Supply Management Leadership Process : Strategies for Organizational Effectiveness

by Flynn, Anna E.; Farney, Samuel D.

• ISBN13: 9780970311436
• ISBN10: 0970311435
• Format: Hardcover
• Copyright: 2002-08-01
• Publisher: Inst for Supply Management

Table of Contents

Introduction
Chapter Objectives	1	(1)
Supply Management in a Changing Business World	1	(9)
Implications for the Name of the Function	2	(1)
Implications for Strategy	3	(1)
Technology Implications	3	(1)
Implications for Supplier Relationships	4	(2)
Implications for Supply Leadership	6	(1)
Implications for Internal Relationships	6	(1)
Implications for Measurement	7	(1)
Operational and Strategic Contributions	8	(1)
Direct Contributions	8	(1)
Indirect Contributions	9	(1)
Positive, Neutral, or Negative Contributions	9	(1)
How This Book Is Organized	10	(1)
Key Points	11	(1)
Questions for Review	11	(1)
Endnotes	12	(1)
The Strategic Planning Process
Chapter Objectives	13	(1)
Levels of Strategic Planning	13	(4)
Organizational or Corporate Strategic Planning	15	(1)
Business Unit Strategic Planning	16	(1)
Functional or Departmental Strategic Planning	16	(1)
Issues in Strategic Planning at the Functional Level	17	(11)
Support for Organizational Strategy	17	(2)
Planning Process and Objectives	19	(1)
Strategic Goal of the Supply Function	20	(1)
Fundamental Objectives of the Supply Function	21	(2)
Commodity Plans and Strategies	23	(1)
Supplier Strategies	24	(2)
Review of the Plan and Decisionmaking	26	(1)
Developing Contingency Plans	26	(1)
Profit Planning	27	(1)
Advanced Acquisition Planning	27	(1)
Departmental Strategies	28	(1)
The Typical Organization's Vision, Mission, and Goals Statements	28	(8)
Vision	28	(1)
Mission	29	(2)
Goals and Objectives	31	(2)
Periodic Review	33	(2)
Strategic Plan Elements	35	(1)
Issues Related to the Establishment of Objectives	36	(1)
Priority of Objectives	36	(1)
Integration of Objectives	36	(1)
Goal Alignment	37	(1)
Measurability of Objectives	37	(1)
Planning Timeframes	37	(1)
Key Points	37	(1)
Questions for Review	38	(1)
Endnotes	39	(2)
Budgets and the Budgeting Process
Chapter Objectives	41	(1)
Contribution to the Bottomline	41	(2)
Purposes for a Budget	43	(1)
Controlling Expenditures	44	(1)
Providing Pre-approved Funding	44	(1)
Monitoring Expenditures	44	(1)
Types of Budget	44	(4)
Operating Budget	44	(1)
Expense Budget	45	(1)
Capital Budget	45	(2)
Program/Project Budget	47	(1)
Cash-Flow Budget	47	(1)
Sales, Production, Materials, Labor, Overhead, and Profit Budgets	48	(1)
Typical Budget Areas of Concern to Supply Management	48	(2)
Direct Materials/Inventory	48	(1)
MRO Supplies	49	(1)
Capital Budget	50	(1)
Purchasing Operating Budget	50	(1)
Steps in the Budgeting Process	50	(3)
Review Goals and Objectives	51	(1)
Estimate the Dollar Value of Needed Resources	51	(1)
Develop Standard Material Purchase Costs	52	(1)
Present the Budget and Obtain the Appropriation	52	(1)
Analyze Variances	52	(1)
Special Areas of Budgeting and Financial Management	53	(3)
Target Pricing and Target Costing	54	(1)
Activity-Based Costing	54	(1)
Line-Item Budgets	55	(1)
Flexible Budgets	55	(1)
Open-to-Buy	55	(1)
Key Points	56	(1)
Questions for Review	56	(1)
Endnotes	57	(2)
Leading, Managing, and Supervising
Chapter Objectives	59	(1)
Leaders and Managers	59	(2)
Management Behaviors	60	(1)
Leadership Behaviors	60	(1)
Current Issues in Organizational Management	61	(7)
Continuous Improvement	61	(6)
Lean Production and Lean Enterprises	67	(1)
Emerging Technologies and Knowledge Management	68	(1)
The Structure of Management	68	(8)
Delegation of Authority and Responsibility	69	(2)
Chain of Command	71	(1)
Line and Staff Relationships	72	(1)
Span of Control	73	(3)
Theories of Management	76	(11)
Systematic Management	76	(3)
Scientific Management	79	(2)
Universal Theory or Administration Theory	81	(1)
Behavioral Theory	82	(1)
Organization Theory	82	(1)
General Systems Theory	83	(1)
Contingency Theory	84	(1)
Excellent Companies or Best Practices	84	(1)
Management by Objectives	85	(2)
Motivational Theories	87	(4)
Maslow's Hierarchy of Needs	87	(2)
Herzberg's Hygiene-Motivation Theory	89	(1)
McClelland's Achievement Motivation Theory	90	(1)
Expectancy Theory	90	(1)
Equity Theory	90	(1)
Reinforcement Approach	91	(1)
Management Styles	91	(2)
Theory X and Theory Y	92	(1)
Theory Z	92	(1)
Teams	93	(5)
Informal Work Groups	94	(1)
Formal Teams	95	(2)
Group or Team Leadership	97	(1)
Key Points	98	(1)
Questions for Review	99	(1)
Endnotes	99	(2)
Selecting, Recruting, and Retaining Personnel
Chapter Objectives	101	(1)
Creating a Learning Organization	101	(1)
Issues in Selection and Recruitment	102	(7)
Position Requirements	102	(1)
Knowledge, Skills, and Attributes of Applicants	103	(1)
Interpersonal Communication	104	(1)
Team Skills and Facilitation	105	(1)
Analytical Problem Solving	106	(1)
Technical Competence	107	(1)
Computer Literacy	107	(1)
Negotiation Aptitude	108	(1)
Education and Professionalism	108	(1)
Continual Learning	109	(1)
The Recruiting Process	109	(5)
References, Experience, and Training	110	(1)
Questions in the Interview Process	110	(1)
Interpersonal Communication	111	(1)
Team Skills and Facilitation	111	(1)
Analytical Problem Solving	112	(1)
Technical Competence	112	(1)
Computer Literacy	112	(1)
Negotiation Aptitude	113	(1)
Education and Professionalism	113	(1)
Continual Learning	113	(1)
Organizational Hiring and Human Resources Policies	113	(1)
Issues in Employee Promotion	114	(5)
Standards and Professional Certification	115	(2)
Career Advancement	117	(1)
Promoting from Within	117	(1)
Recruiting and Hiring Outside Employees	118	(1)
Succession Planning	119	(1)
Determining Training and Development Needs	119	(6)
Skills Assessment	119	(3)
Job Analysis and Diagnostic Evaluation	122	(1)
Gap Analysis	122	(2)
Designing and Planning Training Programs	124	(1)
Documenting Training and Development Expectations and Resources	124	(1)
Training, Cost Efficiency, and Measurement of Outcomes	124	(1)
Initial Job Training or Functional Orientation	125	(2)
Sponsor or Mentor System	126	(1)
Functional Rotation	126	(1)
Learning-by-Doing	127	(1)
Classroom Training	127	(1)
Continuous Professional Development	127	(5)
On-Site Professional Development Training	128	(3)
Off-Site Professional Development Training	131	(1)
Management Development Training	132	(1)
Equal Employment Opportunity Laws and Regulations	133	(1)
Issues in the Termination of Employees	133	(2)
Adherence to Established Process	134	(1)
Outplacement	134	(1)
Exit Interviews	134	(1)
Key Points	135	(1)
Questions for Review	135	(1)
Endontes	136	(1)
Appendix 5-A	137	(8)
Operating Policies, Guidelines, and Procedures
Chapter Objectives	145	(1)
Nature of Management Control	145	(6)
Before-the-Fact Controls	146	(2)
During-the-Fact Controls	148	(1)
After-the-Fact Controls	148	(3)
Workload Distribution	151	(5)
Commodity or Class Segmentation	151	(2)
Department	153	(1)
Special Project	153	(1)
Volume	153	(1)
In Rotation	153	(1)
Type of Contract	154	(1)
Staff Expertiese	154	(2)
Supplier	156	(1)
Purchasing Councils and Lead Buying	156	(1)
Procedures for Controlling Purchase Requests	156	(1)
Alternative Release Systems	157	(1)
Systems Contract	157	(1)
Kanban or Pull Systems	157	(1)
Direct Release Arrangements	158	(1)
Supplier-and Vendor-Managed Inventories	158	(1)
Priority Sequences for Handling Purchase Requests	158	(1)
First Come, First Served	158	(1)
Arrangement by Need Date	158	(1)
Rush Orders and Emergencies	159	(1)
Order of Importance	159	(1)
Seasonal	159	(1)
Organizational Structure of the Purchasing Function	159	(4)
Centralization vs. Decentralization	159	(1)
Advantages of Centralization	160	(1)
Advantages of Decentralization	161	(1)
Combining Advantages	162	(1)
Reengineering Processes	163	(4)
Order Cycle	164	(1)
Direct User Releases	165	(1)
Inventory	165	(1)
Invoice Payment	166	(1)
Supplier-Managed Stores	166	(1)
Purchasing Cards	166	(1)
Beyond Reengineering --- The Extended Enterprise	167	(2)
Internet, Interanet, and Extranet	168	(1)
Key Points	169	(1)
Questions for Review	169	(1)
Endnotes	170	(1)
Tools to Manage Work Flow
Chapter Objectives	171	(1)
Reasons for Operational Documents	171	(2)
Forms as a Component of Process Flow	171	(2)
Types of Communication Formats	173	(18)
Step 1: Internal User Recognizes and Communicates Need to Purchasing	173	(3)
Step 2: Purchasing Communicates Its Need to Prospective Suppliers	176	(4)
Step 3: Suppliers Communicate Ability and Willingness to Meet Need	180	(1)
Step 4: Buyer Evaluaters and Selects a Supplier and Communicates the Choice to the Supplier	181	(4)
Step 5: Supplier Communicates Acceptance of the Order	185	(1)
Step 6: Communicate Special Needs to the Supplier	186	(1)
Step 7: Communicate Status or Fulfillment of the Order	186	(2)
Step 8: Communicate Approval for Payment	188	(1)
Step 9: Communicate Information for Managing Supplier Relationships	189	(2)
Elements of Form Design and Management	191	(5)
Available Media	191	(1)
Organization of Information	191	(1)
Instructions	192	(2)
Document Control	194	(1)
Retention Periods	194	(1)
Privacy Act and Public Information Implications	194	(1)
Cost Implications	195	(1)
Printed vs. Electronically Generated Forms	195	(1)
Compatibility with Equipment	195	(1)
Periodic Review	196	(1)
Role of Information Systems	196	(1)
Key Points	196	(1)
Questions for Review	197	(1)
Endnotes	198	(1)
Performance Tracking and Improvement
Chapter Objectives	199	(1)
Organizational Expectations of Purchasing	199	(2)
Congruence with Organizational Objectives	200	(1)
Congruence with Supplier and Customer Objectives	201	(1)
Concepts of the Purchasing and Supply Function	201	(2)
Purchasing as a Profit Center	202	(1)
Purchasing as a Cost Center	202	(1)
Purchasing as an Independent Center	202	(1)
Department or Function Performance Appraisal	203	(1)
Measuring Improvement or Deterioration	203	(1)
Providing Incentives for Improvement	203	(1)
Determining Resources Needed for Imptrovement	203	(1)
Determing How Much a Process Adds Value	204	(1)
Steps in Department-Level Evaluation	204	(8)
Identify Department Objectives	204	(1)
Identify Criteria for Success	205	(1)
Identify Appraisal Factors	206	(6)
Internal Audits/Self-Governance/Self-Assessment	212	(1)
Process Benchmarking	212	(3)
Exercising Management Control in Response to Results	215	(2)
Conflict Resolution Skills	216	(1)
Non-Defensive Problem Solving	216	(1)
Corrective Action Process	216	(1)
Evaluate Staff Performance	217	(2)
Determine Employee Objectives	217	(1)
Determine Criteria for Success	218	(1)
Determine Appraisal Factors	218	(1)
Types of Performance Assessment Systems	219	(2)
Efficiency-Oriented	220	(1)
Effectiveness-Oriented	220	(1)
Multiple-Objectives Oriented	220	(1)
Naive	221	(1)
Data Gathering Approaches	221	(5)
Conduct Interviews and Give Feedback	221	(1)
Team or Peer Input	222	(1)
Self-Assessment	223	(1)
Internal Customer Input	224	(1)
Supplier Input	224	(2)
Uses of Performance Appraisal Data	226	(2)
Employee Accountability	226	(1)
Compensation	226	(1)
Promotion	226	(1)
Personal and Career Development	226	(1)
Employee Morale	227	(1)
Disciplinary Action	227	(1)
Employee Recognition	227	(1)
Performance Improvement	227	(1)
Employee Performance Problems	228	(3)
Corrective Action Process	228	(1)
Types of Issues	228	(1)
Documentation	229	(1)
Collective Bargaining Requirements	229	(1)
Employee Assistance Programs	230	(1)
Retraining	230	(1)
Key Points	231	(1)
Questions for Review	231	(1)
Endnotes	232	(1)
The Reporting Process
Chapter Objectives	233	(1)
Reporting in the Information Age	233	(12)
Who Needs to Receive Information?	234	(1)
What Information Needs to Be Communicated?	234	(1)
The Organization's Leadership or Management	235	(1)
Employees	236	(2)
Suppliers	238	(1)
Customers	239	(1)
Investors	240	(1)
Communities	241	(1)
How Will Information Be Communicated?	242	(3)
Effective Presentation Techniques	245	(4)
Oral Communication	246	(1)
Written Communication	246	(1)
E-mail Communication	247	(1)
Internet and Internet Communication	247	(2)
Data Management Techniques	249	(2)
Data Warehousing and Data Mining	250	(1)
Conclusion	251	(1)
Key Points	251	(1)
Questions for Review	252	(1)
Endnotes	252	(3)
Appendix: Equal Employment Opportunity Laws and Regulations
Federal Civil Rights Act, Title VII	255	(1)
Equal Employment Opportunity Act	255	(1)
Affirmative Action	255	(1)
Americans with Disabilities Act	256	(2)
Sexual Harassment	258	(2)
Endnotes	260	(1)
Author Index	261	(4)
Subject Index	265