SCM 455 MIDTERM – VITIKAS STUDY GUIDE
Characteristics of a Project in SM - Answers -*Projects are a series of tasks with:*
-Specific objectives, defined start and stop dates
-Limited resources, time, personnel, and budgets
Dimensions of a project in SM - Answers -*Defined Scope* - project overview, agreed
upon tasks, starting and end posts, costs
*Defined Success* - attainment of objectives, stakeholder satisfaction...
Definition of a *Work Breakdown Structure* (WBS) (guaranteed on exam) - Answers -
*Summation of activities and resources required*
-Broken down into tasks, subtasks, responsibilities, precedents, costs
-Like a bill of material for projects
What is a *Gnatt Chart*? - Answers -Used for project planning and control techniques
(used in project)
-shows duration of each phase
What is the *critical path method*? - Answers -*the longest time path* in a process with
multiple steps
-use when there is a single known time for each activity w/ no variance
Considerations of a Project (possible Q) - Answers -*Leadership*
-Senior management commitment
-Project leader has skills & credibility
-Governance process & authority
*Management*
-Team participation / manage expectations
-Phased deliverables / measure objectively
-Resolve problems rapidly
Definition of a *Spend Category* - Answers -*A spend category is a convenient
grouping of like-spend items*
-Commodities are categories with limited differentiation (ex; ofc supplies)
-SM categorizes spend for efficiency and to improve control
-Ways to group: sourcing location, volume, value, use, complexity
Definition of *Category Strategy* - Answers -Plans to achieve various supply elements
How can firms align their supply management and enterprise/BU objectives? - Answers
-Strategic Mapping
, Supply Structure Dimensions to consider in a category Strategy Matrix - Answers -
Organization, supply base, quality, costing, contracts, and processing
Objectives to consider in a category Strategy Matrix - Answers -BU objectives, SM
objectives, and category objectives
SWOT Analysis - Answers -*Internal* - strengths and weaknesses
*External* - opportunities and threats
P.E.S.T. of (Supply Market analysis) - Answers -*Political, Economic, Social, and
Technological* Trends
Porter's Five Forces - Answers -*Supply Market Internal Competition*: Speed of
industry growth, Capacity utilization, Exit barriers, Product differences, Switching costs,
Diversity of suppliers
*Threat of New Entrants*: Access to capital markets, Availability of skilled workers,
Access to critical technologies, inputs, or distribution, Product life cycles, Brand equity
and customer loyalty, Government deregulation, Risk of switching, Economies of scale
*Pressure from Substitutes*: Relative performance of substitute products and services,
Relative price of substitutes, Switching costs Buyer propensity to switch
*Bargaining Power of Buyers*: Buyer concentration Buyer volume Buyer switching
costs, Price sensitivity, Product differences Brand identity Impact on quality or
performance, Buyer profits, Availability of substitutes
*Supplier Bargaining Power*: Price of major inputs, Ability to pass on price increases,
Availability of key technologies or other resources, Threat of forward or backward
integration, Industry capacity utilization, Supplier concentration Importance of volume to
supplier
Key outcomes of PEST and Porter's Five Forces analyses - Answers -Understanding
your current situation and after the analysis, you should be able to *define the future
desired position relative to supply market* and recommend internal/external changes
needed to get there
Definition of *Spend Analysis* - Answers -Data summary of purchases across or within
spend categories
Ways to Summarize Spend: - Answers --Spend by Category
-Supplier Count by Category
-Spend/Supplier by Commodity
By inherent characteristics (sourcing location, volume, value, use, complexity)
Spend Analysis summary: - Answers -*Analyzing Spend*
-What categories received spend in the past year?
-Who received the majority of the spend?
-Did division or BU spend match the budget?
*Evaluating Spend*
Characteristics of a Project in SM - Answers -*Projects are a series of tasks with:*
-Specific objectives, defined start and stop dates
-Limited resources, time, personnel, and budgets
Dimensions of a project in SM - Answers -*Defined Scope* - project overview, agreed
upon tasks, starting and end posts, costs
*Defined Success* - attainment of objectives, stakeholder satisfaction...
Definition of a *Work Breakdown Structure* (WBS) (guaranteed on exam) - Answers -
*Summation of activities and resources required*
-Broken down into tasks, subtasks, responsibilities, precedents, costs
-Like a bill of material for projects
What is a *Gnatt Chart*? - Answers -Used for project planning and control techniques
(used in project)
-shows duration of each phase
What is the *critical path method*? - Answers -*the longest time path* in a process with
multiple steps
-use when there is a single known time for each activity w/ no variance
Considerations of a Project (possible Q) - Answers -*Leadership*
-Senior management commitment
-Project leader has skills & credibility
-Governance process & authority
*Management*
-Team participation / manage expectations
-Phased deliverables / measure objectively
-Resolve problems rapidly
Definition of a *Spend Category* - Answers -*A spend category is a convenient
grouping of like-spend items*
-Commodities are categories with limited differentiation (ex; ofc supplies)
-SM categorizes spend for efficiency and to improve control
-Ways to group: sourcing location, volume, value, use, complexity
Definition of *Category Strategy* - Answers -Plans to achieve various supply elements
How can firms align their supply management and enterprise/BU objectives? - Answers
-Strategic Mapping
, Supply Structure Dimensions to consider in a category Strategy Matrix - Answers -
Organization, supply base, quality, costing, contracts, and processing
Objectives to consider in a category Strategy Matrix - Answers -BU objectives, SM
objectives, and category objectives
SWOT Analysis - Answers -*Internal* - strengths and weaknesses
*External* - opportunities and threats
P.E.S.T. of (Supply Market analysis) - Answers -*Political, Economic, Social, and
Technological* Trends
Porter's Five Forces - Answers -*Supply Market Internal Competition*: Speed of
industry growth, Capacity utilization, Exit barriers, Product differences, Switching costs,
Diversity of suppliers
*Threat of New Entrants*: Access to capital markets, Availability of skilled workers,
Access to critical technologies, inputs, or distribution, Product life cycles, Brand equity
and customer loyalty, Government deregulation, Risk of switching, Economies of scale
*Pressure from Substitutes*: Relative performance of substitute products and services,
Relative price of substitutes, Switching costs Buyer propensity to switch
*Bargaining Power of Buyers*: Buyer concentration Buyer volume Buyer switching
costs, Price sensitivity, Product differences Brand identity Impact on quality or
performance, Buyer profits, Availability of substitutes
*Supplier Bargaining Power*: Price of major inputs, Ability to pass on price increases,
Availability of key technologies or other resources, Threat of forward or backward
integration, Industry capacity utilization, Supplier concentration Importance of volume to
supplier
Key outcomes of PEST and Porter's Five Forces analyses - Answers -Understanding
your current situation and after the analysis, you should be able to *define the future
desired position relative to supply market* and recommend internal/external changes
needed to get there
Definition of *Spend Analysis* - Answers -Data summary of purchases across or within
spend categories
Ways to Summarize Spend: - Answers --Spend by Category
-Supplier Count by Category
-Spend/Supplier by Commodity
By inherent characteristics (sourcing location, volume, value, use, complexity)
Spend Analysis summary: - Answers -*Analyzing Spend*
-What categories received spend in the past year?
-Who received the majority of the spend?
-Did division or BU spend match the budget?
*Evaluating Spend*
