Procurement Presentation for oil and gas .ppt

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1. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
PROCUREMENT DEPARTMENT

2. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
The Procurement Department is generally
responsible for the acquisition of goods and
services for Projects World wide. Our Mission
reflects our philosophy of service to and our
commitment by doing business in an ethical,
prudent manner which is beneficial to all.
Procurement

3. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
To identify,qualify and select potential suppliers ,
acquire, ship and distribute the purchased materials and
services for all the project site following the golden
rules:
1. Right price
2. Right quality
3. Right time
4. Right quantity
5. Right Terms
and at the same time meeting high standards of business
practices, prudent management of funds, and legal and
contractual constraints -- all with a minimum of
administrative intervention, delay, and resources.
Procurement Goal

4. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
•Decrease Procurement cost
•Increase the efficiency
•Optimize Procurement operation
•Control utilization of resources
•Control man-hours
Procurement Objectives

5. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
Head office leads the Procurement group World wide
Functional group in USA, UK and Project sites in
Georgia, Qatar, Kuwait, Azerbaijan & Malaysia
As required, additional procurement offices are set
up near the project sites or in a Country where
Procurement volume is high, to enhance the
performance and strengthen Vendor relations.
Procurement

6. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
P R O C U R E M E N T M A N A G E RP R O C U R E M E N T M A N A G E R
B U Y E R S E X P E D IT O RS
U K O F F ICE
C L E R IC A L
E X P E D IT O RS
C L E R IC A L
B U Y E R S
B U Y E R S E X P E D IT O RS
U S O F F IC E
V IC E P R E S ID E NT
P R O C U R E M E N T
Procurement Organization

7. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
Bidding stage:
Support Proposal team to obtain competitive bid to
secure the job
Project Phase:
Support project team to secure the materials on an
optimized cost to complete the job most efficiently
and effectively.
Major functions
Procurement

8. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program

9. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
Whom do we interact with - External
•Supplier/Manufacturers/Fabricators
•Freight forwarders
•Shipping companies
•Inspection agencies
•Chamber of commerce
•Traders/agents
…... List is endless to get the adequate info!
Procurement

10. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
Whom do we interact with – Internal
•Proposal Team, Sales & Marketing
•Project Team
•Planning
•Engineering
•Quality Controls
•HSE
•HR & ADMIN
•Site Team
Procurement

11. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
What do we do?
•Procurement plan
•Identify Material requirements
•Look for potential vendors for qualification
•Invite Bids
•Bid evaluation
•Purchase order award
•Expediting
•Shipping
•Payment verification
•Evaluation of supply chain
Procurement

12. Total Facilities Solutions
Rev – B, Aug. - 2004
Procurement Manager
Requirements / Responsibilities
•Good negotiating skills and communication skills.
•Self starter, Self motivator and should have team building capabilities.
•Very good knowledge of the Local and Regional Market.
•Good contacts with Manufacturing Units in the Region.
•Very good knowledge of the Local and International Laws, rules and
regulations for Purchasing Contracts and Works Contracts.
•Very good knowledge of Local and regional Taxation rules and regulations
especially related to Sales Tax, VAT and Works Contract Taxes if any.
•Must be able to travel extensively for negotiations, vendor inspections &
project related meeting.
Induction Program
Procurement

13. Total Facilities Solutions
Rev – B, Aug. - 2004
Procurement Manager (Contd…)
•Handle all administration affairs of the Office, Budget Preparations,
personnel training, cost control, taxation, etc.
•Vendor development shall be an on going activity and continuously
strive for new & efficient vendors for enhancing the Profitability of
the Project.
•Good working knowledge of International Standards for Piping, Steel,
Instrumentation and Electrical Items.
•Design and Develop a reporting system for the work carried out, on
the expenses, measures taken on cost control, vendor development
activities etc.
•Should be capable of reviewing the performance of the people
working under and give the Management feedback on regular basis. A
feedback mechanism has to be developed and put in practice.
•Should be able to prepare a report on a regular basis on the Regional
Market, happenings, and important events that can affect the
Company’s business in the region.
Induction Program
Procurement

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Rev – B, Aug. - 2004
Buyer / Expeditor
JOB DESCRIPTION:
•Thoroughly review requisitions; coordinate activities involved with procuring
goods and services, such as raw materials, tagged equipment, tools, parts,
supplies, bulk materials etc. for company.
•Prepare local and overseas Purchase Orders and Inquiry packages based on
documentation provided by Engineering.
•Reviews bid proposals and negotiate as directed by Procurement Manager.
•Confer with vendors to obtain product or service information, such as price
availability, and delivery schedule.
• Maintain the optimum business relations with vendors.
•Organize and co-ordinate shipping of materials to site including associated
paperwork.
•Clarify and discrepancies of invoices with Accounting.
•Expedite deliveries as directed by Procurement Manager/Project Manager.
•Ensure work is carried out in accordance with applicable Petrofac Quality
System and work procedures.
Induction Program
Procurement

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Rev – B, Aug. - 2004
Induction Program
 
Bidding support
•Preparation of Procurement plan and allied
documents.
•Obtain bids for material supply and services to
prepare the pricing schedule
Procurement

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Rev – B, Aug. - 2004
Induction Program
Project Phase
•Do SWOT analysis
•Identify strategy
•Formation of core procurement team
•Vendor list
•To meet client specific requirements
•Logistics plan
•Coverage of Procurement risk
Procurement

17. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
Vendor Selection
•Location of Project
•Contractual requirement
•Past performance
•Accreditation
•Facility & capabilities
•Location of Vendor
•Country risk
•Logistics
Procurement

18. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
E-Procurement
•Online vendor registration – on line data base
available for buyers
•Posting of RFQ in web server - no time lost for
transferring the RFQ's
• Computerized module for RFQ & PO generation
world wide
•Expediting & Material receiving module on its
way
Procurement

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Induction Program
 
E–Procurement
•Historical data base of vendors response
•All leading to e-bidding
• No hard copy maintenance ---- going towards
paperless era.
Procurement

20. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
The kind of people we have!
•Multinationals
•Engineers
•Average experience 15years
•Strong functional experience
•Well versed with computerized environment
Procurement

21. Total Facilities Solutions
Rev – B, Aug. - 2004
Induction Program
 
International Manpower Distribution
BUYER
36.84%
EXPEDITOR
26.32%
SHIPPING
7.89%
CLERICAL
26.32%
MANAGEMENT
2.63%
BUYER EXPEDITOR SHIPPING CLERICAL MANAGEMENT
Procurement