Overview
This unit will allow you to develop an appreciation and understanding of the broader factors contained within the Procurement function, including global supply markets and establishing contracts with local and international suppliers. You will examine procurement from different perspectives at the organisational level, to critically evaluate aspects of procurement, including strategies for creating and sustaining value through dealings in supply markets and structuring contracts. The unit seeks to develop analytical skills for evaluating global supply markets and encourages the adoption of a critical perspective of the procurement processes.
Details
Pre-requisites or Co-requisites
There are no requisites for this unit.
Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).
Offerings For Term 2 - 2019
Attendance Requirements
All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).
Recommended Student Time Commitment
Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.
Class Timetable
Assessment Overview
Assessment Grading
This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.
All University policies are available on the CQUniversity Policy site.
You may wish to view these policies:
- Grades and Results Policy
- Assessment Policy and Procedure (Higher Education Coursework)
- Review of Grade Procedure
- Student Academic Integrity Policy and Procedure
- Monitoring Academic Progress (MAP) Policy and Procedure – Domestic Students
- Monitoring Academic Progress (MAP) Policy and Procedure – International Students
- Student Refund and Credit Balance Policy and Procedure
- Student Feedback – Compliments and Complaints Policy and Procedure
- Information and Communications Technology Acceptable Use Policy and Procedure
This list is not an exhaustive list of all University policies. The full list of University policies are available on the CQUniversity Policy site.
- Assess and discuss the role of procurement in an organisation, its value and effectiveness.
- Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
- Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
- Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.
- Evaluate processes and measures of performance in procurement.
Alignment of Assessment Tasks to Learning Outcomes
Assessment Tasks | Learning Outcomes | ||||
---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | |
1 - Written Assessment - 20% | |||||
2 - Written Assessment - 40% | |||||
3 - Written Assessment - 40% |
Alignment of Graduate Attributes to Learning Outcomes
Graduate Attributes | Learning Outcomes | ||||
---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | |
1 - Communication | |||||
2 - Problem Solving | |||||
3 - Critical Thinking | |||||
4 - Information Literacy | |||||
5 - Team Work | |||||
6 - Information Technology Competence | |||||
7 - Cross Cultural Competence | |||||
8 - Ethical practice | |||||
9 - Social Innovation | |||||
10 - Aboriginal and Torres Strait Islander Cultures |
Alignment of Assessment Tasks to Graduate Attributes
Assessment Tasks | Graduate Attributes | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
1 - Written Assessment - 20% | ||||||||||
2 - Written Assessment - 40% | ||||||||||
3 - Written Assessment - 40% |
Textbooks
Purchasing and Supply Chain Management
Edition: 3rd Ed. (2014)
Authors: W. C. Benton Jr.
McGraw Hill Education
New York New York , New York , USA
ISBN: 978 0 07 802411 5
Binding: Hardcover
Additional Textbook Information
Paper copies are available at the CQUni Bookshop here: http://bookshop.cqu.edu.au (search on the Unit code)
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
All submissions for this unit must use the referencing style: American Psychological Association 6th Edition (APA 6th edition)
For further information, see the Assessment Tasks.
b.carr@cqu.edu.au
Module/Topic
Investigate the key stakeholders in the procurement process. Organising an integrated procurement process.
Compare and contrast centralised and decentralised procurement systems.
Chapter
Read Chapter 1
Events and Submissions/Topic
Module/Topic
Discuss the role of purchasing in corporate strategy.
Explore the most important elements of the strategic planning process for procurement.
Explain how sourcing is integrated into corporate strategy.
Learn how to develop a strategic procurement plan.
Chapter
Read Chapter 2
Events and Submissions/Topic
Module/Topic
Discuss the legal environment of the procurement function.
Understand the extent of the purchasing professional's legal authority and the implications in relation to ethics.
Discuss contract and leasing issues obligations regarding an offer.
Chapter
Read Chapter 3
Events and Submissions/Topic
Module/Topic
Identify the steps in conventional procurement practices.
Investigate structures and main activities of typical purchasing departments.
Identify the technical requirements for e-procurement.
Introduce the RFID technology.
Chapter
Read Chapter 7
Events and Submissions/Topic
Module/Topic
Identify the qualifications of good suppliers.
Learn the key elements of the make-versus-buy decision.
Discuss supplier relationship management.
Explore supplier evaluation in a variety of industrial environments.
Chapter
Read Chapter 8
Events and Submissions/Topic
Issue briefing note for A1
Students to read Case 25 in the text book Swisher Systems.
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Identify the drivers of increasing foreign trade.
Know the basics of global sourcing.
Critically evaluate various global sourcing alternatives.
Know how to negotiate in different countries.
Chapter
Read Chapter 9 and 10.
Events and Submissions/Topic
A1 Due 28 Aug.
Issue briefing note for A2.
Students to read Case 11 Offshore Supply Crisis - I need my steel.
Increasing Costs at Swisher Systems Corporation Due: Week 6 Wednesday (28 Aug 2019) 11:45 pm AEST
Module/Topic
Understand the relationship between procurement, supply partnerships and supply chain power.
Chapter
Read Chapter 11
Events and Submissions/Topic
Module/Topic
Understand the difference between bargaining and negotiations.
Identify the difference between the psychological and economic aspects of bargaining.
Implement effective bargaining strategies.
Chapter
Read Chapter 14
Events and Submissions/Topic
Module/Topic
Understand purchasing of transport services.
Discuss the nature of modern transport service delivery.
Know how to determine the appropriate price determination strategy for alternative transport modes.
Explain how third party relationships work.
Summarise the terms and conditions of transportation of merchandise.
Chapter
Read Chapter 15
Events and Submissions/Topic
A2 Due.
Issue briefing note for A3.
Students to read Case 21 in the text book The Art and Science of Purchasing Coal.
Offshore Supply Crisis - I Need my Steel. Due: Week 9 Wednesday (18 Sept 2019) 11:45 pm AEST
Module/Topic
Identify the issues in the capital equipment process.
Learn the three criteria applied to a cash flow analysis for equipment acquisition.
Discuss the role procurement plays in capital equipment acquisitions.
Chapter
Read Chapter 16
Events and Submissions/Topic
Module/Topic
Understand the service sector characteristics and strategies.
Identify the activities involved in procuring professional services.
Discuss what is meant by scope of works and how professional services are priced.
Discuss how the critical path method is used to plan, and control complex projects.
Chapter
Read Chapter 18
Events and Submissions/Topic
Module/Topic
Identify procurement's role in a firm within an overall quality assurance program.
Explore the various costs of a quality program and why it is difficult to measure these costs.
Know the mechanics of acceptance sampling for commodity purchasing.
Identify the advantages of statistical process control (SPC).
Chapter
Read Chapter 12.
Events and Submissions/Topic
A3 Due.
Course Assessment.
The Art and Science of Purchasing Coal Due: Week 12 Wednesday (9 Oct 2019) 11:45 pm AEST
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Chapter
Events and Submissions/Topic
1 Written Assessment
Swisher Systems is an industrial heating products company that was established in 1949. The company is an innovator of flexible heating products, especially with its knit and braided heating elements. This heating element is a multi-stranded resistance wire that is knit and braided with fiberglass and is the base technology for almost all of Swisher System’s products. Bill Simpson from the Engineering Department is distraught over a significant price increase for capacitors. Bill confronted the purchasing manager, Mike Watkins about the situation. Mike Watkins is the director of purchasing for Swisher Systems Corporation. Mr. Watkins is solely responsible for the purchasing activities throughout the company. Bill is expecting Mike to resolve the problems his staff are facing. As Todd Evans, the Summer purchasing intern, you are to address the following issues:
1 What are the responsibilities of an effective purchasing department? Using the case data evaluate the Bill Simpson complaint. How can the internal issues between Bill Simpson and Mr. Watson be resolved?
2 Evaluate the purchasing process at Swisher. If needed, what are your suggestions for improvement?
3 Discuss the concept of supplier relationship building at Swisher. Provide pros and cons to the current system.
Week 6 Wednesday (28 Aug 2019) 11:45 pm AEST
On Line
Week 8 Wednesday (11 Sept 2019)
On Line
1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed academic essay.
2. A critical review of the academic literature relevant to the problem(s) identified in the case study. This should be embedded in the discussion, not presented separately.
3. Appropriateness of evidence-based responses to the case study questions including an effective analysis of the situation along with relevant commentary on the issues of concern.
4. Application of SIX (6) relevant academic journal articles and appropriate reference to the prescribed textbook.
5. Clarity of expression/grammar and correct spelling using Australian English.
6. Strict conformity to referencing style as set out in the Publication Manual of the American Psychological Association, Sixth Edition (Refer to the Abridged Guide to APA Referencing Style).
7. Appropriate presentation in an essay format within a maximum 1500 words (+/-10%) (penalties apply for exceeding this limit).
- Assess and discuss the role of procurement in an organisation, its value and effectiveness.
- Evaluate processes and measures of performance in procurement.
- Problem Solving
- Critical Thinking
- Cross Cultural Competence
- Ethical practice
2 Written Assessment
Mr. Patton, vice president of purchasing for Code C, Inc., is concerned about a price increase from a Malaysian supplier. Last summer Code C was celebrating a 60 percent cost reduction based on replacing their major specialty steel supplier with Eastern Waves, in Kuantan, Malaysia. Eastern Wave is a small steel manufacturing company in Malaysia. It has several plants in Malaysia and China and produces various downstream steel products such as angle steel, I-beam, and round bar. The angle steel plant is located in Kuantan, Malaysia. The production method of the angle steel is called continuous rolling and the key raw material ingredient for angle steel production is billets. When operating at full efficiency, the annual capacity of the angle steel production is 10,000 MT. However, there are problems in relation to supply with the government’s trade barriers on billets. Furthermore, Eastern Waves difficulty in controlling their labour force makes it very difficult to adjust to the demand fluctuations of angled steel. Jon James is the director of global sourcing; he has been directed by the VP to resolve the issues of supply. As the Director of Global Sourcing (DGS) students are to address the following issues:
1. As Jon James (DGS), write a critique analyzing the situation in Malaysia for Mr. Patton. What recommendations do you suggest?
2. How can Code C avoid future sourcing disruptions?
3. How should Code C critically analyze future global sourcing alternatives?
Week 9 Wednesday (18 Sept 2019) 11:45 pm AEST
On Line
Week 11 Wednesday (2 Oct 2019)
On Line
1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed report.
2. Compelling expression of your evidence-based arguments. Appropriate and well structured, concise and clear expression of logistics management arguments.
3.Clear flow of thought throughout the business report, leading to key recommendations. Clear and succinct action plan.
4. Integration of relevant academic insights from at least EIGHT (8) relevant academic journal articles and appropriate reference to the prescribed textbook.
5. Clarity of expression, grammar, use of Australian-English, APA referencing, and in a Business Report format.
- Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
- Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
- Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.
- Communication
- Problem Solving
- Critical Thinking
- Team Work
- Cross Cultural Competence
- Ethical practice
3 Written Assessment
National Electric Power is a multinational energy company with a variety of energy assets. NEP is headquartered in Columbus, Ohio, and has a service area of approximately 197,500 square miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. In 2001, NEP had revenues of $61.3 billion and carried $47 billion in assets, making them the largest electricity generator in the United States.
Deon Houston, vice president for the National Electric Power (NEP) Commodity Trading Division, was in the process of producing her annual sourcing report for the company’s three-year plan. While NEP seems to have had success using the competitive bidding process, reverse auctions may be the way of the future. Mrs. Houston was wondering if the reverse auction sourcing approach would work for purchasing the company’s coal requirements.
As purchasing manager for NEP, draft an executive report and an action plan for the VP that addresses:
1. Your evaluation of the various alternatives open to Deon for the purchase of coal?
2. What recommendations would you make to Deon regarding the purchase of coal?Week 12 Wednesday (9 Oct 2019) 11:45 pm AEST
On Line
On Line. In accordance with University policy, feedback for A3 will be provided after certification of grades.
1. A thorough knowledge and critical analysis of the problem(s) identified in the case study expressed within a well-developed report.
2. Compelling expression of your evidence-based arguments. Appropriate and well structured, concise and clear expression of acquisition of commodities.
3.Clear flow of thought throughout the business report, leading to key recommendations. Clear and succinct action plan.
4. Integration of relevant academic insights from at least eight (8) relevant academic journal articles and appropriate reference to the prescribed textbook.
5. Clarity of expression, grammar, use of Australian-English, APA referencing, and in a Business Report format.
- Analyse the factors that affect procurement (including contract) decisions when operating in domestic and global supply markets.
- Compare and contrast organisational internal and external environments and the effects on relationships with suppliers.
- Critically analyse procurement and contracting theories and actual experiences to support the development of a procurement model for businesses in different countries, industries and with different organisation structures.
- Communication
- Problem Solving
- Critical Thinking
- Team Work
- Cross Cultural Competence
- Ethical practice
As a CQUniversity student you are expected to act honestly in all aspects of your academic work.
Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.
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Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.
As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.
What is a breach of academic integrity?
A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.
Why is academic integrity important?
A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.
Where can I get assistance?
For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.