1. Business Economics WEEK 1 W/C 11 th February 2013 INTRODUCTION Course 17832 Advanced Diploma Management

2. WELCOME Teacher:Peter Scicluna peter.scicluna1@tafensw.edu.au 0408 418 995 Textbook: 2

3. HOUSEKEEPING Toilets Exits / Evac Air / Heat Breaks Roll sheet Notes – EMAIL Issues? Readings Logins – WIFI International Password: danish123 – Internet User:cseight.swsld Pwd:learning105 Safety in Sydney – TIPS – BE PARANOID 3

4. Names Write names on folded piece of paper. Place on the desk in front of you please.

5. Orientation Guidelines – RIGHTS Safety Harassment – ASSESSMENTS SAGs Late submittal Extensions Sick Resit/resubmit policy Report format / Image & presentation Academic writing – Attendance – Plagiarism Student Association Library Text books / book shop RPL Breaks

6. EXPECTATIONS RESPECT – Courtesy Respect the opinions of others Speaking in turn – DO NOT SPEAK WHEN OTHERS ARE SPEAKING Attendance ON TIME PARTICIPATION – Contribute – Ask Q’s – Comment No Mobile phones No Food

7. Ads we will never see again

17. UNITS

18. OUTCOMES 18 By the end of this session you will: Understand what is expected of you in this subject Be introduced to the course content

19. INTRODUCTION

20. My Background - ?’s

21. Course – 6 weeks Ch 16 – Purchase control Ch 17 – Stock control

22. WeekChapterTopics One (1)Ch 16 – Purchase control Introduction -Course overview -Objectives -Assessment The time value of money Purchasing - Intent Two (2)Ch 16 – Purchase control Supply strategies (make or buy?) Outsourcing Purchasing strategies Three (3)Ch 16 – Purchase control Supplier analysis Purchasing processes Purchase simulation exercise Four (4)Ch 17 – Stock management What does a company want to achieve? Stock mgmt – Intent Stock adv vs disadv. Stock ordering methods Five (5)Ch 17 – Stock management OPV methods OPV calculations Conundrum – People/Profit/Planet Six (6)Ch 17 – Stock management Case study tasks Trivia – Pop Quiz Course review

23. Assessment Approved by your teachers in Denmark. Written research report. Class presentation – dependant on time otherwise in class participation will be recorded and reported as part of your assessment. Refer to the assessment outline handout.

24. Assessment Business Case – Research and Analysis In a group of three (3) or four (4) students you are to research an Australian company. Before you begin you are to inform the teacher of the company you have selected and verbally explain why you have chosen the company to obtain approval prior to the commencement.

25. Assessment For the company you are to complete the following: – A brief back ground on the company. – The method you would use for the procurement of goods i.e. make or buy. – The purchase strategy you would implement i.e. cooperation or differentiated or a hybrid. – The risks associated with the points # 2 and 3. – Contingencies to mitigate the identified risks. – Recommended stock management method. – An analysis of which one the company focuses on Profit/People/Planet. The research must be thorough and contain a good analysis to support developed answers. In other words you need to argue or present your case and support it with evidence. Anticipated written report length 4-6 A4 pages (est. 500 words per page).

26. Education What is the purpose of education?

27. The time value of money concept How much is $1.00 worth in 12 months time if you leave it in your drawer at home?

28. Purchasing What is the intent of purchasing?

29. Purchasing control 29 Purchasing functions: 1.Provides an external link with the supply market. 2.Controlling purchasing in cooperation with production and sales. 3.Ensure an efficient purchasing control.

30. Purchasing control 30 The primary objectives of purchasing are: 1.Ensure uninterrupted flows of raw materials at the lowest total cost, 2.Improve quality of the finished goods produced, and 3.Optimize customer satisfaction.

31. Purchasing Control Purchasing contributes to these objectives by: – Actively seeking better materials and reliable suppliers, – Work closely with strategic suppliers to improve quality materials, and – Involving suppliers and purchasing personnel in new product design and development efforts. 31

32. Understanding purchasing Purchasing- Obtaining merchandise, capital equipment; raw materials, services, or maintenance, repair, and operating supplies in exchange for money or its equivalent. Merchant Buyers- wholesalers and retailers who purchase for resale. Industrial Buyers- purchase raw materials for conversion, services, capital equipment, & MRO supplies. 32

33. Purchasing control Purchase goods and services: –From the right suppliers –In the right quantities –In the right qualities –At the right prices –Delivered at the right place and time 33

34. Homework Form your group. (3 or 4 students) Research your company. Prepare the brief on the company ½ to 1 page maximum. Hand it in at the start of class next week.

35. Weekly slides