Plan Procurement Process

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Questions and Answers

What is the purpose of the Plan Procurement process?

To create a forecast of the company's financial performance.

To develop a plan to guide the activities of the Human Resources department.

To conduct market and statistical surveys for cost analysis.

To harmonize individual procurement plans of Business Units to harness economies of scale. (correct)

What does the Annual Procurement Plan reflect?

The current year's actual procurement activities.

The financial performance of the company.

All foreseeable procurement items required for the budget year. (correct)

Only the high-value procurement items.

When should the pre-budget approved Procurement Plan be developed?

At the beginning of each financial year.

By the second quarter of each year. (correct)

By the end of the financial year.

It is not time-bound.

What is one of the steps involved in developing the pre-budget approved Procurement Plan?

Conducting a needs assessment and evaluation. Signup and view all the answers

What does the Plan Procurement process aim to align with procurement needs?

Budget Signup and view all the answers

What does the Annual Procurement Plan include?

Description of estimated procurement, value, time schedule, method of procurement, packages/lots. Signup and view all the answers

What is one objective of the Plan Procurement process?

Harmonize individual procurement plans of Business Units to harness economies of scale. Signup and view all the answers

What is required to be reflected in the Annual Procurement Plan?

All foreseeable procurement items required for the budget year. Signup and view all the answers

When should a pre-budget approved Procurement Plan be developed?

By the second quarter of each year. Signup and view all the answers

What step should be taken in developing a pre-budget approved Procurement Plan?

Conducting a needs assessment and evaluation. Signup and view all the answers

What is included in a Procurement Plan?

Description of goods/works/services, quantity, proposed procurement method, and estimated timeline Signup and view all the answers

When is the post-budget approved Procurement Plan developed?

Based on an approved budget Signup and view all the answers

What does the Procurement Planning Committee do?

Guidance and decision-making in procurement planning Signup and view all the answers

What is involved in quarterly reviews of the Procurement Plan?

Ensure compliance and identify opportunities for improvement Signup and view all the answers

What is the role of the SCM team in procurement planning?

Consolidates Business Unit Procurement Plans and prepares a consolidated Procurement Plan Signup and view all the answers

When does pre-budget planning involve each Business Unit preparing a Procurement Plan?

For consolidation by the SCM team Signup and view all the answers

What is the frequency of updating the Procurement Plan Compliance Report?

Quarterly Signup and view all the answers

Who is responsible for approving the recommendations for adoption in subsequent quarters?

SCM (N/3) Signup and view all the answers

What is the basis of measurement for the timeliness of developing the Procurement Plan?

Latest date for approval of annual procurement plan Signup and view all the answers

Who is responsible for receiving the Business Plan input?

Planning Department / CP&S Signup and view all the answers

What is the type of document for Approved Budget input?

Input Signup and view all the answers

How often is the Business Plan input required?

As required Signup and view all the answers

Who should update the Procurement Plan Compliance Report as required?

SCM (N-4) Signup and view all the answers

What is the target for 'Quality of the Procurement Plan' performance measure?

Zero error Signup and view all the answers

Who should receive the Procurement Plan output as required?

Procurement Planning Committee SCM Team Tenders Committee CP&S SMT Signup and view all the answers

What is the basis of measurement for compliance to the Procurement Plan?

% Compliance with procurement plan during review period. Signup and view all the answers

Study Notes

NNPC Limited follows a systematic procurement planning process for efficient implementation.
A post-budget approved Procurement Plan is developed based on an approved budget.
A Procurement Plan includes a description of the goods/works/services, quantity, proposed procurement method, and estimated timeline.
A Procurement Planning Committee is established with representation from various functions for guidance and decision-making.
The committee identifies goods, works or services, conducts market surveys and prescribes procurement methods.
The SCM team consolidates Business Unit Procurement Plans and prepares a consolidated Procurement Plan.
The SCM team forwards the consolidated Procurement Plan to senior management for approval and inclusion in the budget.
Quarterly reviews and updates of the Procurement Plan ensure compliance and identify opportunities for improvement.
Pre-budget planning involves each Business Unit preparing a Procurement Plan for approval by their head.
The SCM team consolidates Business Unit Procurement Plans and sets up a Procurement Planning Committee to review and aggregate requirements.

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Description

Learn about the Plan Procurement process which defines policies and procedures for creating a Procurement Plan, including estimated value, time schedule, and method of procurement.