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2019/2020  KAN-CCMVV1725U  Performance Measurement in Procurement Organizations

English Title
Performance Measurement in Procurement Organizations

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Melanie Lucia Feldhues - Department of Accounting (AA)
Main academic disciplines
  • Accounting
  • Supply chain management and logistics
Teaching methods
  • Face-to-face teaching
Last updated on 28-06-2019

Relevant links
Learning objectives
  • Understand and explain the relationship between different roles of procurement and analysis techniques rooted in management accounting.
  • Explain how management accounting methods can be applied to solving specific decision problems within procurement.
  • Critically reflect on financial and non-financial performance metrics and evaluate in which context they are suitable to manage the procurement function.
  • Recommend courses of action to management with respect to the performance measurement system of their procurement organization.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved: 1
Oral presentations etc.
Approval of 1 out of 2 oral presentations.

The mid-term presentation and final presentation linked to the Live-Case constitute the two compulsory activities of the course, whereof one needs to be approved in order to attend the ordinary oral exam.

Both presentations are group assignments and will be assessed “approved”/”not approved”. Group feedback and individual feedback will be provided to the presenters.

The presentations should be supported by a power point document, which has to be uploaded on Canvas one day prior to the presentation date.

Groups and presentation dates will be published after the first session.

Students will not have extra opportunities to get the required number of compulsory activities approved prior to the ordinary exam. If a student has not received approval of the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam.
If a student prior to the retake is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.

The extra assignment is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake.
Examination
Performance Measurement in Procurement Organizations:
Exam ECTS 7,5
Examination form Oral exam
Individual or group exam Individual exam
Duration 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time With the listed preparation time: 20 Minutes
Grading scale 7-point grading scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Aids Open book: all written and electronic aids
The student is allowed to bring to the preparation room: Simple writing and drawing utensils, laptop/tablet as a reference book (NB: there are no electric outlets available), any calculator, books including translation dictionaries, compendiums, notes. PLEASE NOTE: Students are not allowed to communicate with others during the preparation time.
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Oral exam. 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade.
Course content, structure and pedagogical approach

The overall aim of the course is to outline how decision problems in the procurement function of an organization can be solved based on analysis techniques rooted in management accounting.

 

The course begins with a discussion of the different roles of the procurement function. Subsequently, management accounting methods to derive and analyze key performance indicators of the procurement function are discussed and illustrated based on Harvard Business School case studies and a business game. In addition to strategic cost management in procurement with a focus on financial metrics, non-financial performance indicators are covered in the course.

 

The special feature of the course is the Live-Case. In the Live-Case, selected theoretical content of the course will be applied to a practical problem. Students receive a presentation by company representatives in the beginning of the course and get the opportunity to ask questions to the company representatives. Thereafter, they have to define and delimit the problem and to work on a solution throughout the course. There will be a mid-term presentation, where students receive feedback on their approach by the lecturer. By the end of the course, there will be a final presentation, where students present their solution to the company representatives. Students receive individual and group feedback by both the company representatives and the lecturer on the final solution of the Live-Case.

 

This course is delivered in a blended learning format and focuses on both theory and problem-solving skills.

 

In addition to classical lectures, guest speakers will share insights on the application and feasibility of selected methods in practice.

 

A high level of interaction is expected from the students. This is especially relevant during the business game, the Harvard Case studies to be discussed as well as the Live-Case to be solved. Since the exam format is an oral exam, active participation is crucial.

 
Description of the teaching methods
Lectures, case discussions, student presentations, and guest lectures.
Feedback during the teaching period
Class feedback during and after cases solved in class.
Student workload
Lectures 36 hours
Reading and preparation of cases 188 hours
Further Information

The course is part of the Minor in Strategic Procurement.
Expected literature
  • Cooper, R.; Slagmulder, R. (2003a): Interorganizational Costing, Part 1. In Cost Management Sept/Oct, pp. 14–21.
  • Cooper, R.; Slagmulder, R. (2003b): Interorganizational Costing, Part 2. In Cost Management Nov/Dec, pp. 12–24.
  • Cooper, R., and R. Slagmulder. 2004. Interorganizational cost management and relational context. Accounting, Organizations and Society 29 (1): 1–26.
  • Ellram, L. (1995): Total cost of ownership - An analysis approach for purchasing. In International Journal of Physical Distribution & Logistics Management 25 (8), pp. 4-23.
  • Hofmann, E.; Maucher, D.; Kotula, M.; Kreienbrink, O. (2014): Performance measurement and incentive systems in purchasing. More than just savings. Heidelberg: Springer.
  • Kaplan, R.; Norton, D. P. (2001): Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. In Accounting Horizons 15 (1): 87-104.
  • Kaplan, R. S.; Norton, D. P. (2008): Mastering the Management System. Harvard Business Review January: 1- 16.
  • Lockamy, A.; Smith, W. I. (2000): Target costing for supply chain management: criteria and selection. In Industrial Management & Data Systems 100 (5), pp. 210–218.
  • Mena, C.; van Hoek, R. I.; Christopher, M. (Eds.) (2014): Leading procurement strategy. Driving value through the supply chain. London, Philadelphia: Kogan Page. Chapter 1.
  • Trent, R. J., and L. R. Roberts. 2010. Managing global supply and risk: Best practices, concepts, and strategies. Fort Lauderdale, Fla. J. Ross Pub. Chapter 4.
  • Wouters, M., J. C. Anderson, and F. Wynstra. 2005. The adoption of total cost of ownership for sourcing decisions - a structural equations analysis. Accounting, Organizations and Society 30 (2): 167–91.
Last updated on 28-06-2019