60 Questions
What is the purpose of the Supply Chain Management Process and Procedures Manual?
To provide a comprehensive framework for supply chain management
What is the main topic of Section 2.0 of the manual?
Plan Procurement
What is the purpose of the Evaluate Tenders and Select Supplier process?
To evaluate tenders and select the best supplier
What is the main topic of Section 10.0 of the manual?
Frameworks Agreement
What is the purpose of the Goods Receipt process?
To verify goods against the purchase order
What is the main topic of Section 15.0 of the manual?
Contract Management
What is the purpose of the Stock Review process?
To identify slow-moving items
What is the main topic of Section 18.0 of the manual?
Goods Receipt
What is the purpose of the Delegation of Financial Authority?
To empower staff to commit expenditure and incur liabilities on behalf of the Group
What is the purpose of the Disposal Request Form?
To initiate, document, and track the disposal process of assets
What is an Expression of Interest?
A formal notice to potential suppliers that NNPC Limited is planning to acquire goods or services
What is Economic Ordering Quantity?
The ideal order quantity that the Group should purchase in order to minimize its inventory costs
What is Enterprise Resource Planning?
A technology used to manage and integrate core business processes in real time
What is Form M?
A document completed by all importers for importation of goods into Nigeria
What is the life span of a Form M for general merchandise?
180 days, with a 180-day extension
What is a Goods Receipt Note?
A receipt given to the supplier to confirm delivery or acceptance of goods
What is the purpose of an Authority for Expenditure?
To authorize spending for a particular project
What type of document lists work items, their estimated quantities and cost?
Bill of Engineering Measurement and Evaluation
What is a Bill of Quantities?
A document that provides specific measured quantities of work items
What is a Business Unit within NNPC Limited?
A profit center that delivers specific products or services
What is Capital Expenditure?
An amount spent to acquire or upgrade productive assets
What does Delegation of Authority spell out?
The right to approve or perform certain functions
What is a Delegation of Authority Manual?
A document that sets out the powers and authority granted to management
What is the main purpose of a Delegation of Authority Manual?
To set out the powers and authority granted to management
What is one of the approaches to consider when purchasing?
Substituting products or Suppliers
What determines the need for a Procurement Planning Committee?
The nature and size of the procurements
Who is responsible for developing the sourcing operational strategy for strategic items?
Key business stakeholders and the Executive Team
What is the primary responsibility of the Procurement Planning Committee?
To prepare the procurement plan
What characterizes leverage items?
High profit impact and low supply risk
What is the purpose of aggregating requirements?
To reduce procurement cost
Who is responsible for negotiating group-wide framework agreements for leverage items?
Group Supply 30 NNPC Limited SCM Processes and Procedures
How often is the review of compliance of procurement requests with the Procurement Plan conducted?
Quarterly
What is the approach for leverage items?
To leverage the balance of power and negotiate lower prices
What is the purpose of the quarterly review of procurement requests?
To identify opportunities for improvement and highlight any developments that impact other procurement activities
What is the characteristic of suppliers of leverage items?
They can be easily substituted
Who is responsible for reaching out to all budget holders to prepare the plan for procurement?
SCM (N-4/5)
What is the category of supplies with low profit impact and high supply risk?
Bottleneck items
By when should the budget holders submit their plan for procurement?
By a stated deadline
Why is it important to develop a sourcing operational strategy for strategic items?
To mitigate supply risk
What is the purpose of integrating each subsidiary's procurement expenditure into its yearly budget?
To ensure proper budgeting and planning
What should be considered when determining buying channels for strategic procurement categories?
Locations of need, financial thresholds, risk, commodity, and complexity
What is the purpose of category spend analytics?
To inform a review of procurement category and subsequent update of the category and buying strategy
What happens when an uncategorized ERP goods, service or works is identified?
The goods, service or works is analyzed against existing categories and validated
What is the recommended frequency for reviewing and analyzing procurement data?
Annually
What is one of the buying channels to consider for strategic procurement categories?
Catalogue/Punchout, call off contracts, competitive bids, etc.
What type of data is analyzed in category spend analytics?
Expense and accounts payable data, category performance, inventory data, overall spend, PO, invoices, P-Card/Travel and Entertainment (T&E) Expense and KPIs
What is the purpose of recommending initiatives to drive circular supply chains?
All of the above
What is the outcome of category spend analytics?
Review of procurement category and subsequent update of the category and buying strategy
Who is responsible for analyzing uncategorized ERP goods, service or works?
Responsible Party
What is the purpose of defining buying channels for strategic procurement categories?
To ensure effective procurement for strategic categories
Every purchase requisition shall be approved by the immediate supervisor of the person making the requisition and the budget owner.
True
Purchase Requisitions can be split to circumvent the approval limits of the delegation of financial authority.
False
The delegation of procurement authority is detailed in the delegation of authority manual.
True
The procurement requisition process is initiated based on the approved annual procurement plan and corresponding budget for each financial year.
True
Budget owners have no role in the purchase requisition approval process.
False
The procurement plan is not related to the budget for each financial year.
False
Delegation of procurement authority is not applicable to NNPC Limited and its subsidiaries.
False
Splitting purchase requisitions to circumvent approval limits is allowed.
False
Immediate supervisors are not involved in the purchase requisition approval process.
False
Budget owners are not responsible for approving purchase requisitions.
False
This quiz covers the supply chain management processes and procedures of NNPC Limited, including the manual and document review process.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
