Design for Procurement
Martikainen, Anu (2012)
Martikainen, Anu
2012
Automaatiotekniikan koulutusohjelma
Automaatio-, kone- ja materiaalitekniikan tiedekunta - Faculty of Automation, Mechanical and Materials Engineering
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Hyväksymispäivämäärä
2012-03-07
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201204201093
https://urn.fi/URN:NBN:fi:tty-201204201093
Tiivistelmä
Today, procurement has a major role in companies’ businesses. Because of the globalization and harder competition, many companies are trying to focus more on their main knowhow and leave the other issues to subcontractors. That is why the procurement operations have been expanded in many companies and procurement operations form a major share of the total costs of a product. It is important to try to find out how companies could optimize their procurement function so that it would help the whole company’s success.
The purpose of this thesis was to find out what Design for Procurement method contains, and how companies could make their procurement more effective and easier to handle. This study is based on a literature research and on interviews of four different companies: Nokia, Osram, Metso Minerals and Konecranes.
Design for X method can help companies to change the way they manage product development process. This method examines, how well the product development succeeds from the selected point of view X, and provides ways to make the particular point of view easier to handle.
The procurement process should be taken into account already at a very early phase. The decisions made in the strategic phase have a major impact on the procurement process. When a company defines the kind of markets the company wants to compete in, and what kind of products the company wants to produce, the company should also think what these decisions mean to the company’s procurement process. Product design engineers usually make decisions concerning product complexity and architecture. Also these decisions have a major impact on the company’s procurement operations. Better co-operation between these two functions could improve the procurement function and the whole company’s performance.
All of the interviewed companies are operating in a complex global business environment with increasing competition with other companies. All of the problems of the interviewed companies at the moment are related to the management of the global environment, such as designing global products to global markets, information management, communication problems and control of the large market areas. Increased quality requirements and cost competitiveness were also common challenges.
The purpose of this thesis was to find out what Design for Procurement method contains, and how companies could make their procurement more effective and easier to handle. This study is based on a literature research and on interviews of four different companies: Nokia, Osram, Metso Minerals and Konecranes.
Design for X method can help companies to change the way they manage product development process. This method examines, how well the product development succeeds from the selected point of view X, and provides ways to make the particular point of view easier to handle.
The procurement process should be taken into account already at a very early phase. The decisions made in the strategic phase have a major impact on the procurement process. When a company defines the kind of markets the company wants to compete in, and what kind of products the company wants to produce, the company should also think what these decisions mean to the company’s procurement process. Product design engineers usually make decisions concerning product complexity and architecture. Also these decisions have a major impact on the company’s procurement operations. Better co-operation between these two functions could improve the procurement function and the whole company’s performance.
All of the interviewed companies are operating in a complex global business environment with increasing competition with other companies. All of the problems of the interviewed companies at the moment are related to the management of the global environment, such as designing global products to global markets, information management, communication problems and control of the large market areas. Increased quality requirements and cost competitiveness were also common challenges.