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Procurement Management(Pscm 332) Question Paper

Procurement Management(Pscm 332)

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2012

TIME: 2 HOURS
Instructions:
Answer question one and any other two questions.
Question One
Jamnazi group is engaged in financial services and had banking and insurance interest. There is a new CEO who has moved into the position from a manufacturing organization. The CEO had engaged the services of an extenal consultancy to study this way in which purchasing operates at Jamnazi group. Having received its report the CEO appalled at the findings. In summary they include.
Each part of the organization in empowered to create contract with suppliers there in no strategy in coordination
The banking and insurance arms of the business have purchasing managers whereas the other arms employ a chief buyer.
There are over 1500 suppliers to the organization, but no expenditure analysis is available. The group training director has no budget for training the purchasing staff and has never conducted a training needs analysis.
There is no cost reduction target through supplier rationalization in relationship management strategy in any part of the group
There are no model contracts in any part of the group
There are currently, four major disputes with suppliers relating to infringement of intellectual property rights, breach of contract for not taking agreed quantities of printing, the late installation of an IT system and theft of goods from a third party leased warehouse.
The CEO realizes that thin style of purchasing operation is un acceptable and intends to change it materially. If you were asked to give advice on the way forward, what would be your thoughts?
Required
Would you create a group purchasing activity?
How would you persuade the marketing direct that purchasing can add value to their expenditure
What would you recommend regarding the disputes with suppliers? (20mks)

Question Two
Describe the differences between the following relationship types
Outsourcing
Service contracts
Sub-contracting
Explain five benefits that organizations seek when outsourcing activities.
(10mks)

Question Three
Explain five reasons why an organization might insource activities that were previously outsourced.
Describe a process to resolve conflict in a partnership relationship. (20mks)

Question Four
Explain briefly the following stages of purchasing
Product – centred
Process – centred
Relational purchasing
Performance centred.
(20mks)

Question Five
Write short notes in regard to the following legal terms;
Duress
Estoppels
Liquidated damages
Specific performance
Misrepresentation
(20mks)

Procurement Management(Pscm 332) Question Paper

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