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Master thesis: Reinder Buren
LIFTING PROCUREMENT TO A HIGHER LEVEL Research towards efficiency improvement of the
procurement of offshore consumable goods Master Thesis
APPENDIXES
Author: Reinder Buren
University: Technology Management
Faculty of Business Administration University of Groningen
Landleven 5
9700 AV Groningen
the Netherlands
University supervisors: Mrs. É. Karásek
Mr. T. van der Vaart
Company: Heerema Marine Contractors
Vondellaan 55
2300 PH Leiden
the Netherlands
Company supervisor: Mr. M. Hendriks Date: August 2006
List of Appendixes
Appendix 1: Flowchart purchase process A3 Appendix 2: Vendors per categories of purchases A6 Appendix 3: Portfolio analyse consumables per category A8 Appendix 4: Poll for internal purchasing process A9 Appendix 5: Internal costs purchasing of consumables HMC A10 Appendix 6: Overhauled process A11 Appendix 7: Photographs HMC A13
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Appendix master thesis: Reinder Buren
APPENDIX 1: FLOWCHART PURCHASE PROCESS Current situation ordering process HMC aboard:
Send Chief Storekeeper Observation of needs for certain products
Storekeeper
Filling in specifications
Clustering per cost- centre per supplier
Captain/ Chief engineer/
Superintendent Requisition
OK?
Approved Requisition
Y N
Current situation ordering process HMC office:
Purchase Order
Buyer Approved Requisition
Secretariat
Make RFQ
Quotes comparison
Manager, procurement
Portfolio Manager
RFQ
Cost center
ok
Y
Quotes
Unapproved Unapproved
N
Man. Procurement (Signing)
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Appendix master thesis: Reinder Buren
Process after PO is made
Invoice matched
Storekeeper (Vlissingen) Executive Order
(supplier)
Y
Accept delivery
N
Invoice Store-keeper
Invoice audit controller
Invoice matched
Y
Pay invoice
N
Return Invoice
Invoice matched
N
Y Budgetkeeper/
Procurement officer Finance
N
Y Add invoice in
system
Accept in MEM
Y N
APPENDIX 2: VENDORS PER CATEGORIES OF PURCHASES
Category Vendor >2 times ordered 2005
total line items
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Appendix master thesis: Reinder Buren
These categories are made up by the purchasers of consumables of HMC.
Other possible categories that are candidates for pooling according to me are:
• Safety equipment (life rafts etc.)
• Fork-lift truck equipment
• Steel wires
• Ropes
The following remark has to be said by the things above: For some goods there should be more than one supplier because of geographical reasons (savings on time and transportation costs).
APPENDIX 3: PORTFOLIO ANALYSE CONSUMABLES PER CATEGORY (Only the articles which can be placed in categories are filled in, this explains why the upper parts of the quadrants empty).
3%
Kraljic matrix for Consumables
Risk (high) ->
Value (high) ->
Cooling Refrigeration Airco Pneumatics (air tools) Hydraulics (kleppen) Hydraulic couplings, pipes
Electrical Tools (Hand) Filters Appendages (valves,)
Rigging Rubber & Gaskets Couplings + packing sheets Oil & Grease Air freights
Fire hoses Welding electrodes Personal protection Overalls
Welding Plastic Pipes Steel Pipes Accommodation (+kitchen)
Office equipment Sanitary equipment Fastening Miscellaneous Engine room (bearings, filters)
Confidential
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Appendix master thesis: Reinder Buren
APPENDIX 4: POLL FOR INTERNAL PURCHASING PROCESS
Explanation of the poll
The hours which I am interested in are the estimated hours spent on a weekly basis for the purchasing of the different categories. There are probably some steps which you are not involved in. Please leave those open. The purpose of this poll is to create a better picture of the internal process of the purchasing of consumables at HMC.
The purchasing process is divided into the following steps (chronologically):
Specification: Making descriptions of the products needed (requisitions and approving requisitions)
Selection: Selection of the supplier (RFQ’s) Ordering: Ordering of the product (PO’s)
Monitoring: Track and trace the order, solving problems etc.
Registration: Filling in forms in the delivery system, filing hours etc.
Payment: The payment of the order, (and the checkups before payment) Evaluation: Evaluate the product and suppliers performance.
Non-procurement related (Non Pr): Other non-procurement related activities.
Probably the following fields will be filled in by the parties:
Function Spec. Select Order Mon. Reg. Pay. Eval.
Aboard ship V V V
Secretary V V V
Portfolio man V
Man. Procurement V
Buyer V V V V
Store (Vlissingen) V
Financial secretary V
Invoice audit controller V V
Poll:
(Please fill in estimated hours on a weekly basis below)
Function Spec. Select Order Mon. Reg. Pay Eval Non Pr Total
Thank you for you cooperation, Kind regards,
Reinder Buren P&S
APPENDIX 5: INTERNAL COSTS PURCHASING OF CONSUMABLES HMC
Initial procurement
Operational
procurement After Sales
subtotal subtotal subtotal Total hours hours year
year expenses
Specification Selection Order Monitoring Registration Payment Evaluation (Euro)
Storekeeper Balder 1 Store keeper Balder 2 Chief storekeeper Balder Captain Balder
super intendent Balder chief engineer Balder Store keeper Hermod chief storekeeper Hermod Captain Hermod super intendent Hermod chief engineer Hermod Storekeeper Thialf Chief storekeeper Thialf Captain Thialf
Super indendent Thialf Chief engineer Thialf Secretary A Secretary B Secretary C Portfolio Man Man Procurement Buyer Balder Buyer Hermod Buyer Thialf
Store keeper (Vlissingen) Finance
Invoice audit controller hours/week
hours/year f.t.e./year
costs/invoice
Total costs per step / year
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Master thesis: Reinder Buren
APPENDIX 6: OVERHAULED PROCESS Aboard:
Send
Clustering per category of products (total # PO’s decline)
Chief Storekeeper Observation of needs for certain products
Storekeeper
Filling in specifications
Captain/ Chief engineer/
Super intended Requisition
OK?
Approved Requisition
Y N
HMC office process Leiden:
Order electronical Buyer
Approved Requisition
Secretariat
Purchase Order
Make RFQ
Quotes comparison
RFQ
Quotes
Man. Procurement (Signing)
Frame agree- ment?
N
Y
E-MRO
E-Tender
Quotes comparison
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Appendix master thesis: Reinder Buren
APPENDIX 7: PHOTOGRAPHS HMC
Main Deck sscv Thialf, with cranes on tracks and drilling hammer Source: Own photo’s
Sscv. Thialf
Source: own photo’s
Lifting of production deck de Ruijter project (5670 tons). Source: intranet HMC
