Diploma In Procurement And Supply - CIPS

Diploma in procurementand supplyUnit content guideLeading global excellence in procurement and supply

Diploma in procurement and supplyIntroductionThe Chartered Institute of Procurement & Supplyqualifications ladder has five levels of awards. Fordetails of the entry requirements for each level,please refer to www.cips.orgThe CIPS Diploma in procurement and supply is ahigher level qualification. It has been accredited bythe Office of Qualifications and ExaminationsRegulator (Ofqual) in the UK and appears on theRegister of Regulated Qualifications. Please refer tohttp://register.ofqual.gov.ukThe Diploma in procurement and supply consists offive compulsory units. Assessment for each unit isby examination. If you wish to study for theDiploma, the Total Qualification Time (TQT) will be600 hours. The TQT indicates the overall number ofguided learning hours, additional self-study andassessment time that is required. It is expected thatyou will undertake 50 guided learning hours perunit, i.e. a total of 250 guided learning hours. Thedefinition of guided learning hours is: ‘A measure ofthe amount of input time required to achieve thequalification. This includes lectures, tutorials andpracticals, as well as supervised study in, forexample, learning centres and workshops. If youstudy at a CIPS study centre, you will find that theymay vary on the exact format for delivery of thestudy programme.Additionally, we would recommend that you alsocommit to at least 70 hours of self-study, per unit,including wider reading of the subject areas andrevision to give yourself the best preparation forsuccessfully achieving the certificate, the 3 hourassessment time, per unit, will be included withinthis.All the units in CIPS qualifications are assessed byan examination.We hold three examination series each yeararound the world, with an additional two seriescurrently available in some countries. You can findmore information on assessment, exam timetables,a list of exam centres and fees, exam resources andexemplar exam paper requirements atcips.org/qualificationsBelow is a list of the units, their qualificationframework reference numbers and CIPS referencecode which is used to identify the unit forassessment purposes.Diploma in procurement and supplyQualification number: 600/6858/9Unit Title:Contexts of procurement and supplyBusiness needs in procurement and supplySourcing in procurement and supplyNegotiating and contracting in procurement and supplyManaging contracts and relationships in procurement and supply02CIPS ReferenceD1D2D3D4D5StudentZoneMake the most of yourvaluable study time byaccessing this dedicatedresource to help you onyour learning journeywww.cips.org/student-zone

Diploma in procurement and supplyGlossary ofqualification termsAssessmentAssessment is the way in which CIPS willmeasure whether a learner is able todemonstrate their knowledge, understandingand be able to apply their learning in a givensituation.Assessment criteriaAssessment criteria specifies the standard that alearner is expected to meet to demonstrate thatthe learning outcomes of a unit have beenachieved.Business essentialsThese are commonly occurring themes throughthe qualifications, that do not warrant a unit intheir own right, but that are importantholistically to the learning undertaken withinthe qualifications: leadership business finance information technology management strategy legislationCommand wordsCommand words are generally verbs that areused to indicate the level of learningundertaken. They tend to be hierarchical innature. For example, when studying towardsthe diploma a command word could be ‘explain’or ‘assess’, whereas a command word for theprofessional diploma might be ‘critically assess’,or ‘critically evaluate’. These words reflect thelevel of complexity of your learning andultimately your assessment at that level.Compulsory unitsThese are units that constitute necessaryknowledge and understanding to fulfil learningrequirements for CIPS qualifications.Entry levelThis is the point at which you will enter the CIPSqualifications ladder. This entry will be based onpre-requisite knowledge, understanding andexperience.ExemptionsLearners who have successfully completedother relevant qualifications may apply forexemptions from equivalent CIPS units in theirprogramme of study. To earn an exemptionfrom a qualification or specific units within CIPSqualifications you should contact CIPS or seewww.cips.orgPlease note that gaining an exemption, does notmean that you gain an exit award at that level,rather that you bypass that level of learningbecause of equivalent learning andachievement gained elsewhere.03

Diploma in procurement and supplyExit awardAn exit award is in essence a qualification. CIPShas five exit awards in total Certificate in procurement and supplyoperations Advanced certificate in procurement andsupply operations Diploma in procurement and supply Advanced diploma in procurement and supply Professional diploma in procurement andsupplyFor each qualification you successfully complete,you will receive a certificate of achievementconfirming your exit award.Indicative contentThe indicative content is an indication of theknowledge required in order to fulfil theassessment criteria to achieve the learningoutcome.Learning outcomeThe learning outcome within a unit sets outwhat a learner is expected to know, understand,or be able to do as a result of a process oflearning.Optional unitsThese are units where you have choices tospecialise in an area of interest. There is anopportunity to select two optional units atadvanced diploma and two optional units atprofessional diploma.Qualifications ladderThis ladder represents the hierarchical natureof CIPS qualifications. The ladder has five stepswithin it. It starts with a Certificate through tothe Professional Diploma. Each step of the04ladder is represented by a qualification with an‘exit award’.RegulatorsCIPS is recognised as an awarding body by Ofqualin England, Ofqual regulates qualifications,examinations and assessments. CIPS is alsorecognised by Qualifications Wales in Wales andCCEA in Northern Ireland. It is their duty toensure all learners get the results they deserveand that their qualifications are correctly valuedand understood, now and in the future.UnitA segment of learning within the CIPSqualifications. Each unit is individual, has itsown title, rationale and content. A unit will alsohave an assessment attached to it in order todemonstrate achievement and conclusion ofthe learning.Unit purpose and aimsUnit aims provide additional information aboutthe unit; a succinct statement summarises thelearning outcomes of the unit.Each unit has four to five learning outcomeswhich outline what will be achieved as a resultof learning in that particular unit.WeightingsEach unit has a number of learning outcomesthat are equally weighted for example:If a unit that has four learning outcomestotalling 100%, each learning outcome will beequally weighted ie 25%(100% divided by 4 25%).This weighting indicates the level of input andlearning required by the study centre and thelearner in order to complete the subject area.

Diploma in procurement and supplyDefinition of additionalterms used in this guideERP Enterprise Resource PlanningEnterprise Resource Planning (ERP) System: Aclass of software for planning and managing"enterprise-wide" the resources needed to takecustomer orders, ship them, account for themand replenish all needed goods according tocustomer orders and forecasts. Often includeselectronic commerce with suppliers. Examplesof ERP systems are the application suites fromSAP, Oracle, PeopleSoft and others.FIDIC Fédération Internationale DesIngénieurs-Conseils (French for) InternationalFederation of Consulting EngineersFIDIC is the International Federation ofConsulting Engineers known for its range ofstandard conditions of contract for theconstruction, plant and design industries. TheFIDIC forms are the most widely used forms ofcontract internationally, including by the WorldBank for its projects.IMechIE Institution of MechanicalIncorporated EngineersThe Institution of Mechanical IncorporatedEngineers and the Institution of Engineeringand Technology issue model forms and guidesfor the industry. These include forms of tender,agreement and performance bonds.IncotermsInternational commercial terms of saledeveloped by the International Chamber ofCommerce to define sellers’ and buyers’responsibilities.KPIs Key performance IndicatorsAlso known as key success indicators. They arefinancial and non-financial metrics used toreflect the critical success factors of anorganisation or contract. They are used inbusiness intelligence to assess the present stateof business or a contract and to prescribe thenext course of action.Macro economicsMajor external and uncontrollable factors thatinfluence an organisation's decision making,and affect its performance and strategies. Thesefactors include the economic, demographics,legal, political, and social conditions,technological changes, and natural forces.Factors that influence a company's or product'sdevelopment but that are outside thecompany's control. For example, the macroenvironment could include competitors,changes in interest rates, changes in culturaltastes, or government regulations.05

Diploma in procurement and supplyMicro economicsFactors or elements in an organisation'simmediate area of operations that affect itsperformance and decision-making freedom.These factors include competitors, customers,distribution channels, suppliers, and the generalpublic.NEC The new engineering contractThe New Engineering Contract of which theEngineering and Construction Contract (ECC)forms a part, is a suite of standard formconstruction contracts created by theInstitution of Civil Engineers.Not for profit or third sectorThese are voluntary and communityorganisations such as charities and also socialenterprises (social enterprises have social orenvironmental purposes as central to what theydo). They are profit making but rather thanmaximising shareholder value their main aim isto generate profit to further their social andenvironmental goals.06P2P Purchase to payRefers to the business process that coveractivities of requesting, purchasing, receiving,paying for and accounting for goods andservices.SMEs Small and medium sized enterprisesA small firm is an independent business,managed by its owner or part-owners and withless than 50 employees. A medium sizedcompany must meet thresholds for annualturnover and have fewer than 250 employees.STEEPLE Social, Technological, Economic,Environmental, Political, Legal, Ethical (orInternational)An analytical tool extending PEST to alsoinclude, Environmental, Legal and Ethical (orInternational) factors that can impact onprocurement and supply.The Vienna ConventionThe United Nations Convention on Contractsfor the International Sale of Goods provides auniform text of law for international sales ofgoods.