Certified Purchase Manager

VS-1008
Certified Purchase Manager
www.vskills.in



Certified Certified Certified Certified Purchase Manager Purchase Manager Purchase Manager Purchase Manager

Certification Code Certification Code Certification Code Certification Code VS VS VS VS- -- -100 100 100 1008 88 8
Vskills certification in Purchase Management provides an overview of the purchase
function and its importance in smooth functioning of operations and supply chain
management !he certification focuses on providing an outline of the responsi"ilities as a
purchase manager to control the overall procedure of material handling and purchase
function !he certification imparts re#uisite skills for maintaining ade#uate and in-time
purchase of the material together with ensuring economic-efficiency and #uality of goods
and service procured

$hy should one take this certification% $hy should one take this certification% $hy should one take this certification% $hy should one take this certification%
!he certification e&am helps working professionals in improving skills and getting "etter
e#uipped for the 'o" or for the purpose of proving the employer that you posses the skills
re#uired to perform the task !he certification helps "uild your CV and acts as an
additional #ualification that significantly improves your chances of getting the desired role

$ho will "enefit from taking this certification% $ho will "enefit from taking this certification% $ho will "enefit from taking this certification% $ho will "enefit from taking this certification%
(o" seekers looking to find employment in purchase department of various companies)
students generally wanting to improve their skill set and make their CV stronger and
e&isting employees looking for a "etter role "y proving their employers the value of their
skills through this certification

!est *etails+ !est *etails+ !est *etails+ !est *etails+
*uration+ *uration+ *uration+ *uration+ ,0 minutes
-o of #uestions+ -o of #uestions+ -o of #uestions+ -o of #uestions+ .0
Ma&imum marks+ Ma&imum marks+ Ma&imum marks+ Ma&imum marks+ .0) Passing marks+ /. 0.0123 !here is no negative marking in
this module

4ee Structure+ 4ee Structure+ 4ee Structure+ 4ee Structure+
5s /).006- 07ncludes all ta&es2

Certified Purchase Manager
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Companies that hire Companies that hire Companies that hire Companies that hire Vskills Vskills Vskills Vskills Purchase Manager Purchase Manager Purchase Manager Purchase Manager
Vskills Certified Purchase Manager might find employment in all kind of companies) "ig or
small) playing important roles in providing strategic and operational guidance in the
purchase department !hus purchase managers have wide spectrum of employment
opportunities in pu"lic as well as private sector
Certified Purchase Manager
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Table of Content


1 1 1 1 Material Material Material Materials ss s Management Management Management Management
11 8"'ectives of Materials Management
1/ 4unctions of Materials Management
19 8rganisation of Materials Management
1: -eed) Scope and 4unctions of 7ntegrated Material Management
/ / / / Material Material Material Materials ss s Planning Planning Planning Planning
/1 -eed of Materials Planning
// 4actors affecting Materials Planning
/9 !ools of Materials Planning
/: Principles and Procedure for Materials Planning
/. ;asic concepts of M5P 0Material 5e#uirements Planning2
/, M5P Processing
/< Computer =pplication to M5P Process
/8 M5P reports - *ata"ase recording and maintenance
/> 7ndependent and dependent M5P system
9 9 9 9 Materials ;udgeting Materials ;udgeting Materials ;udgeting Materials ;udgeting
91 ;asic concepts of Materials ;udgeting
9/ 4actors affecting Materials ;udget
99 Materials ;udgeting and =ccounting
: : : : Material Classification Material Classification Material Classification Material Classification) Standardi?ation ) Standardi?ation ) Standardi?ation ) Standardi?ation and Codification and Codification and Codification and Codification
:1 Material classification for variety reduction
:/ Material classification on the "asis of Value =nalysis
:9 ;asic concepts of codification
:: Systems of codification
:. Classification "y codification
:, 8"'ectives and scope of standardi?ation
:< Simplification6Variety of reduction
:8 @evels of standard
. . . . Material Aandling Material Aandling Material Aandling Material Aandling
.1 7mportance and 8"'ectives of Material Aandling
./ Methods and Practices of Material Aandling
.9 B#uipments for Material Aandling
.: Containeri?ations
.. $aste Management - Surplus and 8"solete
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., *amage and Pilferage
.< Cost =nalysis
, , , , Store Store Store Stores ss s Management Management Management Management and $arehousing and $arehousing and $arehousing and $arehousing
,1 Stores 4unctions and o"'ectives
,/ !ypes of Stores C Centrali?ed and decentrali?ed
,9 4unctions of stores
,: Stores @ayout) Storage Media and Physical Verification
,. 4actors affecting successful Store-keeping
,, $arehouse Management System 0$MS2
,< $arehouse operating principles
,8 Strategy for warehousing
,> Planning $arehouse distri"ution
,10 $arehouse @ayout
,11 =utomatic $arehousing
,1/ Schemes of =utomatic $arehousing
< < < < 7nventory Management 7nventory Management 7nventory Management 7nventory Management
<1 !ypes of 7nventory
</ !ypes of 7nventory Costs and factors affecting
<9 7nventory Management Models C *eterministic and Pro"a"ilistic Models
<: !echni#ues of 7nventory Control
<. 7nventory Performance Measurement 05atio =nalysis2
8 8 8 8 Purchase Management System Purchase Management System Purchase Management System Purchase Management System
81 8"'ectives of Purchasing
8/ 4unctions and responsi"ilities of Purchase *epartment
89 Methods of Purchasing
8: Purchase *epartment 8rgani?ation
8. (7! Purchasing C Prere#uisites and Blements
> > > > Vendor Management Vendor Management Vendor Management Vendor Management
>1 System of Vendor evaluation
>/ Parameters for evaluation of Vendors Performance
>9 Social =udit
>: !otal evaluation C Purchasing Performance) Duantitative 8"'ects etc
>. Euidelines for purchase through tender and negotiation tender committee
>, Purchase 5eview
10 10 10 10 Value =nalysis System Value =nalysis System Value =nalysis System Value =nalysis System
101 Value =nalysis C Procedure and =pproach
10/ !ools for Value =nalysis
11 11 11 11 -egotiation Skills -egotiation Skills -egotiation Skills -egotiation Skills
111 ;asic approaches for -egotiation
11/ Strategy and Planning for -egotiation
119 !actics of effective negotiation
Certified Purchase Manager
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1/ 1/ 1/ 1/ Duality Control Duality Control Duality Control Duality Control
1/1 Components and characteristics of #uality
1// 8"'ectives and functions of #uality control
1/9 =cceptance sampling C Principles and Practices
1/: *ou"le and Multiple Sampling
1/. 8C and =8D Curve
19 19 19 19 Stock Feeping and =ccounting Stock Feeping and =ccounting Stock Feeping and =ccounting Stock Feeping and =ccounting
191 Maintaining *ata"ase system
19/ Preparing reports
199 Managing Dueries
1: 1: 1: 1: @egal 4ramework @egal 4ramework @egal 4ramework @egal 4ramework
1:1 !he 7ndian Contract =ct) 18</
1:/ !he Sales of Eoods =ct) 1>90
1:9 Special Purchase Contracts
1:: Eoods *elivery
Certified Purchase Manager
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Course 8utline Course 8utline Course 8utline Course 8utline


Material Management Material Management Material Management Material Management
B&plains the concept of Material Manageent
7llustrates a"out the primary and secondary o"'ectives of Material Management
B&plains the functions of Material Management such as Material Planning)
Scheduling) 7nventory Control) Purchasing) $arehousing) Store Management etc
7llustrates the operational aspects of Materials Management
*escri"es the steps involved in organisation of Materials Management function
B&plains the need) scope and functions of 7ntegrated Materials Management
*escri"es the advantages of integrated Materials Management
Materials Planning Materials Planning Materials Planning Materials Planning
B&plains the need for material Planning
B&plains the internal and e&ternal factors affecting Material Planning
7llustrates the tools of Material Planning such as ;ill of Material techni#ue and Past
Consumption =nalysis !echni#ue
B&plains the principles and procedure involved in Material Planning
B&plains the process involved in Material Planning
B&plains the "asic concepts of M5P such as lumpy demand) lead times) input to
M5P) master production scheduling etc
B&plains the Computer =pplication to M5P Process and its features
B&plains the process involved in *ata"ase recording and maintenance in M5P
system
*escri"es 7ndependent and dependent M5P system
Materials ;udgeting Materials ;udgeting Materials ;udgeting Materials ;udgeting
B&plains the "asic concepts and techni#ues involved in drawing Materials ;udget
B&plains the factors governing Materials ;udget such as past rate of consumption)
investment pattern etc
Material Classification Material Classification Material Classification Material Classification) Standardi?ation ) Standardi?ation ) Standardi?ation ) Standardi?ation and Codification and Codification and Codification and Codification
B&plains the process of material classification for variety reduction
B&plains the process of material classification on the "asis of Value =nalysis
B&plains the "asic concepts of codification
7llustrates the advantages and disadvantages of codification
*escri"es the system of codification such as =r"itrary system) =lpha"etic system)
-umerical system) *ecimal system
B&plains the process of marking of stores and process of maintaining store
voca"ulary
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B&plains the Classification "y codification
B&plains the o"'ectives and scope of standardi?ation
7llustrates the advantages and scope of standardi?ation
B&plains the different levels of standard such as individual) company) industry)
national and international standards
7llustrates the concept of Variety of reduction) steps involved in variety control and
different areas of variety reduction
Material Material Material Material Aandling Aandling Aandling Aandling
B&plains the importance and o"'ectives of Material Aandling
B&plains the cost involved in material handling
7llustrates the methods and practices involved in Material Aandling
B&plains the methods involved in material handling
7llustrates types of materials) stages of handling) unloading methods) process of
uniti?ed loading
*escri"es the various e#uipments for Material Aandling and procedure of
selection of e#uipments
B&plains the "asic concepts of containeri?ations) types of containers and underlying
issues
B&plains the process of handling surplus and o"solete material
*escri"es the techni#ues of grouping of material and their disposal strategy
B&plains the process of reducing damage and pilferage losses
B&plains the process of material handling cost analysis involving e&amination of
ratios for material handling la"our) direct la"our handling loss)
movement6operation) manufacturing cycle efficiency etc
Stores Management and $arehousing Stores Management and $arehousing Stores Management and $arehousing Stores Management and $arehousing
B&plains the various stores functions and the o"'ectives of store management
B&plains the relationship "etween stores and other departments
B&plains the different types of stores C Centrali?ed and decentrali?ed
7llustrates the various functions of stores and the elements re#uired for store
organisation
B&plains different types of stores layout) types of stores "uilding) categori?ation of
mediums for storage
B&plains the need) purpose and procedure of physical verification of stock
B&plains procedure of valuation of material issues
B&plains the various factors affecting successful Store-keeping such as situation)
layout) management) verification etc
7llustrates a"out the o"'ectives of $arehouse Management System 0$MS2
B&plains the principles involved in operating a warehouse such as design criteria)
handling technology and storage plans
*escri"es the integrated strategies for warehousing
*escri"es the steps involved in planning the warehouse distri"ution such as site
selection) product mi& consideration) material handling system etc
*escri"es the process of designing warehouse layout depending upon the product
deterioration and pilferage protection
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B&plains the o"'ectives and types of automatic warehousing
*escri"es the pre-condition for automatic material handling
*escri"es the various schemes of automatic warehousing
7nventory Management 7nventory Management 7nventory Management 7nventory Management
B&plains the different types of inventory depending on the type of material)
availa"ility and demand
B&plains the different types of costs incurred in inventory management such as cost
of ordering) inventory carrying cost and cost of shortage
7llustrates the various factors affecting inventory costs such as market characteristics)
sales characteristics etc
B&plains the various forms of deterministic inventory management models C Classic
B8D Model) B8D Model with #uantity discount) B8D Model with safety stocks)
B8D Model with safety stocks and service level and B8D Model with
replenishment system
B&plains the various forms of pro"a"ilistic inventory management models
considering the impact of demand and lead time uncertainties
7llustrates the various techni#ues of 7nventory Control such as =;C analysis) VB*
analysis) E8@4 analysis) AM@ classification) S*B classification) 4S- classification
etc
B&plains the dynamics of 7nventory Performance Measurement through 5atio
=nalysis approach
Purchase Management System Purchase Management System Purchase Management System Purchase Management System
7llustrates the fundamental o"'ectives of Purchasing
4unctions and responsi"ilities of Purchase *epartment in terms of studying the
market and sources of supply
7llustrates the various methods of purchasing such as purchase made strictly "y
re#uirement) purchase done for a specified period) market purchasing) contract
purchasing etc
B&plains the "asic structure and organsation of Purchase *epartment
B&plains the elements of (7! production system such as waste elimination) workers
dedication) !DM) parallel processing) e-commerce and (7! purchasing etc
B&plains the prere#uisites for (7! purchasing system
Vendor Management Vendor Management Vendor Management Vendor Management
B&plains system of Vendor performance evaluation
7llustrates the parameters for evaluation of Vendors Performance
B&plains the "asic concept of Social =udit and internal provisions of Companies
=ct
B&plains the evaluation of organisation climate) saving C Purchasing Performance of
an organi?ation in terms of etc
B&plains the evaluation of Duantitative 8"'ects in terms of minimi?ation of material
cost) ma&imi?ation of cost reduction) adherence to operational "udget etc
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7llustrates the guidelines for purchase through tender and negotiation tender
committee such as negotiation) delayed tenders) price preferences) price escalation
etc
B&plains the procedure of purchase review and review of purchase order on the
"asis of value-wise analysis) time analysis) nature of tenders) purchase through
negotiation etc)
Value =nalysis System Value =nalysis System Value =nalysis System Value =nalysis System
B&plains the aim and application of value analysis
B&plains the procedure and phases of analysis involving information phase)
speculative phase) analysis phase) planning phase) summary and e&ecution phase
B&plains the advanced tools used in Value analysis approach
-egotiation Skills -egotiation Skills -egotiation Skills -egotiation Skills
B&plains the "asics of negotiation such as why and when negotiation takes place
B&plains the strategies and the steps involved in negotiation such as assessing the
vendor) customer related factors) competitors related factors) company policies etc
7llustrates the various tactics and guidelines that a negotiator must follow at the
time of purchase
B&plains the techni#ues of purchase negotiation
Duality Control Duality Control Duality Control Duality Control
B&plains the various components and characteristics of #uality in terms design)
specification) availa"ility) after sale service etc
B&plains the reasons and types of #uality losses in terms of tangi"le and intangi"le
losses
7llustrates the o"'ectives and functions of #uality control in terms of specifications)
manufacture control) design audit) #uality review and #uality planning etc
B&plains the concepts of acceptance sampling C sampling plans) lot acceptance and
acceptance control techni#ues etc
B&plains the procedure of dou"le and multiple Sampling
7llustrates the analysis and interpretation of 8C and =8D Curve
Stock Feeping and =ccounting Stock Feeping and =ccounting Stock Feeping and =ccounting Stock Feeping and =ccounting
B&plains the procedure of maintaining record in the data"ase system and working
of the system
*escri"es the various types of reports and methods of their preparation
B&plains the steps involved in generating computer outputs
7llustrates the process of managing #ueries
@egal 4ramework @egal 4ramework @egal 4ramework @egal 4ramework
*efines a contract and re#uirements of a valid contract
7llustrates the different types of contracts such as oral and written) e&press and
implied contracts) "ilateral and unilateral contracts etc
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B&plains the reasons for termination of contracts such as termination "y
performance) "y release) "y impossi"ility of performance) "y mutual agreement) "y
novation etc
!he 7ndian Contract =ct) 18</
!he Sales of Eoods =ct) 1>90
B&plains the special purchase contracts such as rate contract) works contract and
hire-purchase contract
B&plains the process involved in Eoods *elivery and consideration made at the
time of delivery such as #uality of delivery) time of delivery) etc


Certified Purchase Manager
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Sample Duestions Sample Duestions Sample Duestions Sample Duestions


1 1 1 1 = stipulation in a contract of sale pertaining to goods which is essential to the = stipulation in a contract of sale pertaining to goods which is essential to the = stipulation in a contract of sale pertaining to goods which is essential to the = stipulation in a contract of sale pertaining to goods which is essential to the
main purpose of the c main purpose of the c main purpose of the c main purpose of the contract is called ontract is called ontract is called ontract is called GGGGGGGGGGGGGG GGGGGGGGGGGGGG GGGGGGGGGGGGGG GGGGGGGGGGGGGG
= Condition
; =cceptance
C 5e'ection
* $arranty
/ / / / !he system of purchasing from oneHs customer preferred to others is known as !he system of purchasing from oneHs customer preferred to others is known as !he system of purchasing from oneHs customer preferred to others is known as !he system of purchasing from oneHs customer preferred to others is known as
GGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGG
= 4orward ;uying
; !ender ;uying
C 5eciprocal ;uying
* ;lanket 8rder
9 99 9 !he parameters for vendor rating include !he parameters for vendor rating include !he parameters for vendor rating include !he parameters for vendor rating include GGGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGGG GGGGGGGGGGGGGGGGG
= Price
; Service
C *elivery
* =ll of the a"ove
: : : : (7! is a concept which means GGGGGGGGGGGGGG (7! is a concept which means GGGGGGGGGGGGGG (7! is a concept which means GGGGGGGGGGGGGG (7! is a concept which means GGGGGGGGGGGGGG
= Making a plan from time to time
; Eetting the items 'ust when they are needed for production
C 5aising purchase order 'ust "efore delivery
* -one of the a"ove

. . . . Purchase order is a legal "inding contract only if it is Purchase order is a legal "inding contract only if it is Purchase order is a legal "inding contract only if it is Purchase order is a legal "inding contract only if it is GGGGGGGGGGGGGG GGGGGGGGGGGGGG GGGGGGGGGGGGGG GGGGGGGGGGGGGG
= Posted "y the "uyer
; =cknowledged "y the supplier
C =ccepted "y the supplier
* -one of the a"ove
Answers: 1 (A), 2 (C), 3 (D), 4 (B), 5 (C)