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SPM802S - STRATEGIC PROCUREMENT MANAGEMENT - 2ND OPP SUPL - JAN 2023 |
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n Am I BI A u n IVE Rs ITY
OF SCIEnCE AnD TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF MARKETING AND LOGISTICS
QUALIFICATION: POST GRADUATE DIPLOMA: PROCUREMENT MANAGEMENT
QUALIFICATION CODE: 0SPDPM
COURSE CODE: SPM802S
LEVEL: 8
COURSE NAME: STRATEGICPROCUREMENT
MANAGEMENT
SESSION: JANUARY 2023
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION
EXAMINER(S} MS. MARTHA SHINGENGE
MODERATOR: MS. PAULINA SHINANA
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly and correctly.
THIS QUESTION PAPER CONSISTS OF 6 PAGES {Including this front page)
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SECTIONA: MULTIPLE CHOICE
{40 MARKS)
QUESTION 1 (40 MARKS)
There are Twenty {20) Multiple-choice questions with several possible choices each. Choose
the best possible answer, e.g., 1.1 A. Eachquestion is equivalent to 2 marks. Write the letter
next to the correct answer.
1.1 Of the purchasing/supply responsibilities and activities, ____
becomes more
important as the function becomes responsible for supply and value network chains?
{2 Marks)
a) Buying supply management
b) Executive management
c) Strategic planning and research work
d) Contract and relationship management
1.2 Supplier management is...
{2 Marks)
a) Request a report of progress from the project team
b) Review of supplier performance, capabilities, strengths, and weakness throughout the
contract
c) Evaluate the risk register at project gate reviews
d) Check with senior management to ensure buy in
1.3 Sustainable Public Procurement in Namibia places a burden on MSMEs, who may not
have the resources to ensure compliance
{2 Marks)
a) True, this creates a disadvantage for them and keeps them from bidding for bigger
tenders
b) False, it promotes business practices that consider societal welfare of the people and
the environment, in light of diminishing resources,
c) An effective public procurement system can help government decide for their offices,
ministries, and agencies where, when and how money must be spent.
d) I don't think it has any impact
1.4 The challenge to public procurement is that ....
a) Payments are delayed
b) There is a less than optimal complaint mechanism in place
c) Lack of E-procurement
d) All of the above
{2 Marks)
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1.5 The ____
allows for the development of an efficient supplier management process.
Therefore, the supplier portfolio can be purposefully formed and developed to serve
company-wide demands.
(2 marks)
a) Centralized material group management
b) Strategic procurement
c) Decentralized material group management
d) Strategic purchasing
1.6 Which of these are ethical issuesin procurement?
a) Clear grievance processes for aggrieved bidders
b) Accepting supplier gifts
c) Transparent processes
d) Understanding the supplier landscape
(2 Marks)
1.7 Good public procurement requires:
(2 Marks)
a) A regulatory framework that contains policies and procedures to guide the work of
contracting authorities and helps ensure economy, efficiency, transparency,
accountability, and access to justice in public procurement.
b) All organizational documents to refer to public procurement and sound finance
management, but it is okay if the organizations cannot implement effective
procedures
c) Sound and efficient public procurement operations which deliver value for money
d) A and C
e) All the above
1.8 Which type of procurement is concerned with the determination of Key Performance
Indicators, the measurement and regulation thereof?
(2 Marks)
a) Performance Procurement
b) Strategic Procurement
c) Project Procurement
d) Operational Procurement
1.9 Which phase of supplier lifecycle management, help a company spot the supplier
issuesat the early stage and ensures issuesare solve on time
(2 Marks)
a) Supplier Qualifications
b) Supplier On-boarding
c) Supplier Performance Management
d) Supplier Evaluation
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1.10 One of the enablers of sustainable procurement is ensuring that there is no
grievance mechanism in place for bidders, because this takes up too much time and
delays implementation.
(2 Marks)
a) True
b) False
1.11 The Most Economically Advantageous Tender (MEAT) is a method of assessment
that can be used as the selection procedure, allowing the contracting party to award
the contract based on aspects of the tender submission other than just price.
(2 Mark)
a) True
b) False
1.12 Understanding an organization's supply chains is of strategic importance because it
allows the procurement manager to determine which suppliers to give tenders too,
especially those who give him/her great Christmas gifts.
(2 Marks)
a) True
b) False
1.13 Governments must deliver public services within a sustainable financial framework.
(2 Marks)
a) True
b) False
1.14 Sustainable procurement has the potential to drive down costs, eliminate waste and
build a better brand reputation.
(2 Marks)
a) True
b) False
1.15 Risk mitigation is not something that needs to be considered in procurement, because
the market trends are always changing, and nothing can be done about it.
(2 Marks)
a) True
b) False
1.16 Total cost of ownership (TCO) is a method of assigning overhead and indirect costs-
such as salaries and utilities-to products and services.
(2 Marks)
a) True
b) False
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1.17 Activity-based costing (ABC) is an assessment of all costs, direct and indirect, involved
with an item over the useful life of that item.
(2 Marks)
a) True
b) False
1.18 Outsourcing all critical activities is a trend where the idea is to achieve significant cost
leverage
(2 Marks)
a) True
b) False
1.19 Organisations are becoming more aware of the strategic dimension of the make-or-
buy decision
(2 Marks)
a) True
b) False
1.20 In planning the statement of work, all the following should be considered performance
measurements, deliverables, delivery schedule, performance schedule and service levels.
(2 Marks)
a) True
b) False
SECTION A: 40 TOTAL MARKS
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SECTION B: STRUCTURED QUESTIONS (60 MARKS)
QUESTION 2
Describe and analyze the Centralized, Decentralized, or Hybrid approaches to Procurement.
Explain your preferred approach with due consideration to the advantages and disadvantages
of each.
(20 Marks)
QUESTION 3
Compare and contrast the cost analysis methodologies of Total Cost of Ownership (TCO}and
Activity Based Costing (ABC}. In your analysis, explain the application as well as the intended
outcomes of both methodologies.
(20 Marks)
QUESTION 4
Assume you are the Procurement Consultant for an organization. You have been asked by the
Executive: Procurement to advise them on the ethics and professional behavior in the context
of Strategic Procurement Management. In your advisory, explore the principles and issues
underpinning ethical procurement as well as risks related to unethical procurement.
(20 Marks)
SECTION B: 60 TOTAL MARKS
TOTAL MARKS:100
ALL THE BEST
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