scholarly journals Procurement Selection Model: Development of a Conceptual Model Based on Transaction Costs

Author(s):  
Mohammed A Rajeh ◽  
John Tookey ◽  
James Rotimi

Procurement is a major improvement area and a crucial element contributing to project success, and the selection of an optimal procurement system is an important and difficult step in project execution. The criteria for choosing suitable procurement methods are based on client’s objectives and priorities, and influenced by project constraints. The procurement path determination chart has largely dominated research in procurement selection process in construction. Eight factors need to be considered by the client when developing procurement selection criteria. At the procurement strategy the focus should be on factors such as cost, quality, and time, while at the procurement route the consideration should focus on complexity, certainty, risk, responsibility, and degree of control by the client. However, including certain criteria and ignoring the magnitude of transaction costs (TCs) associated with uncertainties in the transaction environment simplifies this process. This study addresses this shortcoming by combining evaluation criteria with TCs incurred because of external and internal environmental uncertainties in a theoretical model on procurement selection. This is achieved by developing a conceptual framework model based on TCs. Uncertainties in the transaction environment have a positive or negative impact on the magnitude of TCs such as information, procurement, administration, and enforcement. The model represents an analytical form of a suitable combination of factors influencing procurement systems, which guide procurement decisions. The model will increase understanding of how efficient procurement selection of construction projects can be achieved through appropriate procurement procedures, which could positively impact project performance.Keywords: Construction, Procurement systems, Transaction costs

Land ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 17
Author(s):  
Wojciech Bal ◽  
Magdalena Czalczynska-Podolska

The coastline of Western Pomerania has natural and cultural assets that have promoted the development of tourism, but also require additional measures to ensure the traditional features and characteristics are protected. This is to ensure that new developments conform to a more uniform set of spatial structures which are in line with the original culture. Today, seaside resorts are characterized by a rapid increase in development with a clear trend towards non-physiognomic architectural forms which continually expand and encroach on land closer to the coastline. This results in a blurring of the original concepts that characterized the founding seaside resort. This study evaluates 11 development projects (including a range of hotels, luxury residential buildings and hotel suites) built in 2009–2020 in the coastal area of Western Pomerania. An assessment of architecture-and-landscape integration for each development project was made, using four groups of evaluation criteria: aesthetic, socio-cultural, functional and locational factors. The study methodology included a historical and interpretative study (iconology, iconography, historiography) and an examination of architecture-and-landscape integration using a pre-prepared evaluation form. Each criterion was first assessed using both field surveys and desk research (including the analysis of construction plans and developer materials), and then compared with the original, traditional qualities of the town. This study demonstrates that it is possible to clearly identify the potential negative impact of tourism development on the cultural landscape of seaside resorts, and provides recommendations for future shaping, management and conservation of the landscape.


2020 ◽  
Vol 1 (1) ◽  
pp. 23-33
Author(s):  
A Mykhailova ◽  
S Chumachenko ◽  
Yе Morsch ◽  
A Partalian

The article describes the techniques and methods of application of the method of complex operational expert assessment of military- man-made threats in the United forces operation area during hostilities. As a result of the analysis of scientific sources, the key features of effective approaches and methods of assessing heterogeneous threats that are associated with man-made impacts and can lead to emergencies. The selection of criteria for a complex threat assessment is made, the procedure and factors used in the operational threat assessment are described. The main factors of negative impact of military-man-made threats on socio-ecological-economic systems, which are key in the formation of military-man-made threats, are presented. A hierarchical classification of factors of integrated operational threat assessment for the United forces operation area has been developed. A system of equations is obtained that will allow modeling the change of threats depending on the change of factors and evaluation criteria. This will allow for the rapid ranking of military-man-made threats to the United forces operation area.


2016 ◽  
Vol 29 (4) ◽  
pp. 65-81 ◽  
Author(s):  
Maria Manuela Cruz-Cunha ◽  
Joaquim P. Silva ◽  
Joaquim José Gonçalves ◽  
José António Fernandes ◽  
Paulo Silva Ávila

Selecting the best desirable Enterprise Resources Planning (ERP) system has been a critical problem for organizations for a long time, as the failure on the selection process may have a highly negative impact in terms of costs and market share of a company. It is one of the most important decision making issues covering both qualitative and quantitative factors for organization. Multiple-criteria decision-making has been proved to be a useful approach to analyze these conflicting qualitative and quantitative factors. Literature offers proposals and approaches to handle this kind of problem; Analytic Hierarchy Process (AHP) has been applied successfully in most cases of software packages selection problems. This paper proposes an AHP model for the selection of an ERP system. The model's set of criteria was extracted from the literature review and validated by Portuguese organizations. This model can be applied in the ERP system selection using a software application that is under development. This software application eases the application of the AHP process to the selection of ERP packages and will provide input from real-world cases that will allow updating and refining the model.


2010 ◽  
Vol 56 (4) ◽  
pp. 335-351 ◽  
Author(s):  
E. Plebankiewicz

AbstractThe selection of a contractor is one of the most important among decisions made by the owner of a construction. The application of the prequalification procedure enables the selection of the most competent tenderers. Various mathematical models are helpful in carrying out prequalification procedure. In the paper, some selected mathematical models are briefly characterized and model based on the theory of fuzzy sets is offered. The applied model takes into consideration the owner’s various objectives, as well as different evaluation criteria. The results of the sensitivity analysis of the model are also presented. Part of a computer software applying an earlier presented prequalification mathematical model is described


Ekonomika ◽  
2021 ◽  
Vol 67 (4) ◽  
pp. 1-9
Author(s):  
Milica Popović ◽  
Gabrijela Popović ◽  
Darjan Karabašević

Personnel selection for an organization is an extremely important process. Modern organizations strive to improve the process of recruitment and selection of personnel as much as possible, in order to provide the organization with quality personnel and thus long-term competitiveness. In addition, the evaluation criteria on which the recruitment and selection process is based is also important, as it has a large impact on the final selection of candidates. Therefore, the aim of this paper is to propose the application of multi-criteria decision-making methods for the process of determining the weighting coefficients of evaluation criteria. Accordingly, the SWARA (Step-Wise Weight Assessment Ratio Analysis) method for determining weights was applied in the paper. The SWARA method proved to be extremely reliable when it comes to defining the weights of evaluation criteria, primarily due to its simplicity and the fact that respondents and domain experts could easily express their views on the issue.


2020 ◽  
Author(s):  
Webby Banda

Mineral taxation is an important revenue-generating instrument for the Zambian government. A good combination of tax instruments in a fiscal regime will help a mineral resource-rich country to generate revenue needed for economic development. This paper selects Zambia’s optimal copper mining excess profit tax. The choice was made between variable profit tax and windfall tax. This was attained by using the fuzzy analytic hierarchy process (AHP) and fuzzy technique order of preference by similarity to ideal solution (TOPSIS) methods. The selection process was anchored on four evaluation criteria: administrative efficiency, investor risk, government risk, and progressivity. Results show that windfall tax is technically superior to variable profit tax. Therefore, windfall tax was selected as Zambia’s optimal copper mining excess profit tax.


Author(s):  
Maria Manuela Cruz-Cunha ◽  
Joaquim P. Silva ◽  
Joaquim José Gonçalves ◽  
José António Fernandes ◽  
Paulo Silva Ávila

Selecting the best desirable Enterprise Resources Planning (ERP) system has been a critical problem for organizations for a long time, as the failure on the selection process may have a highly negative impact in terms of costs and market share of a company. It is one of the most important decision making issues covering both qualitative and quantitative factors for organization. Multiple-criteria decision-making has been proved to be a useful approach to analyze these conflicting qualitative and quantitative factors. Literature offers proposals and approaches to handle this kind of problem; Analytic Hierarchy Process (AHP) has been applied successfully in most cases of software packages selection problems. This paper proposes an AHP model for the selection of an ERP system. The model's set of criteria was extracted from the literature review and validated by Portuguese organizations. This model can be applied in the ERP system selection using a software application that is under development. This software application eases the application of the AHP process to the selection of ERP packages and will provide input from real-world cases that will allow updating and refining the model.


2020 ◽  
Vol 19 (03) ◽  
pp. 775-847
Author(s):  
A. A. Zaidan ◽  
B. B. Zaidan ◽  
M. A. Alsalem ◽  
Fayiz Momani ◽  
Omar Zughoul

The selection of software programmer applicants based on multiperspective evaluation criteria (grade point average (GPA) and soft skills of the applicants) is needed instead of an interview because an interview does not necessarily lead to hiring the best candidate amongst the applicants. The selection of a suitable software programmer is considered a challenging task owing to the following factors: (1) data variation, (2) multiple evaluation criteria and (3) criterion importance. A general framework for the selection of the best software programmer applicants is not available in the existing literature. The present study aims to propose a novel multiperspective hiring framework based on multicriteria analysis to select the best software programmer amongst several applicants. A decision matrix (DM) is constructed for the selection of the best programmer applicants according to multiple criteria, namely, structured programming, object-oriented programming, data structure, database system and courseware engineering. Each criterion includes two parameters, namely, GPA and soft skills, and these criteria cross over with programmer applicants as alternatives. The standard and expert opinion of the Software Engineering Body of Knowledge is used to distribute the criteria in the DM. The two commonly used techniques of multicriteria decision-making are analytic hierarchy process (AHP) for weighing the criteria and technique for order performance by similarity to ideal solution (TOPSIS) for ranking the alternatives (programmer applicants). The data used in this study include 60 software engineering students who graduated in 2016 from Universiti Pendidikan Sultan Idris. Results show that integrating multilayer analytic hierarchy process (MLAHP) and group TOPSIS are effective for solving applicant selection problems. Group TOPSIS uses different contexts — internal and external aggregation — and indicates similar results. Objective validation is used for the ranking of the results, which are equally divided into four parts. Furthermore, the applicants are systematically ranked. This study benefits application software, system software and computer programming tool companies by providing a method that improves software quality whilst reducing time and cost in the selection process.


2010 ◽  
Vol 26 (3) ◽  
pp. 348-353 ◽  
Author(s):  
Joanna Smith ◽  
Alison Cook ◽  
Claire Packer

Objectives: The English National Horizon Scanning Centre routinely scans thirty-five sources to identify new and emerging health technologies. The aim of the study was to develop and apply evaluation criteria and scores to assess the value of sources, and to identify a cutoff score below which sources would be recommended for removal from routine horizon scanning. Criteria to evaluate each source scanned could result in a more efficient approach in the selection process.Methods: Evaluation criteria were developed following a review of the literature and discussions with horizon analysts. Proposed criteria were piloted on a random selection of six sources, and then applied to all thirty-five sources. The criteria were assessed using the Analytic Hierarchy Process.Results: Eight criteria were identified as being most relevant for assessing the value of scanning sources. The three most important (primary) criteria were coverage (approximate percentage of relevant information), quality (reliable, accurate, objective), and efficiency (estimated time to identify one potentially significant health technology or other relevant information). Seven sources fell beneath the cutoff score and were recommended for removal from routine scanning.Conclusions: The criteria were considered useful in the assessment of current sources, and have the potential to be used to assess new ones. These criteria may be useful for other horizon scanning centers to pilot and validate.


2013 ◽  
Vol 2013 ◽  
pp. 1-10 ◽  
Author(s):  
Ximena Ferrada ◽  
Alfredo Serpell ◽  
Miroslaw Skibniewski

The appropriate selection of construction methods to be used during the execution of a construction project is a major determinant of high productivity, but sometimes this selection process is performed without the care and the systematic approach that it deserves, bringing negative consequences. This paper proposes a knowledge management approach that will enable the intelligent use of corporate experience and information and help to improve the selection of construction methods for a project. Then a knowledge-based system to support this decision-making process is proposed and described. To define and design the system, semistructured interviews were conducted within three construction companies with the purpose of studying the way that the method’ selection process is carried out in practice and the knowledge associated with it. A prototype of a Construction Methods Knowledge System (CMKS) was developed and then validated with construction industry professionals. As a conclusion, the CMKS was perceived as a valuable tool for construction methods’ selection, by helping companies to generate a corporate memory on this issue, reducing the reliance on individual knowledge and also the subjectivity of the decision-making process. The described benefits as provided by the system favor a better performance of construction projects.


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