• Title/Summary/Keyword: Procurement Methods

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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.

Component Procurement Planning with Demand Uncertainty Under Assemble-to-Order Environments (불확실한 수요를 갖는 주문 조립 환경에서의 부품 조달 계획에 관한 연구)

  • Lee, Geun-Cheol;Kim, Jung-Ug;Hong, Jung Man
    • Korean Management Science Review
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    • v.29 no.3
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    • pp.121-134
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    • 2012
  • In this study, we consider a component procurement planning problem where the procurement amounts of components are determined under assemble-to-order systems with demand uncertainty. In the problem, procurement amount of each component is decided before the demands of finished products are known and after the demands are identified the assembly amounts of the finished products are decided. In this study, the objective function of the problem is minimizing the total costs which are composed of purchase and inventory costs of the components and the backorder costs of the finished products. We assume that the uncertain demand information is given as multiple scenarios of the demands, and we propose procurement planning methods based on stochastic models which considering the multiple demand scenarios. To evaluate the performances of the proposed methods, computational experiments were carried out on the proposed methods as well as benchmarks including a method based on deterministic mathematical model and a heuristic. From the results of the computational tests, the superiorities of the proposed methods were shown.

A Decision Support System for Supplier Selection in B2B E-procurement (전자조달을 위한 공급자 선택 지원 시스템의 개발)

  • 하성호;남미성
    • Korean Management Science Review
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    • v.21 no.1
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    • pp.113-129
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    • 2004
  • Nowadays many enterprises build e-procurement systems. An e-procurement is a Web-based procurement process and its functionalities are considered important in the B2B e-commerce. Buyers should select competent suppliers for a successful e-procurement. Therefore, this study proposes a method using the analytic hierarchy process(AHP) for building a Web-based supplier selection system. In detail, the purpose of this study is (1) to review methods previously used when buyers selecting suppliers and to extract important selection criteria: (2) to explain extended AHP method adopted by this study among supplier selection methods: (3) to describe the supplier selection steps using extended AHP : and (4) to propose a decision support system embedding the methodology described above. The proposed system comprises of three phase: first phase is to evaluate suppliers on enterprise level: second phase to evaluate them on each transaction level: third phase to post-evaluate them.

Exploring Long-Term Performance in Design-Build Best-Value Evaluation Criteria

  • Calahorra-Jimenez, Maria;Poore, Tanner
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.74-82
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    • 2022
  • Improving long-term performance in highway projects is an imperative goal for public administrations. Project delivery and procurement methods might provide an opportunity to align design and construction processes with this goal. Previous studies have explored whether project delivery methods impact the long-term performance of highway projects. However, these studies did not focus specifically on how core elements within the procurement might relate to long-term performance. Thus, this research aims to fill this gap by exploring to what extent and how long-term evaluation criteria are considered in design-build best-value procurement of highway projects. To this end, content analysis was conducted on 100 projects procured between 2009 and 2019 by 19 DOTs across the U.S. The analysis of 365 evaluation criteria found that (1) roughly 11% of them related to long-term performance. (2) The weight given to these criteria in the overall technical proposal was lower than 30%. (3) Sixty-five percent (65%) of long-term evaluation criteria focused on design while 15% related to materials and technology, respectively. The results of this study are a first steppingstone to initiate a deep exploration of the relationship between procurement practices and actual project performance. Currently, with sustainability and life cycle assessments being top concerns in infrastructure projects, this line of research might be of particular interest to DOTs and highway agencies across the U.S. and worldwide.

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A Study on the Performance Evaluation of G2B Procurement Process Innovation by Using MAS: Korea G2B KONEPS Case (멀티에이전트시스템(MAS)을 이용한 G2B 조달 프로세스 혁신의 효과평가에 관한 연구 : 나라장터 G2B사례)

  • Seo, Won-Jun;Lee, Dae-Cheor;Lim, Gyoo-Gun
    • Journal of Intelligence and Information Systems
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    • v.18 no.2
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    • pp.157-175
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    • 2012
  • It is difficult to evaluate the performance of process innovation of e-procurement which has large scale and complex processes. The existing evaluation methods for measuring the effects of process innovation have been mainly done with statistically quantitative methods by analyzing operational data or with qualitative methods by conducting surveys and interviews. However, these methods have some limitations to evaluate the effects because the performance evaluation of e-procurement process innovation should consider the interactions among participants who are active either directly or indirectly through the processes. This study considers the e-procurement process as a complex system and develops a simulation model based on MAS(Multi-Agent System) to evaluate the effects of e-procurement process innovation. Multi-agent based simulation allows observing interaction patterns of objects in virtual world through relationship among objects and their behavioral mechanism. Agent-based simulation is suitable especially for complex business problems. In this study, we used Netlogo Version 4.1.3 as a MAS simulation tool which was developed in Northwestern University. To do this, we developed a interaction model of agents in MAS environment. We defined process agents and task agents, and assigned their behavioral characteristics. The developed simulation model was applied to G2B system (KONEPS: Korea ON-line E-Procurement System) of Public Procurement Service (PPS) in Korea and used to evaluate the innovation effects of the G2B system. KONEPS is a successfully established e-procurement system started in the year 2002. KONEPS is a representative e-Procurement system which integrates characteristics of e-commerce into government for business procurement activities. KONEPS deserves the international recognition considering the annual transaction volume of 56 billion dollars, daily exchanges of electronic documents, users consisted of 121,000 suppliers and 37,000 public organizations, and the 4.5 billion dollars of cost saving. For the simulation, we analyzed the e-procurement of process of KONEPS into eight sub processes such as 'process 1: search products and acquisition of proposal', 'process 2 : review the methods of contracts and item features', 'process 3 : a notice of bid', 'process 4 : registration and confirmation of qualification', 'process 5 : bidding', 'process 6 : a screening test', 'process 7 : contracts', and 'process 8 : invoice and payment'. For the parameter settings of the agents behavior, we collected some data from the transactional database of PPS and some information by conducting a survey. The used data for the simulation are 'participants (government organizations, local government organizations and public institutions)', 'the number of bidding per year', 'the number of total contracts', 'the number of shopping mall transactions', 'the rate of contracts between bidding and shopping mall', 'the successful bidding ratio', and the estimated time for each process. The comparison was done for the difference of time consumption between 'before the innovation (As-was)' and 'after the innovation (As-is).' The results showed that there were productivity improvements in every eight sub processes. The decrease ratio of 'average number of task processing' was 92.7% and the decrease ratio of 'average time of task processing' was 95.4% in entire processes when we use G2B system comparing to the conventional method. Also, this study found that the process innovation effect will be enhanced if the task process related to the 'contract' can be improved. This study shows the usability and possibility of using MAS in process innovation evaluation and its modeling.

Analysis of the Firm Support Effects of the Innovation Procurement Policy Using Propensity Score Matching and Difference in Differences (성향점수매칭(PSM)-이중차분(DID) 결합모형을 이용한 혁신조달 정책의 기업지원 효과 분석)

  • Juwon Kim;Wonik Park
    • Journal of Technology Innovation
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    • v.31 no.3
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    • pp.201-230
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    • 2023
  • The Innovation Procurement Policy was introduced as part of the strategic public procurement policy to improve firms' innovation capabilities and enhance the public sector's ability to solve social problems by designating and purchasing so-called 'innovative products.' The pilot procurement project for innovative products was first introduced in 2019, and the policy system for designating and discovering innovative products by government departments, as well as the priority purchase system, was established in 2020. Hence, this study conducted a quantitative analysis focusing on the effectiveness of the innovation procurement system in supporting firms after it was fully implemented. For this purpose, corporate financial and employment data from 2017 to 2021 were used, and propensity score matching(PSM) and difference-in-difference(DID) methods were utilized as analytical tools. The study found that the innovation procurement system contributed to corporate growth and employment and created additional public and private sales channels. Moreover, it is necessary to enhance the innovation procurement system, such as matching innovative product-producing companies with existing SME support policies, for companies to become self-sustaining after the innovative product designation ends.

Factors Affecting Nurse Clinicians' Knowledge and Attitude of Organs Procurement from Brain Dead Patients (임상간호사의 뇌사자 장기기증에 대한 지식과 태도에 영향을 미치는 요인)

  • Lee, Hyun Ah;Hur, Yujin;Lee, Young Gew;Song, Garam;Lee, Eunji;Shin, Sujin
    • Journal of Korean Critical Care Nursing
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    • v.10 no.3
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    • pp.19-30
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    • 2017
  • Purpose : This study investigated factors affecting the knowledge and attitude of organ procurement from brain dead patients in nurse clinicians. Methods : A survey was conducted with 160 clinical nurses from a university hospital in Seoul. Descriptive statistics, t-tests, an ANOVA, $Scheff{\acute{e}}^{\prime}s$ test, Pearson's correlation coefficient, and a multiple regression analysis were used. Results : The mean score for knowledge of organ procurement from brain dead patients was $12.41{\pm}2.16$ (mean correct answers = 62.1). Factors influencing the knowledge of organ procurement among nurse clinicians were working department (${\beta}=.454$, p < .001), a recent family death (${\beta}=.187$, p = .014), experience recognizing potential brain dead patients (${\beta}=.182$, p = .033), and experience referring to potential brain dead patients (${\beta}=-.192$, p = .048). Conclusion : To ensure effective organ procurement from brain dead patients, it is necessary to continually educate nurse clinicians to improve their attitude and knowledge concerning organ donation.

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A Case of Evaluation of the G2B System by Analysing Operational DB Data (DB운영 데이터 분석을 통한 G2B 시스템 평가 사례)

  • Lim, Gyoo-Gun;Lee, Dae-Chul
    • Journal of Information Technology Services
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    • v.11 no.2
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    • pp.243-258
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    • 2012
  • The G2B system is one of the important information systems in the e-government implementation. It is difficult to measure the cost reduction effect of the system introduction because there are many participants in the complex procurement processes. Previous approaches of the performance evaluation of such processes have been based on conducting some surveys and interviews with statistical methods. Therefore there have been some limitations in the verification of feasibility. Therefore this study tries to suggest a case of performance evaluation about the cost reduction in using of the G2B system by analyzing operational DB data from the G2B system. This study analyzed the procurement processes of G2B system according to 'goods' and 'facilities/services' and classified the procurement processes into 12 sub-processes. By developing an evaluation model for the cost reduction of e-procurement, we derived the whole cost reduction effect was 8,000 billon Won for the use of Korea KONEPS G2B system in 2008. Specially the cost reduction in the private sector was 6,600 billion Won. It was mainly due to the decrease of the offline visits to the related organizations to participate a bidding process. Moreover, the cost reduction of using shopping mall was 1,000 billion Won among the total 1,400 billion Won in the whole public sector. The main contribution of this paper is to show the more objective evaluation result of the use of e-procurement, which verifies the necessity of G2B system.