MGT 5084 Material Acquisition Management

Lecture: Introduction

Lecture: The Foundation and Progression to Professional Supply Management

Outcomes

• Describe the impact of effective supply management on overall financial performance
• Explain the crucial connection between supply management and return on investment
• Describe the logical progression from purchasing to strategic supply chain management
• Identify and describe the four factors that influence the importance of supply management in an organization
• Recognize and explain the five classifications of work in a supply management operation
• Compare and contrast the advantages of centralized and decentralized supply management decision making
• Explain the difference between operational activities and strategic activities
• Explain the significance of integrating supply management with internal and external stakeholders
• Appreciate the role that supply management plays in the supply chain
• Recognize the importance of connecting suppliers with the ultimate customers

Lecture: Relationships and the Requirements Process 

Outcomes

• Define the key characteristics of transactional relationships
• Explain how supply alliances can create win-win solutions for both buyers and suppliers
• Compare and contrast principal relationships including transactional, collaborative, and strategic alliances
• Identify situations in which strategic alliances may not be appropriate
• Delineate and describe the steps in designing and developing new products
• Assess the impact of involving buyers and suppliers in the product development stage
• Explain the role of supply management in the new product development process
• Identify methods and techniques to avoid conflicts in specification development
• Identify and describe the categories of specifications
• Explain how standardization differs significantly from simplification

Lecture: Managing for Quality, Equipment Procurement, and Purchasing Services

Outcomes

• Recognize the importance of quality as it relates to industrial and commercial value
• Describe the role of Six Sigma as it relates to product quality
• Conceptualize the roles and applications of the International Organization for Standardization
• Describe the differences between production buys and capital equipment expenditures
• Explain the factors that drive the needs or requirements for capital equipment expenditures
• Identify and describe the various costs and factors to consider in managing capital equipment procurements
• Compare and contrast the benefits of leasing versus buying capital equipment
• Design and develop basic specifications for procuring capital equipment
• Describe the purpose of a Statement of Work (SOW)
• Assess the myriad issues to consider in selecting a service contractor 

Lecture: Sourcing Perception and Corporate Outsourcing

Outcomes

• Identify and describe the strategic issues to consider in deciding to outsource manufacturing
• Discuss the volatile nature of the make-or-buy decision as it affects the organization
• Explain the rationale for making a product or component in-house or deciding to outsource manufacturing
• Recognize the importance of the supplier selection process
• Compare and contrast methods to evaluate potential suppliers to determine their strengths and weaknesses
• Identify key strategic issues encountered in developing a strategic sourcing plan
• Identify when to bid competitively versus entering negotiations with potential suppliers
• Explain how companies benefit from buying globally and linkage to countertrade
• Identify which goods, products, and services are best suited for buying offshore
• Identify and describe the principal global economic alliances and explain what drives these entities

Lecture: Total Cost of Ownership, Price and Cost Analysis, and Methods of Compensation

Outcomes

• Examine the critical value of determining the total cost of buying and/or owning a product
• Define and contrast the major components that comprise the total cost of a product or service
• Define and explain the subcomponents of total costs
• Explain why all cost components must be addressed when appraising the true cost of a product or service
• Understand how economic and financial conditions drive competitive conditions and price
• Explain how variable-margin pricing can result in overpriced procurements
• Identify and explain the various categories of cost that influence price
• Identify and describe the tools needed for conducting a price analysis
• Differentiate between direct costs and indirect costs
• Compare the difference between a price arrangement and a cost arrangement

Lecture: Negotiation, Contract Formation, Legal Issues, and Contract Management

Outcomes

• Describe the negotiation process and understand when to negotiate
• Identify the principal techniques utilized for effective negotiations
• Describe the key characteristics that make for successful negotiators
• Understand the impact of legal issues and options for resolving contract disputes
• Identify and describe the four basic elements of a contract
• Explain the concept of breach as it relates to contracts
• Identify fundamental issues to consider international contract negotiations
• Appreciate the importance of effective contract management
• Describe the use of Gantt charts in project management, and the use of PERT charts for identifying the critical path within a project
• Develop a basic approach for monitoring suppliers’ contract performance

Lecture: Ethics, Production, Inventory Control, Demand Management, and Logistics

Outcomes

• Define the basic principles of organizational ethics and corporate social responsibilities
• Describe the most important ethical principle for supply managers
• Explain how global supply management tempers ethical considerations
• Describe a supply manager’s responsibility to suppliers and the impact of safeguarding confidential supplier information
• Identify and describe the principal components of production planning and scheduling
• Define the basic components of material requirements planning (MRP) and understand the differences between dependent demand vs. independent demand
• Examine the interaction of capacity requirements planning (CRP) with MRP systems
• Describe the advancement or progression of MRP to MRP II systems
• Identify the cost breakdown associated with inventories: carrying acquisition
• Describe the experiential relationship between supply, demand, and logistics management
• Appreciate the significance of accurate forecasts in managing supply efficiently
• Define the primary use of time fences in demand management

Lecture: Supply Chain Management Review

Outcomes

• Explain the power of Value Network Management (VNM) 
• Examine the importance of VNM to supply management, logistics, and marketing 
• Recognize the future impact that VNM will exert on supply management, logistics, and marketing 
• Identify and describe the myriad stages of implementation of supply chain management as it evolves into VNM Appreciate the role of leadership in affecting organizational or systemic change to VNM 
• Distinguish between inconsequential training and training to improve organizational performance