Course Paper

The Course Paper will cover a fictitious component part known as aHydraulic Cylinder Assembly End Blockon 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.

1. Title Page 2. Executive Summary a. Not to exceed 1 page single spaced 12 point font i. Student is to realize that the bottom line is wh 1. STRATEGIC FIT - Quality-Cost and Delivery 2. How this decision helps us achieve current CORPORATE OBJECTI 3. Allows us to meet BUDGET and MARGIN requirements ii. Any Critical Data and a Final Recommendatio b. Make note now of any known issues that can impact the company in the future 3. Explanations of each step in the process: Content Deliverables: a. EVENT DATE - DATE Start Finish Milestone and Timeline of activities i. Internal ii. External Complet eY/N Specifica tions Available Supplier Evaluatio n Technical Review Pilot Build and Inspectio n Sourcing Required Inventory at Plant b. Sources of Supply 1. 1. 2. 3. i. Outline an interview of prospective suppliers ii. Check References Understand testimonials iii. Visit Plants and Distribution Centers to access Review their Quality Standards Access Management Skills and Experience Review basic Financials 4. Review Quality Programs 5. Review their Operations and Technology c. Supplier Evaluation Criteria and scoring Matrix i. Capability ii. Machinery, Labor, Knowledge iii. Financial Standing iv. Capacity and hours of operation v. Location for transportation and labor vi. Testing Capabilities vii. Storage - Dry d. Quote Submission i. Your Quote Format to include several elemen 1. Spec 2. Volume 3. Terms and Conditions a. Intellectual Property b. Shipping FOB US Border c. Product Warranty 4. (Target Price if YOU chose to share this information) 5. Dates a. Due date of Quote b. Due date of Samples c. Start of Production ii. The Supplier Quotes should contain 1. Price, Discounts, Packaging 2. Any other Terms and conditions 3. Lead-time 4. Production Lot Sizes and Quantity Breaks 5. Any special Material handling needed e. Supplier Selection and Product Acquisition i. Completeness of Quality, Cost and Delivery ii. Certifications and Practices iii. Agreements on Price of Cost adjustments due f. Preliminary Award i. Must produce sample parts off of a production ii. Submit parts to the Buyers Company Quality iii. Notify the Vendor of any nonconformities 1. Action plan if there are nonconformities g. Award the business i. Finalize transportation and Packaging ii. Create the Purchase Order at the bottom line is what the Executive team is looking for. Their expectation from you is that you did your due diligence. In ORPORATE OBJECTIVES equirements a Final Recommendation prospective suppliers including activities that will lead to a good decision ution Centers to access their true capabilities ion and labor nclude several elements hould contain ty, Cost and Delivery f Cost adjustments due to Raw Materials and Currency arts off of a production process. yers Company Quality group for validation of Specification ny nonconformities and Packaging your due diligence. In the summary you will explain the Course Paper Grading Rubric Executive Summary Possible Earned Points Points No more than 1 pages 5 Explains overall Recomendation concisely 25 Executive Summary 30 Content Deliverables Possible Earned Points Points Milestons and Timeline of activities 10 Sources of Supply 30 Supplier Evaluation Criteria and Scoring Matrtix 30 Quote Submission 20 Supplier selection and Product acquisition 20 Preliminary Award 20 Award the Business 20 Grammar & Spelling 5 Quality and Formatting 15 Sourcing Report Report Total Points Possible Earned Points Points 200 0 Course Paper Grading Rubric Instructions for Completing Plan Executive Summary: This 1-page summary of your plan is written last. It ties together a brief overview of each minisection in your plan. After reading this, the reader should have a clear understanding of the specifics of your recomnedation. This should be able to "stand alone" as a document on its own merits. In the summary you will explain the 1. STRATEGIC FIT - Quality-Cost and Delivery 2. How this decision helps us achieve current CORPORATE OBJECTIVES 3. Allows us to meet BUDGET and MARGIN requirements ii. Any Critical Data and a Final Recommendation b. Make note now of any known issues that can impact the company in the future Instructions for Completing Plan a. Milestone and Timeline of activities i. Internal ii. External b. Sources of Supply i. Outline an interview of prospective suppliers including activities that will lead to a good decision ii. Check References 1. Understand testimonials iii. Visit Plants and Distribution Centers to access their true capabilities 1. Review their Quality Standards 2. Access Management Skills and Experience 3. Review basic Financials 4. Review Quality Programs 5. Review their Operations and Technology c. Supplier Evaluation Criteria and scoring Matrix i. Capability ii. Machinery, Labor, Knowledge iii. Financial Standing iv. Capacity and hours of operation v. Location for transportation and labor vi. Testing Capabilities vii. Storage - Dry i. Your Quote Format to include several elements 1. Spec 2. Volume 3. Terms and Conditions a. Intellectual Property b. Shipping FOB US Border c. Product Warranty 4. (Target Price if YOU chose to share this information) 5. Dates a. Due date of Quote b. Due date of Samples c. Start of Production ii. The Supplier Quotes should contain 1. Price, Discounts, Packaging 2. Any other Terms and conditions 3. Lead-time 4. Production Lot Sizes and Quantity Breaks 5. Any special Material handling needed i. Completeness of Quality, Cost and Delivery ii. Certifications and Practices iii. Agreements on Price of Cost adjustments due to Raw Materials and Currency i. Must produce sample parts off of a production process. ii. Submit parts to the Buyers Company Quality group for validation of Specification iii. Notify the Vendor of any nonconformities 1. Action plan if there are nonconformities i. Finalize transportation and Packaging ii. Finalize Import Legal Documentation iii. Create the Purchase Order Is it easy to open and read? Does the paper fall apart? Did you find a balance between elements and meet the requriemnts of content. Instructor Comments