Value Enhancement Strategies – PRMGT 5002

Content and Objective:

This course explores both traditional and leading-edge approaches for increasing purchasing’s contributions to organizational success. It looks at outsourcing and lease versus buy issues and into the many issues associated with inventory management, including both inventory classification and disposal. Other topics presented include value enhancement methods, such as standardization, value analysis, and target costing. The course closes with a discussion of developing and using forecast data.

Those who would benefit from this course are individuals seeking to achieve a better understanding of the field of purchasing and supply management, and those individuals who are seeking to attain Certified Purchasing Manager (C.P.M.) status.

Prerequisites:

Experience in the field of purchasing and supply management is useful but not mandatory for successful course completion. Service in the field is required, however, for achievement of the designation of Certified Purchasing Manager (C.P.M.) through the Institute of Supply Management (ISM) formerly know as National Association of Purchasing Management (NAPM).

Required Texts:

C.P.M. Study Guide, 7the ed., 2000, (Tempe, AZ: NAPM, 2000)

Ellram, Lisa M., Ph.D., C.P.M., CPA, and Choi, Thomas Y., Supply Management for Value Enhancement, Volume III of the NAPM Supply Management Knowledge Series (Tempe, AZ: NAPM, 2000)

Required Articles:

Developing an Outsourcing Contract by Gary T. Prod, C.P.M. (Purchasing Today, October 1998)

Successful Inventory Management by James D. Reeds, C.P.M. (NAPM Insights, January 1995)

Cost Reduction: The Top Approaches by Robert E. May, Jr., C.P.M. (Purchasing Today, October 1998)

The Future of Purchasing Supply: Demand – Pull Possibilities: by Roberta J. Duffy (Purchasing Today, January 2000)

Time:

Wednesday Evenings 6:00 P.M. to 8:30 P.M.

Dates:

Harrisburg

Instructor:

James R. Brimmer, C.P.M. Students will be seen by appointment before or after classes. The instructor may be reached weekdays via email at between 9:00 A.M. and 12:00Noon to set an appointment. My home email is

Value Enhancement Strategies – PRMGT 5002

Outline and Assignments

Subject / Study Guide Task / Text
Chapter /
Week
I. / Introduction /
1
Professional Purchasing / 1
ISM and Certification / 1
Review Course Requirements / 1
II / Make or Buy Decisions / 301 / 1 / 1
Article: Developing an Outsourcing Contract / 2
Decisions to Lease or Buy Equipment / 302 / 2 / 2
Financing & Leveraging Strategies for Purchases / 303 / 2 / 2
Case: Donley Brothers / 3
III. / Managing the Storage of Materials / 304 / 3 / 4
Inventory and Just-in-Time Strategies / 305 / 4 / 4
Inventory Discrepancies / 306 / 4 / 5
Article: Successful Inventory Management / 5
Obsolete, Surplus, and Scrap / 307 / 4 / 5
IV. / Developing & Implementing a Standardization Program / 308 / 5 / 6
Developing & Implementing a Process Improvement Program / 309 / 5 / 6
Developing a Cost Reduction, Cost Avoidance, and Cost Containment Program / 310 / 5 / 7
Article: Cost Reduction: The Top Approaches / 7
Coordinate the Introduction of New/Modified Products and Services / 311 / 6 / 7
V. / Plan & Develop Strategies Base on Forecasts / 312 & 313 / 7 / 8
Providing Forecasts to Suppliers / 314 / 7 / 8
Developing & Maintaining Market Awareness / 315 / 8 / 9
Article:The Future of Purchasing Supply:
Demand – Pull Possibilities / 10
Internally Providing Data on Current & Forecasted Market Conditions / 316 / 8 / 10
Case: Fauquier Gas Company / 11
VI. / Test / 12

Value Enhancement Strategies – PRMGT 5002

Grades:

Letter grades and their respective grade-point equivalents are:

A 4.00 B 3.00 C 2.00

A- 3.67 B- 2.67 D 1.00

B+ 3.33 C+ 2.33 F 0

Grades will be determined by:

1. Your class participation is valued at (10) points per night for a total of (100) points. No points beyond the (50) points for the case study will be awarded on those two nights. If you are unable to attend class because of sickness or work conflicts, you must advise me in writing by the next class. The base points will be adjusted accordingly.

2. Each case is worth (50) points for a total of (100) points.

3. The final is worth (100) points.

On this basis, you can earn (300) points. The breakdown is as follows:

A 285 - 300 Pts

A- 270 - 284 "

B+ 260 - 269 "

B 250 - 259 "

B- 240 - 249 "

C+ 225 - 239 "

C 210 - 224 "

D 180 - 209 "

F 0 - 179 "

1