The Course Project will cover a fictitious component part known as a Hydraulic Cylinder Assembly End Block on the path to being released. You will create a fictitious company with a need for this component,

Purchasing as a BUY part to select, evaluate and decide on the source of supply for the company.

The company requires you to have the part made to print and in inventory at our factory in $100$ days at production volumes. A timeline of activities is necessary for you to be able to track progress against and ensure that the correct processes are followed by you and the Supplier. You will categorize this part, find possible sources of supply in Juarez, Mexico to evaluate the suppliers you find, submit the specifications, and take a bid. You will evaluate the bid, negotiate the price, establish quality standards, pilot, build the part, and submit samples to the internal quality group for confirmation. Then, you may award the business, start production, and determine the mode of transportation, ensure regulatory compliance with import, and have inventory in place by Day $95$ of the $100-$day task.

The estimated usage for this part is $20,000$ units per year. Cost Management has given you a budgeted target price based upon known elements of steel type and price per pound, the perceived standard machine shop processes and tolerances and clear zinc plating process, typical machinery, labor, and profit totaling a purchase price of $$9\mathrm{.}75$ USD each. This spend is worth $$195,000.$ Your approval level is $$50,000,$ requiring you to present your sourcing decision to the vice president of procurement in order to place the business. You must present a case to the Vice President that supports your decision to work with a given supplier and why.

Grading Rubric

The Grading Rubric is in the Files section of the Course Menu. Print or refer to is as needed.

Best Practices

Start in Week $2$ after you have read Chapters $3$ and $4,$ and read through the lectures.

Work on this every week, one entire section at a time. You will want to work ahead. This paper will take you $5$ or more weeks to complete. The title page and executive summary is due by the end of week $5$ and is worth $100$ points.

You will need to be creative and fill in the blanks. It is okay to pretend and make up the company names, quotations, scorecards, and whatever else you will need to make the recommendation to the company.

It is expected that you might not have any experience or familiarity with this activity. This is meant to be fun, informative, and challenging. This will take you through the book and the lectures for information. You may want to share ideas with each other. Just remember, weekly progress is a necessity, but there is only ONE final submission in Week $8.$

Build it as you go$!$

Guidelines

The content of the Sourcing Report should be divided into the sections corresponding to the Report Components shown below.

Week $5$ deliverables:

Title Page $$ this includes your $$made up$$ company name.

Executive Summary $$ You will write about what kind of business you are in and the need for this component plus the details below.

Note: Not to exceed $2$ pages single$-$spaced, $12-$point font

The main point is to realize that the bottom line is what the executive team is looking for. Their expectation from you is that you did your due diligence. It is high level, which is with the top leadership is looking for, as you will flesh out the nitty gritty details later. Remember, you write this paper as a purchasing manager, not as a student.

In the summary, you will explain the:

WHY we need to make this purchase and spend this money$-$ that$$s the main point.

STRATEGIC FIT $-$ Quality$-$Cost and Delivery

How this decision helps us achieve current CORPORATE OBJECTIVES

Allows us to meet BUDGET and MARGIN requirements.

Any Critical Data $-$Note now of any known issues that can impact the company in the future.