Project For A Purchasing Operations Organizational Structure

In this project students will illustrate their understanding of the course material by designing an organizational structure for the purchasing operations of a healthcare manufacturer. The students will apply key concepts from the course to demonstrate their understanding of the purchasing strategies organizations use to maximize operational efficiencies within the purchasing sector. In fairness to majority of students, no late assignments will be accepted, unless prior arrangements have been made with Instructor.

You are now the company’s Chief Purchasing Officer. This company has worldwide operations located at 55 buying locations.  It has five major business groups involved in the design and manufacture of healthcare products (precision surgical tools, blood-testing devices, etc.).  Currently, purchasing operates in a very decentralized manner.

Your goal is to design an organizational structure that will allow you to enact value-adding strategies.  Describe the following parts of your initial plans:

1. The reporting structure.

2. The physical location of personnel.

3. The placement of purchasing authority.

4. The coordination of activities with other functional groups.

Be creative with your design:

Recommendation:

· Design a purchasing organizational chart

· List Department Positions

· Write Brief Job descriptions

Design a Purchasing Department structure that works within a Global Supply Chain. The purchasing departments are in 4 different continents for this organization. Design a purchasing structure that is efficient with value-added strategies.

The project should answer some of the following questions:

1. Why does this structure work efficiently?

2. How many levels of approval should be in place per category? Why?

3. What evaluation and or measurements should be involved? Why?

4. What obstacles can be avoided?