Learning outcomes, assessment criteria and indicative content

1.0 Understand, analyse and apply management and organisational approaches

1.1 Analyse aspects of organisational behaviour

• The behaviour of people

• The process of management

• The organisational context in which the process of management takes place

• Organisational metaphors

• The psychological contract: individual and organisational expectations

• Interactions with the external environment

1.2 Analyse contemporary approaches to management and organisational behaviour Approaches such as:

• Organisations as a ‘socio-technical’ system

• The systems approach to organisational behaviour

• The contingency approach

• Postmodernism in organisations

1.3 Analyse the origins of management and organisational behaviour

• Classical approaches to organisational behaviour and management

• The development and application of scientific management

• Bureaucracy in organisational design and structure

• The human relations approach

1.4 Evaluate influences that shape organisational behaviour

• The individual

• The group

• The organisation

• Societal influences and the wider environment

• The cultural environment and methodologies for assessing cultural types

2.0 Understand and apply approaches to managing individuals involved in the procurement and supply function

2.1 Analyse how the different behavioural characteristics of individuals can impact on their management style and approach

• Understanding the differences among individuals

• Uniqueness and similarities between individuals

• Idiographic approaches to the development and measurement of individuals

• Emotional intelligence

• Diversity in organisations

• Managing diversity

• Emotional Intelligence - use emotional information to guide thinking and behaviour, and to manage and/or adjust emotions

2.2 Examine how the different learning styles of individuals can impact on their management style and approach

• Learning as a formal and spontaneous process

• Explicit and tacit knowledge

• Cognitive theories of learning

• Approaches to knowledge management

2.3 Differentiate between the approaches to motivation in the management of individuals Approaches such as:

• The meaning of motivation

• Extrinsic and intrinsic motivation

• Frustration induced and constructive behaviours

• Content theories of motivation

• Process theories of motivation

• Equity and goal theories of motivation

2.4 Analyse the major factors that can influence job satisfaction among individuals

• The dimensions of job satisfaction

• Alienation at work

• Approaches to job design, enlargement and enrichment

• Flexible working arrangements cips.org/qualifications 07

3.0 Understand and apply approaches to managing work groups or teams involved in the procurement and supply function

3.1 Examine the impact of work groups or teams on effective and efficient performance

• Groups, teams and teamwork

• Group values and norms

• Formal and informal groups

3.2 Analyse the stages of development of work groups or teams

• Reasons for the formation of groups/teams

• The work environment: size of the group, capability of the members, the nature of the task, physical setting, communications and the use of technology

• Theories on the stages of group/team development

3.3 Assess the characteristics of effective work groups or teams

• Characteristics of an effective work group

• Perspectives on team roles

• Stages of group dynamics and development

• Self-managed work groups/teams

• Virtual teams and remote working

• The benefits of cultural diversity

3.4 Analyse the nature of role relationships in work groups or teams

• The stakeholders of a procurement and supply function

• Role congruence and incongruence

• Intra group/team cohesion and conflict

• Positive and negative outcomes from conflict

• Behaviours to reduce conflict

• Developing effective groups/teams

• Relationship building based on different individual strengths

4.0 Understand and apply planning approaches for aspects of human resource management for the procurement and supply function

4.1 Define the role of human resource management in organisations • Definitions of human resource management (HRM) • HRM policies, activities and functions

• HRM as a shared organisational responsibility

4.2 Examine the skills and knowledge requirements for personnel in the procurement and supply function

• Job analysis and job skills

• Identifying knowledge and skills for roles

• Human capital management

4.3 Identify the key components of a recruitment and selection plan to meet the skills and knowledge needs of the procurement and supply function

• Drafting job descriptions

• Screening and assessing candidates to meet requirements

• The interview process

• The use of IT software solutions in recruitment

• The regulatory aspects of the employment of personnel in the procurement and supply function

• Forms of discrimination and harassment

• Legislative regulation on employment practices

4.4 Identify a plan for training and development of personnel in the procurement and supply function

• Cost and benefits of training

• Methods, delivery and evaluation of training

•Training needs analysis

• The application of personal development plans

• Performance review and appraisal cips.org/qualifications

5.0 Understand the application of the individual capabilities required to manage the procurement and supply function

5.1 Examine self-development techniques that can be used to improve individual performance

• Learning from mistakes

• Seek and accept feedback from others

• 360 degree reporting

• Maintain, promote and monitor personal and professional honesty and integrity

• Managing up and coping with senior colleagues

• Emotional Intelligence - use emotional information to adjust emotions to adapt environments or to achieve individual goals

5.2 Examine organisational change and approaches to successful change management

• Recognise the need for change

• Understand and manage the strategic drivers for change

• Identify and minimise areas of potential conflict and/ or resistance

• Promote team involvement and collective ownership of change solutions

• Promote and maintain a positive individual and team attitude to the change process

5.3 Assess the requirement for and approaches to diversity in the workplace

• Maintain and promote best practice in valuing and respecting diversity

• Recognise the positive contribution that diversity can make to the work place

5.4 Assess the requirement for and approaches to equality in the workplace

• Maintain and promote best practice in valuing and respecting equality

• Recognise the positive contribution that equality can make to the work place

Learning outcomes, assessment criteria and indicative content

1.0 Understand the nature of risk affecting supply chains

1.1 Define the different types of risk that can impact on supply chains

• Definition of risks, hazards, exposure and risk appetite

• Positive and negative consequences of risk

• Direct and indirect losses

• Internal and external sources of risk

• Categories of risk: financial, strategic, operational and hazard

• Risks from the wider environment: STEEPLED - social, technological (failure including cyber risks and crime), economic, environmental, political, legislative, ethical (labour standards and sourcing aspects) and demographic

• The nature of fraud in organisations and supply chains, why fraud takes place and different types of fraud

1.2 Assess operational risks in supply chains

• Contract failure

• Financial risks such as currency, supplier cash flow and insolvency

• Quality failure

• Security of supply

• Technology

• Logistics complexity

• Risks in outsourcing and offshoring

1.3 Compare methods for eliminating bribery, corruption and fraud in supply chains

• Define bribery, corruption and fraud in organisations and supply chains

• The different types of corruption

• The different types of fraud

• Legislation affecting bribery and corruption

• The use of ethical codes including the CIPS Ethical Code

• Corporate governance including corporate accountability to stakeholders

• The Sarbanes-Oxley regulations

1.4 Contrast risks in supply chains that can impact on organisational corporate social responsibility and sustainability standards

• Defining corporate social responsibility and sustainability

• Assessing corporate risks and risks associated with brand

• Standards for sustainable procurement, such as; United Nations (UN), International Labour Organization (ILO), and the Ethical Trading Initiative (ETI) standards

• ISO20400 – Sustainable Procurement Standard

2.0 Understand processes in managing risk in supply chains

2.1 Examine the use of contractual remedies for managing risks in supply chains

• Indemnities and liabilities • Ownership of IPR (Intellectual Property Rights)

• The use of force majeure clauses

• Clauses for testing, inspection and acceptance

• Global sourcing considerations and ensuring compliance to standards

• Model Form Contracts such as NEC (New Engineering Contract) and FIDIC (The International Federation of Consulting Engineers) provisions for the use of risk registers, notices and compensation events

2.2 Analyse the use of outsourced third parties in risk management in supply chains

• The use of outsourced third party providers for credit rating and other business services

• The use of outsourced third party providers for auditing risks in supply chains

• The use of outsourced third party providers for disaster recovery services

2.3 Assess the use of insurances for protection against risks in supply chains

• The use of insurance in hedging against risks

• The categories of insurance: employers and public liability, professional indemnity, product liability and trade credit

• Legal principles of insurance

• Underwriting and claims

2.4 Examine the use of contingency plans to overcome risks in supply chains

• The implications of a contingency plan

• The components of a business continuity plan and disaster recovery plan 11 3.0 Understand risk mitigation strategies in supply chains

3.1 Identify the use of probability and impact assessments to manage risks in supply chains

• Methodologies for assessing the probability and impact of risk

• Vulnerability assessments • Collating statistical evidence of risks

• The use of probability theory

• Assessing the probability of events using the normal distribution

• The binomial and poisson distributions

3.2 Analyse a risk assessment and a risk register to mitigate risks in a supply chain

• The use of templates for risk assessments and risk registers

• Completing risk assessments and risk registers

• Engaging stakeholders in the development of risk assessment and registers

3.3 Explain the development of a risk management culture and strategy to improve supply chains

• International standards for risk management such as ISO 31000 and ISO 28000

• The risk management process • External reporting of risks in corporate accounts

• Resources required to achieve improved risk management in supply chains

3.4 Compare strategic approaches to mitigate risks in supply chains

• Developing risk management strategies to mitigate risks

• Preparing a contingency plan

• Preparing a business continuity plan and disaster recovery plan

Learning outcomes, assessment criteria and indicative content

1.0 Understand the legal and process issues relating to the formation of contracts

1.1 Identify the issues relating to the formation of contracts and the associated risks

• Offers

• Counter offers

• Acceptance

• Precedence of documents

• Contract change

• Contract variations

1.2 Analyse the implications of the various elements of contractual documentation and process on overall risk

• Indemnities and liabilities

• Insurances

• Guarantees

• Liquidated damages

• Payment

• Delivery and completion

2.0 Understand the impacts of breach of contract and coping strategies and provisions that are available

2.1 Analyse the different levels of breach of contract and their impact

• Minor breach

• Major breach

• Fundamental breach

• Anticipatory breach

2.2 Compare and contrast the tools and techniques available to resolve a breach of contract

• Negotiation

• Mediation

• Conciliation and expert determination

• Adjudication

• Arbitration

• Litigation and legal implications

• Formal vs. informal action

Learning outcomes, assessment criteria and indicative content

1.0 Understand and apply tools and techniques that can be used to measure and develop contract performance in procurement and supply

1.1 Assess the use of Key Performance Indicators (KPIs)

• Cost

• Quality

• Delivery

• Safety

1.2 Evaluate methods of measuring and improving supply chain performance

• Collate and analyse data

• Measure supplier innovation against agreed matrix

• Measure time to market against agreed timescales

• Create e-systems integration across the organisation and its supplier network

• Cost and benefits of investments measurement

• Ensure a balance between qualitative and quantitative measures of performance

• Measure return on investment

1.3 Examine approaches available for supplier development

• Knowledge and technology transfer

• Collaborative product/service development

• Continuous improvement reviews and strategies

• Supplier capability assessments

• Identify opportunities to use technology

1.4 Assess innovative measures to improve the supply chain

• Cross-functional working

• Simultaneous engineering

• Early supplier involvement

• Supplier forums and associations

2.0 Understand and apply the concept of strategic sourcing

2.1 Assess the market factors that influence strategic sourcing

• Industry dynamics

• Pricing behaviour

• Financial data on suppliers

• Market demand and supply factors

• Business motivations, cost margins and working practices of key suppliers

• Internal stakeholder involvement

2.2 Examine the assessment of sourcing options for strategic supplies of products and/or services

• Contract type and duration

• Competitive vs. non-competitive sourcing

• Number of suppliers and vetting strategies

• The use of e-sourcing

• Competition

• Direct negotiation

• Joint proposition improvement

2.3 Analyse a strategic assessment plan for a key supplier using modelling and analytical techniques

• Capacity and capability

• Planning

• Quality control systems

• Security

• Technical expertise

• Reputation and time established

• Investment plans

• Trading with competitors

• Financial reports

• Analysing potential sales

• Future expansion opportunities – partnership potential cips.org/qualifications

3.0 Understand and apply financial techniques that affect supply chains

3.1 Analyse how costs and finance can impact on supply chains

• The financial objectives of different organisations (e.g. value for money, maximising shareholder wealth and providing a surplus)

• The costs of materials, labour and overheads

• Funding working capital and credit insurance

• Project funding

• Medium and long term financing options

• Corporate financing decisions in investment, finance and dividends

3.2 Critically assess methods for managing the volatility of currencies in supply chains

• Fixed and floating exchange rates

• Demand and supply factors in foreign exchange and the reasons for exchange rate volatility

• Spot, forward and derivative instruments in foreign exchange

• Services provided by the banking sector in foreign exchange

3.3 Analyse methods for managing the volatility of commodities in supply chains

• Demand and supply factors in commodities

• The differentiation of commodities

• Soft and hard commodity markets

• Speculation in commodity markets

• The use of spot, forward, futures and hedging in the buying and selling of commodities

• The use of a Contract for Difference (CFD) in the buying and selling of commodities

4.0 Analyse and apply financial and performance measures that can affect the supply chain

4.1 Assess financial measures that can be applied to measuring the performance of the supply chain

• The measurement of costs, timescales, processing, quality and satisfaction

• Financial measures such as profitability, return on investment, sales growth, cash flow

• The use of balanced scorecard methodologies

4.2 Examine the impact of stakeholder feedback on the supply chain strategy

• Articulating the supply chain strategy

• Determining measurable outcomes of success

• Devising metrics of performance including feedback from 3rd parties and suppliers, and other stakeholders

• Reporting structures and processes

4.3 Analyse approaches to benchmarking that can be applied to measuring the performance of the supply chain

• The use of benchmarking in supply chains

• Comparisons of business unit, competitors or other industry players

• Gap analysis and performance improvement

Learning outcomes, assessment criteria and indicative content

1.0 Understand the impact of ethics and sustainability in supply chains

1.1 Analyse the implications of ethics and sustainability in supply chains

• Definitions of aspects of sustainability such as corporate social responsibility, responsible procurement and environmental purchasing

• The reasons for the focus on sustainability

• The risks and rewards of sustainability

• The development of sustainable procurement policies

• The implications of ethics for the supply chain

• Equality, modern slavery, bribery, corruption, fraud, human rights

• Breaches of codes, reputational and brand damage

1.2 Contrast the drivers of globalisation in supply chains

• Use of STEEPLED analysis to explain the drivers of globalisation

• Competitive advantage through global sourcing

• Globalisation and low cost country sourcing

1.3 Differentiate between the cultural and social issues in supply chains

• Language and cultural barriers

• Labour standards and forced working practices

• Wages and social security payments

• Inequalities of workers

• Health and safety standards

1.4 Contrast the potential conflicts that may arise between the needs of stakeholders in supply chains

• The profit motive and the search for low cost sourcing

• Demand management and the need for urgent orders

• Short term commercial gains versus long term availability of supplies

2.0 Understand the importance of compliance with standards to achieve ethical and sustainable supply chains

2.1 Contrast levels of complexity in supply chains and how they impact on compliance with standards for ethics and sustainability

• Mapping supply chains

• The use of sub-contractors by suppliers

• Portfolio analysis that measures sustainability risk and the importance to the organisation

• Portfolio analysis that measures sustainability risk and scope for improvement

2.2 Evaluate how contractual terms can support compliance with standards for sustainability in supply chains

• Monitoring performance

• Feedback from suppliers that help achieve compliance to standards for sustainability

• Subjecting sourcing strategies to independent review

• Accountability for achieving social, ethical and environmental standards

2.3 Evaluate the use of third party organisations to promote compliance with standards for sustainability in supply chains

• Sourcing third parties for auditing services

• Assessing the competences of third party organisations for the provision of audit services

• The difficulties with duplications of codes and audits

2.4 Critically assess how relationships with suppliers should deal with infringements of standards for sustainability

• Raising awareness of standards

• Involving workers in workplace matters

• Creating corrective action plans and supplier development programmes

• Escalating problems and exit arrangements 19 3.0 Understand initiatives and standards to improve ethical and sustainable practices in procurement and supply

3.1 Assess how the use of labour codes can help achieve ethical and sustainable supply chains

• Standards set by the United Nations (UN) and the International Labour Organisation (ILO)

• The role of the UN and ILO in pursuing improved sustainability

• Labour codes of conduct such as the Ethical Trading Initiative (ETI) and the Agricultural Ethical Trading Initiative (AETI), Social Accountability International’s standard SA8000

• Social Accountability International (SAI) and the standard SA8000 3.2 Analyse how the standards on environmental purchasing can help to achieve ethical and sustainable supply chains

• The role of the International Organisation for Standardisation (ISO) and the environmental standard ISO 14001

• The European Union’s Eco-Management and Audit Scheme (EMAS)

• Other standards for environmental purchasing produced by standards organisations

• Industry standards and standards set by organisations

3.3 Analyse how standards can achieve improved fair trade

• The World Fair Trade Organisation (WFTO) and its principles and charter of fair trade

• Fairtrade Labelling Organisations International (FLO) and global fair-trade organisations

• Fair trade standards that effect the workplace and producers

3.4 Examine approaches to achieve responsible procurement and help promote ethical and sustainable management

• Approaches such as:

• The implications of responsible procurement

• The responsible use of power in supply chains

• Managing conflicting priorities

• Reducing operational financial and reputational risks

Learning outcomes, assessment criteria and indicative content

1.0 Understand approaches that can be used to develop category management strategies

1.1 Critically compare strategic and conventional sourcing processes and their role in category management

• Defining strategic sourcing and category management

• The stages of a conventional sourcing process

• Transactional and strategic sourcing activities

• Differentiating account management and category management

1.2 Critically compare models for the adoption of category management

• Models of strategic sourcing such as AT Kearney’s 7 step model

• Models of category management such as the CIPS Purchasing and Supply Model and CIPS Category Management Model

• Analysis of similarities and differences between models for strategic procurement, strategic sourcing and category management

1.3 Identify the technical and behavioural skills required to implement category management

• Technical skills such as financial management and cost analysis, supply chain analysis, supply base research, sourcing processes, risk management, legal aspects and negotiation

• Behavioural skills such as communication, influencing, working with teams, cross functional working and change agents 2.0 Understand the concepts, tools and techniques associated with managing expenditure

2.1 Contrast the types of expenditure that can be analysed for category management processes

• Expenditures that are related to direct costs

• Expenditures that are related to indirect costs

• Applying Pareto analysis to expenditures and key suppliers

2.2 Compare and contrast the tools and techniques that can be applied to map categories of direct and indirect expenditure

• Matrices

• Supply chain mapping

• Porter’s 5 forces model

• Market share/market growth

• STEEPLED and SWOT

• Technology route maps

3.0 Understand the strategic impact of a category management process

3.1 Analyse the data required for the development of a category management process

• Historical and forecasted data on categories of spend

• Demand patterns for category groups

• Current contracts with suppliers and terms that are being applied

• Reviews of existing relationships and performance

• Market trends

3.2 Examine the requirements for initiating and preparing the introduction of a category management process

• Producing category hierarchies for both direct and indirect expenditures

• Applying portfolio tools to map the categories of expenditures

• Creating total cost models for category management

• Conducting stakeholder needs analysis

• Forming cross functional teams and preparing responsible, accountable, consultative and informing roles within the team

• Reviewing the implications of existing legislative requirements and standards

3.3 Analyse supply market factors that impact on the development of a category management process

• Analysing industry dynamics, competitiveness and pricing behaviour

• Analysing financial data on potential suppliers

• Using requests for information (RFIs) to assess market factors

• Conducting impact assessments of CSR/sustainability factors

• Conducting supply chain and value chain analysis

• Analysing supplier perceptions

Learning outcomes, assessment criteria and indicative content

1.0 Understand the dynamics of supply chains

1.1 Compare supply chains, supply network and supply chain management

• Defining supply chains, supply networks and supply chain management

• The use of supplier tiering and network sourcing

1.2 Analyse the added value that effective supply chain management can deliver for the organisation

• Improving quality

• Reducing prices and total costs

• Reducing time to market and achieving deliveries to required timescales

• Creating innovation

• Reducing risk and supply chain vulnerability

1.3 Analyse the relationship between organisational infrastructure and process management in supply chain management

• Theoretical perspectives on added value

• Aspects of organisational infrastructure: culture, organisational structure and systems

• Process management: the sourcing process in procurement and managing stages of the process

• Process mapping techniques

• Value chain analysis

1.4 Compare approaches to improving supply chains

• The spectrum of relationships in a supply chain

• The collaborative model of supply chain management: partnering and strategic relationship management

• The competitive model of supply chain management

• The outsourcing of work or services

• Off shoring, global procurement and low cost country sourcing

2.0 Understand improvement methodologies that can be used in supply chains

2.1 Compare approaches to total quality management for supply chain improvement

• Defining quality and total quality management

• Approaches to quality: quality inspection, quality assurance and total quality

• Quality versus risk

• The importance of relationships in quality management

2.2 Analyse the use of statistical methods to achieve supply chain improvement

• Collating data for performance measurement

• Developing key performance indicators (KPIs) on aspects of supply performance

• Analysing data and an introduction to statistics

• The use of the normal distribution

• Developing statistical process control

• The 6 sigma improvement methodology

• Creating continuous improvement

2.3 Critically appraise processes that can be used for supply chain improvement

• Just-in-time (JIT) supply processes

• The application of JIT in the service sector

• The development of lean thinking and lean supply

• Lean thinking compared with agile

• The 5S methodology

2.4 Examine how business process re-engineering (BPR) and benchmarking can be used for supply chain improvement

• The development of business process re-engineering (BPR)

• BPR in contrast to total quality

• The use of benchmarking in supply chains

3.0 Understand measures required to achieve competitive advantage in supply chains

3.1 Evaluate sources of competitive advantage

• Competitive advantage based on lowest cost of supply

• Competitive advantage achieved through sources of differential advantage such as innovation, range of products, brand image and customer care

3.2 Analyse pricing arrangements that can be used to achieve competitive advantage in the supply chain

• The use of fixed pricing, variable pricing and cost plus arrangements

• The use of open book costing and cost transparency

• The use of incentivisation in pricing and gain share (risk/reward) mechanisms

3.3 Analyse cost reduction activities for a supply chain to achieve competitive advantage

• Supplier rationalisation and aggregation of requirements

• The risks and benefits associated with single sourcing arrangements

• Negotiating reductions in prices and costs

• Collaborative and competitive models of supply

• Value analysis and value engineering

3.3 Assess methods to promote greater collaboration in supply chains to support the achievement of competitive advantage

• Strategic versus operational suppliers

• Creating partnership sourcing arrangements

• Building trust with suppliers

• The relationship life cycle

Learning outcomes, assessment criteria and indicative content

1.0 Understand aspects of projects in organisations

1.1 Analyse aspects of projects in organisations

• The relationship between programmes and projects

• Stakeholder identification, analysis and involvement

• Measures of safety, quality, cost and delivery

• Success and failure of projects

• Elements of projects

• Work breakdown structure

1.2 Evaluate the impact on supply chain relationships of undertaking projects

• Supply chain networks for projects

• Relationships with sub-contractors

• Consortiums and joint ventures for projects

• Traditional and contemporary relationships

• Project partnering and strategic partnering

1.3 Analyse the resources for projects

• Resource loading and levelling

• Multi project scheduling and resource allocation

• Information technology systems for project management

• Leading and managing projects

• Critical chain methodology

• Asset finance and the role of banks

1.4 Analyse the project life cycles of projects

• Perspectives on project life cycles

• Project initiation

• Organising projects and project implementation

• Co-ordination in project management

• Project control

• Project closure

• Project review

2.0 Understand the concept of organisational change and how it can be achieved

2.1 Analyse the types of organisational change

• Evolution

• Adaption

• Revolution

• Reconstruction

• Closed, contained and open-ended change

2.2 Analyse situations that lead to organisational change

• Organisational life cycle

• SWOT and PEST analysis and factors

• Internal drivers

• Future trends and innovation

• Multiple-cause diagrams and simultaneous change

• Changes in management and structure

• Cycle of competitive behaviour and reactive breakpoints

2.3 Evaluate organisational responses to change

• Environmental turbulence

• Resistance to change

• Cynicism and scepticism

• The challenge of maintaining change

• The change cycle – loss, doubt, discomfort, discovery, understanding, integration

2.4 Analyse methods to manage, achieve and maintain change

• Collaborate, communicate, direct and coerce

• Clarify goals

• Refine methods and procedures

• Empowerment and ownership

• Incremental adjustment

• Lean and value stream mapping

• Monitor and maintain changes

• The change spectrum – hard (difficult) vs. soft (messy) problems

3.0 Understand approaches to the planning and management of projects and change initiatives

3.1 Evaluate structures for corporate governance

• Project boards/executive

• Project responsibility charting

• The use of project initiation documents

• Structures of project management such as project, functional and matrix

• Project reporting 3.2 Analyse the common objectives for projects

• Identifying goals and objectives of projects • The balance between cost, quality and time in projects

• Technology project development

• Building sustainability into major projects

• Impact on the community for major projects

• Communicating project objectives to the supply chain

3.3 Analyse approaches to the management of risks for projects

• Identifying assumptions and risks

• Risk simulation

• Risk registers

• Risk accountability

• The management of risk in supply chains

3.3 Critically compare methodologies for the planning of projects

• Sequencing activities

• Network techniques including project evaluation and review techniques (PERT) and critical path method (CPM)

• Gantt charts and baselines

Learning outcomes, assessment criteria and indicative content

1.0 Understand the concept and scope of operations management

1.1 Analyse the role and activities of operations management in organisations

• Definitions of operations and operations management

• The extent of operations management in organisations

• Operations management in different types of organisations

1.2 Critically assess the objectives and strategies of operations management

• From implementing to supporting to driving strategy

• The stages of development of operations strategy

• The performance objectives of operations management (quality, speed, dependability, flexibility and cost)

• Top down and bottom up perspectives of operations strategy

• Order qualifying and order winning objectives of operations management

1.3 Evaluate operations management processes

• The input transformation -output’ model of operations management

• The dimensions of operations processes (volume, variety, variation and visibility)

• The activities of operations processes

1.4 Analyse the application of operations management across supply chains

• Operations management in manufacturing, services, retail, construction, and public sector supply chains

• The impact of operations management on global sourcing

• Examples of operations management in different supply chains

2.0 Understand improvement methodologies that can be applied in operations management

2.1 Analyse tools for improving performance in operations management

• The use of performance measurement in operations management

• Setting performance targets

• Benchmarking in improving operations management

• Building continuous improvement

• The use of business process re-engineering

2.2 Explain techniques in failure prevention and recovery that can be applied in operations management

• Measuring failure and the impact of failure

• Mechanisms to detect failure

• Failure mode and effect analysis

• Improving process reliability

• Maintenance and approaches to maintenance

• Failure distributions

• Business continuity

2.3 Evaluate the role of total quality management in operations management

• Approaches to total quality management

• The differences between total quality and quality assurance

• The work of pioneers of total quality management (such as Deming, Juran)

2.4 Analyse techniques for quality improvement that can be applied in operations management

• Diagnosing quality problems

• The use of statistical process control

• Variation in process quality

• The Taguchi loss function

• Poka yoke

• The Six Sigma approach to quality improvement

Learning outcomes, assessment criteria and indicative content

1.0 Understand the concept of logistics management

1.1 Analyse the role and activities of logistics management

• Defining logistics

• The elements of logistics management: integration of information, transportation, inventory, warehousing, material handling, packaging and security

• The different areas of logistics: procurement, production, distribution, after sales and disposals

• Logistics and supply chain management

1.2 Analyse the concept of integrated logistics

• The total logistics concept

• The total costs concept of logistics

• Pipeline inventory and logistics

• Multimodal transportation

1.3 Evaluate aspects of competitive advantage that can be achieved through logistics management

• Sources of competitive advantage through logistics

• Matching logistics to business strategy

• Levels of customer service

• Measuring customer service

• Service lifecycle management

• The financial impact of logistics

1.4 Critically appraise the use of technology in logistics management

• Coding and bar coding in logistics

• Order tracking technologies

• Auto Identification Data Capture (AIDC) technology in logistics

• Radio Frequency Identification (RFID) in logistics

• E-fulfilment in logistics

• Warehouse management systems (WMS)

• Integrating systems in the logistics supply chain

2.0 Understand capacity planning and control in logistics management

2.1 Analyse techniques that can be applied to planning and control in logistics management

• The difference between planning and control

• Achieving balance between planning and control

• Responding to demand

• Loading, sequencing and scheduling

2.2 Explain techniques that can be applied to capacity management

• Defining capacity

• Capacity constraints

• Planning and controlling capacity

• Forecasting demand fluctuations

• Measuring capacity

• Capacity planning through level capacity plans, chase demand plans or demand management

2.3 Analyse the use of Materials Requirements Planning (MRP) Systems technology for planning and control in Logistics management

• MRP and MRP II

• ERP

• Master production scheduling

• Bills of materials

• Inventory data

• MRP calculations

• The limitations of MRP systems

2.4 Analyse the use of reverse logistics as a process

• The challenge of customer returns and returns management

• Customer returns policies

• Redistribution of returns to the supply chain