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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Describe the functions of purchasing and procurement 
SAQA US ID UNIT STANDARD TITLE
377380  Describe the functions of purchasing and procurement 
ORIGINATOR
SGB Manufacturing and Assembly Processes 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Manufacturing and Assembly 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is required by people working in the manufacturing environment and tasked to work within a purchasing and procurement environment to ensure that requirements pertaining to productivity, supplier selection, purchasing and black economic empowerment are adhered to.

Learners credited with this unit standard are able to:
  • Discuss purchasing and procurement and the functional relationships of the purchasing process in a manufacturing environment.
  • Explain factors contributing to productivity of the organization.
  • Describe the supplier selection process.
  • Discuss the purchase contract and the negotiation process.
  • Discuss the purchase cycle.
  • Outline the code of practice for Black Economic Empowerment (BEE). 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Mathematical Literacy at NQF Level 3.
  • Communication at NQF Level 3. 

  • UNIT STANDARD RANGE 
    Specific range statements are provided in the body of the unit standard where they apply to particular outcomes or assessments. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Discuss purchasing and procurement and the functional relationships of the purchasing process in a manufacturing environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concepts of purchasing and procurement are defined and explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 2 
    The functions and relationships of purchasing and procurement are discussed in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    The contribution purchasing makes to the company's profit margin is explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 4 
    Materials management and purchasing are defined and contrasted in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 5 
    The relationship between purchasing and materials management is described in line with Operations Management Body of Knowledge (OMBOK). 

    SPECIFIC OUTCOME 2 
    Explain factors contributing to productivity of the organisation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Objectives of purchasing within an organization are discussed with examples. 

    ASSESSMENT CRITERION 2 
    The value each purchasing objective adds to the productivity of the purchasing department of an organisation is described in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    The factors that lead to the success of purchasing in business are explained using examples. 

    ASSESSMENT CRITERION 4 
    A centralized purchasing operation is described according to procedures. 

    ASSESSMENT CRITERION 5 
    Centralised and decentralised purchasing approaches are evaluated for decision making purposes. 

    SPECIFIC OUTCOME 3 
    Describe the supplier selection process. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role and importance of the factors that influence the choice of suppliers is explained with examples. 

    ASSESSMENT CRITERION 2 
    The various types of contracts that a company may enter into with a supplier are described with examples. 

    ASSESSMENT CRITERION 3 
    The significant attributes and elements of each type of contract are discussed in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 4 
    Local and overseas buying are compared to inform the decision on where to make a purchase. 

    ASSESSMENT CRITERION 5 
    The concept of partnering and the importance of partnering with a few "key" suppliers are discussed in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 6 
    The factors that lead to the partnership failing are listed to determine gaps in future. 

    SPECIFIC OUTCOME 4 
    Discuss the purchase contract and the negotiation process. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Specifications for a contract are discussed to ensure common understanding by both parties. 

    ASSESSMENT CRITERION 2 
    The importance of a clearly worded document as the basis for a contract is explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    Conflict and cooperation in the negotiation process are described using examples. 

    ASSESSMENT CRITERION 4 
    Bargaining and negotiating as a means of securing a "good deal" for both the buyer and the seller are described in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 5 
    The relationships inherent to negotiation and their influence on the outcome of the negotiation are discussed in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 6 
    The phases of the negotiating process are described according to procedures. 

    ASSESSMENT CRITERION 7 
    The role played by each party in the negotiating process is described according to procedures. 
    ASSESSMENT CRITERION RANGE 
    The psychological and business perspectives.
     

    SPECIFIC OUTCOME 5 
    Discuss the purchase cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The purchase cycle is described using a flow diagram. 

    ASSESSMENT CRITERION 2 
    Various ways of identifying inventory as part of the inventory management system and warehouse management system are described in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    The documents used for the purchase cycle are named and described using examples. 
    ASSESSMENT CRITERION RANGE 
    Documents: purchase requisition, purchase order and goods received note.
     

    ASSESSMENT CRITERION 4 
    The bidding process used when selecting suppliers is described according to procedures. 

    ASSESSMENT CRITERION 5 
    The receiving process is described according to procedures. 

    ASSESSMENT CRITERION 6 
    The role of purchasing during this phase of the order cycle is explained according to procedures. 

    ASSESSMENT CRITERION 7 
    Functions within a manufacturing organisation which the purchasing department will regularly interact with are analysed in line with Operations Management Body of Knowledge (OMBOK). 

    SPECIFIC OUTCOME 6 
    Outline the code of practice for Black Economic Empowerment (BEE). 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role and aims of BEE are described in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 2 
    The importance of BEE in the field of procurement is explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    The effects of BEE on a company's ability to contract with government and other major organisations are explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 4 
    BEE score cards are discussed in line with Operations Management Body of Knowledge (OMBOK). 
    ASSESSMENT CRITERION RANGE 
    Score cards include QSE and generic scorecard.
     

    ASSESSMENT CRITERION 5 
    The BEE procurement spent as percentage of total procurement spent is calculated according to procedures using raw data. 

    ASSESSMENT CRITERION 6 
    The process to obtain a BEE Certificate is described according to procedures. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard must be accredited as a provider through the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Purchasing and procurement and the functional relationships of the purchasing process in a manufacturing environment.
  • Factors contributing to productivity of the organization.
  • Supplier selection process.
  • Purchase contract and the negotiation process.
  • Purchase cycle.
  • Code of practice for Black Economic Empowerment (BEE). 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems associated with provisioning using responsible decision-making and creative thinking. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team on a daily basis to manage the provisioning of resources at an Immigration Service Centre. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsibly and effectively in provisioning f to the benefit of the employer and employees. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using appropriate modes of oral and/or written persuasion to secure services and supplies for the provision of the employer. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57712   Further Education and Training Certificate: Generic Management  Level 4  NQF Level 04  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Career Pathing Solutions (Pty) Ltd (KRUGERSDORP) (TP) 
    2. College of Production Technology 
    3. CREATIVE FOUNDATION TRAINING 
    4. OPTIMUM LEARNING TECHNOLOGIES PTY LTD 
    5. Procurement & Supply Management College cc (ROBERTSHAM) (TP) 
    6. Wide Horizon Advanced Training (PORT ELIZABETH) (TP) 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.