Improving the purchasing process for spare parts in a Petrochemical Plant

Abstract

In this case study, the average purchase order (PO) processing time exceeded the maximum time specified by the stated KPI. This study aimed to improve the purchasing process of petrochemical spare parts to achieve more efficient. The PO processing time of 43,797 items were collected. The Mechanical category was ordered most accounted 50% of all purchase orders with 31.88 days of PO processing time. The experts of the relevant parties brainstormed to find the solutions for this problem. Then the problems were classified and prioritized by the principle of Risk Assessment. The “Cause and Effect Diagram” and “Why Why Analysis” were used to find the main cause of the problems; whereas, the ECRS methods (Eliminate, Combine, Rearrange and Simplify) were used to improve the purchasing process. This includes having activities and planning among relevant parties. As a result, a plan for improvement reduced the PO processing time by 35.31% and the Mechanical spare parts’ processing time was also reduced to 20.62 days, and saved the purchasing operation cost to 6,051,000 Baht.