The Continuing Education Function - 5088

THE PURCHASING PROCESS – PRMGT 5000 Module I

Content and Objective: This course focuses on the overall purchasing process and its major elements, including the requisitioning process, sourcing, bidding, and supplier evaluation, and offers an overview of cost and contract management. It examines how technology has changed procurement techniques and provides a summary of key legal issues facing purchasers. 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 ISM (formerly NAPM). Required Texts: Raedels, Alan R. Ph.D., C.P.M., The Supply Management Process, Volume I of the NAPM Supply Management Knowledge Series (Tempe, AZ: NAPM, 2000) C.P.M. Study Guide, 7the ed., 2000, (Tempe, AZ: NAPM, 2000)

Suggested Texts: Articles for C.P.M. Exam Preparation (Tempe, AZ: NAPM, 2000)

Diagnostic Kit (Tempe, AZ: NAPM,2000) Required Articles: The Consortium: Basic Antitrust Principles by James M. Johnstone (Purchasing Today, May 1996) Creating Your Own Supplier Evaluation Formula by Mary Lu Harding (Purchasing Today, November 1997) Defining Damages by Leslie S. Marell (Purchasing Today, January 1999)

Drive Out Costs Creatively by Patti Greer and Richard Gross (Purchasing Today, September 1977)

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 from 9:00 A.M. to 3:00 P.M. at 717-627-7710 ext 1023. E-mail address for day time is [email protected] and for evenings and weekends [email protected] THE PURCHASING PROCESS – PRMGT 5000 OUTLINE AND ASSIGNMENTS Study Guide Task Raedels Week I. Introduction 1 Review Course Requirements

II Making Procurement Plans & Decisions 101 1 1

II Requisitioning Process & Budgetary Constraints 102 2 2

III Methods of Procurement 103 4 2

IV Cost/Benefit Analysis on Planned Acquisitions 104 3 3

V Review of Supplier Samples and Confidentiality Policies 105 5 3

VI Develop/Review Specs., Statements of Work, & Performance 106 2,5 4 Terms

VII Selection of Sources 107,108,109 4 4 Article: The Consortium: Basic Antitrust Principles 4

VIII Case: Great Western University 5

IX The Competitive Process 110 5 6 Article: Drive Out Costs Creatively 6

X Conducting Supplier Evaluations 111 6 6

XI Measuring Supplier Performance 112 6 7 Article: Creating Your Own Supplier Evaluation Formula 7

XII Case: The Tidewater Gas & Electric Company 8

XIII Purchase Orders & Contracts 113 7 9

XIV Legal Review & Approval 114 7 9

XV Contract & Purchase Order Administration 115 8 10

XVI Follow-Up Procedures 116 8 10

XVII Resolution of Differences with Suppliers 117,118 8 11 Article: Defining Damages 11

XVIII Purchasing Policies & Records Retention 119,120 8 11

XIX The Future of Purchasing 9 11

XX Test 12 THE PURCHASING PROCESS – PRMGT 5000

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. If you are unable to attend class because of sickness or work conflicts, you must advise me in writing by the next class.

2. Your participation in each case is worth up to (50) points for a total of (100) points. If you are absent the night of a case exercise, the case may be written up to make up for the missed class in order to earn the associated points.

3. The test 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 "