procurement: expediting how to - general

PROCUREMENT: EXPEDITING: GENERAL: HOW TO?

MOHD ISHAR ISHAKKuala Lumpur, October 2014

EXPEDITING : GENERAL: HOW TO

2CONTENT

Safety Moment

What Are Being Expedited?

How Do We Go About Expediting A PO?

What Additional Tracking That We Might Need To DoChallenges

Questions & Answers

Note: This Presentation was based on the Expediting How TOs: Brain Storming Session Held on 24-June-2014.

Exp HowTo 240614.jpg


3Safety MomentImportance of Wearing (Rear)

Seatbelt A friend’s sorrow

A friend’s father (September 2011). Mercedes Benz. Driver had facial injury.

What can we do? Teach our children to put on their seat belts. When

they are small, place them in Child Seats / Booster Seats.


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How To Know What Is Being Expedited? Where Can We Find The Information? • An Expeditor, by nature should be inquisitive, probing and relentless in information

gathering. Without sufficient information, the report produced would not have the necessary or required back up to support what had been written.

• The necessary information could be found from, but not limited to the following sources:i. SR Part 1 (Materials/Equipment Scope of Supply) and SR Part 2 (Document Scope of Supply)ii. eg. Cost-It (Id Cards) provides good/sufficient description of all the Materials and Equipment

that we would normally purchase for each project.iii. Ask the Expediting Coordinator or the Package Engineer.iv. Internet.

How Complicated Is The PO Being Expedited?• I would consider most POs up to the maximum of 3 or 4 main components to be

straightforward.• Package POs, DCS/PMCS/ICS and Telecommunication Package are those, I would rate

as complicated as they involves a lot of components, interfaces and systems, where better technical understanding would be necessary, in order to successfully expedite these POs.

What Are Being Expedited?


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To successfully expedite a PO, we need to have the guideline on how to perform the function and most importantly, we need to know the current phase of the POs and the related critical milestones during that phase.

Project Expediting Procedure • The above procedure provides the guideline to perform an expediting function

for a project. It is actually the minimum activities that are expected of an expeditor in order to ensure that POs are properly monitored/expedited. In order to ensure on time delivery of supply, extra effort and coordination might/would be needed, not only by the expeditor, but also the other stake holders – engineering, project, inspection & logistics.

What Are the Critical Milestones and Milestone Dates• Critical Milestones are not only those indicated as Payment Milestones in

Article 4 of the PO, but also, the Critical Activities for each of a PO. Listed below are critical milestones other than that normally indicated in a PO:

• Kick-Off Phasei. Kick-Off Meeting attended by all interested and relevant parties.

How Do We Go About Expediting a PO?


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What Are the Critical Milestones and Milestone Dates (continued)• Engineering Phase

ii. Submission and approval of Mechanical Calculations, to enable vessel plates to be ordered.

iii. Submission and approval of Equipment Data Sheets, to enable equipment/motors to be ordered.

iv. Submission and approval of Material Balance, to facilitate commencement of subsequent engineering

• Procurement Phasev. Engineering Freeze Date for supplier to issue main sub-order..vi. Ordering of main equipment/components so that engineering document

could be developed/finalised.vii. Received of raw materials for each equipment/component.

• Manufacturing Phase (Including Inspection & Testing)viii. Engineering Freeze Date for supplier to start manufacturing.ix. Start of Manufacturing of each equipment/component.x. FAT/Functional Test of each equipment/component.xi. Plan Assembly for each equipment/component.

How Do We Go About Expediting a PO? (continued)


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What Are the Critical Milestones and Milestone Dates (continued)• Manufacturing Phase (Including Inspection & Testing)

(continued)xii. Plan Assembly for the whole package/PO.xiii. Interim Test for each equipment/component, if necessary and for the

whole package/PO. Witness and Hold Points must be indicated in supplier’s Project Schedule.

xiv. FAT/String Test for the Whole Package/PO.• Shipping/Logistics Phase

xv. Shipping ETD Nearest Port of Export Datexvi. Shipping ETA Port of Importxvii.Shipping Durationxviii.ETA Sitexix. Required On Site Date

How Do We Go About Expediting a PO? (continued)


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Priority/Critical Documents Tracking List These could be easily track using VDB/EDMS. Suggest that expeditor

generates the status every week and follow up with engineering/supplier on weekly basis.

Clear View of Sub-Order Status as well as the Progress of each Components. This could be related to approval of engineering documents. Must be

monitored on weekly/biweekly basis. Most of the time, slippage in issuance of Sub-Order will results in the

slippage of component delivery, resulting in irrecoverable delay in the Contractual Delivery Date.

Balance Materials To Be Delivered This need to be tracked and followed up on weekly basis. Site need to

be copied of this report.

What Additional Tracking That Expediting Might Need To Do?

Major Component Delivery

Short Shipped Delivery Status


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Challenges are part and parcel of work. Following a few of the challenges that expediting normally experienced during project execution. Workshop Capacity – need to be checked during bidding stage Manpower Shortage – to be confirmed during bidding stage Financial Problem – to be verified during bidding stage Multi-Tier Sub-Vendors - to be verified during bidding stage Location Time Zone – can be easily adapted. Also use 3rd Party Expeditor Engineering Team Experience or the Lack Of Experience – notify Engineering

Manager & Project Management of any engineering shortcomings Computerised Fluid Dynamic Analysis – Only Sulzer & Rhine Ruhr currently

had done CFD Analysis for XXXXXX Projects. Need to know if there is any alternative.

New Supplier – closer monitoring, ensure understanding of our PO Management requirements during KOM.

DCC / VDBx – no introduction of new system to a new project. End User Statement [USA/GmbH/France – Ti/Monel/Hasteloy Materiels] –

requiring a letter in Client’s Letter Head.

Challenges

Questions & Answers

10 EXPEDITING : GENERAL: HOW TO

Thank you

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