Purchasing as a BUY part to select, evaluate and decide on the source of supply for the company.

The purpose of the Course Project is to enable a student to use the knowledge from the course to develop a full procurement model and supply chain strategy called a Sourcing Report. This report will contain all of the information that a Buyer would need in order to intelligently purchase a specific component. In selecting and presenting this data, you will assemble the recommendation about the source of supply and the cost to the company. Given a situation as described below, solicit a quote, evaluate technical abilities and the suppliers’ management team, negotiate the commercial terms, and enforce ethical policies. From this data, you will prepare a sourcing recommendation. There are elements of this project that require analysis and application of chapter materials in order to complete. There may be research required based upon student knowledge of the process, and you must cite your sources where appropriate.

 

Course Project – Overview

 

The Course Project will cover a fictitious component part known as a Hydraulic Cylinder Assembly End Block on the path to being released.

 

Purchasing as a BUY part to select, evaluate and decide on the source of supply for the company.

 

The company requires you to have the part made to print and in inventory at our factory in 100 days at production volumes. A timeline of activities is necessary for you to be able to track progress against and ensure that the correct processes are followed by you and the Supplier. You will categorize this part, find possible sources of supply in Juarez, Mexico to evaluate the suppliers you find, submit the specifications, and take a bid. You will evaluate the bid, negotiate the price, establish quality standards, pilot, build the part, and submit samples to the internal quality group for confirmation. Then, you may award the business, start production, and determine the mode of transportation, ensure regulatory compliance with import, and have inventory in place by Day 95 of the 100-day task.

 

The estimated usage for this part is 20,000 units per year. Cost Management has given you a budgeted target price based upon known elements of steel type and price per pound, the perceived standard machine shop processes and tolerances and clear zinc plating process, typical machinery, labor, and profit totaling a purchase price of $9.75 USD each. This spend is worth $195,000. Your approval level is $50,000, requiring you to present your sourcing decision to the vice president of procurement in order to place the business. You must present a case to the Vice President that supports your decision to work with a given supplier and why.

 

Grading Rubric

 

The Grading Rubric is in the Files section of the Course Menu. Print or refer to is as needed.

 

Best Practices

 

Start in Week 2 after you have read Chapters 3 and 4, and read through the lectures.

 

Work on this every week, one entire section at a time.You will want to work ahead. This paper will take you 5 or more weeks to complete.

 

You will need to be creative and fill in the blanks. It is okay to pretend and make up the company names, quotations, scorecards, and whatever else you will need to make the recommendation to the company.

 

It is expected that you might not have any experience or familiarity with this activity. This is meant to be fun, informative, and challenging. This will take you through the book and the lectures for information. You may want to share ideas with each other. Just remember, weekly progress is a necessity, but there is only ONE final submission in Week 8.

 

Build it as you go!

 

Guidelines

 

The content of the Sourcing Report should be divided into the sections corresponding to the Report Components shown below.

 

Title Page

 

Executive Summary

 

Note: Not to exceed 1 page single-spaced, 12-point font

 

Student is to realize that the bottom line is what the executive team is looking for. Their expectation from you is that you did your due diligence.

 

In the summary, you will explain the:

 

STRATEGIC FIT – Quality-Cost and Delivery

 

How this decision helps us achieve current CORPORATE OBJECTIVES

 

Allows us to meet BUDGET and MARGIN requirements

 

Any Critical Data and a Final Recommendation

 

Note now of any known issues that can impact the company in the future.

 

Milestone and Timeline of Activities

 

Internal

 

External

 

Sources of Supply

 

Outline an interview of prospective suppliers, including activities that will lead to a good decision.

 

Check References

 

– Understand testimonials.

 

Visit plants and distribution centers to access their true capabilities.

 

Review their Quality Standards.

 

Access Management Skills and Experience.

 

Review Basic Financials.

 

Review Quality Programs.

 

Review their Operations and Technology.

 

Supplier Evaluation Criteria and Scoring Matrix (Develop this as a table.)

 

Capability- Machinery, Labor, Knowledge

 

Financial Standing- Capacity and Hours of Operation

 

Location of Transportation and Labor to Facility

 

Testing Capabilities

 

Storage – Warehouse

 

Quote Submission

 

Your Quote Format can be fictitious, but it must include several elements. 

 

Spec

 

Volume

 

Terms and Conditions

 

Confidentiality

 

Title Transfer

 

Warranty

 

Target Price (if you chose to share this)

 

Dates

 

Due Date of Quote

 

Due Date of Samples

 

Production Shipping Deadline

 

Date of Production

 

Supplier Quote should contain all of the above, plus

 

Price

 

Discounts

 

Packaging

 

Any Other Terms and Conditions

 

Lead Times

 

Production Lot Size and Quantity Breaks

 

Any Special Handling Needed

 

Supplier Selection and Product Acquisition

 

Completeness of Quality, Cost, and Delivery

 

Certifications and Practices

 

Agreements on Price of Cost Adjustments due to Raw Materials and Currency

 

Preliminary Award

 

Must Produce Sample Parts off of a Production Process

 

Submit Parts to the Buyer’s Company Quality Group for Validation of Specification

 

Notify the Vendor of any Non-Conformities if They Exist (up to the Student to Pursue)

 

Action Plan if There are Non-Conformities

 

Award the Business

 

Finalize Transportation and Packaging

 

Finalize Import Legal Documentation

Collepals.com Plagiarism Free Papers

Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS

Why Hire Collepals.com writers to do your paper?

Quality- We are experienced and have access to ample research materials.

We write plagiarism Free Content

Confidential- We never share or sell your personal information to third parties.

Support-Chat with us today! We are always waiting to answer all your questions.