Abstract :

Procurement activity in for an aircraft industry in Indonesia has suffered most during pandemic few years ago. The progress of Procurement at certain company is not that different. Moreover, one of the main problems in Procurement Division at the company is KPI On-Time Delivery target has not yet been achieved for aircraft commodities, especially for AEI. During these last 5 years, the procurement progress only achieved 48,5% on time, while the target is above 90% of total procurement activity. So far, mitigations has already been taken in order to reduce the delay rate. It give an impact, but the delay rate is higher than the target. The purposes of this study is to increase the On-Time progress and decrease the delay. this study uses conduct several analyses. Internal analysis using SWOT analysis method, while finding the root cause use method 5 Why’s Analysis method. Also, there are quantitative analysis and qualitative analysis. Qualitative analysis is done by using DMAIC Method to analyze the problem in a larger scope, while quantitative analysis is done to analyze the procurement data with Regression Analysis. The root cause of it was PR which could not be converted to PO because of the long-lasting RFQ and EQ process. The second root cause is miscommunication in the preparation of ordering aircraft materials. For the issue of the RFQ and EQ process is solved by developing and using e-RFQ Evaluation Tools to make sure that the quotation process and feedback from the supplier are done faster than using the manual method. For the miscalculation problem with improving teamwork and communication. The recommendation is to conduct research further regarding strategy purchasing.

---

Keywords :

Delay, Key Performance Indicator, On-Time, Procurement, Purchase Order, Purchase Requisition

---

References :

1. Bradley, J. H., & Frederic, J. H. (1997). The effect of personality type on team performance. Journal of Management Development, 16(5), p. 337-353.
2. Critchley, B., & Case, D. (1986). Teambuilding – At what price and at whose cost? In A. Mumford (Ed.). Handbook of Management Development. Gower Publishing Company Limited, University Press Cambridge Forman, G. 2003. An extensive empirical study of feature selection metrics for text classification. J. Mach. Learn. Res. 3 (Mar. 2003), 1289-1305.
3. Harris, P. R., & Harris, K. G. (1996). Managing effectively through teams. Team Performance Management: An International Journal, 2(3), 23-36Y.T. Yu, M.F. Lau, “A comparison of MC/DC, MUMCUT and several other coverage criteria for logical decisions”, Journal of Systems and Software, 2005, in press.
4. Ketsarapong, S., Suwantaranrangsr, K., Phusavat, K. & Lin, B. 2012. Sustaining supply chain operations through lean manufacturing. International Journal of Synergy and Research, 1(2), pp. 5–20.
5. Mandal, S. 2016. An Empirical Investigation on Integrated Logistics Capabilities, Supply Chain Agility and Firm Performance. International Journal of Services and Operations Management, 24(4), pp. 504–530.
6. Pojasek, Robert B., 2017. Organizational Risk Management and Sustainability: A Practical Step-by-Step Guide. CRC Press; 1st edition (May 12, 2017) Bowman, M., Debray, S. K., and Peterson, L. L. 1993. Reasoning about naming systems.
7. Ramachandran, G. M. & Neelakrishnan, S., 2017. An Approach to Improving Customer On-Time Delivery Against the Original Promises Date, South African of Journal Engineering December 2017 Vol 28(4), pp 109Tavel, P. 2007 Modeling and Simulation Design. AK Peters Ltd.
8. Sleimen, Majdi., 2023. Types of Purchase Order Processes & Purchase Order Examples. Accessed June, 62023 from https://www.tradogram.com/blog/the-different-types-of-purchase-orders-and-their-functions-explained
9. Tarricone, P. & Luca, J. (2002) Successful teamwork: A case study, in Quality Conversations. Proceedings of the 25th HERDSA Annual Conference, Perth, Western Australia, 7-10 July 2002: pp 640-646
10. Wageman, R. (1997). Critical success factors for creating superb self-managing teams. Organsiational Dynamics, 26 (1), Summer, 49-62