First-Time-Right Procurement (FTRP)

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1 Oliver Münci> First-Time-Right Procurement Substitution of the Paradox Purchasing Savings through First-Time-Right Procurement (FTRP) 4^ Springer Gabler

2 Acknowledgement Abstract Table Of Contents Acronyms And Abbrevations List Of Table: List Of Figures List Of Formulas V VII IX XVII XIX XXI XXV 1 Introduction PREAMBLE THE STUDY'S AIM STUDY LAYOUT 4 2 Literatiire Review SUPPLY CHAIN MANAGEMENT The History Of Supply Chain Management Definition And Objectives SCM's Evolution Stages Level 1 Enterprise Integration Level 2 Corporate Excellence Level 3 Partner Collaboration Level 4 Value-Chain Collaboration Level 5 Füll Network Connectivity The Aim Of Supply Chain Management 19

3 X Table Of Contents Critical Success Factors For Efficiency And Effectiveness Costa Quality Delivery Flexibility ^ Innovation Transparency SUPPL1ER RELATIONSH1P MANAGEMENT Definition And Objectives Strategy And Concept Supplier Selection And Eevaluation Supplier Development Supplier Integration Risks And Issues In The Use Of SRM SRM's Importance For SCM PROCUREMENT Procurement's Role Within Supply Chain Management Definition Of Procurement And Purchasing Procurement Past And Present Sustainable Strategie Partnership Procurement Performance Measurement Purchasing Success "Savings" Procurement Ethics VALUE ENGINEERING 54

4 XI Definition And Objective Value Analysis The Methodology Consequence And Prerequisite Cost Driver COST MANAGEMENT Cost And Price Terminology Costs Price Total Cost Of Ownership Life Cycle Cost Opportun! ty Costs Cost Determination Target Costing The "Classical" Approach Kaizen Costing Benchmarking Parametric Cost Estimation Coirelation Of Costs And Price QUALITY Definition And Perspective Quality Management Quality Methods And Concepts Total Quality Management Six Sigma Methodology 75

5 First-Time-Right And Zero-Defects SUMMARY OF LITERATURE REVIEW Correlating The Subjects Purchasing Savings The Identification Of Purchasing Savings Purchasing Savings And SCM Inflation And Purchasing Savings Purchasing Savings'Risk Procurement Quality The Work Environment's Impact On Cost Determination 93 3 Methodology THEORETICAL CONTEXT Research Problem Analytical Model Research Question Flypotheses Research Design Criteria For Judging Research Design Quality THE STUDY The Research Problem The Analytical Model Basic Model About The Status Quo Research Approach 120

6 XIII The Research Question Derived Conclusions And Correlations i The Status Quo The Research Approach Objectives Research Design Quality Assurance For The Study TIME FRAME AND DATA BASE The Case Study Company CURRENT OVERALL SITUATION The Company The Sales Market And Its History Processes And Procedures In The Company Findings And Discussion The Current Situation's Weaknesses And Consequences Current-Performance Measurement CONCLUSION First-Time-Right Procurement THE DEVELOPMENT OF FIRST-TIME-RIGHT PROCUREMENT Implementing First-Time-Right In The Source Processes Time As The Measurable Variable In FTRP Replacing Purchasing Savings With FTRP PUTTING FTRP INTO PRACTICE THE PRE-IMPLEMENTATION PHASE154

7 XIV Table Of Contents 5.3 SUMMARY ABOUT FIRST-TIME-RIGHT PROCUREMENT Measuring First-Time-Right Procurement THEORETICAL BACKGROUND OF PERFORMANCE MEASUREMENT PERFORM ANCE-MEASUREMENT REQUIREMENTS THE FTRP MEASUREMENT METHOD Indicator For Measuring Procurement's Efficiency Indicator For Measuring Procurement's Effectiveness Summary Conceming FTRP Measurement Case Study Results QUALITY CONTROL DATA COLLECTION DATA ANALYSIS FINDINGS - INTERPRETATION AND DISCUSSION Observations Regarding Purchasing Savings Reflection On FTRP And FTRPM Results Observations Made Düring The Experimental Phase ANSWERING THE RESEARCH QUESTIONS AND PREDICTED CONCLUSIONS Research Questions AnsweringRQl Answering RQ Answering RQ Predicted Conclusions 195

8 XV 8 Conclusion And Recommendation«199 9 References BOOKS PERIODICALS ONLINE ARTICLES WEB PAGES Appendix TABLES Selected KPIs For BSC Perspectives Selected Tools For DMAIC Phases GERMAN FEDERAL STATISTICAL OFFICE DATA Consumer Price Index Producer Price Indexes Of Industrial Products SM FOR THE HOLISTIC HYPOTHESES APPROACH TO FTRP THE COMMON LAW OF BUSINESS BALANCE REMARKS REGARDING THE DISSERTATION TEXT Anonymity Gender-Specific Language Language 243

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