• Journal of the Korean Society of Systems Engineering
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• v.15 no.1
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• pp.25-33
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• 2019

In the plant industry, the share of equipment accounts for 45 ~ 75%, which is very high. It is a traditional plant centered on processes and reactions like petroleum and chemical plants. Renewable energy generation plants such as wind power generation and solar power generation are equipment-centric plants. Equipment-centric plants are very important not only in the EPC phase but also in the operation and management phase. The procurement of equipment for plant operation and management can be divided into make and buy. Make is a method of producing equipment itself, and buy is a method of procuring equipment from the outside. The procurement method of the equipment directly affects the plant operation and management cost. In this study, the decision making of equipment procurement method for plant operation and management is defined as 4 phase. Each phase is selection of procurement decision-making objects, technology strategy perspective, finance perspective, and production perspective. In detail, we defined selection process of procurement decision-making objects and technology strategy perspective process. We will contribute to the enhancement of the competitiveness of the plant operation and management area by carrying out researches on the process and application examples of financial and production perspectives in the future.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.2
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• pp.33-40
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• 2018

This paper is based on the interim result of ongoing research and development project to develop a software system which support procurement activities, namely PeMSS (Procurement Engineering Management Support System). PeMSS is a system that enables development requirements for each equipment and help designing equipment meeting the purchase requirements. Procurement at EPC (Engineering Procurement and Construction) and operational stage of a plant is an important area that determines the integrity and profitability of the plant. Procurement of unsuitable equipment due to selection of suppliers that do not meet or omit critical requirements in purchase specification can result in enormous cost increase due to such as delay in EPC project, unsatisfactory performance and reduced plant operation time. In spite of the importance of the procurement engineering, there is a lack of support system for systematic preparation of purchase specification, so development of the procurement specification is basically relying on the experience of the engineers in charge. Accordingly, it is needed to develop the PeMSS to help procurement engineers develop procurement specification based on systems engineering approach. This paper introduces the design of the PeMSS.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2010.05b
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• pp.103-108
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• 2010

The purpose of this study is to analyze of the risk factors for oversea plants construction projects. For this study, risk factors data from related literature review, research organization and construction company was researched and classified under each EPC phases. In addition, a questionnaire survey by plant experts was conducted for analysis of risk weight and costs and time impact on each EPC phases. The results of this study are as follows: First, a detail design errors(engineering phase), a equipment procurement plan(procurement phase), and exchange rate fluctuations(construction phase) were analyzed the highest weight factors. Second, a financing plan(engineering phase), quantity take-off bill(procurement phase), and exchange rate fluctuations(construction phase) were analyzed the highest cost impact factors. Third, detail design errors(engineering phase), a equipment procurement plan(procurement phase), and schedule management errors(construction phase) were analyzed the highest time impact factors.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.1
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• pp.52-62
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• 2018

A software support system, called procurement engineering management support system (PeMSS), is currently under development through a joint research project. The procurement-related scenarios considered in this research is as follow: an EPC (Engineering, Procurement and Construction) company receives an EPC project contract and starts the project to deliver the agreed system to the acquirer. In order to acquire the required equipments that the EPC company does not produce by itself, it eventually interacts with subcontractors, also called vendors. The EPC company responsibilities during the procurement activities are twofold. First, the EPC company has to guarantee that it has ordered the equipment, through issuing Purchase Order (PO), based on the requirements stated in the contract. Second, the EPC company has to verify that the received equipment designs, called Vendor Print (VP), meet the specifications in the PO, before finally acquiring the equipments. During our survey study, we discovered that EPC company takes a lot of time and effort to create PO and verify VP, mainly because these activities are performed manually by the responsible engineers. Therefore, we intent to support the above activities by developing a support system to the legacy procurement system that can trace the requirements from the contract to the PO and VP, among other functionalities. At the time of the writing of this paper, PeMMS is still under-development, thus, in this paper we focus on presenting the development steps of PeMMS using systems engineering theory and introducing the PO creation function. Wholly, PeMSS attempts to reduce the time and effort of engineers on the procurements activities while also increasing the quality of the procurement outcomes.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.3
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• pp.297-304
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• 2001

Procurement decisions for inspection equipment are often made heavily based on the initial purchase price instead of the effects of inspection cost, equipment calibration and utilization over the lifetime. Cost of ownership(COO) models that take into account all of these cost factors together have been developed focusing on a single quality characteristic. In modern manufacturing environment, inspection equipment often can deal with more than one quality characteristic simultaneously. In this paper, we propose the revised COO model for the economic evaluation of the inspection equipment that can accommodate multiple quality characteristics. We also employ an engineering economy model to compare equipments with different life span. Software is developed for handy comparison of the COO of alternative equipments along with sensitivity analysis far the optimal procurement decision.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.2
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• pp.67-72
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• 2018

In the EPC(Engineering Procurement and Construction) project of the plant, procurement engineering has a profound effect on the profitability of the project. It is important that the procurement specifications are well written to ensure that procurement engineering works properly. In the meantime, the procurement specifications have been created by the experience of the person in charge because there was no system for helping procurement engineering. To cope with this situation, we are developing a procurement engineering management support system (PeMSS). This paper describes how to implement a knowledge-based service in the procurement engineering management support system. First, we briefly introduce the PeMSS, the knowledge base application field, and how to apply it. The parts that requires knowledge-based service are parsing the requirements in the PDF (Portable Document Format) file and management of the document provided by the supplier of the equipment.

• Proceedings of the KSR Conference
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• 2009.05a
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• pp.636-642
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• 2009

The application of LCC-techniques is being introduced at the on-going procurement programs of various techniques. LCC-techniques have the common characteristic that all are designed to motivate contractors to design, manufacture and deliver equipment with lower life cycle costs. You may believe that savings may be in the acquisition cost component of life cycle costs. However, primary emphasis is generally on reducing and controlling operating and support costs by transferring more responsibility to the contractor for equipment operating and support cost performance. It has been found that life cycle cost procurement provisions must be individually tailored to each program. In this study, the currently identified LCC procurement techniques including a variety of LCC incentive provisions are introduced. Moreover, verification method, a procedural issue and incentive to application of LCC-techniques are examined.

• Journal of the Korean Society of Industry Convergence
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• v.5 no.4
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• pp.339-346
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• 2002

As characteristic of construction industries, the Issues of construction management have been pointed out because of time and space limit among construction project participants (owner, supervisor, builder, experiment specialty institute, specialty construction company, material supplier and equipment supplier). To improve these issues, procurement system has been introduced by using internet and intranet. Procurement system that was developed by some of large construction companies was considered only internal supply on closed system method. They also restricted to article supply as supply concept. In this paper, we suggest a plan to establish integrated construction procurement system that expands to the article, service and construction work supplies by utilizing the bi-directional and real-time contact system and presents related following research program.

• Journal of Korean Society for Quality Management
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• v.19 no.1
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• pp.43-50
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• 1991

Very little work has been done in the design of process with purchased equipment; therefore it is the intent of this project to expand the current application of reliability considerations to purchased equipment. The procurement of equipment in a manufacturing system which has both qualitative and quantitative aspects.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2004.11a
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• pp.539-542
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• 2004

Nowadays, High-rise building becomes higher and bigger than ever. As a result, lots of construction materials are needed at the same times. Because of divided diverse process of construction, several different Processes concur simultaneously with complexity of procurement. So, effective construction material supply and lift-up are essential part of the spot. Especially, when ending part of construction, there are much conflict between finishing and equipment materials also problems of folding lift-up. The Purpose of this paper is suggesting better effective lift-up system through analysis of loading factors.