isqa 439 purchasing supply management l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
ISQA 439 Purchasing & Supply Management PowerPoint Presentation
Download Presentation
ISQA 439 Purchasing & Supply Management

Loading in 2 Seconds...

play fullscreen
1 / 51

ISQA 439 Purchasing & Supply Management - PowerPoint PPT Presentation


  • 504 Views
  • Uploaded on

ISQA 439 Purchasing & Supply Management. Lee Buddress, Ph.D., C.P.M. Robert G. Gleason Professor and Director, SLM Program Portland State University. Class Rules. Questions Yes/No Donuts Questionnaire. Supply and Logistics Management. Purchasing and Supply Management (ISQA 439)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'ISQA 439 Purchasing & Supply Management' - julio


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
isqa 439 purchasing supply management

ISQA 439Purchasing & Supply Management

Lee Buddress, Ph.D., C.P.M.

Robert G. Gleason Professor and Director, SLM Program

Portland State University

class rules
Class Rules
  • Questions
  • Yes/No
  • Donuts
  • Questionnaire
supply and logistics management
Supply and Logistics Management
  • Purchasing and Supply Management (ISQA 439)
  • Transportation and Logistics, Warehousing and Inventory Management (ISQA 429)
  • Production Planning and Control (ISQA 459)
  • Integrated Supply Chain Management (ISQA 479)
  • Managing Material Flows Throughout the Supply Chain
slm electives
SLM Electives
  • ISQA 410 Supply Chain Strategy and Sustain
  • ISQA 410 Japanese Management
  • ISQA 430 Industrial Transportation
  • ISQA 431 Transportation Regulation
  • ISQA 440 Governmental Procurement
  • ISQA 449 Process Control and Improvement
  • ISQA 450 Project Management
  • ISQA 451 Forecasting
  • ISQA 454 Negotiation
  • ISQA 458 Food Industry SLM
  • ISQA 459 Production Planning
history of purchasing
History of Purchasing
  • 1832 Charles Babbage

On the Economy of Machinery and Manufactures

  • 1870 Magazine Articles
  • 1887 Marshall Kirkman

The Handling of Railway Supplies - Their Purchase and Disposition (Maybe first Purchasing book)

  • 1890’s Railroad Gazette
  • 1905 The Book on Buying
  • 1915 Three Purchasing Books
  • 1920’s Five Purchasing Books
importance of purchasing to the firm
Importance of Purchasing to the Firm
  • As % of Product Value
  • Savings
  • Continuity
  • Competitive Advantage
importance to the economy cont
Importance to the Economy, cont.
  • Input Output Model of the U. S.. Economy
    • Origin
    • Uses
    • Industry Interaction
    • Economic Drivers
issues from recent conferences
Issues From Recent Conferences
  • Phoenix Conference
  • Manufacturing Excellence
  • North American Purchasing Research Symposium
  • Michigan Purchasing Conference
  • San Diego Supply Chain Conference
  • Berkeley NHWA Conference
industrial purchasing
Industrial Purchasing
  • The function responsible for acquiring all raw materials, components and services required for a firm’s continuing operations.
  • This department:
    • Finds,
    • Qualifies,
    • Selects Suppliers
    • Negotiates Contract and Business Terms
    • Manages Relationship and Performance
  • Differences With Resale/Retail Buying
the purchase cycle
Generation of Need

Communication of Need

Supplier Qualification

Supplier Selection

Order/Contract Award

Contract Administration, Expediting

Receiving and Inspection

Quality Control Inspection

Storage/Inventory Control

Issuance and Use

Accounts Payable

Supplier Performance Evaluation

Transaction Analysis

The Purchase Cycle
types of purchases
Production Materials

Raw Materials

Parts and Components

Capital Equipment

Machinery

Vehicles

Capital Projects

Construction

MRO Supplies

Operating Supplies

Spare Parts

Services

Repair Services

Buildings and Grounds

Professional Services

Types of Purchases
why have a purchasing department
Why Have a Purchasing Department?
  • Assure Continuity of Supply
  • Uniformity of Practice
    • Policies and Procedures
    • Ethical Practices
  • Commercial Transaction Expertise
    • Contracts, Uniform Commercial Code
  • Negotiation Skills
  • Maximize Leverage
  • Develop and Employ Purchasing Strategies
basic purchasing objectives
Basic Purchasing Objectives
  • Maintain Continuity of Supply
  • Least Total Cost of Ownership
  • Develop Purchasing as Strategic Asset
  • Create Competitive Advantage
basic purchasing activities
Basic Purchasing Activities
  • Sourcing
    • Finding Potential Suppliers
    • Qualifying Suppliers
    • Selecting the Supplier
    • Selecting Transaction Type
    • Developing Supplier Relationships
  • Contract Administration
    • Tracking Progress, Expediting
    • Progress Payments
    • Managing Buyer/Supplier Relationships
organizational structure
Organizational Structure
  • Centralized
  • Decentralized
  • Matrix
  • Supply Chain Organization
  • SLM and Organizational Relationships
  • Supportive of Organizational Strategy
fundamental supply system issues
Fundamental Supply System Issues
  • Importance and Impact
  • Legal and Ethical Issues
  • Forecasting
  • Standardization and Simplification
  • Supplier Qualification and Selection
  • Supply Base Reduction
  • Supplier Contract Types
  • Logistics (Transportation and Inventory)
  • Negotiation
fundamental supply system issues17
Fundamental Supply System Issues
  • Inventory Management
    • Inventory Carrying Costs
    • EOQ
    • Consignments
    • VMI
  • Logistical Issues
    • Receiving
    • FOB Point/INCO Terms
    • Freight Rates
    • Intermediaries
supply system objectives
Supply System Objectives
  • Minimize Administrative Costs
  • Minimize Inventories
  • Reduce Cycle Times
  • Increase Supplier Performance
  • Increase Forecast Accuracy
  • Maximize Use of Technology
    • Communication
    • Productivity
  • Support Organizational Strategy
economic reports
Economic Reports
  • ISM – National
  • JP Morgan – Global
  • U of O - Oregon
ism report on business
ISM Report on Business
  • Change Indices
    • Derivation
    • ISM Report on Business
      • Accuracy
      • Timeliness
      • Leading Indicator
2010 oregon economic forum
2010 Oregon Economic Forum
  • During the Great Recession, the Average Family Lost 21% of its Net Worth.
    • Stocks Decline (IRA, Other Retirement)
    • Property Values Decline
  • Consumers Not Likely to Spend at Pre-Recession Levels Until Net Worth Restored
  • Consumer Confidence Levels Indicate Caution
economic concerns
Economic Concerns
  • Industry Consolidation
  • Privatization
  • Unemployment
  • Budget Deficit
  • Balance of Trade Deficit
economic concerns24
Economic Concerns
  • Labor Availability
    • Retirements
    • Stability in Numbers of Women Entering Workforce
  • Economic Condition of States
game changer 1
Game Changer # 1
  • Fundamental Change to Smaller
    • Cars
    • Houses
    • Consumer Spending
    • Capital Investment
    • Debt Financing
      • Personal
      • Business
    • Labor Availability
global sustainability changes
Global Sustainability Changes
  • Population
    • 7 Billion (October)
    • Over 5.5 Billion in Less Developed Countries
    • Africa: Growth So High Population Will Triple
      • 1 Bil Now, 3.6 Bil Forecast by 2100
    • Yemen:25 to 100 Million
    • Nigeria 162 to 730 Million
    • U.S. Faster Than Most Developed Countries
      • Immigration and High Hispanic Birthrate (311M – 478M)
  • All of This Assumes Food & Water Available

Source: UN Forecasts

the global example
The Global Example
  • UN Forecast
    • World Population 2011: 7.0 Billion
    • World Population 2050: 9.3 Billion
  • Today: Half of Population in Urban Areas
    • 2050: 70% in Urban Areas
    • 2050: 27 Mega-Cities of Over 10 Million
    • 2050: 97% of Growth from LDCs
  • How Will Infrastructure Support Growing Population?
game changer 2
Game Changer #2
  • Global Population Changes Will Drive Shortages in Basics of Life
    • Water
    • Food
  • Unrest Results
population and congestion
Population and Congestion
  • U.S. Population 400 Million by 2043
  • Population Increase in Next 15 Years
    • Washington +23%
    • Oregon +25%
  • Port of Portland Forecast
  • Cost of Congestion Study
  • Trucks Between Seattle and Portland
  • Chronic Underfunding of Infrastructure
american society of civil engineers 2005 infrastructure report card
Aviation D+

Bridges C

Dams D

Drinking Water D-

Energy D

Haz Waste D

Parks And Rec C -

Rail C-

Roads D

Schools D

Security I

Solid Waste C+

Transit D+

Wastewater D-

Waterways D-

Need $1.6 Trillion

American Society of Civil Engineers 2005 Infrastructure Report Card
american society of civil engineers 2009 infrastructure report card
Aviation D

Bridges C

Dams D

Drinking Water D-

Energy D+

Haz Waste D

Inland W ways D-

Levees D-

Parks And Rec C -

Rail C-

Roads D-

Schools D

Security I

Solid Waste C+

Transit D

Wastewater D-

OVERALL D

Need $2.2 Trillion

American Society of Civil Engineers 2009 Infrastructure Report Card
u of texas infrastructure study portland
U of Texas Infrastructure Study: Portland
  • Time Congested: 65 %
  • Excess Fuel Consumption: 34 Mil Gal
  • Total Delay (Person Hours): 40 Mil
  • Truck Congestion Cost: $265 Mil
  • Cost Per Peak Auto Commuter: $ 830

2009 Data (latest available)

the net results
The Net Results

Infrastructure Deteriorating Faster than Repair

Congestion at All Levels

Difficulty Locating Logistical Capacity

Increased Lead Times

Increased Inventories

Increased Costs

Increased Supply Chain Uncertainty and Risk

We Are Falling Behind Other Countries

global competitiveness
Global Competitiveness
  • World Economic Forum Annual Report
    • 2008: U.S. #1
    • 2010: U.S. #4
    • 2011: U.S. #5
    • 2012: U.S. # 7
  • 2012 Top 10: Switzerland, Singapore, Sweden, Finland, U.S., Germany, Netherlands, Denmark, Japan, UK

Criteria: Legal and Admin Framework, Mgmt of Public Finance, Bureaucracy, Corruption, Transparency

game changer 3
Game Changer #3
  • Infrastructure Deficiencies Are Decreasing Our Competitiveness
    • China and Other Developing Nations Invest Massively in Infrastructure
    • We Have Political Gridlock
rethinking popular supply chain strategies
Rethinking Popular Supply Chain Strategies
  • Outsourcing
  • Single Sourcing
  • Lean Philosophies
  • Sustainability is Sourcing Criterion
    • ISO 14000
    • Supplier Sustainability Practices
  • Supply Chain Risk Analysis is Key
game changer 4
Game Changer #4
  • Recent Supply Chain Strategies Shifting
where are we going
Where Are We Going
  • New Technologies are Key Focus
  • Sustainability
  • Risk Management
  • Inflation
  • Speculation
  • Privatization
  • Education
a look forward more game changers
A Look Forward: More Game Changers
  • China Industry Domination Strategy
  • BRIC Growth
  • Particle Deposition Technology
  • Quick Charge Batteries
  • $140/bbl Oil
  • Natural Disasters and SC Interruptions
  • Sustainability
  • Emma Maersk and Infrastructure
supply and logistics education
Supply and Logistics Education
  • Increasingly Complex Processes
  • Increasing Dependence on Systems and Information Technology
  • Mega-Facilities and Equipment
  • Chronic Underfunding of Infrastructure
  • Increasing Globalization
  • Pace of Change Increasing
  • Increase in Emphasis on Education
conclusions
Conclusions
  • SLM Influence on ROI
  • SLM Discipline Complexity
  • This is the Fun Part of the Business
  • You Can Be A Hero Every Day