Professional Diploma In Procurement And Supply

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Professional diploma inprocurement and supplyUnit content guideLeading global excellence in procurement and supply

Professional diploma in procurement and supplyIntroductionThe Chartered Institute of Purchasing & Supply qualifications ladder has five levels of awards. Fordetails of the entry requirements for each level, please refer to www.cips.org. The CIPS Professionaldiploma in procurement and supply is a higher level qualification. It has been accredited by theOffice of Qualifications and Examinations Regulator (Ofqual) in the UK and appears on the Registerof Regulated Qualifications. Please refer to http://register.ofqual.gov.ukThe Professional diploma in procurement and supply consists of three compulsory units.Additionally you must choose two optional units from a choice of three. Assessment for eachunit is by examination.If you wish to study for this Professional diploma it is expected that you will undertake 50 guidedlearning hours per unit, ie a total of 250 guided hours. The definition of guided learning hours is:“A measure of the amount of input time required to achieve the qualification. This includes lectures,tutorials and practicals, as well as supervised study in, for example, learning centres andworkshops.”If you study at a CIPS study centre, you will find that they may vary on the exact format for deliveryof the study programme. Additionally, we recommend that you also commit 70 hours per unit ofself-study, including wider reading of the subject areas and revision to give yourself the best chanceof successful completion of the Professional diploma.Below is a list of the units, their qualification framework reference numbers and CIPS reference codewhich is used to identify the unit for examination purposes.PROFESSIONAL DIPLOMA IN PROCUREMENT AND SUPPLYQualification number: 600/7657/4Unit Title:CIPS ReferenceCOMPULSORY UNITSLeadership in procurement and supplyPD1Corporate and business strategyPD2Strategic supply chain managementPD3OPTIONAL UNITSSupply chain diligencePD4Programme and project managementPD5Legal aspects in procurement and supply (UK)PD602

Professional diploma in procurement and supplyGlossary ofqualification termsAssessmentAssessment is the way in which CIPS willmeasure whether a student is able todemonstrate their knowledge, understandingand be able to apply their learning in any givensituation. An assessment could be anexamination, assignment or project.Assessment criteriaAssessment criteria specifies the standard a learneris expected to meet to demonstrate that thelearning outcomes of a unit have been achieved.Business essentialsThese are commonly occurring themes throughthe CIPS qualifications, that do not warrant aunit in their own right, but that are importantholistically to the learning undertaken withinCIPS qualifications: business finance leadership information technology management legislation strategyCommand wordsCommand words are generally verbs that areused to indicate the level of learningundertaken. They tend to be hierarchical innature. For example, when studying towards acertificate command words could be ‘describe’or ‘define’, whereas a command word for theprofessional diploma might be ‘critically assess’,or ‘critically evaluate’.These words reflect the level of complexity ofyour learning and ultimately your assessment atthat level.Compulsory unitsThese are units that you must take eitherthrough CIPS or an alternative awarding bodythat constitute necessary knowledge andunderstanding to fulfil learning requirements forCIPS qualifications.If you have undertaken equivalent learning orhave equivalent related experience to thecompulsory units from somewhere else youmay either be exempt from learning, or gainaccreditation for prior learning or experience.Entry levelThis is the point at which you will enter the CIPSqualifications ladder. This entry will be basedupon pre-requisite knowledge, understandingand experience.ExemptionsStudents who have successfully completedcertain post-school studies may apply forexemptions from equivalent courses in theirprogramme of study. To earn an exemption froma qualification or specific units within CIPSqualifications you should contact us on 44(0)1780 756777 or see www.cips.orgPlease note that gaining an exemption, does notmean that you gain an exit award at that level,03

Professional diploma in procurement and supplyrather that you bypass that level of learningbecause of equivalent learning and achievementgained elsewhere.Exit 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 andsupply Professional diploma in procurement andsupplyFor each qualification you study, you will receivea certificate of achievement confirming your exitaward.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 out whata learner is expected to know, understand, or beable to do as a result of a process of learning.OfqualCIPS is an awarding body recognised by Ofqualin the UK. Ofqual regulate qualifications,examinations and assessments in England andvocational qualifications in Northern Ireland. Itis their duty to ensure all learners get the resultsthey deserve and that their qualifications arecorrectly valued and understood, now and inthe future.04Optional unitsThese are units where you have choice andopportunity to specialise in an area of interest.There is an opportunity to select two optionalunits at advanced diploma and two optionalunits at professional diploma.Qualifications ladderThis ladder represents the hierarchical nature ofCIPS qualifications. The ladder has five stepswithin it. It starts with a Certificate through tothe Professional Diploma.Each step of the ladder is represented by aqualification with an ‘exit award’.UnitA segment of learning within the CIPSqualifications. Each unit is individual, has its owntitle, rationale and content. A unit will also havean assessment attached to it in order todemonstrate achievement and conclusion of thelearning.Unit purpose and aimsUnit aims provide additional information aboutthe unit; they will provide a succinct statementthat summarises the learning outcomes of theunit. Each unit has four to five learningoutcomes which outline what will be achievedas a result of 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.

Professional diploma in procurement and supplyDefinition of additionalterms used in this guideADR Alternate dispute resolutionAny of a number of methods (such asmediation, arbitration, mock trials, etc.) used toresolve disputes outside of litigation.CFD Contract for differenceAn arrangement made in a futures contractwhereby differences in settlement are madethrough cash payments, rather than the deliveryof physical goods or securities.CPM Critical path methodThe critical path method helps you to plan alltasks that must be completed as part of aproject. It acts as a basis both for preparation ofa schedule, and for resource planning. It canhelp to see where remedial action needs to betaken to get a project back on course.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.Five Forces FrameworkThe ‘Five Forces Analysis’ assumes that thereare five important forces that determinecompetitive power in a business situation.These are supplier power, buyer power,competitive rivalry, threat of substitution andthe threat of new entry.IMechIE Institution of MechanicalIncorporated EngineersThe Institution of Mechanical IncorporatedEngineers and the Institution of Engineering andTechnology, issue model forms and guides forthe industry. These include forms of tender,agreement and performance bonds.ISO International Standards OrganisationAn organisation within the United Nationswhich develops and monitors internationalstandards, including OSI, EDIFACT, and X.400JCT Joint Contracts TribunalThe Joint Contracts Tribunal produces standardforms of construction contract, guidance notesand other standard forms of documentation foruse by the construction industry.05

Professional diploma in procurement and supplyNEC 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 the Institutionof Civil Engineers.PERT The Program (or Project) Evaluation andReview TechniqueThe Program (or Project) Evaluation and ReviewTechnique, is a statistical tool used in projectmanagement. It was designed to analyse andrepresent the tasks involved in completing agiven project.STEEPLE Social, Technological, Economic,Environmental, Political, Legal , European (orInternational)An analytical tool extending PEST to alsoinclude, Environmental, Legal and European (orInternational) factors that can impact onProcurement and Supply.06Strategy ClockBowman’s Strategy Clock is a model used inmarketing to analyse the competitive position ofa company in comparison to the offerings ofcompetitorsThe Vienna ConventionThe United Nations Convention on Contracts forthe International Sale of Goods provides auniform text of law for international sales ofgoods.TUPE Transfer of Undertakings andProtection EmploymentLegislation that aims to ensure that anemployee whose company is taken over has hisexisting conditions respected by his newemployer. They also apply in some cases forwork transferred to contractors. This includeshours of work, pay, and pension entitlementand so on.

Professional diploma in procurement and supplyOn completion of thisunit, candidates will beable to critically appraiseinfluencing, leadershipskills and behaviours, tohelp achievecommitment from acrossthe organisationincluding seniormanagement, as well ascustomers and suppliers.This unit emphasises theleadership skills andbehaviours required forthe achievement of theobjectives andimprovements sought byeffective procurementand supply chainmanagement.Leadership in procurementand supplyLEARNING OUTCOMES1.0Understand the main leadership skills and behaviours that are appropriate for improvingprocurement and supply chain management1.1Critically evaluate the differences between leadership and management Defining leadership The role of a leader and the activity of leadership The importance of leadership The differences between management and leadership1.2Critically analyse the main approaches to leadership for improving procurement and supplychain management The qualities or traits approach to leadership The functional or group approach, including action- centred leadership Styles of leadership including the authoritarian or autocratic, democratic and laissez- fairestyles Contingency theories for leadership such as path-goal theory1.3Evaluate the main skills and behaviours that contribute to effective leadership for improvingprocurement and supply chain management The continuum of leadership behaviour The main forces in deciding the type of leadership Situational leadership Transformational and inspirational leadership07

Professional diploma in procurement and supply2.0Be able to create a communication plan to influence personnel involved in a supply chain2.1Evaluate the main influencing styles that can be used in the effective leadership of a supplychain Implementing a vision of improved procurement and supply chain management Models for managing in four different directions The relevance of managing upwards and across to achieve desired results for improvedsupply chain management The merits of escalation as a means of influencing A range of influencing styles for cross functional leadership both within and outside thebounds of formal teams2.2Evaluate the main leadership techniques that can be used to influence personnel involved ina supply chain Assessing the readiness of followers or groups Leaders attitudes to people Management by objectives and establishing KPIs Measures of effectiveness Leadership development2.3Create a communication plan to influence personnel in the supply chain that: Provides an analysis of stakeholders Indicates how stakeholder mapping influences the communication plan Details appropriate leadership/influencing styles to obtain stakeholder buy in Indicates how electronic systems can be used to support stakeholder communication Stakeholder analysis including primary, secondary and key stakeholder How to obtain buy in to supply chain strategies from stakeholders Perspectives on stakeholder mapping How to use the intranet and internet websites for publishing information3.0Understand how to overcome common challenges faced by procurement and supply chainmanagers3.1Critically analyse the sources of power and how they can be used to overcome commonchallenges faced by procurement and supply chain managers Perspectives on individual power Processual, institutional and organisational levels of power Perspectives on organisational power The balance between order and flexibility08

Professional diploma in procurement and supply3.2Evaluate the main tactics that can be used to influence stakeholders within supply chains toovercome common challenges faced by procurement and supply chain managers Proactive influencing tactics The psychological principles of influence3.3Analyse how equality and diversity issues relating to the supply chain can be managed toimprove the effectiveness of the supply chain Defining diversity, equality and inclusion The benefits of diversity in organisations The impact of discrimination, harassment and victimisation Developing and implementing policies to enhance diversity4.0Understand the main methods to lead change in the supply chain4.1Evaluate the main methods of change management that can be used to develop the supplychain The nature of organisational change Planned organisational change Dealing with resistance to change Effective change management4.2Critically assess the main methods for resolving conflict with internal and externalstakeholders to support change in the supply chain Contingency models of organisations The functions of the informal organisation The positive and negative outcomes of organisational conflict Strategies for resolving conflict4.3Evaluate the importance of effective delegation to implement change successfully Authority, responsibility and accountability Benefits of delegation A systematic approach to delegation The concept of empowerment09

Professional diploma in procurement and supplyCorporate and businessstrategyLEARNING OUTCOMES1.0Understand the concept of strategy in organisations in supply chains1.1Evaluate the main characteristics of strategic decisions in organisations in supply chains The characteristics of strategic decisions The vocabulary of strategy Strategic versus operational management The strategic position Strategic choices Strategy in action1.2Differentiate between corporate, business and functional levels of strategy in organisationsin supply chains Levels of strategy: corporate, business unit and functional Identifying strategic business units Common corporate objectives1.3Evaluate the main models for the development of strategy in organisations in supply chains Strategy development through strategic leadership Strategic planning Emergent strategy development and logical incrementalism1.4Evaluate the relationship between the supply chain function and the achievement ofcorporate objectives Competitors and markets Strategic groups and supply chains Market segmentation Strategic gaps How the supply chain links to the achievement of corporate objectives Value added activities10On completion of thisunit, candidates will beable to critically appraisethe development andimplementation ofstrategies at business andcorporate levels inorganisations and howthese strategies impacton supply chains.This unit focuses on thedevelopment;configuration andimplementation ofstrategy to help supplychain personnel achievecompetitive advantage.

Professional diploma in procurement and supply2.0Understand the main elements of strategy formulation and implementation that impact onsupply chains2.1Critically compare the main sources of competitive advantage for organisations in supplychains Customer value and the voice of the customer The ‘strategy clock’: price based strategies and differentiation strategies Sustaining competitive advantage Competition and collaboration2.2Critically assess the main approaches to conducting analysis of the strategic position fororganisations in supply chains The macro environment and the STEEPLE (social, technical, economic, environmental,legislative and ethical) framework Competitive forces- the five forces framework The industry and product life cycle Cycles of competition2.3Evaluate how corporate and business strategic decisions impact on supply chains Strategic directions: market penetration, consolidation, product development and marketdevelopment Diversification: related and unrelated Portfolio matrices: growth/ share, directional policy and parenting matrix Drivers of internationalisation Global, regional and local dimensions to strategic choices2.4Evaluate how a designed strategy can be implemented by organisations in supply chains Methods of pursuing strategies: organic, mergers and acquisitions or strategic alliances Strategy evaluation: suitability, acceptability and feasibility Managing intended and realised strategy Strategy development in uncertain and complex conditions3.0Understand the implementation of strategies in supply chains3.1Analyse the relationship between strategy and corporate, business and functionalstructures in organisations in supply chains Structural types: simple, functional, multidivisional, matrix and transnational Aligning the supply chain to the organisational structure Centralised, devolved and hybrid structures Forming structures on lead buyers networks11

Professional diploma in procurement and supply3.2Analyse how to manage resources to support the development and implementation ofstrategy in organisations in supply chains People as a resource Managing information The role of technology Managing finance: the financial aspects of value creation Funding strategy development and implementation3.3Assess methods of achieving the commitment to strategic change by achieving culturalacceptance of strategies in organisations in supply chains The use of vision in strategy Responding to competitive threats Organisational culture and sub-cultures The cultural web Types of strategic change Styles of managing strategic change3.4Evaluate how to use change management processes to address resistance to change and thecauses of strategic drift in organisations in supply chains The tendency towards strategic drift Strategy in flux Path dependency Incremental and transformational change4.0Be able to develop a plan for the development of the supply chain functional strategy4.1Review the organisation’s corporate and business strategies to inform the development ofthe supply chain functional strategyNo additional indicative content

details of the entry requirements for each level, please refer to www.cips.org. The CIPS Professional diploma in procurement and supply is a higher level qualification. It has been accredited by the Office of Qualifications and Examinations Regulator (Ofqual) in the UK and appears on the Register of Regulated Qualifications. Please refer to .

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