Browsing by Author "Oppelt, Carl Andrew"

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    Developing a monitoring and evaluation system in supply chain management at Overstrand Municipality
    (2019-04) Oppelt, Carl Andrew; Rabie, Babette; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
    ENGLISH SUMMARY : Most municipalities base their performance on the type of audit opinion they receive from the Auditor-General of South Africa. It is even understood that compliance and adherence to legislative and regulatory frameworks indicate good performance. If one especially focusses on supply chain management (SCM) in the South African local government sector, this becomes more evident. Bent (2014:15) argues that public entities, especially municipalities, are remaining at the implementation phase of SCM, focusing on legislative compliance only and not fully exploring the performance phase. Ambe and Badenhorst-Weiss (2012: 249) state that inadequate monitoring and evaluation (M&E) of SCM is identified as a key challenge in local government in South Africa. Clarity is provided on how important it is for a municipality to indicate its performance to a community and to reveal how its decisions and actions have added value and fulfilled the community’s true needs. The indication of value-added decisions and actions will enhance good governance, with specific reference to accountability and transparency. The objectives of this research entails discussing the importance of M&E, the requirements of an M&E system and how it applies to SCM, reviewing the policy framework for M&E and SCM within the South African local government sector. Also describing Overstrand Municipality’s organizational performance management system, supply chain unit setup and current processes for SCM contract management. In the pursuit of a pragmatic system, Kusek and Rist’s ten-step proposed system is identified as the most suitable for the purpose of this study. The Local Government Management Improvement Model (LGMIM) indicates how such a system can be coordinated, standardized and integrated between the different spheres of government. The above stated are done through existing literature review and relevant document analysis of Overstrand Municipality. Semi-structured interviews are then conducted by engaging with relevant internal stakeholders at Overstrand Municipality in order to review existing practices, expectations, challenges, and possible solutions to their existing and possible future challenges. Findings of this study revealed that Overstrand Municipality has a performance management framework, established internal control functions and the distinction of functions and segregation of duties within its SCM unit. Overstrand Municipality’s organizational performance management system indicators only illustrate whether output targets have been met or not. The Municipality’s supplier performance management system illustrates that the Municipality views performance as “good”, “satisfactory” or “under-performed”. In terms of the empirical research conducted, it has been indicated that factors for the performance of a municipality, which transcends the limited compliance mindset often adopted, is needed. Respondents emphasized the importance of good governance, well defined KPIs and objectives, a good performance management framework, a performance culture (“buy in”) in the Municipality, and the driving out of “non-value outputs”. Respondents believed that being compliant by adhering to legislation does not automatically indicate an overall indicator of good performance, as it is only a component of it. These factors are addressed through an effective results-based M&E system. Further recommendations are made which will assist in indicating value added performances.