A Study of Supplier Selection for EPC/TurnKey Projects

• Main Authors: Chou, Wen-Ping, 周文萍
• Other Authors: Chiang, Chi
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/35681097936468792062

碩士 === 國立交通大學 === 管理學院管理科學學程 === 102 === This thesis is intended to provide a study of supply chain appraisal through procurement cost management in EPC Engineering, Procurement, and Construction) industry. Every EPC project carries clients expectation, company reputation, and prosperity of the future growth. To achieve these goals, each EPC project is tested and facing the challenge to meet the constraints of budget, schedule, and quality while executing procurement activities. In general business, 60% of the corporate revenue will be contributed to procurement cost; in some businesses, such as EPC, the percentage of procurement cost is even higher, up to 80%. Due to the distinct nature of EPC industry, more than half of the procured items are varied from projects and so are their suppliers. The incompetence and inadequate suppliers will mostly lead to catastrophic accident, poor quality, and overdue schedule in constructing, commissioning, and even in operating stage. The potential hit to corporate’s reputation from its accidents and adversities poses a greater risk than associated financial costs. This article discusses and reveals the key factors of suppliers’ selection and their priorities as well as significance; and further, it shows how the procurement cost will be the key between business surplus and deficit.This study collects and scrutinizes empirical data combining with field surveys and adopting AHP (Analytic Hierarchy Process) to savvy the weight factor and relationship between each key aspects of assessment. The result explicitly reflects the quality, professionalism, punctuality, post business service, and proficiencies are the major elements dominating the suppliers’ selection in EPC industry.Throughout the study, over 60% of the statistics data are in favor of suppliers’ quality and professionalism be the most important factors over the others.The top three key elements of the ranking are: Product quality, reliability, stability and punctuality.