriate tools (e.g. Lewin’s force field analysis)
• The meaning of the organisational development movement
• Lewin’s model for planned change and the three key stages of unfreezing, movement and refreezing
• The action research model and what is meant by cyclical change
• The merits of employing external resources to lead organisational change

4.3 Develop an appropriate style for leading and managing the strategic change process that will encourage
stakeholders to welcome and embrace change within the purchasing function.
• Crainer’s seven skills required for managing change: managing conflict, interpersonal skills, project management skills, leadership and flexibility, managing processes, managing strategy and managing personal development
• The importance of stakeholder consultation and the identity of key stakeholders who should be consulted
when leading change in the purchasing function

• Principal methods of consultation and engagement of stakeholders, and the need for communication as a
vehicle to assist the change process

• Ways and means of resolving conflict with stakeholders using the Thomas-Klinman conflict model as a framework. And how this applies to the workplace.

4.4 Set and prioritise justifiable objectives for change and identify strategies for achieving them.
• The need for objectives and targets for change programmes
• How objectives are set for a change programme and how objectives should be defined (SMART) and aligned with a broader strategic intent
• The relative merits of incremental versus step [fundamental] change and the respective implementation strategies these require
• How objectives can be broken down to individual tasks and components

• Contrasts between project and programme management
• Ways in which a change programme can be structured using a steering group, work-streams, focus groups, cross-functional teamwork and change agents
• The prioritisation process and allocation of resources to achieve targets

4.5 Determine the resource requirements for the implementation of change within the purchasing function including:
• Human
• Physical
• Financial

4.6 Delegate responsibility for the effective implementation of change including planning and implementation and
delegating both responsibility and power to managers.
• What is meant by delegation and what are the requisite leadership behaviours that enable effective delegation
• Link to Hersey’s model of situational leadership
• Support needed to be given in order to allow a delegated responsibility to work successfully: clear direction/sponsorship, recognised authority/mandate, appropriate resources, appropriate training and capabilities, reasonable timescales and communication support
• How to monitor and review delegated responsibilities and tasks
• Developing appropriate rewards and recognition associated with the successful delivery of delegated activities
• How a leader might take corrective action and re-direct activities that have been delegated

4.7 Use forcefield analysis to identify forces and barriers to change and determine what needs to be done to
develop and assist change.
• Bureaucracy: i.e. departmentalism, formality of management
• Resources
• Politics
• Insecurity
• Risk
• Blame culture
• Deference
• How individuals respond to change
• Hultum’s four factors that will affect a response to change: facts, beliefs, feelings and values
• Link to Lewin’s forcefield analysis
• Why some change programmes fail
• The principal barriers to effective change and the mitigating actions required to overcome resistance

4.8 Negotiate effectively in difficult leadership and management situations, including involvement in negotiating within industrial relations situations.
• The negotiation process and the need for planning a negotiation campaign (link to other units)
• How a complex negotiation needs careful stakeholder mapping and the importance of power/dependency mapping
• The concept of structural power (Cox) in a negotiation context and how this will impact the approach to negotiation
• The areas for non-negotiation and potential concession
• The need for alignment within the negotiating team and the way in which escalation can be used appropriately for strategic issues
• The term industrial relations and the contexts in which such relations are appropriate
• When and how the purchasing function may become involved in IR situations
• How to approach an IR negotiation and the key differences from a commercial negotiation

4.9 Monitor and control the impact of the change process on the supply chain performance including:
• Budgets
• Projects measurement
• Benchmarking
• Auditing
• Employee and stakeholder reactions
• Appropriate communication programmes involving third parties regarding internal changes

4.10 Manage continuity of performance while implementing change.
• The importance of maintaining a business as usual approach for managing supply
• The process of internal handover from one individual/team to another
• How a supplier implementation programme is organised, including the potential benefits of a trial/pilot period and the ramp-up/ramp-down phases
• How existing suppliers can be managed and incentivised to see out the full terms of their contracts without disruption to supply or service-levels

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L6-02 STRATEGIC SUPPLY CHAIN MANAGEMENT (Compulsory Core Unit)

UNIT CHARACTERISTICS

The supply chain manager is responsible for specific activities and processes which can contribute to achieving
corporate strategic goals.

This unit is designed to provide students with an understanding of strategic aspects of supply chain management.

Students will analyse the supply chain to identify where value is added within it, identifying where and how strategic competitive advantage can be achieved.

Students will be expected to propose a range of innovative proposals which will allow supply chain stakeholders to effectively interact and contribute towards developing and exploiting opportunities to grow and expand the business, through new product and service development, offering innovative ideas, diversification and differentiation strategies.

LEARNING OUTCOMES

On completion of this unit, students will be able to:

• Analyse the concept of strategy and the process of developing corporate strategy
• Manage change processes directed towards achieving corporate strategy
• Explain the contribution of strategic supply chain management to corporate strategy
• Evaluate concepts underlying strategic supply chain management
• Assess the idea of the global supply market as a source of competitive advantage
• Distinguish and assess various models of supply chain structures and relationships
• Effectively manage change to support strategy development and implementation
• Evaluate the risks associated with various models of supply chain structures and relationships

LEARNING OBJECTIVES AND INDICATIVE CONTENT

1.0 Analyse the concept of strategy and the process of developing corporate strategy (Weighting 25%)

1.1 Evaluate the concepts of strategy, strategic planning, deliberate and emergent strategies and strategic
management.
• Definitions of strategy (Grant, Ohmae, Johnson and Scholes, Mintzberg)
• Strategic planning models (Ansoff, Bryson, Mintzberg)
• Rational and incremental approaches to formulating strategy
• Deliberate and emergent strategies (Quinn, Mintzberg)
• Levels and components of strategic management

1.2 Assess models of the strategy process, in particular the analysis, choice, implementation model.
• Models of the strategy process
• The analysis, choice, implementation (ACI) model of strategic management (Johnson and Scholes)
• Rational planning models and strategic management
• The logical incremental model (Quinn) and strategic management
• Strategic management and deliberate and emergent strategies
• Strategic management in small businesses, multinational corporations, manufacturing, service, and the public sector

1.3 Understand the importance of the environment, resources plus internal and external stakeholders in
analysing, developing and implementing corporate strategy.
• Techniques for analysing the external environment : PEST analysis, Porter’s 5 forces analysis
• Techniques for analysing the internal environment: SWOT analysis, resource audit, skills audit, knowledge audit
• Role and influence of internal and external stakeholders

1.4 Assess the importance of organisational structures, cultures, and power to the development and
implementation of corporate strategy.

• Characteristics of organisational structures: simple, functional, matrix, network, machine and professional bureaucracy
• Centralisation and decentralisation
• Nature of power in organisations: overt, covert and structural
• Sources and indicators of power in organisations
• Organisational culture and the cultural web
• The importance of ethics in the purchasing function

1.5 Propose the development, in conjunction with internal and external stakeholders, of innovative strategies to
grow and expand a business through new product and process development, diversification and differentiation
strategies.
• Generic strategies: price, differentiation and focus
• Directional strategies: consolidate or withdraw from a market, penetrate further into a market, diversify
into other or related product lines
• Methods of developing strategies: internal development, mergers and acquisitions, joint ventures, strategic alliances

1.6 Analyse the availability, development and allocation of resources (financial, human and informational) to
support corporate strategy, together with the systems to monitor and manage their performance.
• The resource-based approach to corporate strategy
• Resources to support key corporate strategies: financial, human, intellectual, physical, informational
• Resource planning
• Methods of controlling resources: planning systems, supervision, performance targets, social and cultural control, market mechanisms, self-control
• Management information as a key resource

1.7 Review the corporate strategy process, evaluate specific corporate strategies and propose changes to improve corporate performance.
• Corporate strategy review and evaluation
• Methods of testing the suitability of corporate strategies
• Methods of testing acceptability of corporate strategies
• Methods of testing feasibility of corporate strategies
• Selection of corporate strategies

2.0 Manage change processes directed towards achieving corporate strategy (Weighting 15%)

2.1 Develop corporate visions, mission statements, plans, communications, rewards and sanctions to engender
commitment to corporate strategy across functions, and at all levels of the organisation.
• Purpose and value of corporate visions and mission statements
• Integration of functional and corporate plans
• Internal and external communications policy and processes
• Rewards and sanctions reinforcing commitment to corporate goals

2.2 Understand the need for alignment between strategy, structure, super-ordinate goals, staff, style, skills and
systems.
• The 7S framework: strategy, structure, super-ordinate goals, staff, style, skills and systems
• Alignment of strategy and structure
• Alignment of strategy with super-ordinate goals, staff, style, skills and systems

2.3 Diagnose resistance to change and strategic drift and how to address them through change management processes.
• Types of strategic change: incremental and transformational, managed and imposed
• Symptoms of strategic drift
• Forces blocking and facilitating change
• Change management styles through education, collaboration, intervention, direction, coercion
• Role of symbolic and political processes in managing change
• Strategic change roles: change agent, middle manager, other organisational member, stakeholder or outsider

3.0 Understand the contribution of strategic supply chain management to corporate strategy (Weighting 15%)

3.1 Analyse the relationships between functional, business and corporate strategies, and the integration of supply chain strategies with corporate and business strategies.
• Relationships between functional, business and corporate strategies
• Integration of supply chain strategies with corporate and business strategies
• Formal and informal processes through which supply chain strategies may be integrated with corporate strategy: involvement in planning processes, role of main board, supportive chief executive

3.2 Understand the contribution of strategic supply chain management to corporate strategy, in particular strategic make, do or buy decisions.
• Contribution of strategic supply chain management to corporate strategy: cost reduction, quality, innovation, delivery
• Contribution of strategic make, do or buy decisions to corporate strategy
• Core competence analysis: core, complementary and residual competences
• Relational competence analysis (Cox)

3.3 Analyse and align organisational structures and processes, in particular cross-functional teams and inter-organisational networks, with strategic supply chain strategies.
• Alignment of organisational structures and processes with strategic supply chain strategies
• Centralised, decentralised and mixed structures

• Future trends in purchasing organisation and processes (Carter and Narasimhan,Van Weele and Rozemeijer)
• Use of cross-functional teams to support supply chain strategies
• Use of inter-organisational networks to achieve strategic supply chain strategies

3.4 Propose innovative supply chain strategies to meet corporate and business targets in particular through better supplier relationships, cost and quality improvement and supply or value chain positioning.
• Benefits and difficulties in developing better supplier relationships
• Methods of cost reduction and cost improvement

• Strategies for quality improvement
• Strategies for repositioning the organisation on the supply or value chain

4.0 Evaluate concepts underlying strategic supply chain management (Weighting 15%)

4.1 Assess the validity of the supply chain concept both in terms of the nature of supply and the chain metaphor
with reference to the academic literature.
• Concepts of supply and supply chain
• Assumptions about the nature of supply (Lamming and Cox 1997)
• Supply chain metaphors: chain, pipeline, network, channel
• Critiques of the supply chain concept (New and Ramsay 1997)
• Types of supply networks and supply chain models: internal supply chains, dyadic supply relationships, inter-business chains, inter-business networks (Harland 1996)
• Arguments and evidence for and against the application of supply chain management

4.2 Analyse internal and external supply chains and the flows across organisational boundaries upstream and
downstream.
• Internal and external supply chains
• Interface and Integrated models (Syson 1992)

• Roles of internal and external customers within supply chains
• Flows across organisational boundaries upstream and downstream
• Problems with forecasting demand accurately within supply chains

4.3 Distinguish the nature of supply chains in different sectors: private (manufacturing, retail, financial) and
public (health and social care, defence, transportation).
• Nature of supply chains in the manufacturing, retail, and financial sectors
• Nature of supply chains in different public sector organisations: health and social care, defence, transportation

4.4 Diagnose drivers of change in global supply chains and propose strategies to address them.
• Nature and impact of globalisation
• Drivers of change in global supply markets: competition, cost reduction, technological advances, speed of new product
• Development, changing customer demand, environmental factors, collaborations and joint ventures, outsourcing
• Impact of drivers of change in global supply markets
• Strategies to address drivers of change in global supply chains

5.0 Assess the idea of the global supply market as a source of competitive advantage (Weighting 15%)

5.1 Assess the validity of the global supply market as a source of competitive advantage.
• The global supply market as a source of competitive advantage
• Arguments for and against local, regional, national and global sourcing
• Regulation of the global supply market by WTO, EU, NAFTA,ASEAN
• Obstacles to trade imposed by national or regional anti-competitive policies
• Cultural barriers to trade in global supply markets

5.2 Evaluate the concept of lean, and the importance of the removal of waste from supply chains,
• The concept of lean
• The seven types of waste
• Critique of the lean approach (New and Ramsay 1997)

5.3 Critique of concepts of value, added value and value chain.
• Concepts of value and added value
• The value chain concept
• Porter’s (1985) value chain model
• Critiques of Porter’s model (Hines (1993)
• Strategies for adding value: repositioning on the value chain, value constellations
• Concepts of an alternative to lean: agile, stockpiling

5.4 Analyse the sources, nature and role of power in supply chains.
• Sources of power in supply chains
• Nature and role of power in supply chains
• Ways in which power may be exercised in supply chains: overt, covert and structural
• Power relationships between large customers and small suppliers in supply chains

5.5 Justify the use of supply chains to deliver ethical and socio-economic outcomes alongside commercial goals.
• Ethical considerations in supply chains
• Types of socio-economic goals pursued through supply chains: environment, employment, equality, small and medium enterprises, prompt payment
• Arguments for and against the use of supply chains to pursue non-commercial goals

6.0 Distinguish and assess various models of supply chain structures and relationships (Weighting 15%)

6.1 Assess the validity of the development of a globalised strategic supply chain model.
• Arguments for and against the existence of a globalised strategic supply chain model
• Contingent approach to strategic supply chain management (Cox and Lamming 1997)
• Network sourcing as a globalised strategic supply chain model (Rich and Hines 1997)

6.2 Compare the characteristics of adversarial and co-operative strategies and analyse their appropriateness in
different circumstances.
• Characteristics of adversarial and co-operative strategies
• Partnership
• Appropriateness of adversarial and co-operative strategies in different circumstances

6.3 Understand and apply competence-based approaches for determining supply chain structures and relationships.
• Hamel and Prahalad’s core competence model
• Core, complementary and residual competences
• The resource based view, especially in relation to replicable and non-replicable competences

6.4 Assess the lean supply model as a prescription for supply relationships.
• Characteristics of the lean supply model (Lamming 1993)
• Partnership and lean supply
• Trust in buyer-supplier relationships
• Appropriateness of lean supply for different organisations

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L6-03 SUPPLY CHAIN MANAGEMENT IN PRACTICE - Work-Based Project (Compulsory Integrative Core Unit)

UNIT CHARACTERISTICS

This unit is designed to enable students to gain a deeper understanding of supply chain theory and practice by examining how particular theories relate to real-world situations or how particular theories offer advantages over others. As the unit is project-based and requires the submission of a report, the student will also develop investigative, analytical and communication skills.

Where students are likely to undertake a work-based project. This can take two alternative forms: either (i) it will seek to test the explanatory power of an existing body of theoretical knowledge against a case example; or (ii) it will seek to test the explanatory power of an existing body of theoretical knowledge to make predictions about the likely outcome of an impending test case.

If it is not possible to undertake a work-based project, then students can opt for a desk-based version. Again, there are two alternative formats: either (i) it will critique an existing theory in order to develop a better explanation of a set of phenomena; or (ii) it will critique a set of competing theories in order to say which has the greater explanatory power.

It is important to remember that the project is driven by theory. Students must identify a theory or set of theories by referring to the learning outcomes of the other two Level 6 units: Leading and Influencing in Purchasing and Strategic Supply Chain Management.

LEARNING OUTCOMES

By the end of this unit students will have achieved the following learning outcomes.

All projects:

• Synthesise conceptual and case study data into a coherent structure
• Diagnose supply chain problems within a case study situation

• Critically evaluate the validity and applicability of a range of possible solutions
• Predict the consequences of each alternative course of action
• Judge the appropriateness of supply chain principles to a particular supply chain context

• Solve problems with reference to supply chain principles
• Propose solutions that will enable the case study organisation to operate more effectively
• Justify the solutions in terms of their feasibility and appropriateness
• Develop a suitable plan for implementing the proposed course of action

Work-based project:

• Diagnose supply chain problems within the test case organisation
• Propose solutions to organisational problems with reference to supply chain theories
• Propose solutions that will enable the organisation to operate more effectively

Desk-based project:

• Judge the appropriateness of supply chain theories to particular organisational contexts
• Predict how supply chain theories can explain certain phenomena
• Critique supply chain theories in relation to each other

THE PROJECT REPORT

The project report has a maximum of 5,000 words and should be presented to a professional standard and format.
The content of the project report should include:

a) Introduction, including the background, rationale and objectives (500 words) Weighting 12%
b) Review of the theory and the development of a set of predictions (1,000 words) Weighting 25%
c) Case analysis, including application and synthesis (3,000 words) Weighting 50%
d) Conclusions and recommendations (500 words) Weighting 13%

It is important that the project report:
• Contains a logical structure divided into sections
• Consists of proper paragraphs
• Is supported by an approved system of references
• Contains a full bibliography
• Has a high standard of English
• Is properly proof-read

LEARNER APPROACH

A study centre-based support tutor will be appointed who will be able to offer general help and advice, and generic report writing and referencing classes or materials should also be offered by the college. It is not envisaged that classes or workshops on specific supply chain subjects are offered.

This is because students will be selecting subject areas that are covered in the other two Level 6 units, Leading and Influencing in Purchasing and Strategic Supply Chain Management. Students are therefore strongly advised to complete these other two units before attempting the project.

Please note that Supply Chain Management in Practice has two separate briefs, one for the case study option and one for the work-based project. Students will have the option of an either/or for the purpose of the CIPS
Graduate Diploma qualification.

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L6-03 SUPPLY CHAIN MANAGEMENT IN PRACTICE (Case Study Option) (Compulsory Core Unit)

UNIT CHARACTERISTICS

This unit is designed to give candidates an examination-based alternative to the work-based project unit.The case study approach facilitates hands-on experience of complex supply chain issues by replicating real-life situations in a controlled environment. It will enable candidates to gain a wider understanding of supply chain issues by examining how a range of concepts and principles can be applied to real-world problems and situations in order to improve best practice.

The unit consists of a substantive case study which corresponds as closely as possible to one which might be met in real life. It is designed to test the ability of the candidate to analyse supply chain situations and to write clearly and effectively on them.The case study is circulated prior to the examination, which enables candidates to analyse the case study situation, conduct supplementary investigations and prepare appropriate solutions in advance.

Assessment is by means of a three-hour, open-book examination with unseen questions.

LEARNING OUTCOMES

On completion of this unit, students will have achieved the following learning outcomes.
• Synthesise conceptual and case study data into a coherent structure
• Diagnose supply chain problems within a case study situation
• Evaluate the validity and applicability of a range of possible solutions
• Predict the consequences of each alternative course of action
• Judge the appropriateness of supply chain principles to a particular supply chain context
• Solve problems with reference to supply chain principles
• Propose solutions that will enable the case study organisation to operate more effectively
• Justify the solutions in terms of their feasibility and appropriateness
• Develop a suitable plan for implementing the proposed course of action

DELIVERY OF THE UNIT

The role of the college provider is likely to be as a facilitator. Classes should focus on case analysis techniques and practice based around past papers, as well as general help and advice. It is not envisaged that classes or workshops on specific supply chain subjects are offered for this unit.This is because examination questions are based on the content of the other two Level 6 units: Leading and Influencing in Purchasing and Strategic Supply Chain Management.

SUGGESTED CASE ANALYSIS TECHNIQUE

Step One: Determine the problem
The case should be read several times, starting with a quick review of the overall situation and culminating in a detailed identification of the problems involved and a thorough understanding of the organisational context.The important aspect of this step is to determine whether a particular occurrence is a problem or whether it is a symptom of the real problem. Determination of problems invariably requires delving beneath the surface of the case to uncover factors that are relevant but not obvious in a casual review.

Step Two: Determine alternative courses of action
During this step there is a great deal of brainstorming in an attempt to account for as many alternatives as possible. Obviously not all alternatives will be equally viable but it is important not to arbitrarily discard any at this stage.

Step Three: Evaluate alternative courses of action
After identifying alternative courses of action, it is necessary to evaluate the strengths and weaknesses of each alternative. Some will obviously have more merits than others but the main point is to determine the alternative that addresses the case problem with respect to both the short term and the long term. It is critical that the consequences of each alternative are considered because what may appear to be an obvious course of action now, may lead to dysfunctional effects in the future.

Step Four: Select and justify alternatives
After weighing the pros and cons of each alternative, it is then necessary to select the alternative that has emerged as the most attractive course of action for dealing with the particular problems at hand. It is important that factual ammunition is obtained that will enable a clear justification for the choice that is made

Step Five: Implement selected alternative
The case analysis process is not concluded until a suitable plan has been developed for implementing the selected course of action. Improper implementation will negate the time and effort spent up to this point.

THE CASE STUDY EXAMINATION

The case study assessment is via a three-hour open-book examination.The examination questions will draw on material from the other two Level 6 units: Leading and Influencing in Purchasing, and Strategic Supply Chain Management. Furthermore, the content of the Level 5 units is assumed to be underpinning knowledge. Candidates are therefore strongly advised to complete all other units before attempting the case study.

The examination is testing the ability of the candidate to apply relevant principles to address particular circumstances and solve specific problems. Please note that Supply Chain Management in Practice has two separate briefs, one for the case study option and one for the work-based project. Students will have the option of an either/or for the purpose of the CIPS Graduate Diploma qualification.

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L6-10 LEGAL ASPECTS IN PURCHASING AND SUPPLY (Optional Unit)

UNIT CHARACTERISTICS

This unit seeks to familiarise students with the law that regulates the purchasing function. The purchasing and supply professional needs to understand where legal issues may impact on the organisation and when to take action to avoid risk.They should also be able to recognise situations when the appropriate action would be to seek legal expertise.

The content provides an essential overview of different legal issues with particular emphasis on contractual issues and sale of goods legislation. Other areas covered include the legal aspects of outsourcing, competition law, intellectual property law, electronic trading and international trade. It is designed to assist professionals who work in either the public or private sector.

LEARNING OUTCOMES

On completion of this unit, students will be able to:

• Analyse the process of contract formation and assess the validity of a range of contract clauses.
• Distinguish between the statutes relating to sale of goods and the supply of goods and services in specific circumstances and apply those rules to given practical situations.
• Judge when it would be appropriate for legal action to be taken against a third party.
• Diagnose the impact of specific UK and EU regulations on the purchasing and supply function.
• Examine those intellectual property rights that are registerable and those that are un-registerable.
• Examine the impact of eTrading on traditional contract law.
• Predict the legal issues that need to be addressed when entering into an international contract for the
purchase of goods.

LEARNING OBJECTIVES AND INDICATIVE CONTENT

1.0 Contract law. (Weighting 35%)

1.1 Develop knowledge of the process of contract formation to be able to subject this to analysis of the problems of reconciling the buyer’s terms and conditions with those of the seller when faced with the battle of the forms.

• Offer and acceptance
• Consideration
• Intention to create legal relations
• Battle of the forms
• When a contract is formed in cyberspace

1.2 Distinguish between expressed and implied terms and apply the principles relating to specific types of contractual clauses in a practical setting and in particular in relation to the sale and supply of goods and services.
• Expressed and implied terms
• Conditions, warranties and innominate terms.
• Exclusion and limitation clauses
• Force Majeure clauses
• Penalty and liquidated damages clauses
• Retention of title clauses.

1.3 Determine the factors that may vitiate consent to a contract.
• Duress
• Repudiation
• Misrepresentation
• Mistake
• Undue influence

1.4 Critically evaluate the different common law methods by which a contract is terminated, and the remedies available to either party should a contract be breached.
• Performance
• Frustration
• Agreement including variation of a contract
• Breach
• Assessment of unliquidated damages

1.5 Critically evaluate the alternative methods of resolving commercial disputes.
• Litigation
• Arbitration
• Mediation
• Conciliation
• Adjudication
• International arbitration

2.0 Sale and supply of goods and services, including third party rights and obligations. (Weighting 30%)

2.1 Distinguish between the statutes relating to the sale of goods and the supply of goods and services in specific circumstances and apply those rules to given practical situations.
• Sale of Goods Act 1979 (as amended)
• Supply of Goods and Services Act 1982
• Contracts for the sale of goods
• Contracts for work and materials

2.2 Recognise the protection provided by implied conditions and warranties contained in the Sale of Goods Act 1979 (as amended) and the Supply of Goods and Services Act (1982).
• S12 – S15 Sale of Goods Act
• Part one and Part two Supply of Goods and Services Act

2.3 Differentiate between ownership, risk, delivery and acceptance of goods and examine when each passes
under the Sale of Goods Act 1979.
• S16 - S20 Sale of Goods Act
• S30 Delivery
• S31 Instalment deliveries
• S34 - S35 Acceptance of goods

2.4 Analyse the rules relating to the passing of title by a non-owner under legislation and the exceptions to these
rules.
• The Nemo dat rule
• Romalpa clauses
• Estoppel
• Sale by a merchantile agent
• Sale under a voidable title
• Sale by a seller in possession
• Sale by a buyer in possession
• Sale of a motor vehicle on hire purchase
• Sale under a court order

2.5 Evaluate the various methods for circumventing the problems created by privity of contract.
• Collateral contracts and warranties
• Negligence
• Indemnity clauses
• Agency arrangements
• Consumer Protection Act 1987 part one
• Contract (Rights of Third Parties) Act 1999
• Assignment and novation of rights and obligations to a third party

2.6 Test the legal principles that apply to agency and bailment in a given situation.
• Creation of agency
• Rights and duties of agents and principals

• Relationship of principal /agent with third parties
• Responsibilities that arise from a bailment relationship.

3.0 Specific UK and EU Regulations affecting the purchasing function. (Weighting 25%)

3.1 Determine the collateral legal obligations that arise from a tendering process (including E-Tendering) and distinguish between those obligations that arise before the tender is awarded and those that arise after the tender is awarded.
• Legal status of the tender bid
• Open and closed tenders
• Duty to consider all compliant tenders
• Equal and timely access to information
• Fair treatment and good faith
• Post award negotiations
• Letters of intent
• Avoidance of the battle of the forms

3.2 Critically assess the responsibilities of public procurement staff resulting from the EU Public Sector Directive 2004/18/EC (including the Utilities Directive).
• Thresholds, time limits, advertising
• Award criteria
• Right to feedback
• Framework agreements
• Open, restricted, negotiated and competitive dialogue procedure
• E-procurement mechanisms
• Central purchasing bodies
• Social and environmental considerations

3.3 Critically evaluate the impact of the Freedom of Information Act 2000 on the procurement function.
• Right to request information
• Absolute exemptions
• Qualified exemptions
• Partial disclosure

3.4 Predict whether outsourcing a service or operation is compliant with legal requirements.
• TUPE
• Consultation
• Redundancy law
• Alternatives to redundancy

3.5 Examine the laws that regulate anti-competitive behaviour and abuse of a dominant market position in both the UK and the EU.
• Competition Act 1998
• Article 81 EC Treaty
• Article 82 EC Treaty
• Enterprise Act 2002

4.0 Intellectual property rights and international trade. (Weighting 10%)

4.1 Distinguish between those intellectual property rights that are registerable and those that are unregisterable.
• Patents
• Trade marks
• Design rights
• Copyright
• IPR protection through contractual clauses

4.2 Explain and apply the common law rules relating to confidentiality and the protection of trade secrets in English law.
• Tort of passing-off
• Breach of confidence
• Restraint of trade clauses

4.3 Predict the legal issues that need to be addressed when entering into an international contract for the purchase of goods.
• Incoterms including CIF, FOB, EXW, DDP and FAS.
• Bill of Lading
• Contracts of Carriage
• Jurisdiction
• The Uniform Law on International Sales Act 1967 (Hague Convention)

4.4 Propose the most appropriate means of payment and explain the appropriate documentation involved in a transaction for the sale of goods in an international context.
• Letters of credit (or documentary credits)
• Shipping documents

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L6-11 ADVANCED PROJECT MANAGEMENT (Optional Unit)

UNIT CHARACTERISTICS

Projects can range from construction to refurbishment of premises, introduction of new information technology systems to outsourcing/offshoring of work previously tackled in-house, and re-design or re-engineering of products, services and processes.At the same time projects should align and contribute to the overall strategic
objectives of the organisation.

This unit will help students to develop a knowledge of the principles, practices and techniques vital to the leadership and commercial management of projects, with a particular emphasis on the role of the purchasing and supply chain professional.

Supply chain specialists in both the private and public sectors should have a pivotal role in the initiation, planning
and control of projects, and in the development and on-going management of resulting contracts, serving suppliers and customers alike.

Project management is concerned with achieving objectives relating to quality, cost and time. Supply chain specialists have a high degree of involvement in developing the procurement strategy for contracts with suppliers, and with the operational activities of monitoring and administering supplier performance.

Students need to understand the architecture of project-orientated organisations.The focus is subsequently directed towards roles such as project leader, project-team members, project-coordinator/coach and project-mentor, from the project management point of view.

LEARNING OUTCOMES

On completion of this unit, students will be able to:

• Critically evaluate organisational and management issues concerned with project management, including the power and influence of stakeholders.
• Assess and justify the approach to managing projects using a variety of different methodologies.
• Develop and systematically apply project management concepts, models, tools and techniques, to derive solutions for a range of practical project management challenges.
• Evaluate the key success factors in successful project management in the context of today’s business environment.
• Initiate, plan and implement projects in purchasing, logistics and supply chain management.
• Evaluate project management processes and their relationship to current strategic practice.

LEARNING OBJECTIVES AND INDICATIVE CONTENT:

1.0 Identify and evaluate organisational and management issues concerned with project management, including the power and influence of stakeholders. (Weighting 10%)

1.1 Explore various definitions of a ‘Project’ and seek to understand similarities and differences.
• Project Management ‘Body of Knowledge’ definition
• Burke (1999) definition
• Meredith and Mantel (2003) definition
• Maylor (2003) definition
• Seek a common view of ‘what is a Project?’

1.2 Summarise the key distinctions between leadership and management relating to projects.
• Bennis and Nanus (1985) efficiency and effectiveness
• Kotter (1990) leadership versus management
• Mintzberg (1977) ten roles of leadership

1.3 Explore why organisations undertake projects.
• Rapid change in the external environment, products, processes, technology, markets
• Globalisation
• Impatient customers
• More need for ‘unique and customised’ solutions using a project approach

1.4 Assess the different sorts of activities which can be implemented as projects, and distinguish between ‘hard
and soft’ projects.
• New product development
• New process development
• Re-design of products and processes
• Technology development
• People-based approaches to culture, structure, training and development

1.5 Analyse the external environment within which a project is undertaken.
• PEST factors
• Stakeholders
• Resource constraints
• Time constraints
• Overall strategy of the organisation

1.6 Critically evaluate the concept of power and influence relating to a project.
• Stakeholder assessment
• Stakeholder mapping, Mendelow (1991)
• Changing stakeholder positioning over the life of a project

1.7 Identify, map and assess project stakeholders, and how their power and influence may change over the duration of a purchasing and logistics project.
• Characteristics of a purchasing and logistics project
• Various types of purchasing and logistics projects
• Stakeholder assessment of purchasing and logistics projects
• Stakeholder mapping of purchasing and logistics projects, Mendelow (1991)
• Changing stakeholder positions over the life of a purchasing and logistics project

2.0 Assess and justify the approach to managing projects using a variety of methodologies. (Weighting 25%)

2.1 Critically evaluate a variety of methodologies used in approaches to projects.
• Projects as a conversion process, Maylor (2003)
• Projects as low volume/high variety processes, Slack et al (2004)
• Meredith and Mantel (2003)

2.2 Describe the approach of the project life cycle, and its various phases.
• 3-stage PLC ,Meredith and Mantel (2003)
• 4-stage PLC, Maylor (2003)
• 5-stage PLC,Weiss and Wysocki (1992)
• 7S Project Approach, McKinsey, adapted Maylor (2003)

2.3 Link the PLC to a variety of problem solving processes.
• 5-stage problem solving approach (PSA)
• 6-stage PSA
• 8-stage PSA
• Linking PLC and PSA,The BT Way (1988)

2.4 Critically evaluate Six-Sigma, DMAIC, PRINCE2, Critical Chains and other contemporary project approaches.
• Six-sigma methodology, General Electric and Motorola
• DMAIC, product/service improvement
• PRINCE2, Projects in Controlled Environments
• Critical Chain, Goldratt (1997)

2.5 Synthesise various approaches and be prepared to justify an approach which is suitable for purchasing and
logistics projects in various industry sectors.
• Explore the pros and cons of each approach
• Examine each approach in the context of different industry/market conditions
• Assess each approach in the context of a purchasing and logistics project

3.0 Develop and apply project management concepts, models, tools and techniques to create solutions to a
range of practical project management problems. (Weighting 40%)

3.1 Develop a project plan, working through the various phases of a project, and the activities to be considered in each phase.

3.1.1 Initiation and definition State the problem
• Identify project goals
• List the objectives
• Determine preliminary resources
• Identify assumptions and risks

3.1.2 Planning
• Identify activities
• Estimate time and cost
• Sequence activities
• Identify critical activities
• Write project proposal

3.1.3 Organisation and implementation
• Determine personnel needs
• Recruit project manager
• Recruit project team
• Organise team
• Assign work packages

3.1.4 Measurement, monitoring, control and improvement
• Define management style
• Establish control tools
• Prepare status report
• Review project schedule
• Issue change orders

3.1.5 Closure
• Obtain client acceptance
• Install deliverables
• Document the project
• Issue final report

3.1.6 Review, Evaluation and Learning
• Conduct project audit
• Lessons Learnt
• Communicate the review, evaluation and learning

3.2 Appraise the range of tools and techniques available to the project team in terms of appropriateness, selection and implementation.
• Appropriateness. Pick the right tools for the task

• Selection. Be aware of the limitations of tools and techniques
• Implementation. Be able to use the tools correctly

3.3 Utilise a range of tools and techniques to assist in robust and systematic data collection, analysis of options and decision-making.
• SIPOC
• 7 tools of quality control
• Financial appraisal
• Voice of the customer
• Quality function deployment
• Project initiation document (PID)
• Moments of truth
• Work breakdown structure
• Critical path analysis. Network diagrams
• Risk analysis and assessment. Mitigating risks
• Risk/Impact matrix
• Suitability/feasibility/vulnerability

3.4 Demonstrate the approach of systems thinking and process focus, using process mapping techniques and
procedures.
• Understand end-to-end processes
• Flow-chart the process
• Understand the interfaces. Swim lanes
• Critical Chains software

3.5 Select and use a range of project management concepts, models, tools and techniques, which are relevant to purchasing and logistics projects.
• Assess the characteristics of purchasing and logistics projects
• Apply concepts to purchasing and logistics projects
• Apply models to purchasing and logistics projects
• Apply tools and techniques to purchasing and logistics projects.
• Apply project software to purchasing and logistics projects

4.0 Evaluate the key factors in successful project management in the context of today’s business environment.
(Weighting 10%)

4.1 Evaluate the concept of the Iron Triangle (quality, cost, time)
• quality, cost, time. Project objectives, Slack et al (2004)
• The balance between QCT. Contingent approaches

4.2 Contrast the Iron Triangle and other contemporary approaches
• Critical chains, Goldratt (1997) crashing project float

4.3 Recognise the importance of the human aspects of project management, including leadership, management, teamwork and communication.
• The role and skills of the project manager. Maylor, Meredith and Mantel, Lock
• Leading and managing projects. Managing in Four Directions, Buchanan and Boddy (1992)
• Teamwork, Belbin (1981), Body of Knowledge (2000)

4.4 Apply the following concepts to purchasing and logistics projects:
• Greer (1999) Elements of project success
• Greer (1999) Ten ways that projects fail
• Other contemporary approaches to successful
projects,Van Aken (1997), Grundy (2001), Gardiner (2005)

5.0 Evaluate project management processes and their relationship to current strategic practice. (Weighting15%)

5.1 Critically assess the architecture of project-orientated organisations: structures, cultures and project
organisation and management.
• Function structures
• Matrix structures
• Process structures
• Culture and project approaches, organisational readiness, Hammer and Stanton (1995)

5.2 Utilise the Buttrick(2002), Project Management Maturity Matrix, and relate to contemporary project environments and issues.

• Maturity of organisations towards Project Management
• Unaware - sophisticated

5.3 Critically evaluate the use of the concept of project excellence (Westerveld 2002) and how it links to the
principles of the business excellence model.
• The business excellence model
• The project excellence model,Westerveld (2002) and different approaches to project organisation and management

5.4 Critically evaluate and apply the principles of knowledge management, knowledge communities, and organisational learning, and demonstrate how this links to the successful implementation of strategy through projects, particularly in the purchasing and logistics areas.

• Knowledge management and links to project management – the role of ICT and special interest groups in capturing and disseminating good practice.
• Knowledge communities and knowledge creation, Nonanka and Tageuchi (1995)

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L6-12 FINANCE FOR PURCHASERS (Optional Unit)

UNIT CHARACTERISTICS

Purchasing managers are responsible for specific activities and processes, which can contribute to achieving corporate strategic goals.

This unit is designed to provide students with an understanding of strategic aspects of finance in relation to the decision-making process and detailed analysis necessary to deliver effective procurement. Students will understand how to navigate around the world of finance in an effective and efficient manner so they can identify the where, what, how, and when that a professional purchaser needs, in order to use and interpret the key financial models and tools required to deliver robust and sustainable procurement solutions.

Students will be expected to propose a range of tried and tested models, as well as innovative tools and techniques, which will allow key business stakeholders to interact and contribute towards developing and exploiting opportunities to grow and expand a business, through new supply arrangements, channels to market, diversification, outsourcing and differentiation strategies.

It will help students to develop an understanding of the terminology and different sectors within the financial and
accounting profession which allows an engagement and exchange that will guide and benefit the decision-making
process in an efficient manner.

LEARNING OUTCOMES

On completion of this unit, students will be able to:
• Evaluate the appropriate cost and benefit models for a wide variety of scenarios
• Evaluate and assess reports that have their origins in finance and accounting and relate them back to the
business
• Compare the value and relevance of financial information in the context of the decision-making process for evaluation and selection of supplier and service providers
• Use the wide variety of finance and accounting terminology
• Propose financial management tools and techniques and be able to apply these in relation to the total procurement and supply chain process

• Evaluate the elements that make up a complex business case for a capital acquisition, including downstream maintenance, service provisions for the life of the acquisition, and disposal
• Appraise and assess the non-financial factors that are interrelated with financial modelling and analysis, and predict their impact

LEARNING OBJECTIVES AND INDICATIVE CONTENT

1.0 Assessing different financial management tools (Weighting 10%)

1.1 Evaluate the difference between management accounting and financial accounting, in particular the
different roles and responsibilities of:
• Management accountants
• Company secretaries
• Financial accountants

• Cost accountants

1.2 Assess the importance corporate governance, regulation and corporate social responsibility in relation to economic performance and value creation including
• Examples of CSR in practice
• Importance of CSR to customer satisfaction
• Contemporary developments in the area of CSR
• Regulatory mechanisms – EU Directives for Procurement

1.3 Review the terminology associated with finance and accounting including:
• Accounting standards and their role
• International issues in accounting standards
• Effects of the convergence of accounting standards and practices

1.4 Select which goods and services can be categorised, by definition, to be capital and which will be expense items
• Capital items – e.g. Plant and equipment, building vehicles, high value office equipment
• Expense items – e.g. Cleaning materials, stationery, office suppliers, consumables, cleaning services

2.0 Evaluate the financial and non-financial factors in decision-making (Weighting 20%)

2.1 Assess key financial statements to inform decisions.
• Profit and loss
• Balance sheet
• Cash flow statement
• Five-year summary

2.2 Use descriptive and inferential statistics.
• Definitions
• How and when to use them
• Assess the outcomes of analysis

2.3 Determine alternative pricing strategies and assess their impact upon transfer pricing within an organisation.
• Market price
• Total cost
• Variable cost
• Negotiated price

2.4 Use contribution analysis and marginal costing to evaluate a range of decision-making situations.
• Cost-volume-profit analysis and break-even
• Make or buy decisions
• Deciding on product range
• The analysis, and most profitable use, of limiting factors

3.0 Assess and evaluate the various sources of finance available for business and major capital acquisitions
and projects (Weighting 10%)

3.1 Plan for the use of the different types of expenditure.
• CapEx
• OpEx
• Public expenditure

3.2 Evaluate and select a range of sources of finance.
• Retained profit
• Controlling working capital
• Sale of assets
• Factoring
• Overdrafts
• Grants
• Venture capital
• Debentures
• Share issues
• Bank loans - medium or long term
• Leasing
• Public borrowing for Public Sector (Bank of England and HM Treasury)

4.0 Developing and managing budget and cost management control (Weighting 25%)

4.1 Developing and managing budgets to achieve target performance.
• Recognise the importance of setting and controlling budgets to achieve performance targets
• Describe the importance of setting a realistic budget

• Financial
• Motivational
• SMART objectives
• Create and present a budget to support a business plan

4.2 Assess a variety of resource requirements and uses for purchasing activities
• Time
• People
• Money

4.3 Communicate findings and recommendations effectively, with finance professionals and other parts of a business
• Budget presentation
• Presenting the business case

4.4 To develop process and plans for managing costs.
• Estimating
• Controls
• Review stages
• Contingency planning
• Who should be involved
• Tools and techniques

4.4 To manage the cost base of the purchasing function.
• Describe the principles of cost management
• Planning
• Co-ordination
• Control
• Reporting
• Effective programme and project management

5.0 Deliver effective capital purchasing plans (Weighting 20%)

5.1 Evaluate the nature and importance of investment decision-making for home and international markets, using a range of methods.
• Accounting rate of return (ARR)
• Payback period (PP)
• Discounted cash flow (DCF)
• Net present value (NPV)
• Internal rate of return (IRR)
• Opportunity costs of capital

5.2 Assess the impact of external factors upon the decision-making process and how these might be factored into the modelling and ultimate business case.
• Inflation
• Transfer pricing
• Customs and Excise
• Taxation
• Exchange rates and currency management
• Social and political factors
• CSR
• Environmental factors

5.3 Evaluate the most appropriate decision-making tools for projects across a variety of sectors.
• Whole life costing
• Target costing
• Tear-down analysis
• Value engineering

5.4 Consider the roles of the functions of an organisation in the reduction and control of costs.
• Design and engineering
• Purchasing
• Marketing
• Distribution

6.0 Manage financial risk in procurement (Weighting 15%)

6.1 Assess the different types of risk and their impact on each of the following:
• Suppliers
• Own organisation
• Customers

6.2 Carry out a financial appraisal and risk analysis of suppliers, own organisation, and customers, using a
range of financial performance ratios:
• Profitability ratios
• Efficiency ratios
• Liquidity ratios
• Investment ratios

6.3 Evaluate and select financial risk management options
• Debt
• Futures and derivatives
• Insurance

L6-13 STRATEGIC PUBLIC SECTOR PROGRAMME MANAGEMENT (Optional Unit)

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