Yes its a long shot but this is IMO Michigan's most liklely path to the playoff:
UM over OSU
PSU over MSU
Iowa over Nebraska (they can't lose this)
UM over Iowa
Clemson over UNC (concede spot 1 to Clemson so that UNC isn't a threat)
Ok St over Oklahoma (think 2 loss Michigan can get in over 1 loss Ok St..at least more likely than 1 loss OU)
TCU over Baylor
Alabama should probably beat Florida too unless Florida loses to FSU. I could easily see them taking 2 loss Bama over UM to get 2 SEC teams in there.
ND vs Stanford is interesting. I think they could get in both ways, but it would be harder if ND won. I think the strength of Michigan over OSU/Iowa is bigger than Stanford over ND/P12S champ. Plus Northwestern is a common opponent and we know how that worked out for both teams.
This would likely put Michigan over MSU (hurt from not making BTT), Oklahoma (fresh loss to Ok St), OSU (2 straight losses and no BTT) and Florida (fresh loss and hasn't looked all that impressive).
Clemson and Alabama would be playoff locks meaning UM would be competing for 2 spots with:
1 loss ND (unless they lose to Stanford)
1 loss Ok St
1 loss Iowa (who they just beat)
2 loss Baylor
ND is almost certainly in if they beat Stanford and the above scenario occurs. If they do win, then they could still get in over the other 2 based on 2 very good wins to close the season, and general committee hatred for the Big 12 and their lack of title game.
Am I missing anything? Other than PSU/MSU, the other games not involving Michigan either require favored teams to win or at worst 50/50 games (in the case of TCU/Baylor and OK State/OU given that both are home games).
It's unlikely but until PSU loses to Sparty, I will not give up hope!