INF 336 W3 - Assignment - Need Definition
INF 336 W3 - Assignment - Need Definition PRG211
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Date Created: 11/16/15
NEED DEFINITION 1 Need Definition INF 336 Lori Deere May 10 2015 Need Definition 1 Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages Two steps in the acquisition process that should to be considered are needs identification and translating those needs into commercial equivalents Our text states Needs are qualified at three levels At level 1 needs are defined as strategic or nonstrategic At level 2 quality quantity delivery price and service form the traditional value criteria for any acquisition Level 3 criteria include additional financial considerations beyond price risk the environment innovation and social and political concerns Johnson 2010 The identification of needs is a process in which one determines what a customer wants in a product and these needs are not NEED DEFINITION 2 usually technical Through the acquisition process commercial equivalents are important so that its suppliers understand what is needed and allows for opportunities to make improvements Separating needs identification and defining commercial equivalents into two stages is important since an organization needs to determine the need before identifying the different options that can fulfill such needs Need identification can depend on several different reasons such as size nature and even the location of the organization Johnson 2010 Once identifying such needs it could mean lower costs and even opportunity for better solutions It is equally important to determine the needs along with translating them into commercial equivalents so the suppliers can also understand the needs 2 Interpret the value to the organization when early supplier involvement ESI is implemented effectively ESI Early supply and supplier involvement prevents the hassles associated with trying to reverse a design decision after it has been made and approved technically Johnson 2010 If organizations follow this method suppliers and manufacturers will work more closely together and help ensure that organizations share information based upon experience capabilities and technical skills 3 Examine the advantages and disadvantages of specifying by performance Specifying by performance has its advantages and disadvantages One advantage would be the ability to communicate the requirements with not only the supplier but also the manufacturers This is key since manufacturers need to know if their product is going to fulfill such needs and this process sets guidelines when decisions need to be made One disadvantage would be if the specifications are not thorough enough then it leaves little to no room for error NEED DEFINITION 3 4 Describe how a supply professional understands strategic requirements The identification of a requirement as strategic demands a very high degree of subsequent supply attention Johnson 2010 For supply professionals understanding strategic requirements is extremely important because they must have a considerable judgment that covers the seven major categories 1 Resale 2 raw and semi processed materials 3 parts components and packaging 4 maintenance repair and operating supplies 5 capital and service and 7 other Johnson 2010 Supply professionals should also devote some focus towards the financial development within organizations as well as looking for any rewarding opportunities that result in furthering the organization They have the power to ensure descriptions are accurate and thorough and they need to be able to put attention to the availability of options that could potentially be of better value to the organization Reference Johnson P F Leenders M R amp Flynn A E 2010 Purchasing and Supply Management 14th ed Boston McGrawHill Irwin ISBN 9780073377896
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