A framework to enhance the procurement processes based on hybrid approach of FMEA-DEA

Abstract

In the present study, the re-engineering of procurement processes, as a crucial process in any organisation, is investigated based on the FMEA-DEA hybrid approach. Using the business process reengineering (BPR) method and holding many meetings with the industry elites, the prime challenges of procurement processes are detected. FMEA method is implemented to assess these challenges and DEA method is also utilised to prioritise them. In addition, the sub-processes of procurement process with higher levels of priority are then selected and the feasibility of using information technology in these sub-processes for tackling the identified problems is investigated. Inappropriate purchase plans, fluctuation of prices for supplied materials and prolongation of the purchase procedure are the main ranked challenges based on the proposed model. Finally, providing a suitable purchase plan, implementing a cost management system, and enhancement of documentation system are the main suggested actions to be executed for improving the procurement process.