· Question 1:
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Assignment: Individual Assignment: Sourcing Impact on Supply Chain Design
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Last week, we read an article on the “Hierarchy of Supply Chain Metrics” by Debra Hofman. Develop a ranking of the metrics from each of the three tiers. Please pick the single most important one from each tier and then determine how the make vs. outsourcing decision impacts your top metric from each of the three tiers.
A. Submit the ranking for each of the tree tiers.
B. Clearly explain why the “make or outsource” decision will increase, decrease, or have no effect on the given performance measure. You must choose only one of these 3 items.
· Question 2:
In his article, Lynch discussed a number of factors that influence the decision to outsource–they include personal productivity, flexibility, labor considerations, specialized services, information technology, global capabilities and the maturity of the service provider (note–I did not include cost or ROA as part of this question—these two items cannot be used on your list.) Develop a list and rank these items in order of importance to you, from most important to least important.
A. Submit the ranking of that list and
B. Briefly discuss your reasoning for only the top item on your list. Do not discuss all of them–just your top one.
C. Additionally, list one risk that is associated with that item and
D. Clearly explain how you may be able to mitigate that risk.
E. Lastly, how does this approach impact the overall network design?
Please use information from our readings to support your position.
Question 3:
Single sourcing vs. multiple sourcing can also have an impact on the design of a supply chain. Many USA firms (Ford, Patagonia, Caterpillar, etc.) over the last few years have announced programs to change their historical sourcing approach of short-term (even one year contracts) vendor price reductions through contentious bidding programs.
Another method looks at sourcing strategically, i.e. through the Toyota lens of cost management. In this mode, they work with a limited number of suppliers to find ways to reduce or eliminate waste across the entire supply chain; thereby, reducing cost and ultimately pricing. Ford (and Caterpillar) announced and implemented this technique and they seem to be surviving better in the current economic environment.
A. Clearly discuss the advantages to this method for a firm utilizing this approach
B. And for its suppliers. Many folks forget to discuss the suppliers!
C. How does it impact the design of the supply chain network?
Assignment: Individual Assignment: Sourcing Impact on Supply Chain Design
Assignment Guidelines:
This assignment should take about two typewritten pages per question using a double-spaced format. Please do not exceed seven typewritten pages in total. Include a cover page (not part of the ten) that includes the following information:
· Your name
· Title of the assignment
· The date
· Your email address
· Provide a title line that includes the question number you are addressing at the beginning of each answer. You do not need to re-write the question; just provide the question number.
The due date for this assignment is provided on the course schedule. Please submit your written responses to the assignment questions to the M2L2 Dropbox: Sourcing Impact on Design Individual Assignment. You can access this Dropbox by clicking on the “Next” button on the bottom of this course page.
SCM 850
First Individual Assignment:
Sourcing Impact and Supply Chain Design
ASSIGNMENT OBJECTIVES:
After finishing this assignment, you will be able to:
1. Utilize the readings as a way to expand and illustrate your understanding of that information within the context of sourcing decisions impacting firms today.
2. Analyze the process factors (some of which are forgotten) in a Make vs. Outsource decision and the process factors that impact the single vs. multiple source approach.
3. Create a starting point to become acclimated to this course’s assignments and the types of questions that will be encountered this semester.
ASSIGNMENT:
This assignment should take about two typed pages per question using a double spaced format. Please do not exceed seven typewritten pages in total! Include the attached cover page (not part of the 7) that includes the following information:
· Please use the attached Cover Sheet:
· Your name
· Title of the assignment
· Date
· Your email address
· Please include the phrase “Question #1,” “Question #2,” etc. at the beginning of the answer to each question. Absolutely do not re-write each question—just the phrase “Question #1,” “Question #2,” etc.
· You need to employ professional language, grammar, and appropriate paragraph structure, etc. Points will be deducted if these sorts of items are not employed. If the memo is greater than 7 pages, you will also have points deducted.
· Utilize a Microsoft Word document with a doc. type file extension
· Do not submit a pdf file
· The instructor reserves to change the grading weights for any question or any part of the question at his discretion!
· Utilize the appropriate Canvas Dropbox for submittal of your work.
QUESTIONS:
Please answer the following questions for this assignment:
· Question 1: (45 points)
Last week, we read an article on the “Hierarchy of Supply Chain Metrics” by Debra Hofman. Develop a ranking of the metrics from each of the three tiers. Please pick the single most important one from each tier and then determine how the make vs. outsourcing decision impacts your top metric from each of the three tiers.
A. Submit the ranking for each of the tree tiers.
B. Clearly explain why the “make or outsource” decision will increase, decrease, or have no effect on the given performance measure. You must choose only one of these 3 items.
In each of your explanations, drill down into the factors that drive each measure, explaining how those factors are affected by the make vs. outsource decision.
The response should not exceed two typewritten, 8 1/2 by 11 pages, double-spaced!
· Question 2: (30 points)
In his article, Lynch discussed a number of factors that influence the decision to outsource–they include personal productivity, flexibility, labor considerations, specialized services, information technology, global capabilities and the maturity of the service provider (note–I did not include cost or ROA as part of this question—these two items cannot be used on your list.) Develop a list and rank these items in order of importance to you, from most important to least important.
A. Submit the ranking of that list and
B. Briefly discuss your reasoning for only the top item on your list.
Do not
discuss all of them–just your top one.
C. Additionally, list one risk that is associated with that item and
D. Clearly explain how you may be able to mitigate that risk.
E. Lastly, how does this approach impact the overall network design?
Please use information from our readings to support your position.
The response should not exceed two typewritten, 8 1/2 by 11 pages, double-spaced!
· Question 3: (25 points)
Single sourcing vs. multiple sourcing can also have an impact on the design of a supply chain. Many USA firms (Ford, Patagonia, Caterpillar, etc.) over the last few years have announced programs to change their historical sourcing approach of short-term (even one year contracts) vendor price reductions through contentious bidding programs.
Another method looks at sourcing strategically, i.e. through the Toyota lens of cost management. In this mode, they work with a limited number of suppliers to find ways to reduce or eliminate waste across the entire supply chain; thereby, reducing cost and ultimately pricing. Ford (and Caterpillar) announced and implemented this technique and they seem to be surviving better in the current economic environment.
A. Clearly discuss the advantages to this method for a firm utilizing this approach
B. And for its suppliers.
Many folks forget to discuss the suppliers!
C. How does it impact the design of the supply chain network?
The response should not exceed two typewritten, 8 1/2 by 11 pages, double-spaced!
FORMATTING:
1. Please include the cover page discussed above and located at the end of this document.
2. Sign the pledge!
3. Did you use the memo space wisely to explain your analysis?
4. Points will be deducted for not following formatting directions.
5. All information must fit on 8 1/2 by 11 pages, double-spaced in a portrait mode using a doc. file type extension (Microsoft Word document).
6. Please do not use double-sided sheets of paper.
GRADING RUBRIC:
Please note that points for each question and for each part of the question are approximate and the instructor reserves the right to change them at his discretion.
· Question 1: (45 points total) (Approximately 2 pages)
1. 15 points for each metric from each of the three tiers.
2. Briefly explain the metric chosen!
3. Clearly explain why the make or outsource decision will increase, decrease, or have no effect on the given performance measure.
4. In each of your explanations, drill down into the factors (more than one) that drive each measure, explaining how those factors are affected by the make vs. outsource decision.
· Question 2: (30 points total) (Approximately 2 pages)
1. Submit a list and rank these items in order of importance to you, from most important to least important.
2. Briefly discuss your reasoning for
only the top item
on your list (More grading weight on reasoning than the actual items).
3. Additionally list and explain
one
of the risks that are associated
with
your top item.
4. Clearly explain how you may be able to mitigate that risk. Please use information from our readings to support your position (More grading weight on explanation than the actual item).
· Question 3: (25 points total) (Approximately 2 pages)
1. Clearly discuss the advantages (more than one advantage required) to this method for both the firm and for its suppliers. (10 points)
2. How does it impact the design of the supply chain network? (15 points)
COVER SHEET AT BOTTOM OF THIS SHEET: SCROLL TO BOTTOM!
Cover Sheet
Individual Sourcing Assignment
Score: _____________________/100
Date Submitted: _________________________
Your Name: _________________________
Your Email Address: _________________________
Honor Code
: We, the Smeal College of Business Community, aspire to the highest ethical standards and will hold each other accountable to them. We will not engage in any action that is improper or that creates the appearance of impropriety in our academic lives and we intend to hold to this standard in our careers.
YOUR SIGNATURE:
_____________________________________
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The HIERARCHY of SUPPLY CHAIN METRICS
Hofman, Debra
Supply Chain Management Review; Sep 2004; 8, 6; ABI/INFORM Collection
pg. 28
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
WHY OUTSOURCE?
Lynch, Clifford F
Supply Chain Management Review; Oct 2004; 8, 7; ABI/INFORM Collection
pg. 44
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
