SCM 460: Purchasing and Materials Management

This is an online introductory Web course on purchasing and materials management. As such, its focus will be on the management of the purchasing and materials management functions. We will emphasize the overall goals of purchasing, which include: providing an uninterrupted flow of materials and services; keeping inventory at a minimum to achieve the objectives of the company; maintaining quality standards; develop competent suppliers; standardizing the item bought; obtaining the lowest ultimate price; improving the organization’s competitive position; and achieving good external and internal working relationships. Key topics to be covered include: purchasing policies and procedures, order specifications and agreements, supplier selection, and the role of purchasing in production planning and inventory management. The use of the SAP S/4HANA Enterprise Resource Planning system or SAP Fiori will be an integral component of this course. Students will complete numerous lab projects consisting of hands-on assignments in the use of the SAP S/4HANA Materials Management application. SAP Fiori lab assignments will include the processing of material master records, vendors, requisitions, request for quotes, quotation analysis, purchase order creation, purchase receipts, and invoice processing.

Prerequisite(s)

SCM 301 or equivalent.

Objectives

To develop operational and strategic perspectives on the procurement function and its contribution to meeting supply chain goals, and to understand the implications of the changing business environment for purchasing and supply chain management practices. By the end of the semester you should have attained the following objectives:

• Describe the strategic role and importance of purchasing and materials management.
• Identify the key documents communicated between buyer and seller in the business-to-business procurement process.
• Identify specific steps in the supply process.
• Decide which technology tools are most appropriate for the organization’s categories of purchases.
• Gain a working knowledge of how to use technology tools such as reverse auctions and radio frequency identification (RFID).
• Recommend improvements to procurement of material in a manufacturing environment in order to reduce shortages.
• Recognize terminology associated with six sigma quality programs.
• Identify various methods of describing purchased item requirements as they relate to product quality.
• Describe the functions of inventory and how to measure inventory performance.
• Identify transportation terms, responsibilities, and various types of freight charges.
• Identify procurement methods for various classes of purchased materials.
• Identify supply law as it relates to the Uniform Commercial Code (UCC).
• Attain a hands-on working knowledge of SAP processes, transactions, terminology, and data fields as they relate to course content and material.

Students who do not meet these prerequisites may be disenrolled according to Administrative Policy C-5. if they do not have the proper prerequisite override. Students who add the course after being dis-enrolled according to this policy are in violation of Item 15 of the Student Code of Conduct.

Objectives

To develop operational and strategic perspectives on the procurement function and its contribution to meeting supply chain goals, and to understand the implications of the changing business environment for purchasing and supply chain management practices. By the end of the semester you should have attained the following objectives:

• Describe the strategic role and importance of purchasing and materials management.
• Identify the key documents communicated between buyer and seller in the business-to-business procurement process.
• Identify specific steps in the supply process.
• Decide which technology tools are most appropriate for the organization’s categories of purchases.
• Gain a working knowledge of how to use technology tools such as reverse auctions and radio frequency identification (RFID).
• Recommend improvements to the procurement of material in a manufacturing environment in order to reduce shortages.
• Recognize terminology associated with six sigma quality programs.
• Identify various methods of describing purchased item requirements as they relate to product quality.
• Describe the functions of inventory and how to measure inventory performance.
• Identify transportation terms, responsibilities, and various types of freight charges.
• Identify procurement methods for various classes of purchased materials.
• Identify supply law as it relates to the Uniform Commercial Code (UCC).
• Attain a hands-on working knowledge of SAP processes, transactions, terminology, and data fields as they relate to course content and material.

Course Requirements

Computer Skills:

1. SAP is the world’s most utilized ERP system and SAP professionals are in very high demand, however, the course does not assume any prior knowledge of working on SAP.
2. Skill to download PDF and use a PDF reader to fill out missing information boxes

SAP Lab Assignments:

Lab assignments will generally be cumulative and must be completed in sequence. Approximately 7 SAP labs and three SAP final projects have been scheduled during the semester. Each lab session will have an associated “lab assignment” that must be completed and submitted. You will have no immediate feedback when the SAP lab quiz is submitted. After the quiz has been graded, you will be given permission to view the results and your specific feedback by opening the quiz.

Assignment Discussion Forums:

Discussions will be used throughout the course to help guide and fine-tune your reading experiences, and allow you to express your personal responses and reactions to readings. As always, professionalism is expected. We encourage the class members to be respectful of the opinions and differences that each student brings to the learning environment. Most discussion forums are required activities but not graded. There are three graded discussions as part of the course.

Chapter Quizzes:

Each chapter and all supplemental material will have an associated quiz which will be completed as an INDIVIDUAL assignment. The chapter quizzes will be intentionally very challenging. You should read the chapter, review the chapter material posted on Canvas and then take the quiz. The quiz is open book and open notes. It is VITAL that you follow this process to learn all course material and to be prepared for exams. All quizzes should be completed by the assigned due date. No late assignments are accepted unless pre-approval is granted. Canvas quizzes can be started, saved, and completed at a later date. The quiz will be configured to provide you with NO feedback upon completion of the quiz. The quiz will be graded and you can view your answers and score after the assigned quiz due date. Quiz questions will be randomly selected from a pool of questions and you will have no immediate feedback when the quiz is submitted. After the quiz has been graded, you will be given permission to view the results and your specific feedback by opening the quiz. All questions associated with quizzes should be posted on the appropriate Canvas discussion board.

Chapter Assignments:

Select chapters will have supplemental working assignments intended to help students grasp the course content. Note that chapter assignments will be posted to Canvas throughout the semester. Most chapter assignments will be short and focused. All assignments are individual assignments and you cannot work with other students.

Exams:

There will be two exams. Exams will be open note/book and will be administered through Canvas. Exams are INDIVIDUAL ASSIGNMENTS and there should be no collaboration between students. The exams will be assigned on a specific day and will have a one hour limit. You can start the exams at any time before the day of the exam. The exam will automatically submit and close if you have not completed it within the time limit. Exam questions will be randomly selected from a pool of questions and you will have no immediate feedback when the exam is submitted. After exams have been graded, you will be given permission to view the exam results and your specific feedback by opening the exam. GRADING: Your course grade will be based on the following activities: (Assignments/points may be added, modified, or eliminated).

Grading

Your course grade will be based on the following team and individual activities: (Assignments/points may be added, modified, or eliminated).

The following cut-off percentages (of total points possible) will be used to determine letter grades: