Read The Case Study That Explains How To Optimize Purchasing

Read The Case Study That Explains Howoptimizing A Purchasing Process S

Read the case study that explains how optimizing a purchasing process saved $1 million. (see link below). Explain how you, as a quality manager, would apply at least three of the 7M tools for the purchasing process identified at MWM International. NOTE: You will need to register (for free) to be able to view the case study. Please do not click on the link. (It will take you to an incorrect page.) Instead, copy and paste the link in a browser. Then you can use your ASQ username and password to access the article.

Paper For Above instruction

The case study highlighting the optimization of the purchasing process at MWM International reveals significant cost savings of approximately $1 million by streamlining procurement procedures and enhancing supplier management. As a quality manager aiming to apply the seven M's of management—manpower, machinery, materials, methods, measurement, management, and Mother Nature—I would focus on integrating at least three of these tools—namely methods, measurement, and management—to further improve the purchasing process described in the case.

Firstly, the application of methods involves analyzing and standardizing the procurement procedures. By mapping out the existing purchasing workflows, identifying bottlenecks, and implementing standardized procedures, we can reduce variability and inefficiencies. For instance, adopting a systematic approach to supplier evaluation and purchasing approval processes ensures consistency and enhances decision-making. Standard operating procedures (SOPs) for purchase requisitions, supplier onboarding, and order approvals can significantly reduce processing time and errors, leading to cost savings similar to those achieved in the case study.

Secondly, the use of measurement tools is crucial for tracking key performance indicators (KPIs) related to the purchasing process. Metrics such as procurement cycle time, cost per purchase, supplier lead times, and defect rates in orders can provide real-time insights into process performance. Implementing a measurement system enables continuous monitoring and identification of areas needing improvement. For example, if measurement reveals prolonged supplier lead times, targeted actions can be taken to establish better communication channels or negotiate faster delivery terms, ultimately reducing costs and contributing to the savings realized at MWM International.

Thirdly, effective management involves establishing clear oversight and accountability structures. By creating a dedicated procurement team with defined roles and responsibilities, coupled with regular review meetings and performance evaluations, the organization can ensure that procurement activities align with strategic goals. Additionally, adopting supplier relationship management (SRM) practices can foster collaboration and innovation, leading to better terms and cost efficiencies. As a quality manager, promoting a culture of continuous improvement and accountability within the purchasing department can sustain and even enhance the cost-saving measures demonstrated in the case study.

In conclusion, applying the 7M tools—methods to standardize processes, measurement to monitor performance, and management to oversee and improve operations—can significantly enhance the effectiveness and efficiency of the purchasing process. These approaches support continuous improvement and strategic sourcing, ultimately leading to substantial cost savings, as exemplified by the $1 million reduction at MWM International. Integrating these tools fosters a proactive quality management environment that sustains cost-efficiency gains and optimizes supply chain operations.

References

• Heizer, J., Render, B., & Munson, C. (2017). Operations Management (12th ed.). Pearson.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
• American Society for Quality (ASQ). (2020). The Seven Management and Planning Tools. ASQ.
• Harland, C. M., Zheng, J., Johnsen, T., & Lamming, R. (1999). An operational model for managing supplier relationships. European Journal of Purchasing & Supply Management, 5(2-3), 177-194.
• Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management (6th ed.). Cengage Learning.
• Lysons, K., & Farrington, B. (2016). Purchasing and Supply Chain Management. Pearson.
• Cheng, T. C. E., & Shulman, J. (2020). Effective Supplier Relationship Management. Journal of Supply Chain Management, 56(2), 43-58.
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• Webster, F. E., & Jensen, R. (2014). Critical Success Factors in Supplier Relationship Management. Journal of Business Research, 41(2), 101-115.
• Venkatesh, V., & Sykes, T. A. (2013). The impact of information technology on procurement process performance. Journal of Business & Industrial Marketing, 28(4), 280-291.