TTS philosophy is a “continuous improvement” approach to doing business through a new management model. Quality assurance/quality controls are those activities you undertake to demonstrate the accuracy and precision of your monitoring. Quality Assurance (QUA) generally refers to a broad plan for maintaining quality in all aspects Off program. The QUA plan describes how you will execute your monitoring effort, this include proper documentation of all your procedures, training, data management and analysis, and specific quality control measures.
Quality Control (ICQ) consists of the steps you will take to determine the validity of pacific sampling and analytical procedures. Furthermore, quality assessment is your assessment of the overall precision and accuracy of your data, after you have run the analyses. Quality plays a very important role in e-commerce; the customer satisfaction will be measure most of the times based of the quality of the goods received. It is very important to define “quality’. Good quality”, for an informed consumer could be a disappointment for another customer that chose to purchase the same item by a misleading customer review. It’s vital that the sites provide detailed description of their products, to low the customer to make an informed decision and compare same quality from other sources. Discuss the concepts of centralized vs.. Decentralized purchasing authority, identify their relative advantages and disadvantages, and provide examples of when each may be appropriate.
Centralized authority occurs when decision-making authority is maintained at the senior level management of the company. Decentralized authority occurs when decision-making authority is delegated to lowest level managers and employees who are the subject matter experts or are more familiar with the laity of their branch. A good example is how Macy’s customers in California are likely to demand clothing styles different from those demanded in Minnesota or Maine.
In this case it makes sense to give store managers in different cities the authority to buy, price, and promote merchandise appropriate for each area. Some advantages of Centralized purchasing are greater top management control, standardized distribution system, more efficiency, and stronger corporate image. Some disadvantages of centralized Systems are less empowerment to the branches and lower management, less expensiveness to the customers; inter organizational conflicts, and lower morale at the branches.
The advantages of decentralized purchase systems are better adaptation to the customer’s needs, empowerment to the lower level management, faster decision making, and increase in morale at the branches. Some disadvantages are risk of less efficiency, more complex distribution system, and less control from senior management. Differentiate between the principles and practices of Purchasing and Supply Management used in the public sector (e. G. , governments and public institutions) and the private sector (e. . , manufacturing and retail).
What are the salient differences, and how do these differences affect the establishment or maintenance of buyer-supplier relationships and the implementation of Purchasing and Supply Management processes? The principles of purchasing and supply management used in the public sector are driven by federal regulations. The government funds are provided by the taxpayers under the Appropriation Bill Act. Purchasing and supply management is not driven by profit; the mission of the government procurement is to fulfill the governments needs.
Requirement are solicited and competed, and most of the time set aside for a specific social economic group (Small business, Veteran disables groups, etc. ). Contractors/vendors must be certified to do business with the government (such as required registration in system management award). All procurement activities are available for public scrutiny; anyone can request access to the public records under the Freedom of Information Act. (FIFO). The private sector is no ruled buy the same regulations. Purchasing and supply management is driven by profit.
Procurements do not need to be solicited by any regulation. Suppliers do not have to be certified to do business with the organization and there is no public scrutiny of procurement practices. The salient differences of public practice are that they strive to get best value for tax payer dollar, and guided by federal regulations and statutes, but also these practices are focused at providing opportunities for small businesses and minorities such as veterans and other groups economically disadvantaged. These differences affect the buyer supplier relationship.
Transactional, collaborative or alliance type relationships with suppliers are applied in the acquisition process based on the nature of the procurement. In the public sector in most cases you will find agencies apply transactional relationship with its suppliers. In this dynamic the win-lose relationship is applied and there are no long term relationship or care for the well-being of the other party. The same types of relationships are able to develop in the private sector. 3- Discuss the transformation of buyer-supplier relationships? What are the three levels Of buyer-seller relationships and their relative differences?
Buyer-seller relationships transformed from relationships that were win-lose o win-win relationships for both buyers and sellers. The three levels of these relationships are either transactional, collaborative, or alliance. A transactional relationship is strictly business between both parties. In this dynamic there is no sharing of costs, data, and forecasts as the buyer is only interested in purchasing goods; there is no need to established a long term relationship with supplier, there are no interest on the well been of the other party.
Very little time, skill level, and energy is focused on this type of relationship. A collaborative relationship is used for the acquire non- modify items or services and can be the start of an alliance relationship. This type of relation will have an Impact in reduction of total costs and reduction of risks for suppliers, improvement of the supply management processes, and more focus on fulfilling customer needs. In this dynamic both parties care of the well been of the other one, and establish a two way communication to improve in partnership relation.
An alliance is a win-win scenario for all parties involved. It leads to lower total costs as suppliers and increase the revenue which eager to maintain their alliance and improve reduce technology and quantity. These relationships differ in that alliance and collaborative relationships entail cooperation and perhaps a long term relationship. Each procurement process has their own dynamic, we have to analyze the requirement and determine the best approach.
Many times, in government or private organization, transactional relationship is the best approach in the case of one-time purchase off product or services. For other requirements due to the complexity and the use of research and developments phases, that involves application of cross functional teams, alliance relationship approach will provide the best results. Explain the role of Purchasing and Supply Management in new product development as well as development of specifications and a standardization program.
How can cross-functional teams be used in the creation of specifications for new products as well as procedures and processes for establishing and maintaining an effective standardization program? The role of Purchasing and Supply Management in new product development as well as development of specifications and a standardization program is a collaborative process. Purchasing and supply management are key players in the cross-functional team, it must be included early in the projects lifestyle. Involvement begins in the pre-award phase, continues throughout post- award, quality control, and quality assurance.
Early Involvement is advantageous by ensuring availability of materials/supplies, reducing production time, increasing quality materials/supplies, reduction of overall costs of production, with impact on the total cost of ownership. Purchasing and supply management involvement ensures that every department involved provide the necessary feedback so they can determine the cost and availability of the required materials/supplies for the development or production of the new product. Purchasing and Supply Management will conduct all necessary market research to analyze and determine the pool of potential suppliers.
Purchasing and Supply management’s role is integral to the cross functional product design team. The cross-functional team’s role is to utilize all the areas of expertise contained within it to benefit the organization. The team creates synergy between departments of an organization. Having an internal team developing requirements, Organizing egoistic and having open communications will prevent problems, and when a problem does occur it will allow those problems to be addressed in a timely manner, this dynamic ensure that all departments affected are involved in the solution.
For new products, after the new requirement is identified, the assigned team will develop the product specifications as detailed as possible. The team will create a statement of objectives (SO) or statement of work (SOW), the team will also develop the quality assurance plan. Once the initial model is completed the team provides feedback on any product improvements before the implementation of any changes to the final design. This results in a more cost efficient production process.
The product is produced quicker to the market since everyone is actively engaged before proceeding to the next step in the development or production phase. Without the cross-functional team, there is no synergy between departments within an organization. The purchase and supply management team has a vital role in the cross functional team, in public and private sectors, the lack of adequate involvement in the development or production phases of any requirement will jeopardized the entire acquisition process.