Material Procurement Process Research Articles

ANALISIS KERAGAAN AGROINDUSTRI KLANTING DI DESA GANTIMULYO KECAMATAN PEKALONGAN KABUPATEN LAMPUNG TIMUR

This research aims to analyze the procurement process of raw materials that correspond to six rights (time, place, quality, quantity, type, and price), klanting agroindustry profit, and marketing mix with 7P (product, price, promotion, place, people (human resources), process, and physical evidence). This research uses the case study method at Klanting Agrondustry in Gantimulyo Village Pekalongan District. The location was chosen purposively considering that the village is a klanting production center in East Lampung Regency. Data of this research were collected from December 2019 to January 2020. The method data analysis used in this research is a descriptive qualitative analysis and quantitative. The results of this research indicated that the procurement of raw materials has not fulfilled all the six components precisely, because it does not match reality expected by agroindustry owners on components on time, the right type, right quality, and right quantity. On the right place and right price component, it is accordance with the agroindustry owner's expectations, because the location of raw materials is close to the agroindustry, and the price is low. The advantages of agroindustry are good, because it shows a positive advantage. That advantage obtained in one month at Mekar Sari Agroindustry amounting to IDR4,933,709.57, Mitra Tani Agroindustry amounting to IDR3,854,706.64, and Mitra Lestari Agroindustry IDR2,907,475.87. The agroindustry marketing strategy has implemented components of the 7P marketing mix, only the promotional components are missing applied optimally. Key words: agroindustry, klanting, marketing mix, performance

Application of House of Risk (Hor) Models for Risk Mitigation of Procurement in The Balikpapan Samarinda Toll Road Project

The Balikpapan Samarinda Toll Road Project built 99 km has a relatively short implementation time of 3 years. The accuracy of project completion is closely related to the procurement of materials during the implementation period. Risk analysis based on ISO 31000: 2009 where the risk of delay in procurement of materials is included in the extreme category with a high level of probability and severe impact. Risk analysis is carried out qualitatively, that is, determining risk priorities by determining the likelihood of events and their effects on project performance. Material procurement delays still occur due to various factors that have not been mitigated in the planned risk analysis. This resulted in project performance not on schedule. The purpose of this study is to provide a proactive framework for managing material procurement risks. The method used is the House of Risk (HOR) from the literature study. The HOR method is very commonly used in supply chain risk management. The HOR method focuses on preventive actions determining the main risk agents and the priority of preventive actions. The advantages of this method are in the framework that can cover the whole process of risk management. Phase 1 of HOR begins with the identification of risk events and phase 2 of risk treatment. This framework allows management to select priority risk agents to be mitigated and prioritize proactive actions to reduce the impact of risk events. The results of the study are 14 risk events and 15 risk agents that can occur in the material procurement process. From the Paretto Diagram, 4 risk agents were selected, namely schedule changes became faster, bill payments required a long period of time, problems in supplier selection, and material fabrication time. Based on the analysis of preventive action 3 actions proposed in this study are coordinating with the finance department to monitor supplier bills, coordinate with production for proper procurement schedules, and evaluate suppliers.

Integrated operational supply chain planning in Industry 4.0

The scenario of isolated companies competing with each other has evolved to a holistic vision, where companies collaborate and work together to maintain supply chain competitiveness. Integrated supply chain planning, although challenging, is necessary to foster competitive advantage and to ensure companies' survival in difficult times. Concepts and technologies introduced by the Fourth Industrial Revolution support such integrated planning models. This paper presents a systematic literature review on integrated supply chain planning aiming to identify research streams, opportunities and the impact of Industry 4.0. The study identified the lack of research on supply chain planning which considers Industry 4.0 concepts and opportunities. Five prevailing research streams stand out: 1) approaches to deal with complexity; 2) the consideration of uncertainty; 3) raw material inventory control and procurement processes; 4) the necessity of considering environmental impacts; 5) particular models for dealing with limited lifetime products. Finally, the following future research opportunities were identified: 1) improving decision-making models to consider stochastic and dynamic behaviours; 2) extending the models to include larger networks with more variables; 3) developing more efficient solving approaches.

Risk management in shipbuilding using bayesian network with noisy-or

This paper presents a method for risk management applicable in shipbuilding projects. We focused this study specifically to assess delay in project completion by analysing the production processes. The production processes were grouped into three major parts, namely the work of design, material procurement, and production processes. Risk data were collected from risk documentation of fast patrol boat constructions in PT. PAL Indonesia (the company). Bayesian network was used to assess the probability of project completion delay. Noisy-OR canonical model was used to define parameters needed for the Bayesian network model. Based on the current condition, the Bayesian network model predicted that there is a probability of delay of 0.67761739 that the project completion will be delayed. The Bayesian network model was also used to assess mitigation actions to reduce the probability of delay. Three mitigation action sets were provided based on the complexity of mitigation action: (1) less complex mitigation action, (2) more complex mitigation action, and (3) most complex mitigation action. The Bayesian network model predicting that the most complex mitigation action would provide the best result in mitigating the project completion delay.

Integrated Operational Supply Chain Planning in Industry 4.0

The scenario of isolated companies competing with each other has evolved to a holistic vision, where companies collaborate and work together to maintain supply chain competitiveness. Integrated supply chain planning, although challenging, is necessary to foster competitive advantage and to ensure companies' survival in difficult times. Concepts and technologies introduced by the Fourth Industrial Revolution support such integrated planning models. This paper presents a systematic literature review on integrated supply chain planning aiming to identify research streams, opportunities and the impact of Industry 4.0. The study identified the lack of research on supply chain planning which considers Industry 4.0 concepts and opportunities. Five prevailing research streams stand out: 1) approaches to deal with complexity; 2) the consideration of uncertainty; 3) raw material inventory control and procurement processes; 4) the necessity of considering environmental impacts; 5) particular models for dealing with limited lifetime products. Finally, the following future research opportunities were identified: 1) improving decision-making models to consider stochastic and dynamic behaviours; 2) extending the models to include larger networks with more variables; 3) developing more efficient solving approaches.

ANALYSIS ON THE PURCHASING DATA TO RE-DESIGN THE PROCEDURE OF TURNAROUND MAINTENANCE

Turnaround (TA) is a large-scale maintenance activity (extraordinary maintenance activities), which is carried out periodically (repeated large-scale maintenance), where the work referred to can only be carried out when the unit is stopped operating. The main scope of work is inspection (inspection), repair, cleaning equipment. The success or failure of turnaround activities is very influential from careful preparation, some of the failures of turnaround activities result from unplanned preparations. One factor is the readiness of the material. This paper discusses the direct involvement of the material procurement process in determining better TA preparation time. The historical data from the purchasing is analyses and then the result is combined with the new proposed procedure of the TA maintenance. The new procedure has three months less than thecurrent procedure.

ANALYSIS ON THE PURCHASING DATA TO RE-DESIGN THE PROCEDURE OF TURNAROUND MAINTENANCE

Turnaround (TA) is a large-scale maintenance activity (extraordinary maintenance activities), which is carried out periodically (repeated large-scale maintenance), where the work referred to can only be carried out when the unit is stopped operating. The main scope of work is inspection (inspection), repair, cleaning equipment. The success or failure of turnaround activities is very influential from careful preparation, some of the failures of turnaround activities result from unplanned preparations. One factor is the readiness of the material. This paper discusses the direct involvement of the material procurement process in determining better TA preparation time. The historical data from the purchasing is analyses and then the result is combined with the new proposed procedure of the TA maintenance. The new procedure has three months less than the current procedure.

Risk Analysis on the Equipment and Material Procurement Process of Engineering, Procurement, and Construction (EPC) Projects

Equipment and material non-compliance with the project requirements is one of the issues causing delay in large EPC projects as rework actions are inevitable. Detecting and controlling the potential risks at the procurement process of equipment and material can be done to anticipate this issue. This study aims to identify the major risks and recommend the response strategies to the equipment and material non-compliance by adopting a quantitative method through expert validation using Delphi method, questionnaire surveys, and risk analysis, as well as qualitative method through benchmarking study and interview with experts. The result of this study shows that lacking in the inspection of requirement, complete Request for Quotation (RFQ) information, contract term verification, fixed design requirements, attention to Purchase Order (PO) review, supervision to engineering design and drawing, and proper fabrication procedure are major risks that can potentially cause non-compliance. Improvement in communication between stakeholders and supervision to ensure the conformity with specifications are considered as the key elements in mitigating the identified major risks.

Study and Analysis of Delays in the Material Procurement Process: A case study of Steel Manufacturing Companies at Indonesia

The procurement of goods is an important activity in maintaining the company's survival, especially in the manufacturing industry. Delay in the acquisition of goods may cause interruption to plant operations. This study aims to find out and analyze the cause of delay in the procurement of goods. The type of investigation used is qualitative descriptive with the subject of inquiry is the person who is directly related to the process of acquiring goods at Steel Manufacturing Companies, which is the employee in the Procurement Division. The results indicate that the main cause of the postponement problems in the procurement of goods is because the process does not use the e-procurement system in the purchase process with a percentage of the cause of a 22 % delay. For the manager as decision-makers need to take on the basis of improvement such as improving the level of cooperation with consumers.

KEBIJAKAN PENGADAAN BAHAN PUSTAKA PERPUSTAKAAN AKADEMI KESEHATAN ASIH HUSADA SEMARANG

<p><span style="color: #242021;"><span class="fontstyle0">This scientific paper discusses one of the development of library collection policy is the procurement of library materials at the Academy of Health Library Asih Husada Semarang. The purpose of this paper is to understand the procurement policy process of library materials at the Academy of Health Library Asih Husada Semarang. The method of procuring library materials at the Academy of Health Library Asih Husada Semarang done through purchases and donations. This paper uses interviews with the<br />library director and field visits directly. The results of the paper indicate that the policy of procurement of library materials has been replicated by the Academy of Health Library of Asih Husada Semarang has been written, but not yet officially formulated, therefore after the procurement process of library materials is completed, evaluated once every year at the end of December through the Foundation Annual Work Meeting</span><strong><span class="fontstyle2">.<br /></span></strong></span></p><p><span style="color: #242021;"><strong><span class="fontstyle3">Keywords </span></strong><span class="fontstyle4">: </span><span class="fontstyle0">collection development, library material procurement policy, procurement method of library materials</span></span></p>

Identifying Raw Material Transportation and Reduction Strategies from the Lithic Scatters at Elandsdrift Farm (Cradle of Humankind World Heritage Site), South Africa

The Cradle of Humankind World Heritage site in South Africa is renowned for its karstic cave systems, which have yielded extensive fossil and stone tool assemblages dating to the Plio-Pleistocene period. The archaeological record from these caves has provided significant evidence for the evolution of lithic technology in southern Africa. Open-air sites have also been documented in this region, although they rarely receive scientific attention due to their lack of spatial and stratigraphic contexts. However, archaeological research has demonstrated that lithic production strategies were organized through landscape-scale constraints including the availability of raw materials and the energetic costs of their transport. As such, the study of open-air Stone Age sites in the Cradle of Humankind can potentially offer insight into the relationships between raw material procurement and reduction processes in this region. Here, we present a case study from the open-air locality of Elandsdrift Farm, which preserves a palimpsest of Earlier and Middle Stone Age lithic materials. While the chronological and spatial contexts of this locality present significant interpretative challenges, the Elandsdrift Farm lithic materials are not without scientific value. A landscape archaeological approach is employed to explore the influence of raw material transport on tool-making. Trends in core reduction intensity and flaking efficiency suggest that landform ruggedness and distances traveled to procure raw materials significantly influenced lithic production strategies throughout the Early to Middle Pleistocene. Despite the contextual challenges presented by open-air localities, landscape archaeological methods can inform the economic aspects of lithic scatters in this region, which cannot be easily inferred from archaeological assemblages in cave contexts.

Implementasi Analisis Proses Bisnis Sebagai Upaya Pengurangan Biaya

Business Process Analysis can be used to eliminate or reduce a waste cost caused by non value added activities that exist in a process. This research aims at evaluating activities carried out in the natural material procurement process in the PT XYZ, calculating the effectiveness of the process cycle, finding a way to improve the process management, and calculating the cost reduction that can achieved by activity management. A case study was the approach of this research. The researcher obtained research data throughout deep interviews with the staff who directly involved in the process, observation, and documentation of natural material procurement. The result of this study show that the effectiveness of the process cycle of natural material procurement in the factory reached as much as 87,1% for the sand material and 72% for the crushed stone. This indicates that the process still carry activities with no added value and still contain ineffective costs. Through the Business Process Mechanism, these non value added activities can be managed so that the process cycle becomes more efficient and cost effectiveness is achieved. The result of the effective cycle calculation after the management activities implementation is 100%. This means that the cost of natural material procurement process has become effective. The result of calculation of the estimated cost reduction as a result of management activity is as much as Rp249.026.635,90 per year.

Identification of construction subcontractor prequalification evaluation criteria and their impact on project success

Nowadays, the construction industry shares about 7.5 trillion dollars in the business field that accounts around (13.4%) of the world output, [1]. Therefore, a massive number of the construction contractors prefer to outsource construction project activities to the subcontractors, and they only perform the managerial activates such as, project financing, contract administration with clients, procurement process of equipment and materials, and monitoring the project progress. Hence, the Prequalification process is one of the main essential processes, consequently, relying only on the “lowest price criteria” usually leads to project risks on its’ main objectives: time, cost and quality. So, the proposed research aims to identify, analyze, and prioritize the most important criteria that influence the subcontractor’s selection process using the statistical analysis approach.To achieve the research objectives, a random sample of (120) construction company were invited to participate in a pre-designed questionnaire with (58%) response rate, comprising 55 criteria, categorized under (7) groups: Cost; Quality; Technical Capability; Management Capability; Health & Safety; Reputation; and Time. Among the evaluated criteria, the subsequent five determined as the most influencing ones: On time delivery of materials; Failure to complete contract due to financial problems; Subcontractor’s difficulty in reimbursement; Reputation; and Tender price.

Quality cost of material procurement in construction projects

PurposeMaterial procurement constitutes a large share of the overall cost of construction projects. Understanding the factors influencing the cost of quality (COQ) in the procurement process could help identify opportunities for lowering quality cost without compromising quality. The paper aims to discuss these issues.Design/methodology/approachIn this paper, a COQ model for the construction material procurement process is developed using the traditional prevention–appraisal–failure (PAF) approach. Using data from a $4bn aluminum smelter construction project, the authors conducted a simulation of the COQ model to evaluate various quality assurance policies.FindingsThis paper confirms that raising the prevention cost leads to a drop in failure cost as well as COQ for the project studied. While the authors are unable to provide blanket recommendations as the results are derived from a single project case study, it does suggest that construction material procurement processes would benefit from a higher prevention expenditure. And for certain cases where the authors observe a deviation from the traditional Juran’s model of COQ – the high appraisal cost in the procurement process – reduction of appraisal expenditure may in fact be more beneficial than its increase.Originality/valueThe research results suggest that appraisal expenditure should be tailored to each purchase order in order to maximize the total benefits. Additionally, this paper presents the first COQ model developed for the construction material procurement process. Another unique feature of the model is its inclusion of supplier-side costs, which are excluded in the conventional COQ analysis.

Pengembangan Bahan Ajar Materi Debat Dengan Metode Role Playing Pada Siswa Kelas X Sekolah Menengah Atas

The research materials development begins from the procurement process of the learning materials that are always revised with an uncertain time, contains a theme that is not necessarily in accordance with the problems that exist in the unit of education. The research is also conducted for positive character reinforcement because arguing activities often lead to selfishness in an effort to defend opinion, so debate participants often do not control the ethics of speech when arguing. Development research at class x students of SMA YPM Diponegoro Tenggarong Seberang used R&D technique approve and method while the learning system is reinforced Dick & Carey model. In collecting techniques are done by language validation techniques experts, tests, leaner’ responses, teacher’s responses, and interviews. The result showed that 20 out of 25 students (80%) completed the assessment of knowledge. Based on the observation of all teams capable of performing their duties well. The use of this method also makes the students able to achieve learning goals up to 96%. Based on the result of discussions with various parties, the role playing method is generally feasible to be used in the learning process and able to strengthen the character of leaners.

Integrating a Procurement Management Process into Critical Chain Project Management (CCPM): A Case-Study on Oil and Gas Projects, the Piping Process

Engineering, Procurement, and Construction (EPC) of oil and gas megaprojects often experience cost overruns due to substantial schedule delays. One of the greatest causes of these overruns is the mismanagement of the project schedule, with the piping works (prefabrication and installation) occupying a majority of that schedule. As such, an effective methodology for scheduling, planning, and controlling of piping activities is essential for project success. To meet this need, this study used the Critical Chain Project Management (CCPM) to develop a piping construction delay prevention methodology, incorporating material procurement processes for EPC megaprojects. Recent studies indicate that the traditional scheduling method used on oil and gas mega projects has critical limitations regarding resource scarcity, calculation of activity duration, and dealing with uncertainties. To overcome these limitations, the Theory of Constraints-based CCPM was proposed and implemented to provide schedule buffers management. Nonexistent in literature, and of critical importance, is this paper’s focus on the resource buffer, representing material uncertainty and management. Furthermore, this paper presents a step-by-step process and flow chart for project, construction, and material managers to effectively manage a resource buffer through the CCPM process. This study extends the knowledge of traditional resource buffers in CCPM to improve material and procurement management, thus avoiding the shortage of piping materials and minimizing delays. The resultant process was validated by both deterministic and probabilistic schedule analysis through two case studies of a crude pump unit and propylene compressor installation at a Middle Eastern Refinery Plant Installation. The results show that the CCPM method effectively handles uncertainty, reducing the duration of piping works construction by about a 35% when compared to the traditional method. Furthermore, the results show that, in not considering material uncertainty (resource buffers), projects schedules have the potential for approximately a 5% schedule growth with the accompanying delay charges. The findings have far-reaching applications for both oil and gas and other sectors. This CCPM case-study exemplifies that the material management method represents an opportunity for industry to administrate pipeline installation projects more effectively, eliminate project duration extension, develop schedule-based risk mitigation measures pre-construction, and enable project teams to efficiently manage limited human and material resources.

Significance of ITER IWS Material Selection and Qualification

In-Wall Shielding (IWS) is one of the important components of ITER Vacuum Vessel (VV) which fills the space between double walls of VV with cooling water. Procurement Arrangement (PA) for IWS has been signed with Indian Domestic Agency (INDA). Procurement of IWS materials, fabrication of IWS blocks and its delivery to respective Domestic Agency (DA) and ITER Organization (IO) are the main scope of this PA. Hence, INDIA is the only country which is contributing to VV IWS among all seven ITER partners. The main functions of the IWS are to provide Neutron Shielding with blanket, VV shells and water during plasma operations and to reduce ripple of the Toroidal Magnetic Field. To meet these functional requirements IWS blocks are made up of special materials (Borated Steels SS304 B4 & SS304 B7, Ferritic Steels SS 430, Austenitic Steel SS 316 L (N)-IG, XM-19 and Inconel-625) which are qualified, reliable and traceable for the design assessment. The choice of these materials has a significant influence on performance, maintainability, licensing, detailed design parameters and waste disposal. The main reasons for the materials selected for IWS are its high mechanical strength at operating temperatures, water chemistry properties, excellent fabrication characteristics and low cost relative to other similar materials. All the materials are qualified with respect to their respective codes (ASTM/EN standards with additional requirements as described in RCC-MR code 2007) and ITER requirements. Agreed Notified Body (ANB) has control conformity of materials certificates with approved material specification and traceability procedure for Safety Important Component (SIC). The procurement strategy for all the IWS materials has been developed in close collaboration with IO, ANB and Industries as per Product Procurement Specification (PPS). The R&D for sample, bulk material production, testing, inspection and handling as required are carried out by IN DA and IO. At present almost all IWS materials (∼2500 Tons) has been procured by IN DA with spares to manufacture ∼9000 IWS blocks. This paper summarizes IWS material selection, qualification and procurement processes in detail.

Structural Similarity Measurement of Business Process Model to Compare Heuristic and Inductive Miner Algorithms Performance in Dealing with Noise

Heuristic and Inductive Miner algorithms have different characteristics, properties, specializations, and performances in modeling business process. This research adopts three modules from Wang framework i.e. log generation, process mining, and similarity calculation to compare process mining algorithms performance in dealing with noise. The similarity calculation module measures structural similarity between reference model generated from standard event log, with mined model generated from noisy event log obtained with Heuristic and Inductive Miner algorithms. Noisy event log is obtained by adding 1% noise to the standard event log. Results from stuctural similarity measurement show that Inductive Miner algorithm obtain better performance in dealing with noise, especially related to material procurement process model of Cement Manufacturing and production in Pharmaceutical Industry.

Life cycle greenhouse gas emission of wooden guardrails: a study in Nagano Prefecture

Greenhouse gas (GHG: specifically CO2, CH4, and N2O) emissions over the life cycles of type no. 1 and no. 3 wooden guardrails widely used in Nagano Prefecture were evaluated. A comparison with steel (guardrail and guard pipe) types was conducted to investigate the GHG emission reduction effect of wooden guardrails. It was shown that the greatest GHG emissions for all types of guardrails occur during the raw material procurement and production process. The amount of total (life cycle) GHG emissions for pressure-injected wooden type no. 3 guardrails (92 % of steel guardrails and 72 % of steel guard pipes) shows that replacing steel with this type of wooden guardrail can reduce GHG emissions. On the other hand, comparison of the GHG emissions for pressure-injected type no. 1 guardrails with steel (175 % of guardrail; 138 % of guard pipe) shows that no reduction is achieved. When the disposed wooden beams (painted type no. 1; painted and pressure-injected type no. 3) are chipped and used for energy as a substitute for Type-A heavy oil, the volume of the GHG emission reduction significantly exceeds the GHG emission volume, and GHG emissions can be reduced by up to a maximum of 117.67 kg-CO2-eq/m.

Symbolism among the last hunter–fisher–gatherers in northern Iberia: Personal ornaments from El Mazo and El Toral III Mesolithic shell midden sites

L. obtusata and Trivia sp. shells were systematically used for personal ornamentation by groups who occupied northern Iberia during the Mesolithic. The shells from El Mazo and El Toral III (Asturias, Spain) offer a unique opportunity for investigating raw material procurement, selection strategies, and manufacture processes developed by Asturian Mesolithic societies for beads production. By combining taphonomic, morphometric, and microscopic analyses, our results show that the shells were introduced and transformed in the caves. Mollusk consumption at the sites and bead manufacture indicate that the sites were occupied for both economic and symbolic purposes. The use of similar shell beads by contemporaneous societies located in different environments (coastal and interior) and relying on drastically different subsistence strategies mirrors the complex circulation network developed by Mesolithic foraging societies.