Value Enhancement Strategies – PRMGT 5002
Content and Objective:
This course explores both traditional and leading-edge approaches for increasing purchasing’s contributions to
organizational success. It looks at outsourcing and lease versus buy issues and into the many issues associated with
inventory management, including both inventory classification and disposal. Other topics presented include value
enhancement methods, such as standardization, value analysis, and target costing. The course closes with a discussion of
developing and using forecast data.
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 Institute of Supply Management (ISM) formerly know as National Association of
Purchasing Management (NAPM).
Required Texts:
C.P.M. Study Guide, 7the ed., 2000, (Tempe, AZ: NAPM, 2000)
Ellram, Lisa M., Ph.D., C.P.M., CPA, and Choi, Thomas Y., Supply Management for Value Enhancement, Volume III of
the NAPM Supply Management Knowledge Series (Tempe, AZ: NAPM, 2000)
Required Articles:
Developing an Outsourcing Contract by Gary T. Prod, C.P.M. (Purchasing Today, October 1998)
Successful Inventory Management by James D. Reeds, C.P.M. (NAPM Insights, January 1995)
Cost Reduction: The Top Approaches by Robert E. May, Jr., C.P.M. (Purchasing Today, October 1998)
The Future of Purchasing Supply: Demand – Pull Possibilities: by Roberta J. Duffy (Purchasing Today, January 2000)
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 via email at jbrimmer@aeseducation.com between 9:00 A.M. and 12:00 Noon to set an
appointment. My home email is jbrimmer@lmf.net
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Value Enhancement Strategies – PRMGT 5002
Outline and Assignments
Subject
Study
Guide Task
Text
Chapter
Week
1
1
1
1
I.
Introduction
Professional Purchasing
ISM and Certification
Review Course Requirements
II
Make or Buy Decisions
Article: Developing an Outsourcing Contract
Decisions to Lease or Buy Equipment
Financing & Leveraging Strategies for Purchases
Case: Donley Brothers
301
1
302
303
2
2
Managing the Storage of Materials
Inventory and Just-in-Time Strategies
Inventory Discrepancies
Article: Successful Inventory Management
Obsolete, Surplus, and Scrap
304
305
306
3
4
4
307
4
4
4
5
5
5
Developing & Implementing a Standardization
Program
Developing & Implementing a Process
Improvement Program
Developing a Cost Reduction, Cost Avoidance,
and Cost Containment Program
Article: Cost Reduction: The Top Approaches
Coordinate the Introduction of New/Modified
Products and Services
308
5
6
309
5
6
310
5
7
311
6
7
7
Plan & Develop Strategies Base on Forecasts
Providing Forecasts to Suppliers
Developing & Maintaining Market Awareness
Article: The Future of Purchasing Supply:
Demand – Pull Possibilities
Internally Providing Data on Current &
Forecasted Market Conditions
Case: Fauquier Gas Company
312 & 313
314
315
7
7
8
8
8
9
10
316
8
10
III.
IV.
V.
VI.
2
Test
1
2
2
2
3
11
12
Value Enhancement Strategies – PRMGT 5002
Grades:
Letter grades and their respective grade-point equivalents are:
A 4.00
A- 3.67
B+ 3.33
B 3.00
B- 2.67
C+ 2.33
C 2.00
D 1.00
F 0
Grades will be determined by:
1. Your class participation is valued at (10) points per night for a total of (100) points. No points beyond
the (50) points for the case study will be awarded on those two nights. If you are unable to attend class
because of sickness or work conflicts, you must advise me in writing by the next class. The base points
will be adjusted accordingly.
2. Each case is worth (50) points for a total of (100) points.
3. The final is worth (100) points.
On this basis, you can earn (300) points. The breakdown is as follows:
A
285 - 300 Pts
A270 - 284 "
B+
260 - 269 "
B
250 - 259 "
B240 - 249 "
C+
225 - 239 "
C
210 - 224 "
D
180 - 209 "
F
0 - 179 "
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