SCM questions and possible answers

1. Why would you regard yourself as the best candidate for the position of Divisional Manager:
Supply Chain Management?

Own discretion
Variable……… but certain examples would be: honesty, integrity, impartiality, objectivity; be fair,
efficient, firm and courteous; managing the bidding process so that genuine competition is
preserved; etc.

2. Name 5 relevant legislations pertaining to Supply Chain Management

- Constitution

- Supply Chain Regulations

- Municipal Finance Management Act

- Preferential Procurement Policy Framework Act

- Broad Based Black Economic Empowerment Act

3. Name the 5 Pillars of Supply Chain Management & summarize the functions of each

Demand- needs assessment, specifications, requirements linked to the budget & analysis
of supplying industry, to ensure value for money

Acquisition- manner in which will procure, establish total cost, ensure bid documents are
complete, including evaluation criteria, evaluate bid ito published
criteria, ensure proper contract documents (e.g. SLA) are signed
Logistics- receiving & distribution of material, setting of inventory levels, warehouse &
transport management, review of service provider’s performance –only
after this stage should the payment be generated.
Disposal- Obsolescence planning, inspecting material for possible re-use, determining
disposal strategy, executing the physical disposal process.
Performance- monitoring process to determine whether proper processes have been followed
& whether desired objective have been achieved such as compliance to norms
and standards, cost efficiency of SCM process, whether supply chain practices
are consistent with Government’s broader policy focus.
OR Risk
4. Explain in terms of the Regulations what the procedure is to be followed for emergency
procurement & procurement for public tender.

Emergency:

Emergency is the presence of, imminent risk of, an extreme or emergency situation arising from
one or more of the following:

a) Disaster or eminent disaster.

b) Human injury or death.
c) Human suffering or deprivation of human rights.
d) Serious damage to property or financial loss.
e) Livestock or animal injury, suffering or death.
f) Serious environmental damage or degradation.
g) Interruption of essential services: or
h) Interruption / cancellation of essential municipal services.

In urgent and emergency cases, an institution may dispense with the invitation of bids and may
obtain the required goods, works or services by means of quotations by preferably making use
of the database of prospective suppliers, or otherwise in any manner to
the best interest of the State.

Urgent cases are cases where early delivery is of critical importance and the invitation of
competitive bids is either impossible or impractical. (However, a lack of proper planning
should not be constituted as an urgent case.)

Emergency cases are cases where immediate action is necessary in order to avoid a dangerous
or risky situation or misery.

The reasons for the urgency/emergency and for dispensing of competitive bids, should be clearly
recorded and approved by the accounting officer/authority or his/her delegate.

Public tender:
Compiling bid documents – include GCC and SCC, clearly state type of contract, each bidder
should get the same information, request tax clearance
certificate, proof of registration with controlling
authorities, submission deadline, validity period, etc.
Inviting bids- Establish pre-qualifications/list of service providers on database/two-stage
bidding, advertise at least 30 days (only shorter when urgent), fee of
documents should only be sufficient to cover costs
Receiving bids – Should be opened in public, late bids should not be considered, not permitted
to alter bids after deadline, all information confidential until successful
bidder has been notified, check completeness of documents.
Evaluating bids -
Clearing successful bidder and awarding contract
5. Name 3 bid committees and the functions of each

Bid Specification Committee - This committee is responsible for compiling bid (tender)
specifications and Terms of Reference.
The specifications committee may be comprised of one or more officials from the municipality
or entity and, where appropriate, include external specialist advisors.

Bid Evaluation Committee - The committee is responsible for the evaluation of bids received
and to verify legal criteria and past performance history of the bidder.
Membership of this committee as far as possible should comprise officials from the department
requiring the goods and/or services and at least one Supply Chain Management practitioner of
the Municipality or entity.
This committee should evaluate all bids received and submit a report and recommendation(s)
regarding the award of the bid(s) to the adjudication committee.
Members from the bid specification committee may also form part of the bid evaluation
committee.
A member (preferably the Chairperson) from the bid evaluation committee shall present reports
to the bid adjudication committee, but only as an advisor.

Bid Adjudication Committee - The committee should consider the report(s) and
recommendation(s) made by the evaluation committee. Depending on the delegations granted
by the Accounting Officer, the adjudication committee could make the final award of the bid, or
make a recommendation to the Accounting Officer to make the final award.

The bid adjudication committee shall comprise of the Chief Financial Officer, and at least three
other Senior Managers nominated by the Municipal Manager and at least one senior supply
chain management practitioner who is an official of the municipality. Such committees will be
convened and chaired by the Chief Financial Officer.

6. Name 3 types of limited bidding procurement, give a short explanation of each and explain
the process to be followed for these types of procurement.

Multiple source bidding – Limited competition hence only a few prospective service providers
are allowed to make a proposal but this should be based on a
thorough analysis of the market.

Single source bidding – Based on a thorough analysis of the market and use a transparent and
equitable pre-selection process, to request only one amongst a
few prospective service providers to make a proposal.

Sole source bidding – There is no competition and only one bidders exists, e.g. sole distribution
rights.

* In order to procure through limited bidding a request has to be written to the Accounting
Officer requesting permission to follow limited bidding procurement including the reasons why.
* Limited bidding has to be reported to council quarterly.
7. Detail what must be included in the SCM Policy in terms of the SCM Regulations

The SCM policy of a municipality or municipal entity must describe in sufficient detail:
(a) the supply chain management system that is to be implemented by the municipality or
municipal entity; and
(b) effective systems for:
(i) demand management;
(ii) acquisition management;
(iii) logistics management;
(iv) disposal management;
(v) risk management; and
(vi) performance management.

(1) Each municipality and each municipal entity must in terms of section 111 of the Act have and
implement a supply chain management policy that -
(b) is fair, equitable, transparent, competitive and cost effective;

8. What does CIDB stand for and what is the functions there of?

Construction Industry Development Board

The guideline for appointment of consultants issued in terms of Section 168 of the MFMA, as
well as the prescripts of the CIDB, for the appointments of professional services shall be used.
The officials involved in SCM and other role players must comply with the Code of Ethical
Standards and Conducts issued by the CIDB for parties involved in construction procurements.
All contractors including sub-contractors must be registered with the Construction Industry
Development Board (CIDB).
All joint venture partners must be registered with the CIDB.

9. Name a few examples of minimum requirements in public tenders

CIDB certification (if applicable)

Original valid tax clearance certificate
Proof of ownership
Breakdown of equity
Declaration of conflict of interest
Municipal rates clearance certificate
If above R 10million, annual financial statements
Check against Treasury’s list of defaulters
 Check against CIDB’s list of defaulters (if applicable)
Any other minimum requirement as specified in the Bid Document
Proof of company registration and/or any other form of legal standing must be submitted by all
bidders and the company composition form must be completed.
The bid document must be completed in all respects in black ink.
Bids must be submitted on original bid documents.

Submit proof of Professional Registration with the relevant Professional Body, e.g. The
Engineering Council of South Africa.

10. Can minimum and maximum point cut offs be utilized in SCM evaluations and if they can, give
the conditions and the reasons for using the cut offs,

Maximum point cut offs are not allowed.

Minimum point cut offs are allowed ONLY IF they have been indicated in the bid document and
specification minutes before hand.
The reason for using the minimum qualification points for functionality is to avoid sub standard
work being appointed because of the price OR instances where the service provider has not
tendered on the full scope and thus inevitably his price would be lower.

11. How will you ensure that there is proper Supply Chain Management and irregular
appointments or ineffective contract management which leads to poor service delivery is
avoided?

Appoint Bid Specification Committee, Bid Evaluation Committee & Bid Adjudication Committee

Establish an effective SCM Unit which consists of officials for procurement, SCM committee
support, disposal management, database administration, policy implementation, etc.

Standard procurement documentation enables improved monitoring of SCM policy compliance.

Strict turnaround times on tender from specification, advert, evaluation, adjudication to

appointment and signing of SLA.

Subsequent contract monitoring and regular reporting to MM & Council.

SCM policy complaint to SCM regulations & Circular which is reviewed annually.

Reporting of SCM deviations to MM & Council monthly.

Effective financial & supply chain systems ensuring audit trail of full SCM process, e.g. minutes of
SCM committees, orders, SLAs, etc.
 Emphasis on responsibility of project managers & S57 managers in effective implementation of
SCM.

12. What innovations would you introduce to enhance BEE, empowerment strategies & EPWP
principles.

E.g. Balance scorecard methodology for measuring performance

Allowance should be made for other priorities such as job creation & SMME development.
Empowerment strategy has to provide goals and targets – approved by Council as part of policy
or at least annually.
Report progress on empowerment goals to Council quarterly.
MM should have authority to review empowerment goals in terms of progress to date on
annual targets.
Empowerment goals should be part of S57 managers performance contracts.
13. What will you do if you detect fraud/corruption

Variable…….but just to inform:

Corrupt practices mean the offering, receiving or soliciting of anything in value to influence the
action of a public official in the selection process or contract execution.

Fraudulent practices mean a misrepresentation of facts in order to influence a selection process

or the execution of a contract to the detriment of the accounting officer and include collusive
practices amongst bidders/contractors designed to establish prices at non-competitive levels
and deprive the benefits of free and open competition.

14. How to avoid Fraud and corruption

1. Segregation of duties between SCM officials
2. Declaration of MBD 4 by bidders
3. Declaration of interest by SCM role player
4. Implementing provision ?????
5. Development of risk register to monitor risk
6. Anti Fraud and corruption policy
7. Anti fraud hotline
8. Declaration of gift from bidders by officials

15. You will be interacting with staff & external service providers on a daily basis. Explain to this
panel how you will management conflict.

Variable…….

16. Contribution toward clean audit

1. Analyse AGSA management letter for prior year
2. Develop action plan to address issues raised by AGSA pertaining to planning and Econ
Development
3. Adhering to department budget and monitor implementation
 4. Adhering to SCM policies and procedure when procuring goods and services
5. Compiling and implementing of procurement plan for goods and services
6. Adhere to risk management plan in place
7. Ensure sound record management
8. Implementing effective contracts management

17. Formulation / review of a policy

1. Treasury has a policy model that is supposed to be customized by each public entity
2. Considering the market environments of institution and regulations and act governing the SCM
field

18. What do you understand by Fruitless and Wasteful Expenditure?

It is an Expenditure which was made in vain (An Expenditure made and did not bring the results that you
were expecting) and could have been avoided if reasonable care was exercised.

19. What do you understand by Unauthorized Expenditure

 Overspending of a vote or a main division within a vote or

 Expenditure not in accordance with the purpose of a vote ,in case of a main division ,not in
accordance with the purpose of the main division

20. What do you understand by Irregular Expenditure

Expenditure other than unauthorized expenditure incurred in contravention of or that is not in accordance
with a requirement of any applicable legislation,incliding PFMA

21. What do you understand by PMS

It is a performance management system used by the public institutions to evaluate, monitor and
measure the performance of its employees. It starts from the memorandum of understanding where in
the employee and the employer sign in the agreement of all activities that needs to be performed in a
particular year. The employee’s performance will be measured and monitored using evaluation form on
a quarterly basis and this will indicate the caps that need to be filled as far as the performance of the
employee is concerned. Out of the 4 quarter review the employee will be review annually. if an
employee performs better He/She will be awarded with a pay progression and performance bonus. If an
Officer is lacking the skill that Officer have to go for training, and if he/she is not performing well while
having the skills that Officer might be having social problems and must be advised to go for counseling.

22. What do you understand by Cash accounting and Accrual Accounting?

Cash Accounting

 Cash account transactions are recognized when cash is received or paid

Accrual Accounting
  An accounting convention by which payments and receipts are recorded at the time the parties
enter in to a commitment. This system would recorded the purchase of navel helicopter, for
example, when the contract is signed, not when helicopter are delivered and paid for.
 According to GRAP

 Means a basis of accounting under which transaction and other events are recognized when
they occur ( and not only when cash or its equivalent is received or paid) therefore the
transactions and events are recorded in the accounting records and recognized in the financial
statements of the periods to which they relate. The elements recognized under accrual
accounting are assets, liabilities, net assets, revenue and expenses

23. Why was the supply chain management developed and name the 4 stages

It was developed to

 To transform government procurement and provisioning practices into an integrated SCM

function
 To create a common understanding and interpretation of preferential procurement policy
 To introduce a systematic approach for the appointment of consultants
 TO promote the consistent application of best practices throughout government SCM

24. How do you handle Pressure

I find it stimulating, however,I believe in planning and proper time management to reduce panic
deadlines within my area of responsibility

25. What is your weaknesses ?

I enjoy my work and always do my best and most of of the time I have to work in a team and I fee
frustrated when others in a team are not working hard/whole heartedly and I always overcome this
frustration by positive attitude

26. Poor Performance

o work plan & job description to be signed by both supervisor & subordinates
o Supervisor will assess his/her subordinate based on work plan or job description
o If the subordinates is underperforming the supervisor will see if the subordinate needs
training or if subordinate have social or family problems which needs the intervention of
EAP( employee Assistant Program)
o Disciplinary code
o Incapacity code

27. Importance of PMD to employee

o Clearly defined job description

o Individual training plus training & development plans
o Ownership of performance
o Regular feedback
 o Participation in job decisions
o Helps individual to develop full potential
o Gives the individual options of recourse in case of perceived bias

28. Importance of PMD to Manager/ Supervisor

o improved work performance

o confidence to produce results
o factual data for performance appraisal
o focused feedback & coaching
o improved team spirit
o rewarding of outstanding performance
o recognising poor performance & dealing with it

29. Conflict (how to handle it)

Obviously when 2 officers are in conflict one will come and report, I will give the person time and listen
to the story, take note of what he/she is saying. I will then release the officer to his/her office. I will the
call the other person and got the other side of the story, release him/her. Give my self time to analyse
and investigate what might be the problem. From there I will call the 2 officers together in my office and
ask them to say out their story together. I will then ask both of them what they think is the
solution .When giving my final decision I must take in to consideration both their contribution

30. Team work

o Collective ideas.
o Different view point
o Combination of idea to make a whole & complete the job

31. prevention of fraud

o by implementing of internal control system
o segregation of duties

32. Except PMS how are you going to manage the performance of your subordinate

 Segregation of duties
 Develop a work plan & job description to be signed by both supervisor & subordinates
 Supervisor will assess his/her subordinate based on work plan or job description cause they will
be having a short timeframe
 If the subordinates is underperforming the supervisor will see if the subordinate needs training
or if subordinate have social or family problems which needs the intervention of EAP( employee
Assistant Program)
 Disciplinary code
  Incapacity code

Know in terms of the regulation 16A,

1. when do we deviate , and give examples .

2. Explain contract management, what should be included in SLA or contract. How do you
deal with expansion and variation?

3. How to procure through transversal contract from treasury and its regulation number.

4. Different procurement thresholds including tender and their process.

5. Name and be able to explain at least 5 SCM legislation as well as explaining pillars

6. Difficult situation at your work, how did you resolve it?

7. What are your achievements

8. Procurement plans , when do you submit them and what is contained in them.

Am lazy will call tomorrow morning and we will propose one last time, all the best, it’s yours , phela mna
am papa when it comes to employment matters I have a gift so receive .