University of Manitoba
I. H. Asper School of Business
Department of Supply Chain ManagEment
SCM 2240 - Purchasing and Supply Management 14131 - SCM 2240 - A01
Monday and Wednesdays 4:00 to 5:15
Winter 2013
Room: Room 138
Instructor: Allan Amundsen
Office Hours: Call for appt.
Telephone: (204) 801-3106 or 786-9701(work)
E-mail:
COURSE OBJECTIVES:
Purchasing or supply management has been construed historically as a secondary function to what were perceived as more important functions in organizations, such as direct production. In many organizations, it still is perceived as a semi clerical function. In this course, students will become aware of the substantial paradigm shift that has occurred in purchasing, with purchasing now having a key strategic role. This course opens with this focus then flows to tactical and strategic considerations related to organizational relationships, specifications, sourcing, total cost of ownership make or buy, price, cost and quality, relationship management and information technology.
TEXT:Purchasing and Supply Management
Johnson, F.; Leenders, M.; and Flynn, A. 14th Edition. McGraw-Hill Irwin. ISBN #978007337896
ACADEMIC INTEGRITY
It is critical to the reputation of the I. H. Asper School of Business and of our degrees that everyone associated with our faculty behaves with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of Manitoba Undergraduate Calendar addresses the issue of academic dishonesty under the heading “Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not limited to:
o using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words
o duplicating a table, graph or diagram, in whole or in part, without referencing the source
o paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) without referencing the source
o copying the answers of another student in any test, examination, or take-home assignment
o providing answers to another student in any test, examination, or take-home assignment
o taking any unauthorized materials into an examination or term test (crib notes)
o impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any test or examination
o stealing or mutilating library materials
o accessing tests prior to the time and date of the sitting
o changing name or answer(s) on a test after that test has been graded and returned
o submitting the same paper or portions thereof for more than one assignment, without discussions with the instructors involved.
GROUP WORK AND GROUP PROJECTS
Many courses in the I. H. Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of group projects, all group members should exercise special care to insure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to a specific individual(s).
Some courses, while not requiring group projects, encourage students to work together in groups (or at least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as it related to academic integrity with their instructor to avoid violating this policy.
In the I. H. Asper School of Business, all suspected cases of academic dishonesty are passed to the Dean’s office in order to ensure consistency of treatment.
CONDUCT OF THE COURSE:
The course will consist of lectures, group mini-case analyses, group presentations and guest speakers. Students are expected to be in attendance for all classes as marks will be made for class participation.
The class will be divided into 6 groups. Each group will be responsible for preparing a group paper and presentation on the topics as listed below plus a 20 minute mini-case analyses during the term. The assignment of the group presentations are as follow:
Group Presentations
Each group will make a presentation on the following topics during the last sessions of the course. The topics are as follows:
Group 1: Your internal customers at Manitoba Housing are complaining about the complex process for the tendering, and resultant contracts for construction of retrofits of buildings around the province. From a supply management perspective, outline the approach you would take and the implementation plans to improve the situation. Also address some of the issues that suppliers might be faced with, in responding to tenders.
Group 2: Your Supply Management group is responsible for the building of a major power production facility in Northern Manitoba (a hydro electric dam). Describe the components of the procurement process you would use. How does it differ from other types of procurement say for office supplies? What are the similarities? What are the differences?
Group 3: As a supply chain professional (Professional Purchaser) you have recently been hired by the MFN (Manitoba First Nations) to set up a system of procurement for a northern reserve that is not accessible by year round road access. Discuss the challenges you face, and the type of commodities you would be purchasing, and the procedures to ensure that the reserve receives the supplies when required.
Group 4: Recently, the University commissioned a Consultant to report on the opportunities for reducing procurement costs. As a newly hired Senior Procurement Analyst, what opportunities do you see for cost savings, given that the University uses Public monies to fund its operations, along with fees from students, etc? Discuss the challenges of working in a public procurement environment, and where you see possible changes to the current activities, for both Capital and operating expenditures.
Group 5: “Diamonds are a Girl’s Best Friend!” This doesn’t seem to be the case for the Senior Buyer with a Diamond Mine in the Northwest Territories. Coming from an oil exploration company in Alberta, she assumed that normal purchasing conditions would apply in her new position. Discuss what is different, what is similar, and how she must rethink her previous supply management experience as it now applies to the unique product, the environment, and the location of the mine.
Group 6: As a senior Supply Chain Manager for the Qulliq Energy Corporation located in Nunavut, your department is strategic to the continued well-being of the 11,500 customers in 25 communities. Discuss the special challenges faced in providing electricity to these Northern communities, as it relates to your job and responsibilities.
Presentations will occur as during class session 24(Groups TBD) and class session 25 (Groups TBD).
Each group is to prepare and submit a 10-15 page paper on the day of their presentation along with their PowerPoint presentation. The paper and presentation combined will be the basis of the mark assigned. Each paper must have at least 2 references from sources other than the textbook or materials we have covered in class.
Mini-Case presentations
Each group will be responsible for presenting, 20 minute mini-case analyses during the term. Dates for case presentations are as follow:
o Groups (TBD): Class session 17
o Groups (TBD): Class session 8
Group and mini-case presentations will be graded on the 5 Cs, each of which will be equally weighted:
o Clarity of the presentations
o Completeness of the presentation
o Conciseness of the presentation
o Creativity shown
o Was the presentation compelling?
Groups must submit a copy of their PowerPoint presentation on the day of their presentation.
Mini-Case Presentations: A Suggested Approach to Analysis
I. Description/Major Facts
(Describe at a high level the company. State here the major facts as you see them. Make statements clear and concise for your own understanding as well as for the understanding of the other students and the instructor.)
II. Major Problem (Immediate Issue Identification)
(State here the major problem as you see it. Emphasize the present major problem. You may wish to phrase your statement in the form of a question. In a few cases, there may be more than one major problem. A good problem statement will be concise, usually only one sentence.)
III. Possible Solutions (Use the”questions to answer” as guidance)
A. (List here the possible solutions to the major problem. Let your imagination come up with alternative ways to solve the problem.
B. Do not limit yourself to only one or two possible solutions. These solutions should be distinct from each other.
C. However, you may wish to include portions of one solution in another solution, as long as each solution stands alone. Only in this manner will your subsequent choice be definitive.
D. Briefly note advantages and disadvantages of each possible solution, etc.
IV. Choice and Rationale (Recommendation)
(State here your choice, A or B or ___ and the detailed reasons for your choice. You may also state your reasons for not choosing the other alterative solutions.)
V. Implementation and Monitor and Control
(When requested, prepare a plan to implement your choice)
Mini-Case Presentation Assignments
Group 1 Southeastern University
Suggested Student Assignment
If you were in the position of Heather Sloman, what would you say to Glen Meredith in your meeting? What do you want to do about the folding machine? What would you recommend to Glen about preventing re-occurrence of such situations?
POSSIBLE DISCUSSION QUESTIONS
1. Do you want to return the machine? If so, what would you say to Walter Charbonneau?
2. Why do you think Walter chose not to involve purchasing until after the machine was delivered?
3. Why is Glen Meredith so worried about the implications of not following university procedures?
4. What action can Heather take to avoid similar problems?
5. Would a decentralized purchasing organization structure function better in this environment?
Group 2: Ford Motor Company: Aligned Business Framework
SUGGESTED STUDENT ASSIGNMENT
1. As Tony Brown, how would you proceed with implementation of ABF?
2. How would you build trust with your suppliers and address their concerns regarding the new relationship between Ford and its suppliers?
POSSIBLE DISCUSSION QUESTIONS
1. Ford Motor Company is more than 100 years old? Why take the step to change supplier relationships now?
2. If you were a Ford supplier, how would you react to ABF? What would be your major concerns?
3. Is it possible for suppliers to take advantage of Ford under the ABF?
4. What are the costs to Ford if ABF fails?
5. How long do you think Tony has before he needs to start showing results from ABF?
6. How does Ford expect to get $7 billion in annual cost savings from ABF?
Group 3: Roger Haskett
Suggested Student Assignment
1. If you were in the position of Roger Haskett, what alternatives do you have regarding the acquisition of the computer equipment for Professor Kahsay?
2. What action would you take and why?
POSSIBLE DISCUSSION QUESTIONS
1. How might this situation have bee different if Professor Kahsay had contacted Roger Haskett earlier?
2. Can you refuse to sign the agreement? What do you think Professor Kahsay will do if you don’t cooperate?
3. Why not lease the equipment?
4. What other options might you want to explore? How long do you have before Professor Kahsay loses his patience?
5. Would you be prepared to sign the conditional sales contract as written? What changes would you make to it?
Group 4: Hemmingway College
Suggested Student Assignment
If you were in the position of Catherine Barkley, what would be your assessment of the two alternatives? What would you recommend to Dan Kavaliers and why?
POSSIBLE DISCUSSION QUESTIONS
1. Why is implementation of the new ERP system taking longer than expected?
2. Although the cost of using consultants is more expensive, what are the other advantages and disadvantages of this option?
3. Although the cost of using overtime and temporary staff is less expensive, what are the other advantages and disadvantages of this option?
4. Are you prepared to tell Dan Kavaliers that the entire implementation schedule needs to be pushed back by one year?
5. Who else in the organization do you want to consult with before you meet with Dan Kavaliers?
Group 5: Air Quality Systems
Suggested Student Assignment
1. If you were in the position of Patrick Wallace, what would be your analysis of the quality problem at Air Quality Systems? What action would you take and why?
2. What is your evaluation of the quality management system at Air Quality Systems? What changes would you consider making and why?
POSSIBLE DISCUSSION QUESTIONS
1. As Patrick Wallace, what would you say to your customers? How would you explain the problem?
2. What information do you want to collect and from whom?
3. What do you want to say to your supplier? What action do you expect them to take?
4. Are these types of problems to be expected in any manufacturing operation or can they be avoided?
5. As Patrick Wallace, what organizational changes might you consider at AQS?
Group 6: Sedgman Steel
SUGGESTED STUDENT ASSIGNMENT
1. What is your analysis of the situation at Sedgman Steel? If you were in the position of Alice McKenzie what information would you collect in preparation for the meeting on Friday? Why do you want it and how would you use it?
2. What recommendations would you make to Isaak Theissen and why?
POSSIBLE DISCUSSION QUESTIONS
1. How much raw material inventory should Sedgman hold?
2. Is there any information that you might find useful for the meeting on Friday? How would you get it?
3. What should be done about the relationship with Fehr Logistics Company? What changes do you think should be made to this relationship?
4. What do you think it costs Sedgman each year to hold $20 million in inventory?
5. Would you change the two-week policy? If so, to what?
6. What would you say to the purchasing manager? What types of issues should supply consider when negotiating contracts with suppliers?
GUEST SPEAKERS