Official Course Description: MCCCD Approval: 11/23/93
MGT135 19942-20035	LEC	3 Credit(s)	3 Period(s)
Purchasing Management
Purchasing function, including basic concepts and underlying principles. Pre-acquisition, acquisition, and post-acquisition activities of the procurement process. Prerequisites: MGT102 or permission of department.

Go to Competencies    Go to Outline
 

MCCCD Official Course Competencies:
MGT135   19942-20035	Purchasing Management

1.	State the objectives of the purchasing function and describe its relationships with other departments. (I, II)
2.	Explain the importance of accurate descriptions and material specifications to the procurement process. (III)
3.	Explain the role standardization plays in the procurement and manufacturing process. (IV)
4.	Apply the principles and factors which influence the make-or-buy policy in specific situations. (V)
5.	Explain the steps necessary to evaluate, select, develop, and maintain a stable supplier base. (VI)
6.	Describe the benefits and risks of foreign sourcing. (VII)
7.	Compare and contrast cost and price analysis and the appropriate application of each. (VII, VIII, IX)
8.	Describe the different types of contracts and ordering agreements and the advantages and application of each. (X)
9.	Describe the objectives and strategies of the negotiation process. (XI)
10.	Explain purchasings role in capital equipment procurement. (XII)
11.	Compare and contrast how the procurement of services differ from that of materials. (XII, XIII)
12.	Describe purchasings responsibility for managing supplier quality. (XIV, XV)
13.	Demonstrate an understanding of the law of agency and the law of contracts as they relate to the procurement process. (XVI)
14.	Explain the importance of ethical and professional standards to the purchasing function. (XVII)

Go to Description    Go to top of Competencies
 

MCCCD Official Course Outline:
MGT135   19942-20035	Purchasing Management

I. Purchasing and materials management in business A. Purchasings roles B. Purchasing function C. Relations with other departments D. Consolidation of materials activities E. The systems approach II. Objectives and policies A. Objectives of purchasing and materials management B. Basic operating policies C. The policy manual III. Purchase descriptions and specifications A. Quality defined B. Specifications C. Other purchase descriptions D. How to select the right approach to describing requirements IV. Standardization A. Standardization defined and its implications B. Awakening interest in standardization V. Make-or-buy A. Origination and types of make-or-buy investigations B. Factors influencing make-or-buy decisions C. The volatile nature of the make-or-buy situation D. Administration: Personnel and procedures VI. Sources of supply A. Development and maintenance of the supplier base B. Strategic and tactical issues in supplier selection C. Evaluating a potential supplier D. Competitive bidding and negotiation E. The solicitation F. Selecting the source VII. International sourcing A. The benefits and risks of foreign sourcing B. Getting started C. Identifying sources D. Preparing for discussions E. The nuances of negotiating overseas F. Countertrade VIII. Pricing principles A. General economic considerations B. Price analysis C. Purchasing design work D. All-in-cost E. Documenting price analysis F. Discounts IX. Cost analysis A. Cost analysis B. Direct costs C. Learning curves D. Tooling costs E. Indirect costs F. Profit X. Types of contracts and ordering agreements A. Fixed price contracts B. Incentive contracts C. Cost-type contracts D. Considerations when selecting contract types E. Effects of delivery time and dollar values on prices F. Purchasing agreements G. Systems contracts XI. Negotiation A. Objectives of negotiation B. When to negotiate C. Buyers role in negotiation D. Negotiation process E. Negotiating for price F. Documentation G. Characteristics of a successful negotiator XII. Purchasing capital equipment A. Differences in the procurement of capital equipment B. Life cycle cost analysis C. Procedure for the purchase of capital equipment D. Purchasings role in capital equipment procurement E. Used equipment market F. Leased equipment XIII. Purchasing services A. Statement of work B. Selecting service contractors C. Compensating service suppliers D. Contract administration E. Construction services XIV. Supplier management A. Ensuring understanding B. Preaward conference C. Monitoring and controlling project progress D. Monitoring and controlling total supplier performance E. Motivation F. Assistance G. Supplier surveys H. Partnerships XV. Managing for quality A. Concepts of quality B. Purchasings role in quality management C. Quality control concepts D. Industrial applications XVI. Legal considerations A. Development of commercial law B. Basic legal considerations 1. Status of an agent 2. Purchase contract C. Special legal considerations 1. Inspection rights 2. Rights of rejection 3. Title 4. Warranties 5. Order cancellation and breach of contract 6. Just-in-time contracts 7. Arbitration 8. Honest mistakes 9. Patent infringement 10. Restraint of trade laws 11. Product liability and purchasing XVII. Ethical and professional standards A. Professional purchasing ethics B. Professional purchasing practices C. Management responsibilities

Go to Description    Go to top of Competencies    Go to top of Outline