Tekniikan ja innovaatiojohtamisen yksikkö, 2019
Master's Degree Programme in Industrial Management
This research provides an insight of how the procurement process can be organized in a better way. Since, companies are now trying to outsource parts and material from external suppliers in order to focus on their core competencies. Therefore, critical success factors are also identified to successfully manage the procurement process. The understanding and identification of critical success factors in the procurement process enables the organization to improve the efficiency of the procurement process and successfully manage the whole project. A lot of risk and pressure is involved in the case of outsourced engineering and manufacturing projects therefore, it is necessary to carefully handle the procurement activities to ensure the best outcome.
The aim of this study is to characterize the phases of procurement process and its critical success factors in the procurement activities to ensure the effectiveness and operational excellence of the procurement process as a whole. This study is based on data triangulation in which facts and evidences are gathered from various sources. The information is collected from company’s archival record, literature and open-ended interviews/discussions from the benchmark companies to analyze and understand the procurement process.
This study contributes to the businesses associated with engineering and manufacturing solutions in which there are crucial components that are considered critical for the functioning of large power plant solutions therefore, comprehensive planning is necessary. The results are generated by considering As-Is of the case company and outcomes from this research to formulate the To-Be process by incorporating the essential CSFs. Quality gates, parts approval process and logistic control tools and approaches are considered vital for the whole process. However, effective communication, top management support and collaborative partnership are also closely linked with the success of the whole procurement process. Professionals working in the field of procurement can use the outcome of this research for the better understanding and successful completion of the project that lies the way procurement activities are performed.
Critical Success Factors, Procurement Process, Outsourced Engineering and Manufacturing, Project Success