Performance Improvement of Procurement Activities in Reaching KPI On-Time Delivery and Purchase Requisition to Purchase Order by Implementing E-RFQ Tools and Developing Team Collaboration and Communication

Abstract

Procurement activity in for an aircraft industry in Indonesia has suffered most during pandemic few years ago. The progress of Procurement at certain company is not that different. Moreover, one of the main problems in Procurement Division at the company is KPI On-Time Delivery target has not yet been achieved for aircraft commodities, especially for AEI. During these last 5 years, the procurement progress only achieved 48,5% on time, while the target is above 90% of total procurement activity. So far, mitigations has already been taken in order to reduce the delay rate. It give an impact, but the delay rate is higher than the target. The purposes of this study is to increase the On-Time progress and decrease the delay. this study uses conduct several analyses. Internal analysis using SWOT analysis method, while finding the root cause use method 5 Why’s Analysis method. Also, there are quantitative analysis and qualitative analysis. Qualitative analysis is done by using DMAIC Method to analyze the problem in a larger scope, while quantitative analysis is done to analyze the procurement data with Regression Analysis. The root cause of it was PR which could not be converted to PO because of the long-lasting RFQ and EQ process. The second root cause is miscommunication in the preparation of ordering aircraft materials. For the issue of the RFQ and EQ process is solved by developing and using e-RFQ Evaluation Tools to make sure that the quotation process and feedback from the supplier are done faster than using the manual method. For the miscalculation problem with improving teamwork and communication. The recommendation is to conduct research further regarding strategy purchasing.