Devry GSCM440 Course Project: Sourcing Report
Question # 00062122
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Updated on: 04/19/2015 11:15 AM Due on: 04/30/2015
Course Project: Sourcing Report
The Purpose of the Course Paper 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 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 Paper - Overview
The course Paper will cover a fictitious component part known as a Hydraulic Cylinder Assembly “End Block” on the path from being released to
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 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 and 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 tolerance’s 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
See attached
Best Practices
Back to Top
Start in week 2 after you have read the 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, its ok to pretend and make up the company names, the quotations, the 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 the ONE final submission in week 7.
Build it as you go!
Guidelines
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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 Buyers Company Quality group for validation of Specification
- Notify the Vendor of any nonconformities if they exist (up to the student if they want to purse this)
- Action plan if there are nonconformities
Award the business
- Finalize transportation and Packaging
- Finalize Import Legal Documentation
The Purpose of the Course Paper 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 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 Paper - Overview
The course Paper will cover a fictitious component part known as a Hydraulic Cylinder Assembly “End Block” on the path from being released to
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 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 and 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 tolerance’s 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
See attached
Best Practices
Back to Top
Start in week 2 after you have read the 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, its ok to pretend and make up the company names, the quotations, the 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 the ONE final submission in week 7.
Build it as you go!
Guidelines
Back to Top
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 Buyers Company Quality group for validation of Specification
- Notify the Vendor of any nonconformities if they exist (up to the student if they want to purse this)
- Action plan if there are nonconformities
Award the business
- Finalize transportation and Packaging
- Finalize Import Legal Documentation
-
Rating:
/5
Solution: Devry GSCM440 Course Project: Sourcing Report