Materials Management BUS 3 – 141 Mr. Jess Marino Spring, 2007

Page 2 2 Agenda –Introduction –Green Sheet review and other administrative items –Additional comments on the course –Initial Lecture

Introduction

Page 4 4 Marino Background Academics Supply Chain Experience –Graduate in Production and Operations Management –Product of CSU system (San Diego State) –Developed and presented several courses as a Management Consultant –Over 25 years as a practitioner at all levels of responsibility  Leadership in small and large organizations  Many different hourly and professional jobs  Over eight years as a Management Consultant –Certified in Production and Operations Management by the Association for Operations Management (APICS) –Exposure to many industries and organizations –Have done business in 13 countries throughout the world

Page 5 5 Positions Held Machine Operator Production Expediter Mail Room Clerk Warehouse Clerk Production Supervisor Buyer Production Controller Material Controller Stockroom Manager Production Control Manager Director of Materials Executive Director of Fulfillment Director of Supply Chain Management Director of Operations

Page 6 6 Have conducted Business in 13 Countries, Worldwide UNITED STATES CANADA MEXICO ENGLAND SCOTLAND FRANCE HOLLAND HONG KONG CHINA TAIWAN SINGAPORE MALAYSIA THAILAND

Green Sheet Review

Page 8 8 Student Information Sheet NAME MAJOR BUS 3 – 140, 141, 142, 143, 144, 145, 146, 147 CURRENT JOB (Company Optional) PREVIOUS SUPPLY CHAIN JOBS / EXPEIRIENCE OTHER

Page 9 9 Additional Notes on the Course –Buying at work vs. Buying at home  Pay the least for the most  Sometimes it’s Safeway, sometimes Costco, sometimes 7-11  Focus more time and attention on expensive or critical items –10% of Grade based on Participation –Issues and observations from students work experience –The positions of Buyer and Material Planner –Careers in Supply Chain Management –“Deal of the Weekend”

Course Introduction

Page Highest Level Supply Chain Objective Revenue Utilization of Assets (People, Plant, Equip) Cash Inventory BALANCING keeping Customers completely satisfied and Resources optimally utilized ……. against spending the least amount of Cash and carrying the least amount of Inventory

Page Highest Level Materials Management Process Identify WHAT Items are Required Calculate HOW MUCH is Required Schedule WHEN they are Received & FROM WHOM At the LOWEST Total COST of Ownership With the Highest QUALITY and Reliability

Page How this Course supports Supply Chain Objective & Process The Right QUALITY The Right QUANTITY The Right TIME The Right PLACE The Right SUPPLIER The Right SERVICE The Right PRICE at the with the at the with the and paying –Ensure CONTINUOUS SUPPLY –Manage critical FINANCIAL levers  Balance Sheet by optimizing Cash and Inventory  Income Statement by minimizing Cost of ownership

Page Course Overview and Objectives –Understanding how an organization determines its materials requirements, including what needs to be purchased, in what quantities, and at what delivery schedule –Understanding the significance of cost management and price negotiation, including design, quality, and transportation and logistics considerations –Understanding the critical relationship between an organization and its suppliers

Page Student Learning Objectives for the Course –Understand how to calculate requirements –Understand the purchasing process and how it fits within the overall Supply Chain process –Understand the interaction and leverage between the organization and its suppliers –Become a better buyer