• Title/Summary/Keyword: Procurement Engineering

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Design of the Procurement Engineering Support System : A Case Study (구매엔지니어링 관리지원시스템 상세 설계 사례 연구)

  • Kim, Jinil;Yeom, Choongsub;Shin, Joonguk;Salim, Shelly
    • 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.

IMPLEMENTATION OF GOVERNMENT E-PROCUREMENT: A COMPARATIVE STUDY OF THAILAND AND INDONESIAN PRACTICES

  • Budi Hasiholan;Shin-ei TAKANO
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.827-834
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    • 2009
  • In respond to the demand of an open, fair, transparent, and efficient environment for procurement, many governments have incorporated the use of internet in their procurement systems with online procurement (e-procurement). Given the different policies and laws which have to be complied with, the practice of government e-procurement system varies from one country to another. Thus, experiences in running e-procurement will vary as well. The achievements and obstacles of one country's experience will be a constructive reference for other countries in establishing e-procurement system. In this regard, government e-procurement system practices in two Southeast Asia countries i.e., Thailand and Indonesia particularly in public works are consecutively presented and finally compared in this paper. The government of Thailand has applied Online Auctions (e-Auctions) as the national procurement practice since 2005 and performed the e-Auctions in two types: Reverse Auction and Sealed Bid Auction. Contrary to the common practice of e-procurement, the Thai government, with some rationales, runs the bid documents obtaining manually as well as qualification and technical documents submission and holding the e-Auctions at bidding office. Whereas Indonesian government runs Online Sealed Bid Bidding (e-Procurement) and most of the bidding stages are performed electronically except bid evaluation for both technical and financial. The advantages and drawbacks of these two e-procurement practices are discussed as well as improvements that have to be made for successful of e-procurement.

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A Study on the Application of Knowledge-based Service in Procurement Engineering (구매엔지니어링을 위한 지식기반 서비스 적용 방안에 관한 연구)

  • Kim, Jinil;Cha, Jaemin;Shin, Joonguk;Yeum, Choongseup
    • 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.

Concept of Operations of Procurement Engineering Management Support System

  • Salim, Shelly;Kim, Jin Il;Yeom, Choong Sub;Park, Jong Sun
    • 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.

Analysis of the Procurement Management Process for the Gas & Oil Plant projects (Gas & Oil 플랜트 조달관리 프로세스 분석)

  • Won, Seo-Kyung;Kang, Min-Woo;Lee, Jun-Bok;Kim, Sun-Kuk;Han, Choong-Hee
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.491-494
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    • 2007
  • Recently Gas & Oil plant construction projects are increasing in the world. The EPC (Engineering, Procurement and Construction) company, which participate in the plant projects, should possess the pertinent engineering license and procurement skill to create high added-value. It is because the procurement is very substantial to cover 70% of the total project cost. Nonetheless, there exist various risks involved in the procurement process due to the characteristics of the construction projects with long duration and complicated process as well as the procured goods or services subjected to various logistics. The objective of this paper is to analyze proper process in the procurement and to identify various information and document. Also to analyze procurement process, the principal data are derived from the interview with experts and specialty contractors of plant project. The result of this study would widely be used as a guide to the procurement personnel in forecasting the risks in advance.

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RELATIONSHIP-BASED PROCUREMENT METHODS FOR PUBLIC INFRASTRUCTURE - THE WAY FORWARD

  • Jian Zuo;Xiao-Hua Jin;Mark McDonald
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.124-131
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    • 2011
  • Public infrastructure is crucial to promote and sustain a sustainable economic growth and a health community. A large amount of capital investment is generally required in infrastructure projects that motivate the involvement of the private sector in the delivery process. Various relationship-based procurement methods have been attempted to maximize value-for-money. In this paper, the problems and challenges that relationship-based procurement methods have been facing are explored. A particular focus is placed on the challenges for the public-private partnership (PPP) model. Possible strategies for adapting the PPP models in the post-Global Financial Crisis era are proposed and discussed. In addition, the challenges facing alliancing, which is one of the other important relationship-based procurement methods, are also examined. Views on infrastructure procurement in the future were sought from industry professionals via interviews and are reported in this paper as well.

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The Impact of Design-Bid-Build Procurement Methods on Project Performance in Libya

  • Ghadamsi, Alaeddin;Braimah, Nuhu
    • Journal of Construction Engineering and Project Management
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    • v.6 no.2
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    • pp.16-23
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    • 2016
  • The use of inappropriate procurement methods to deliver construction projects has long been acknowledged as a major source of poor project performance and is particularly problematic for the Libyan Construction Industry. Poor procurement method selection has been recognised as a major contributory factor to frequent time and cost overruns. This paper offers a way of selecting specific procurement methods to maximize successful project performance. The methodology involves an intensive review of relevant literature, followed by a semi-structured questionnaire survey. The key findings of the study reveal that 11 out of its 12 common selection criteria exhibit a significant contribution to one or more project performance criteria (time, cost and quality). Project clients should therefore prioritise these criteria when selecting a design-bid-build method. Knowledge of the criteria that contribute positively to project performance will also enable clients to work out, prior to and during construction, the best measures and provisions for successful project outcomes.

A Study on Decision-making of Equipment Procurement for Plant Operations & Maintenance (O&M) - Focused on Technology Strategy perspective - (플랜트 O&M을 위한 기자재 조달방식 의사결정에 관한 연구 - 기술전략 관점을 중심으로 -)

  • Hong, Daegeun;Lim, Yongtaek
    • 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.

Effect of Environment-conscious Procurement Logistics Activity and Logistics Strategy on Logistics Performance (조달물류에서 환경친화적 활동이 조달물류 성과에 미치는 영향)

  • Park, Seog-Ha;Lee, Sung-Ho;Kim, Che-Soong
    • Journal of the Korea Safety Management & Science
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    • v.9 no.4
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    • pp.71-82
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    • 2007
  • For a sustainable development, the resources circulation system should be established and an environment-conscious activities are required at the same time. These activities should be also implemented in logistics area. Especially, green procurement activities in inbound logistics is recognized as a very important factors in the early phase of an environment-conscious activities. In this paper, we are to suggest the direction through statistical analysis of effects, and cause of influences of environmental procurement logistics activities on logistics performance by environmental logistics strategy and by the size of enterprises, and by Environmental Management System. This study was conducted with the subjects of manufacturing enterprises with concurrent reviews of literature and statistical analysis, and the meaning of this study would be the analysis of the influencers of environment-conscious procurement logistics activities on logistics performance different from existing logistics studies.

Development of Procurement Announcement Analysis Support System (전자조달공고 분석지원 시스템 개발)

  • Lim, Il-kwon;Park, Dong-Jun;Cho, Han-Jin
    • Journal of the Korea Convergence Society
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    • v.9 no.8
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    • pp.53-60
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    • 2018
  • Domestic public e-procurement has been recognized excellence at home and abroad. However, it is difficult for procurement companies to check the related announcements and to grasp the status of procurement announcements at a glance. In this paper, we propose an e-Procurement Announcement Analysis Support System using the HDFS, HDFS, Apache Spark, and Collaborative Filtering Technology for procurement announcement recommendation service and procurement announcement and contract trend analysis service for effective e-procurement system. Procurement announcement recommendation service can relieve the procurement company from searching for announcements according to the characteristics and characteristics of the procurement company. The procurement announcement/contract trend analysis service visualizes the procurement announcement/contract information and procures It is implemented so that the analysis information of electronic procurement can be seen at a glance to the company and the demand organization.