Showing papers on "Procurement published in 1983"

Industrial Innovation Policy: Lessons from American History

Abstract: The historical interrelations of government support of R & D and technical change in seven major American industries point to three types of policy that have been successful in the past: (i) government R & D support for technologies in which the government has a strong and direct procurement interest; (ii) decentralized systems of government-supported research in the "generic" area between the basic and the applied; and (iii) a decentralized system of clientele-oriented support for applied R & D. A fourth type of policy, under which the government attempts to "pick winners" in commercial applied R & D, has been a clear-cut failure.

The Marketing of Services in the UK Construction Industry

Abstract: Analyses issues surrounding the marketing of services in the UK construction industry. Examines the state of the UK construction industry, and its impact on the gross national product. Highlights the elements of desk and empirical research used for the study, each divided into objective and methodology. Examines the differences in marketing techniques used for products and services. Discusses the difference between construction services and other services. Outlines the different stages of competitive tendering, and examines why this business method is not productive for the construction industry. Concludes that the marketing of services in the UK construction industry is characterised by both threats and opportunities.

Dual Production Sources in the Procurement of Weapon Systems: A Policy Analysis

Abstract: : This report provides a framework to guide decisionmakers involved with the weapon systems acquisition process in determining whether to establish dual production sources on a case-by-case basis. The framework consists of three main parts: the identification of alternative approaches for establishing second sources and implementing dual source competition; a methodology for estimating costs associated with such approaches together wtih a review of both relevant microeconomic theories and prior related systems and an analysis of data on competition in the acquisition of weapon systems; and the identification of risks which dual sources might affect and an assessment of their significance.

An Integer Goal Programming Model for Determining Military Aircraft Expenditures

Abstract: The decision-making process involved in the procurement of military weapon systems, although quite critical and complex, still encompasses the basic characteristics of a capital budgeting problem. Given a number of expenditure items and a limited budget, it is desired to procure those weapon systems that will achieve the goals and objectives of the government and/or military in the most efficient manner. Since these objectives are typically numerous and diverse, traditional decision-making techniques are not applicable. As such, integer goal programming is suggested as a technique to be employed to determine the number of military aircraft to be procured, given conflicting expenditure, budget and effectiveness goals. This method is demonstrated via a case example in which the solution results are presented.

Reliability Programs for Commercial Communication Satellites

Abstract: This paper describes reliability programs that are in use for commercial communication satellites. Environmental conditions are presented along with system concerns and design, constraints. Significant procurement policy factors are pointed out, including the development of a request for proposal, contractual provisions, on-site representation of the procuring organization at prime contractor and other facilities, and incentive provisions in contracts. The implementation of procurement policies is discussed from an historic perspective with reference to a present-day list of salient plan elements and experiences that inspired the invoking of these elements. Some of the payoffs of reliability program efforts are mentioned. While the complexity of commercial communications satellites has been increasing, high system reliability has been maintained. As an example, the continuity of service for the INTELSAT space segment has been greater than 0.99995 since 1970. This has been achieved largely through effective reliability programs that have been based on conservative design techniques and stringent product assurance requirements.

The Interaction of Economic Dispatch Fuel Pricing and the Optimal Procurement of Fuel

Abstract: This paper deals with the interaction of economic loading of the generating units and the optimal fuel procurement on an electric power system. A survey, reported upon in this paper, reveals that considerable disagreement exists on the setting of economic dispatch fuel prices. A mathematical proof is presented which shows that the incremental fuel price should be used. Sensitivities of the system fuel cost due to deviations from the optimal dispatch prices and a methodology for optimal procurement of fuel which also yields the values of the incremental fuel prices are presented.

The UK Department of Health and Social Security's Scientific and Technical Services Branch.

Abstract: The DHSS's Scientific and Technical Services Branch is an organization believed to the United Kingdom. About half the staff work in Artificial Limb and Appliance Centres providing support services for disabled people. The other half are in DHSS headquarters working in a range of activities aimed at helping the National Health Service in its procurement of medical equipment and supplies as well as the support of the British medical product industry.

Life Cycle Cost Models

Abstract: Today’s market place for electronic (and non-electronic) goods places ever more stringent demands upon the producers, to construct and supply cost-effective products. The consumers for their part have become increasingly aware of the importance of reliability to the performance of the equipment which they purchase. Concurrently the economy has placed tight monetary constraints upon the consumers. This climate has led to an ongoing and thorough analysis of the many factors which contribute towards more cost-effective products. Thus many LCC models now exist. Of these a high proportion are based upon assumptions which are not mathematically justified. Since LCC has become an important tool in the procurement and study of systems it is necessary for the methodology to be soundly based. Similarly since there are potentially many regimes under which systems may be procured and operated, there are proportionately many LCC models. It is thus important that models have well defined spaces of validity, and also that the mathematical models are transparent (i.e. publicly justified). Only in this way can we expect the models to evolve towards more rigorous and credible representations.

Cost Analysis for Dual Source Weapon Procurement

Abstract: : It is widely held that competition can produce savings in the acquisition cost of weapon systems. However, a recent study of seven programs shows only three generated sufficient savings to offset the investments required to obtain them. Our study finds that the savings depends on how 'hungry' producers are. When a loss has resulted, capacity utilization has been above 80%.

Cost and Utility: Where Does the Balance Lie for Governments?

Abstract: An hypothetical, but typical, example of defence procurement is used to illustrate the problems in Government of balancing costs with the services they provide. Difficulties arise because most Government activities cannot be measured in money terms and balanced in a profit and loss account. Commercial techniques for policy appraisal, such as discounting, seem to have limited relevance to the problems of managing departmental budgets where there is no recourse to a banker. A mathematical programme is used to solve the hypothetical problem and demonstrate that simplistic comparisons of the costs and utilities for various policy options yield little information. Good choices can be found, but are not always obvious ones. They are heavily dependent upon the richness of the problem context. Finally, the authors wonder to what extent the problems they ascribe to Government are also faced from time to time by Industry.

The Distribution System for Producers' Goods in China

Abstract: The Chinese distribution system is markedly different from its American equivalent. The bulk of the nation's products, especially producers' goods, are allocated according to the state plan and distributed through state-controlled channels and facilities.' As most of the products are purchased by the state there would appear to be no need for sales marketing; the primary function of the distribution system is merely to handle the physical flow of goods. However, goods are often in short supply. Therefore, to ensure an adequate supply of inputs to fulfil the production quotas, numerous purchasing agents are used to locate the necessary inputs for enterprises. Basically, the commodity flow is pulled by the buyers rather than pushed by the sellers. This supply insufficiency leads to many problems, including commodity hoarding by users and producers alike. Consequently, the level of idle inventory is unnecessarily high and the size and speed of the commodity flow reduced. As the fulfilment of production quotas depends on the timely procurement of inputs by enterprises, an efficient distribution system is a prerequisite to the success of the state plan. Recently, in accordance with the goal of modernizing agriculture, industry, science and the military, enterprises have been allowed greater freedom in commodity

Asymmetry of Information, Regulatory Lags and Optimal Incentive Contracts: Theory and Evidence

Abstract: procurements. The procurement process and the equilibrium bidding behavior is modelled in sections II and III and the effect of contract parameters and other structural variables on expected procurement costs are explicitly derived. The existing models are enriched by incorporating a technology for cost reduction where the investment in cost reduction made by the contractor is unobservable to the utility. In the presence of such informational asymmetry, the optimal incentive parameter to be used is derived in terms of information available to the utility. In section IV the effects of changing contractual parameters and other structural variables (number of contractors bidding, the riskiness of the production process, etc.) on equilibrium bidding behavior and ex post cost reduction incentives are derived. In section V we relate some of the implications of our model to a sample

Implementing a Procurement Strategy

Abstract: Strategic discontinuities in growth and profitability over the past decade suggest that, for the most part, the traditional planning models employed by American industry are less than adequate. Indeed, both corporate planners and purchasing executives are beginning to recognise that corporate strategic planning must balance a historical concern for product/market decisions with an understanding of and an appreciation for those factors that impact on the supply side of corporate performance. Generally speaking, the purchasing profession has contributed little to our understanding of strategic procurement primarily because the practice and principles of planning have been slow to diffuse to the purchasing function. In addition, academicians have offered little guidance. It is clear that formal planning models either ignore totally purchasing‐related factors or tend to treat them as an after‐thought. Part of the difficulty stems from the fact that the planning literature separates strategy formulation from strategy implementation and the focus seems to over‐emphasise strategy formulation. Although it is useful conceptually to distinguish between the two phases of the planning process, in practice they must be integrated if organisational purpose is to be accomplished.

Major Equipment Procurement

Abstract: We may not be able to make you love reading, but major equipment procurement will lead you to love reading starting from now. Book is the window to open the new world. The world that you want is in the better stage and level. World will always guide you to even the prestige stage of the life. You know, this is some of how reading will give you the kindness. In this case, more books you read more knowledge you know, but it can mean also the bore is full.

The Federal Photovoltaics Utilization Program: An evaluation and learning framework

Abstract: The Federal Photovoltaics Utilization Program(FPUP) was established in 1978 with the belief that getting photovoltaic cells into the market was a “bootstrap problem” - one of eliminating market uncertainties through federal procurements to enable investments in improved production processes. A lack of clearly defined program objectives and expected results, however, was translated into continuing difficulties in implementation. Using the FPUP experience as an example, an alternative model of photovoltaic procurement is proposed which is simultaneously more structured (in that greater analytical control is used in selecting applications to fund) and more adaptive (in that continuous feedback is built in). A discussion of such a framework and sequential evaluation design is followed by some comments pertaining to the future of other commercialization efforts.

Expert Systems for Price Analysis: A Feasibility Study,

Abstract: : The feasibility of alternative designs for an expert price analysis computer system is evaluated by analyzing the price analysis task, and the related support requirements, as performed by Air Force procurement activities. Generally, the Air Force should embark on a coordinated, long-range program of providing adequate expert system support to all procurement functions. Initially, this support can best be provided by a highly structured, interactive expert system which confronts the system user with requisite decision sequences. Each sequence points to a tutorial network which provides explanation and instruction if desired. The most immediate benefit will be experienced at the base level where little expert assistance is currently available. This type of expert system provides the nucleus for developing more sophisticated expert systems for other procurement activities in the intermediate and long term. (Author)

The Treatment of Risk in Analysis: A Framework for Discussion

Abstract: A large portion of the cost of a weapon system is incurred after the hardware is delivered. Ownership costs due to operations, maintenance, support equipment, repairs, and spare parts usually exceed the procurement costs of design, development, and production. These ownership costs together with procurement costs comprise the life-cycle cost (LCC) of a system. Clearly, total life-cycle cost of a weapon system must be carefully considered if investments are to be made wisely.

On Export-Import Procedure

Abstract: In general, exports and imports consist of the following procedures: 1. Preparations for negotiation prior to a transaction, including procurement of the merchandise to be exported, grasping the international market situation, and arranging shipment and delivery; 2. Drafting export-import plans, contacting the other trade party, and negotiating the terms; 3. Signing the contract when agreement is reached; and 4. Implementing the contract accordingly.

Construction of the Tokamak Fusion Test Reactor

Abstract: The TFTR construction project is reviewed in three significant phases - Conceptual/Preliminary Design; Final Design/Procurement; and Installation/Assembly. Project organization and responsibilities of major participants are described. A brief discussion on management systems and control including Budgets, Schedules, Costs and Funding is followed by a description of the initial phase of the project highlighting key design issues, engineering tradeoffs, and related research and development programs. Discussion of the Final Design/Procurement Phase focuses on engineering evolution and design changes including selected component problems. The Installation/Assembly Phase of TFTR is described in its significant operations including assembly plans and methods; the role of craft labor in construction of the device; and the problems inherent in large component-close tolerance construction.

Fuel-supply management: charting a course through uncertainty

Abstract: Fuel planners must pilot utilities through a sea dotted with economic and regulatory unknowns. With the added threat of supply disruptions, utilities need better analytic tools and more-flexible procurement and inventory strategies to keep the cost of boiler fuels in line. The Energy Resources Program is responding with new projects to help utilities integrate fuel and investment decisions and improve inventory planning. 3 references, 5 figures.

An Intelligent Manual for Price Analysis

Abstract: : We investigated price analysis as performed in the United States Air Force (USAF) and the environment in which buyers at bases make decisions about procurement actions. Based on this study, we evaluated the intelligent manual approach for guiding a buyer through the decisions and actions necessary to conclude a buy. An intelligent manual is a computer-based consultant that provides advice and pointers on the use of existing information in response to user queries. Our prototype intelligent manual is constructed as part of the ZOG system. ZOG is an active, large-network, menu-selection system. We present the design of the interactive intelligent manual (based on our analysis of pricing) and discuss its short-term and long-term implications for procurement in the USAF. We identify how this system would be the basis for future intelligent, problem-solving expert systems that automate significant components of the pricing task.