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BuyLiner

A monthly publication of the Institute for Supply Management - Nevada, Inc. JuneJuly October 2018

PRESIDENT’S CORNER

Hello ISMNV Members, We have some great meetings and education seminars set for the last quarter of this year. Remember to get registered for the Water Treatment Plant Tour as this will be a very interesting and educational event.

As we move into the Holiday season, remember to have FUN and to NOT stress out. The holidays are meant to bring people together to enjoy each other’s company. I am sure there will be lots of travel going on, so get those plans done sooner than later. We still have two positions available for the board if anyone is interested in volunteering. Please let Jim and myself know so we can let you know what would be expected in that position.

Cheers,

Dawna Herndon ISM-Nevada President

55 EExxcceelllleenntt RReeaassoonnss ttoo VVoolluunntteeeerr 1.) Hello Career Booster

Helps create a positive impression, makes you more innovative, creative and gives you a range of useful skills.

2.) Make Real Connections Meet people in your profession and from all walks of life. This gives you a chance to form real relationships that can have a lasting impact on your life (any maybe career)

3.) Gain a Whole New Perspective Connect with people from diverse backgrounds, experience and education.

4.) Get Inspired Use volunteering to get out of an old routine and find creative ways to get the job done.

5.) It’s Fun! It’s a reason to make a positive impact in the industry, network with colleagues and enjoy the many benefits of the experience.

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October 3 - Seminar “How to interview suppliers like an FBI Agent”

October 24 – Plant Tour / Lunch “Southern Nevada Water Authority's River Mountains Water Treatment

Plant”

Get up close and personal with the treatment of the water we drink at SNWA's

River Mountains Water Treatment Plant!

The River Mountains Water Treatment Facility treats up to 300 million gallons

of water per day. It's one of many projects in the Water Authority's Capital

Improvements Program that increases the reliability of our water supply. The

facility was designed so it can expand to meet Southern Nevada's needs. In the

future, the River Mountains facility will be able to treat up to 600 million

gallons of water a day. The River Mountains facility provides additional

reliability and capacity to Southern Nevada's municipal water treatment and

distribution capabilities. It began delivering treated water in October 2002.

The tour will begin promptly at 11:30 am. Following the tour we will have

catered boxed lunches. You can select your choice during registration.

To attend, you MUST be a U.S. citizen and have a valid picture ID issued by a

government agency (preferably a Drivers License). If not, please contact Jim

Haining @ (702) 428-6194.

Tickets: Members $20 and Guests $25

Game-changing interactive workshop that delivers real world investigative

interviewing experience to both novice and experienced professionals. Private

sector attendees will receive similar (but condensed) training given to the US

Intelligence Community (FBI, CIA, NSA, etc.).

Attendees will learn foundational investigative interviewing techniques to

identify another individual’s motivations, interests, and honesty. New skills

can be applied immediately in both professional and personal situations.

Seminar Leader – Dan Kelly

Tickets

$150.00 Member

$140.00 Earlybird rate before September 14

$175.00 Guest

$165.00 Earlybird rate before September 14

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November 7 - 9 – ISM INDIRECT 2018 Aria Resort & Casino

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November 14, 2018 – Tour / Lunch

“Zappos Tour Experience”

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Why Attend?

The money you spend to keep your organization running adds up fast.

Marketing, fleet, human resources and other indirect expenses often don’t

receive the same scrutiny as direct ones, even though they may comprise

50% of a company’s purchases.

ISM Indirect 2018 brings together professionals from across industries

to explore effective strategies in driving down cost, increasing value

and how to make it count. Join us for two days of compelling content

and networking and discover how you can make an impact in your

organization and career.

For more information, agenda, registration go to www.ismindirect.org

You have heard about the uniqueness of Zappos and its culture. And you

might have wanted to take a tour of their headquarters here in Las Vegas.

This is your opportunity to take the Zappos Tour Experience with your fellow

ISM-Nevada associates.

All guests over 18 yrs old MUST have a valid government issued photo ID. No

exceptions.

After the tour, join some of your associates for lunch at a close-by restaurant.

This is not a part of the tour and you pay for your own lunch if you choose to

participate.

We must pre-pay 1 week prior to the tour, so registration will end at 12 noon

on November 7th. Anyone trying to register after this time must register

directly on the Zappos website. Contact Jim Haining at info@ismnv.org for

instructions.

Tickets: $10/Member $15/Guest

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January 30, 2019 - Seminar

“Total Cost Analysis for Best Value Decisions”

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March 27, 2019 – Seminar “Contracts: What Do All of the Ts and Cs Mean?”

Attendees will learn how to develop and leverage data based negotiation skills

to drive lowest total costs outcomes in internal business unit and external

supplier negotiations. Supplier expenditure and cost analysis methodologies

will be reviewed, and students will analyze and assess the true components of

total cost, and use this information to build a rock solid negotiation plan

strategy using a variety of cost model and benchmarking approaches. Special

focus will also be on methodologies to drive reduction of embedded costs in the

SOW/Spec in advance of negotiations that do not justify the value they deliver.

The core concepts and methodologies and rules for building the different types

of cost models will be reviewed and these concepts will be solidified in a case

study at the end of the course, as well as several smaller case studies along the

way.

Seminar Leader – Omid Ghamami, MBA, CPSCM

Tickets:

Earlybird rate before January 18 – Member $140 / Guest $165

After January 18 - $150.00 Member / Guest $175.00

Because purchasing professionals must ensure that contracts protect the

interests of their organizations, the ability to understand contract clauses is a

key skill. This class will address many of the standard terms found in most

contracts. Discussion will include key terminology and clauses taken from

actual contracts. Attendees are encouraged to bring their own standard forms

for comparison purposes.

Following are a few of the specific terms and conditions that will be

discussed: Work to Be Done, Warranties, Inspection and

Acceptance, Performance Requirements, Lien Waivers, Delivery Terms,

Audit/Examination of Records, Ownership of Materials, Equipment and

Tools, Patent, Trademark, Copyright Protection, Confidential

Information, Succession, Assignment, Subcontracting, Limitation of

Liability, Indemnification, Insurance, Force

Majeure, Insolvency, Termination/Cancellation, Default, Alternative Dispute

Resolution, Choice of Law/Choice of Forum, Remedies, Set Off, Liquidated

Damages, Independent Contractor Status, Time of the

Essence, Waiver, Severability, Notices, Compliance with Law/Socioeconomic

Clauses, Changes/Modifications, Entire Agreement

Seminar Leader – Helen M. Pohlig, J.D.

Tickets:

Earlybird rate before March 15 – Member $140 / Guest $165

After March 15 - $150.00 Member / Guest $175.00

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eexxppeerrtt ssaayyss Could New Jersey really surpass Nevada as the top sports-betting market in the nation? Say it ain’t so!

That’s one of several projections made by Adam Krejcik, who heads analysis for the California-based Eilers & Krejcik digital and interactive gaming universe.

The gaming industry has come a long way since Nevada blazed a trail more than a decade ago for gambling with real money over the internet. Krejcik said he believes the industry is ready for more technological leaps and shared them last week in a presentation at the EGR U.S. Power Summit in Miami. Some of his forecasts and predictions illustrate how the gaming industry is pushing the envelope with new opportunities to generate revenue. And state governments are responding favorably as they see the potential for new tax dollars.

Much of what we’re seeing in the United States began when Nevada lawmakers approved legislation directing regulators to establish rules for server-based gaming in 2006. Quite simply, it was the oversight of computer systems that could make changes on slot machines across a casino floor from a single server. Server-based gaming led to remote play: using mobile devices to play games from a public area within a casino with a cellphone or tablet.

In 2011, the Nevada Gaming Commission changed regulations that led to playing online poker within the state’s boundaries. It wasn’t long before Gov. Brian Sandoval, a former Gaming Commission chairman, signed compacts with other states allowing poker players in Delaware and New Jersey to play against Nevadans.

As the precision of geolocation technology evolved, remote betting on sports emerged within the state. With the push to repeal the Professional and Amateur Sports Protection Act leading to other states moving toward sports betting, leaps in technology advanced rapidly. Krejcik’s presentation in Miami identified advancements in four areas:

Social casinos. The play-for-fun model is popular because no money is exchanged, so casino games can appear on multiple platforms in states where gambling isn’t legal.

iGaming. It’s real gambling with real money with casino games and poker. Krejcik said state-by-state legislative adoptions are “painfully slow,” but it’s moving forward.

Sports betting. Online and mobile platforms available in Nevada are being rolled out in other states.

Emerging verticals. Daily fantasy sports, esports betting and skill-based games fall into that category.

Krejcik had several predictions for the digital gaming space, including the following:

— New Jersey’s sports-betting market will surpass Nevada’s by 2021. While Nevada has the more mature market, New Jersey’s population will drive volume in the next four years. He projects sports-wagering revenue, retail and mobile, to hit $442 million by 2021.

— The year 2019 will be a make-or-break year for the National Basketball Association and Major League Baseball to make their case for a cut of gaming revenue through integrity fees or control over data. The American Gaming Association recently said the leagues should be satisfied that sports betting will attract more fan interest in games that they can monetize.

— Populous states such as Michigan and Illinois might bundle regulation of their iGaming and sports-betting products. Krejcik said he believes those states and Massachusetts and New York — which, together, represent about 15 percent of the nation’s population — might go that route while other states will regulate them separately.

--Credit card companies are still rejecting payments on about half of the transactions involving iGaming deposits. Krejcik said he believes that will continue to be a drag on the industry, particularly in populous states.

Submitted by Mathew Wion, https://www.reviewjournal.com/business/business-columns/inside-gaming/new-jersey-could-become-top-sports-betting-market-in-us-expert-says/

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RReecceerrttiiffiiccaattiioonn For years, when you were applying for recertification of your C.P.M., CPSM or CPSD, you would send a copy of each Continuing Education Hour (CEH) form received after attending a training class, seminar, conference or meeting. You just had to be diligent in collecting all of the forms and storing them away for the date you completed the recertification application. ISM has made the process even easier! You no longer have to send in a copy of the form, you just have to log each class/seminar/meeting into YOUR Account on the ISM website. Here is a quick tutorial on how to do it. Go to www.institutueforsupplymanagement.org (I use the old www.ism.ws for ease) and log into your account. Use your email address and password. If you don’t know your password, you can easily reset it yourself. Click on Account and Log In

Then, Click on My Account

Once you are your account, click on “Transcripts” under the Education section of Your Account (on the left)

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In the Transcripts area will be a list of any ISM Global training that you have attended. You will need to add any local class/seminar/training that you have attended, including any training that will qualify at your workplace. Go to the BOTTOM of the list and click on “Add New Transcript” and add any relevant class/seminar/conference that you have attending.

It’s pretty simple. No need to keep a huge folder full of certificates, just log each training class into My Account on the ISM website! By Jim Haining, CPSM, CPSD, C.P.M., A.P.P., MBA

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___________-

____________________________________________________

New Certification

Jens Pfannkuchen, CPSM – Las Vegas Valley Water District

Joseph Cenicola, CPSM – Pinnacle entertainment

RE-Certification

Lisanne Bogle-CPSM – Okada Manila

Byron Solberg, C.P.M – Newmont Mining Corp.

Join ISM today and become part of a powerful network of 45,000 supply management professionals who lead and shape supply management today and in the future. To learn more about membership eligibility and types, benefits and application process, please contact Membership/Marketing Director Michael Harris at harris_michael@cox.net or visit the ISM NV website at http://ismnv.org/join.php

Southwest Gas

Renee Casareno

Student

Diana Hilton

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_____________________________________________

ISM-Nevada is on and

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Log into your LinkedIn and Facebook accounts and search for ISM-Nevada under Groups. Connect with us today!

For upcoming events, Register at

www.ismnv.com

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Supply Chain Knowledge

Submitted by Carol Poindexter, C.P.M., CPPO

The following sample test questions were developed for those procurement professionals interested in acquiring their CPSM and CPSD professional credentials. These and other questions are posted in the CPSM Exam Review workbook published by the Institute for Supply Management.

QUESTION 1: Consider the following financial data for XYZ, Inc.: (Task 1-B-4)

Long-term debt $400,000 Preferred stock $300,000 Common equity $600,000

Total capital $1,300,000

Weighted cost of long-term debt: 6.2%

After-tax cost preferred stock: 10.5%

Weighted cost of common equity: 12.4%

Based on these data, what is the weighted average cost of capital?

A. 9.75%

B. 9.90 %

C. 10.05%

D. 18.70%

QUESTION 2:

In addition to Ishikawa’s seven managerial tools for quality, the “New 7 Tools” were developed. Which one of the following New 7 (N7) tools is also known as a PERT diagram and is used in controlling projects? (Task 2-H-1) A. Matrix diagram. B. Prioritization matrices C. Activity network diagram D. Tree diagrams

QUESTION 3:

The Supplier Diversity Force (SDTF) identified a potential source for a key commodity and presented the opportunity to its supply managers. This supplier is currently unknown to the organization, and supply management is hesitant to take a risk. They would like to learn more about the supplier and develop a relationship. The SDTF arranges a visit to the potential supplier so they can meet key people in that organization and learn more about their processes and capabilities. Which of the following is LEAST likely to participate in the visit? (CPSD)

A. The Controller

B. The Design Engineer

C. The Quality Assurance Manager

D. The Commodity Manager

Answers can be found on next page.

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Question 1

Option C is correct. To determine the weighted average cost of capital: Calculated percentage of total dollars for each of the three types of capital: (4/13 = 30.77%; 3/13 = 23.08%; 6/13 = 46.15%) Multiply percentages by the percent interest rates: (6.2% x 30.77% = 1.91%; 10.5% x 23.08 = 2.42%; 12.4% x 46.15% = 5.72%) Sum the results: (1.91% + 2.42% + 5.72% = 10.05%)

Question 2 Option (C) is correct because an activity network diagram, also known as a PERT diagram, is used in controlling projects. (It is also known as an Activity on Node Chart {AON}.)

Option (A) is incorrect because a matrix diagram uses symbols and shows the relationship between two, three or four groups of information. Option (B) is incorrect because prioritization matrices are used to weight priorities if different priorities are presented from the tree and matrix diagrams. Option (D) is incorrect the tree diagram is useful to identify the steps needed to address a given problem.

Question 3 Option A is correct. The controller’s primary interests are the supplier’s financial condition and their pricing as it affects profitability. That information can be gathered by means other than a site visit. Option B, C and D are incorrect because during a site visit, the design engineer will meet with their technical staff and explore their capabilities. The quality assurance manager will examine their quality assurance processes, especially as they relate to the customer organization’s needs. Commodity management will assess their capability as a supplier and begin to develop relationships with key members of their management team, all issues best explored by direct contact.