Abstract

Purpose This study is about to establish standards for process design and operation of procurement auction, which is one of the ways to effectively determine the price with the vendor in the procurement. Methods The method of research was selected as a case company in which various forms of procurement are carried out. In the process design of procurement auction, We derived from RCA method how to improve the constraints for evaluating multiple attributes. In order to establish the operating standards for procurement auction, 720 cases of approximately 3.5 years were tested through statistical analysis and based on this, the operating standards for procurement auctions were proposed. Results This study shows, The design of the procurement auction using Fishbone Diagram was able to expand the bid by mitigating the avoidance factor of multi-attribute evaluation, and the results of completion inspection can be analyzed to confirm its. Procurement auction is an advantageous method of price determination compared to negotiated pricing in cases where the order amount is large and it is difficult for the person in charge to calculate the expected price. An analysis of the winning price of new companies showed that new companies are challengingly offering prices and that such competitiveness continues for two to three years. In addition, it was analyzed that the bid reaches a stable and reliable bid price when there are more than four bidders participants. Conclusion The results illustrate, this study proposed a multi-attribute assessment process design method for procurement auction and defined criteria that could be effective in bidding operation, such as number of participants, sourcing new companies, and improving expected price estimation capability.

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