In this assignment you will help SSB, Inc. by critically analyze their procurement process and suggest the best solution, specifically you will
1. Define their procurement process in terms of the physical flow.
2. Execute five instances of the process on paper. That is, you will create the various documents needed and ensure that the correct data is included in each document.
3. Generate reports based on the data in the documents.
The business process
The process used by SSB is similar to the one described in Chapter 3. However, there are some differences. These differences are explained below and you must incorporate them in your assignment.
1. After evaluating the current process, it is determined that the process will be more efficient if Tim Jones initiates the process (ie, creates the requisition) instead of David Bloomburg. This is because Tim is more aware of the state of inventory than David as Tim is constantly in the Warehouse. However, David must approve all requisitions.
2. SSB’s agreements with vendors has changed as follows:
a. All shipments will now include an additional 10% in shipping costs for orders under $2000
b. Payment terms are 1% 10/ Net 30
1. Create a process diagram similar to Figure 3.1 to describe SSBs modified procurement process. Use Microsoft Visio to create this diagram.[ marks]
2. Create the documents needed to execute the process for the data provided in the Order Data Section at the end. Be careful to ensure that the data in the documents (dates, quantities, prices, etc.) are accurate. Clearly state any assumptions made on a separate sheet at the beginning of the submission (It is not typical to have to make assumptions). marks]
3. Take the necessary data from the documents and put it into a spreadsheet and do the following: [marks]
a. Create a pie chart showing the quantity of each material purchased.
b. Create a pie chart showing the value ($) of each material purchased.
c. Create a bar chart showing the number of times each material is ordered.
d. Create a bar chart showing the amount ($) purchased from each vendor.
4. Answer the following questions [marks]
a. The average number of days it takes to complete the process.
b. The average value ($) of an order
c. Which is the most purchased material, in terms of quantity? How many were purchased?
d. Which is the most purchased material, in terms of value ($)? How much did SSB spend on this material
e. Which is the most frequently purchased material?
f. Which is the vendor does SSB buy from the most, in terms of value ($)