Framework for a Smart E-Procurement System for Ship Building

Framework for a Smart E-Procurement System for Ship Building

Ritty K. Cherian, Saibal Kumar Saha, N. Ramakrishnan
Copyright: © 2024 |Pages: 17
DOI: 10.4018/979-8-3693-1942-0.ch006
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Abstract

The research aims to improve the shipbuilding process by reducing the time required for building a vessel through adoption of lean in the procurement management process. The research identifies the AS-IS process for procurement, uses Value Stream Mapping to identify different actions, identifies the root causes for administrative lead time with the help of fish bone diagram and proposes a framework for e-procurement system. It was found that lack of proper communication and visibility between the processes can increase the lead time for purchase order creation for different materials. The use of a smart e-procurement system can improve the visibility of the process across various departments and with the suppliers. This can improve the efficiency of the shipbuilding process, reducing the time required for manufacturing a vessel.
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Perspectives Of Lean In The Procurement Process

Shipbuilding is a large and complex, multi-faceted industry. Since ships are developed and built in a single or limited number of cases, the shipbuilding industry differs significantly from the automobile industry in that assembly lines are not permitted by vessel design and specifications (Liker & Lamb, 2002). If nurtured and grown, the shipbuilding industry has the potential to have a favorable impact on the country's economy, particularly its service sectors. Lean and TQM implementation will significantly advance their development (Sharma & Gandhi, 2017). One of the most significant adjustments a business can make to enhance its existing position is managing the supply chain. Given the small and essentially unprofitable market for shipbuilding at this time, shipbuilders must make the necessary taking measures to change their current practices (Sarder et al., 2010).

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