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Document Name: Specification of Request for Proposal and Quotation for Supply Chain Training Version: 01 Date of issue: March 2017

Request for Proposal and Quotation

Supply Chain Training for

Transnet Engineering

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Contents DOCUMENT AUTHORITIES ...................................................................................... 3

1. Overview ............................................................................................................... 4

2. Description of Training Needs .................................................................................. 4

3. SCOPE ................................................................................................................... 4

3.1 Local Courses/workshops/skills programs ........................................................... 5

3.2 International Certifications ................................................................................ 5

4 Description of Training Required .............................................................................. 6

4.1 Local Competencies ......................................................................................... 6

4.2 International Certifications ................................................................................ 8

5. Specification ......................................................................................................... 14

6. Costing ................................................................................................................. 15

7. Commencement .................................................................................................... 16

8. Performance Measurement Criteria ......................................................................... 16

9. Reporting, Feedback and Record keeping ................................................................ 16

10. Partners and Contractors .................................................................................... 17

11. Maintenance & CPD ............................................................................................ 17

12. Membership ....................................................................................................... 17

13. Proposal Format ................................................................................................. 17

14. Briefing session .................................................................................................. 18

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DOCUMENT AUTHORITIES

BUSINESS RESPONSIBLE PERSON

DESIGNATION VALIDATION SIGNATURE DATE

School of Supply Chain

Tebogo Makgohlo Specialist

Logistics Keabetswe Mpane HOD: Logistics

SoE Phineas Sibanyoni Acting Senior Manager

Supply Management

Sibongile Matshaya Commodity Specialist

Human Capital Nana Sabelo

General Manager:

Human Capital

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1. Overview Transnet Engineering (hereafter known as TE) an operating division of Transnet SOC Ltd is the

backbone of South Africa’s railway industry with three product focused businesses, 132 depots, six

factories and 13000 employees country-wide. The organisation is dedicated to maintenance, repair,

upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and

electric locomotives as well as wheels, rotating machines, rolling stock equipment, casting auxiliary

equipment and services.

The Transnet Engineering School of Supply Chain (SoSC) is a well -established and functional

department within TE that focuses on the delivery of the Supply Chain competencies that are

necessary to build capacity, develop and skill employees and support the Transnet Human Capital

demand strategy.

The SoSC aims to provide the necessary Education and Training interventions to support the

development of a skilled workforce within Transnet operating divisions that enables improved

business performance.

2. Description of Training Needs Transnet has adopted development and empowerment of its staff as a key and fundamental step in

ensuring compliance to its processes procedures and work efficiency.

Therefore a need has been identified to capacitate Transnet personnel with core competencies

through a formal Supply Chain Management related training intervention that is tailor made and

contextualised to the business requirements and that is imparting portable and practical knowledge

and skills that can benefit the employee on their day to day duties and career path internally and

externally.

It is for this reason that Transnet has taken the decision to co-ordinate its supply chain training

requirements and execution at the corporate level to ensure consistency in the quality and

application of this training.

3. SCOPE Transnet Engineering wishes to source a business partner to assist with the provision of Education

and Training for its Logistics and Supply Chain division. The training intervention should provide the

competencies required to ensure effective and sustainable improvement and productivity in the

operational businesses.

The scope of work will include, but is not limited to the following:

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3.1 Local Courses/workshops/skills programs

3.1.1 Educational workshops that address the following business competencies

Stores and Stock Control

Warehouse Management

Manufacturing and Operations Management

Production & Inventory Management

Cycle Counting

Management of hazardous material

Purchasing Negotiations

Purchasing & Supply

Supply Chain Improvements

3.1.2 SAQA accreditation is not a definitive requirement as the emphasis is on meeting the

required competency outcomes.

3.1.3 All training and education interventions must be facilitator led.

3.2 International Certifications International Certifications have been mandated by Transnet Engineering as a source of

competency to ensure the adoption of Global best practices and supply chain standards. The

following international bodies are a source of such competencies.

3.2.1 APICS- The Association for Operations Management of America

APICS is the leading professional association for supply chain and operations management

and the premier provider of research, education and certification programs that elevate

supply chain excellence, innovation and resilience. With over 41,000 members and more

than 250 international partners, APICS is transforming the way people do business, drive

growth and reach global customers:

CPIM (Certified in Production & Inventory Management)

CSCP (Certified Supply Chain Professional)

CLTD (Certified in Logistics, Transport & Distribution)

SCOR-P (Supply Chain Operations Reference Model)

3.2.2 IBF – Institute of Business Forecasting The Institute of Business Forecasting & Planning is recognised as the premier full-service provider of forecasting and planning educational services to organisations worldwide. For

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over 3 decades, the IBF has been helping businesses increase profits and decrease waste by guiding them through with lessons learned and best practices. The IBF is known as a centre of learning for forecasting & planning strategies and techniques for every major industry on a global level.

CPF (Certified Professional Forecaster)

ACPF (Advanced Certified Professional Forecaster)

3.2.3 DDI – Demand Driven Institute

Demand Driven Material Requirements Planning is a formal planning and execution method

designed to correct the inadequacies and inappropriate rules of conventional Material

Requirements Planning (MRP) given today’s more volatile, complex and service oriented

supply and manufacturing scenarios. The Demand Driven Institute (DDI) was founded by

Carol Ptak and Chad Smith, co-authors of Orlicky’s Material Requirements Planning, Third

Revised Edition in order to proliferate and further develop demand driven strategy and

tactics in industry.

DDI (Demand Driven Planner)

DDL (Demand Driven Leader)

4 Description of Training Required The training requirements are as follows:

4.1 Local Competencies

Courses and workshops are required to fulfil the following competencies:

Required Learning outcomes

Estimated SAQA Level

Anticipated duration of

contact time

Total No. of Learners

4.1.1 Stores and stock Control NQF 3 36 Hours 100

• Warehousing and Supply Chain Management • Roles, Responsibilities and Relationships • Supplier Selection and Order Processing • Classification and Coding of Stock • Stock Taking and Audits • Stocktaking Process • Inbound Logistics • Storage Facilities • Materials Handling and Storage Equipment

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• Warehouse Safety • Stores Issues and Returns • Outbound Logistics • Transport and Reverse Logistics • Risk Management • Emergency Procedures

4.1.2 Manufacturing & Operations Management NQF 4 30 hours 80

Production and inventory management

Master planning

Materials requirements planning

Requirements planning

Shop floor control

Purchasing and receiving

Forecasting and demand

Management of inventory

Stores and storekeeping

4.1.3 Warehouse Management NQF 4 30 hours 80

Warehouse management & role of warehouse manager

Four main functions of a warehouse

Issues involved when planning a warehouse layout

Various types of storage & handling equipment

Main aspects of distribution systems

Operating aspects of managing a distribution function

Issue of inventory accuracy & stocktaking

How to obtain high accuracy & cycle counting

Warehouse security & performance measurements

4.1.4 Production & Inventory Management NQF 4 54 hours 50

• Resource Planning • Product Development and Process Design • Various Forecasting methods and Demand Management • Master Planning of Resources • Materials Planning • Capacity Planning • Executing Push Systems • Executing Pull Systems

4.1.5 Managing of Hazardous Material NQF 2 2 Days/ 16 hours

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Dangerous goods &/or hazardous substances.

Storage requirements for hazardous substances

Legislative requirements for hazardous substances

Handling procedures for different classes & characteristics of goods

Maintain:

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Incident Reporting Processes

Emergency Procedures

Equipment regulations

4.1.6 Principles of Supply Chain /Inventory Management NQF 4 40 hours 48

Understand logistics & the supply chain

Manage customer satisfaction

Manage & control logistics activities

Manage the transport function

Manage the warehouse function

Manage inventory & the purchasing function

Manage the order processing function

4.1.7 Basics of Purchasing / Supply Chain Management

4.1.8 Planning & Scheduling NQF 4

4.1.9 Inventory & Replenishment NQF 4

4.1.10 Competencies: Cycle Counting 1 Day / 8 hours

Importance of inventory accuracy

How to effectively set up and run a daily cycle counting process

4.2 International Certifications

Anticipated duration of

Contact hours

Number of Learners

CPIM (Certified In Production & Inventory Management) 30 Hours per module

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Basics of Supply Chain Management (Entry Module) –

Basic concepts in managing the complete flow of materials in a supply chain from suppliers to customers.

Master Planning of Resources (Core Competency Module)

Demand management

Sales & operations planning

Master scheduling

Supply & demand for mid - to long-term independent demand

Priority planning & capacity planning Detailed Scheduling & Planning (Core Competency Module) –

Inventory management

Materials requirements planning

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Capacity requirements planning

Procurement & supplier relationships Execution & Control of Operations (Core Competency Module)

The principles & practices necessary to execute, control & manage operations & participate in design decisions.

Strategic Management of Resources (Capstone Module)

Strategic planning & implementation, describes how market requirements drive resources & processes of an organisation.

CSCP (Certified Supply Chain Professional) 30 Hours 16

Module 1: APICS Fundamentals of Supply Chain Management

Broad concepts of supply chain management including primary processes, objectives, integration methods and benefits

Alignment of supply chain and business strategies

Key considerations for supply chain design and continuous improvement

Key measures for planning and controlling inventories

Fundamentals of logistics in supply chain management

Identifying and managing market segments

Demand forecasting and management techniques

Keys to effective CRM

Core concepts of supply management Module 2: APICS Supply Chain Strategy, Design and Compliance

Sustainability practices in design and operation of a supply chain

Risk, its sources, impacts and mitigation methods

Globally dispersed supply and demand and the impact of free trade zones and trading blocks

Globalization effects on inbound and outbound logistics

Measurement of efficiency and responsiveness in the supply chain

Technologies for design, data, operations and communications in supply chain management

Factors influencing demand, including design, marketing, selling and matching customer orders

Core concepts of CRM, including strategies, technologies and key implementation challenges

Fundamentals of supplier relationship management (SRM) including strategies and improved management of resources

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Relevant technologies and measurements

Inventory planning and control methods Module 3: APICS Implementation and Operations

Supply chain dynamics and the balance of responsiveness and efficiency

Managing supply from internal and external sources

Implementation of demand plans including prioritization and fulfilment as well as capturing and communicating point-of-sale data

Tools and techniques to support continuous improvement strategies

CLTD (Certified in Logistic, Transport & Distribution 30 Hours 80

Logistics and Supply Chain Overview

Capacity Planning and Demand Management

Order Management

Inventory and Warehouse Management

Transportation

Global Logistics Considerations

Logistics Network Design

Reverse Logistics and Sustainability

SCOR-P (Supply Chain Operations Reference – Projects) 3 Days/ 24 Hours

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The APICS SCOR Professional (SCOR-P) program enables you to learn techniques for managing and measuring the performance of a global supply chain utilizing the Supply Chain Operations Reference (SCOR) model. THE APICS SCOR-P Program:

Establishes in-depth knowledge of the SCOR model and methods

Provides real-world techniques for tackling strategic supply chain issues

Provides a practical method for evaluating the effectiveness of each course

SCOR-P endorsement builds on the SCOR framework by providing participants with the tools to:

Standardize performance metrics Build processes to describe what, where and how

activities are performed Create best practices for processes impacting supply

chain performance Manage critical supply chain resources for developing

and retaining employees

DDP (Demand Driven Planner) 2 Days / 16 Hours

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MRP in the Modern World – the materials challenge in the 21st Century • Key questions for planning and flexibility • Dealing with Variability • Materials or Capacity – Where to Focus First • Continued Relevancy of MRP formal planning • The Challenge of MRP in Today’s Environment • MRP and Pull-Based Methods (e.g. Lean, DBR) • The Stagnation of MRP • The MRP Conflict Demand Driven Material Requirements Planning Introduction • What does “Demand Driven” mean? • Blending Independence and Dependence • Part Types in DDMRP • Planning and Execution • The Five Primary Components of Demand Driven MRP • DDMRP Comparison to Past Practices Strategic Inventory Positioning • The Positioning Factors • ASR Lead Time • ASR Lead Time and Matrix BOMs Distribution Network Positioning • Distribution network factors • Cumulative variability • Demand driven versus push and promote Buffer Profile and Level Determination • Inventory – Asset or Liability • Buffer Profiles • Buffer Zones • Calculating Buffer Levels • Buffer Level Summary Module 6: Dynamic Buffers • Recalculated Adjustments • Planned Adjustments • Manual Adjustments • Replenishment Buffers versus Safety Stock Module 7: Demand Driven Planning – Stocked Parts • Part Planning Designations • The DDMRP Planning Process • Supply Generation for Stocked Items • Supply Generation for Non-Stocked Items • Decoupled Explosion Module 8: Demand Driven Planning – Non-Stocked Parts • Part Planning Designations • Supply Generation for Non-Stocked Items

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• DDMRP in Pure Make/Engineer to Order Module 9: Highly Visible and Collaborative Execution • Challenging Priority by Due Date • Buffer Status Alerts • Synchronization Alerts • Execution Collaboration Module 10: DDMRP Performance Reporting and Analytics • DDMRP Performance Reporting • Analytics • DDMRP Solution Summary

DDL (Demand Driven Leader) 2 Days/ 16 Hours

Introduction: Part 1: The Rise of Complexity Part 2: The Importance of Flow Part 3: Relevant Information for Flow Part 4: The Demand Driven Adaptive System

Module 1: Conventional Challenges for Flow Part 1: Variability and Its Impact on Flow Part 2: Distortions to Relevant Information and Materials

- Planning Part 3: Distortions to Relevant Information and Materials

- Finance Part 4: The Need for Thoughtware

Module 2: An Overview of Designing and Operating for Flow Module 3: Demand Driven Material Requirements Planning

Part 1: Strategic Inventory Positioning Part 2: Buffer Profiles and Levels Part 3: Dynamic Buffer Adjustments Part 4: Demand Driven Planning (Supply Order

Generation) Part 5: Highly Visible and Collaborative Execution Part 6: Calculating Average On-Hand Part 7: DDMRP Buffer Criteria Part 8: MRP, Lean and DDMRP Part 9: Implications for Distribution Networks

Module 4: Demand Driven Scheduling and Shop Floor Execution

Part 1: DDMRP Implications on Scheduling Part 2: Control Points Part 3: Scheduling Control Points Part 4: Protecting Control Points Part 5: How Time Buffers Work Part 6: Capacity Buffers

Module 5: Tactical Smart Metrics for Operations

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Module 6: Demand Driven Sales and Operations Planning Part 1: DDS&OP and the Demand Driven Operating

Model Settings Part 2: DDS&OP and Demand Driven Strategic Control,

Measurement, Projection and Adaptation Part 3: Volume and Rate Examples

Module 7: Demand Driven Adaptive System Development Path

CPF (Certified Professional Forecaster) 2 Day/16 Hours 20

What you need to know about Demand Planning, Forecasting & S&OP

Role of Forecasting & Planning in decision making

Demand Planning (Demand Sensing, Shaping & Creating)

Forecasting & Planning Process

Consumption (POS Date) Based Forecasting & Planning

Consensus Forecasting & Planning

Sales & Operations Planning (S&OP) Process

Collaborative, Planning, Forecasting & Replenishment Data Management and Time Series Forecasting Modelling

Data Analysis & Treatment

Fundamentals of Models and Modelling

Types of Models

Time Series Models

Model Selection

Metrics: Measuring Forecast Error and Performance

Reporting, Presenting, New Product Forecasting & Planning

The Positioning Factors

ASR Lead Time

ASR Lead Time and Matrix BOMs

ACPF (Advanced Certified Professional Forecaster) 2 Day/16 Hours

Forecast Modelling (Advanced)

Regression/Cause & Effect Models Steps to Build a Regression Model Diagnostic Tools for Assessing Regression Mods Development and Application of Dummy Variables in

Multiple Regression Improving a Multiple Regression Model ARIMA/Box-Jenkins Modelling Assumptions of ARIMA Modelling ARIMA Models vs. Regression Models Types of ARIMA Models Steps to Build an ARIMA Model Improving ARIMA Models

Technology and Worst Practices in Forecasting & Planning

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Forecasting & Planning Technology Forecasting Package vs. Forecasting System Selecting a Forecasting Package Technology Capabilities Scalability Forecasting System Implementation Worst Practices in Forecasting & Demand Planning

5. Specification 5.1 The Training provider must be able to support a national footprint and be able to

facilitate training interventions in the major Transnet Engineering business centres:

Pretoria Koedoespoort

Germiston

Cape Town - Salt River

Durban

East London

Port Elizabeth

Bloemfontein

Richards Bay

5.2 Learners outside of the major cities in remote areas must be accommodated; this

can be achieved through the following:

Provision of an on line learning platform

Opportunity to join a public course training intervention

5.3. Appoint an internal dedicated project manager to co-ordinate the scheduling and

execution of workshop and training sessions in collaboration with Transnet

Engineering

5.4 Trainers and facilitators must have the necessary experience and subject matter

expertise, to deliver the courses that they are assigned to present for local course

content. Trainers and facilitators presenting the international Certifications must be

registered on the APICS IDP (Instructor Development Program) or be approved or

accredited by the international body to deliver the programs.

5.5 Service provider must be able to issue certificates for competence on successful

completion of the course/workshop by a learner

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5.6 Ensure that the necessary eligibility criteria have been met and approved where

necessary; this has specific reference to the International certifications

5.7 Strict quality control procedures for exam papers and assessments for local courses

6. Costing 6.1 Costing should be provided based on facilitated workshops for groups of between a

minimum of 8 and a maximum of 12 participants.

6.2 Pricing must include the total of all elements as listed below, but show the

breakdown of how the costs have been accumulated:

Training Materials

o Cost of all materials required for presentation of a course or workshop,

this should include any text books, workshop handouts, etc.

o If text books are required please indicate details of such

o Course materials must reflect the benefit of volume discount for

numbers that exceed the projected numbers (see above)

Training Delivery / Facilitator fees

o Facilitation fees must be applicable and representative of the level of

instruction.

Travelling, Accommodation and car hire Expenses

o These costs will only be considered for training interventions in

Bloemfontein as it is expected that the service provider is able to

accommodate training in the other regions.

o Pricing may not exceed the following costing guidelines

Item Cost

Airfare R 2500.00 Return

Accommodation R 1000.00 per night (Bed & Breakfast)

Car Hire R 350.00 per day

Examination & Assessment fees

o Costs for Examinations and Assessment fees must be indicated per

person, costs associated with exam re-writes and re-assessments are to

be clearly defined.

Revision – Exam preparation

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o Revision sessions may be required to assist delegates that were not

successful at their first attempt at an exam or assessment. Please

provide a costing model to support this.

Venue Hire

o Transnet will provide all training venues and required equipment

• Pricing duration

o Pricing must be fixed for the contract duration.

7. Commencement To ensure consistency of the Transnet School of Supply Chain the roll out of the intervention

is to go live from September 2017. The selected service provider must have the necessary

resources, infrastructure and capacity to deliver on this.

8. Performance Measurement Criteria The effectiveness of the training will be evaluated by the following:

Improved work performance (ROI)

Successful achievement by learners of Certifications

Positive feedback from participating students on course and the facilitators

Certificates for local courses and workshops must be provided to successful

candidates 2 weeks after passing their exams / completing their assessment

9. Reporting, Feedback and Record keeping Comprehensive reporting will be required from the service provider for the duration of the

contract, it is therefore necessary that the service provider has a LMS (Learner Management

System) in place. Details of the LMS and reporting capabilities are to be provided with the

response submission.

The following is to be considered for purposes of reporting:

Reporting will be required from the service provider for submission to the Transnet

Engineering WSP and ATR

A comprehensive monthly report must be provided that includes the following

information by course/workshop

o Summary of student activity

o Attendance registers

o Completion of homework or course related task and activities

o Assessment & Exam Results

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It is of utmost importance that Individual Student records are maintained, this

information will be utilised for inputs to PDP (Personal Development Plans) and

assisting with the Talent Management Pool and for internal promotion.

Each Course or workshop must be given a unique reference number; this

information is used for progress reporting as well as billing purposes.

10. Partners and Contractors In the event that the service provider intends to make use of partners or contractors for

delivery of the contract the details of such partners/contractors must be included in the RFP.

The responsibility of the contractor’s performance resides with the service provider.

11. Maintenance & CPD The provider must have a sound knowledge and understanding of Certification Maintenance

and Industry CPD (Continuous Profession Development).

12. Membership The provider must assist with securing membership for learners with the relevant and

applicable industry Professional Bodies/organisations.

13. Proposal Format To simplify the evaluation process proposals and presentations should be compiled to include the

following in sequence;

Company Profile

Track Record of Company

References of involvement or delivery of similar training interventions

Accreditations & Endorsements

Training Materials

Assessments

Delivery of Training

Subcontractors

Detailed Pricing Structure

Maintenance, CPD and Membership

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14. Briefing session A compulsory briefing session will be held at Transnet Engineering on the DATE – Please confirm

your attendance by no later than DATE with NAME AND EMAIL

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