Reengineering helps improve materials procurement in Indian oil refinery

Prasanta K. Dey*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

The materials management function is always a major concern to the management of any organisation as high inventory and inefficient procurement processes have a significant effect on profitability. The problems multiply in the face of a very dynamic business environment, as is the present case in India. Hence, the existing system of materials planning, procurement processes and inventory management require reviewing with respect to the changed business environment. This study shows a radical improvement in materials procurement function of an Indian petroleum refinery through Business Process Reengineering (BPR) by analysing current process, identifying key issues, deriving paradigm shifts and developing reengineered processes through customer value analysis. BPR has been carried out on existing processes of 'material planning and procurement' and 'warehousing and surplus disposal'. The reengineered processes for the materials management function triggered several improvement projects that were identified by the group of executives who took part in the reengineering exercise. Those projects were implemented in an integrated framework, with the application of state of the art information technology tools and building partnership alliance among all stakeholders. Considerable improvements in overall functions of the organisation are observed, along with financial benefits. Copyright © 2006 Inderscience Enterprises Ltd.

Original languageEnglish
Pages (from-to)537-557
Number of pages21
JournalInternational Journal of Innovation and Learning
Volume3
Issue number5
DOIs
Publication statusPublished - 1 Sep 2006

Fingerprint

Reengineering
Industry
Planning
Petroleum refineries
management
Value engineering
Information technology
value analysis
warehousing
Profitability
planning
Oils
Oil
Procurement
Refinery
profitability
customer
information technology
stakeholder
paradigm

Keywords

  • information technology tools
  • integration
  • process reengineering
  • procurement management
  • strategic sourcing

Cite this

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Reengineering helps improve materials procurement in Indian oil refinery. / Dey, Prasanta K.

In: International Journal of Innovation and Learning, Vol. 3, No. 5, 01.09.2006, p. 537-557.

Research output: Contribution to journalArticle

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