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Procurement of Complex Technical Systems: Strategies for Successful Projects
KTH, School of Electrical Engineering (EES), Industrial Information and Control Systems.
2005 (English)Doctoral thesis, comprehensive summary (Other scientific)
Abstract [en]

When facing a procurement of a complex technical system, many questions are to be asked. The main question is how the best and most suitable systems are obtained, at the right cost. In order to answer that question numerous aspects must be considered and investigated. Even after having conducted careful analysis the question will most certainly never be entirely answered. In the early stages of procurement projects it is important that time is allocated for evaluation and decision-making concerning what truly is needed and most important on the management strategy to use.

Procurement projects often misses someone that have a totality perspective, the projects are often extended in time, the experience and competence of the involved actors are often not properly used in the projects and it is impossible to write clear-cut contracts between the involved actors. These incongruities create need for focused and applicable procurement strategies. It is in the beginning of the procurement process that these decisions concerning which procurement strategies to be used in the project have to be made. The strategy decisions should primarily be based on the available competence of the already involved actors, and secondly on what competencies available at possible actors to involve. The competencies needed in the different phases of the procurement project can be predicted fairly accurately. The risks and responsibilities should be distributed among the involved actors depending on their accessible competence and resources. Focus should be on the capabilities of the involved actors instead of on the cost. Decisions made in the initial phases must also allow as much flexibility as possible for the later phases to come.

In the research, case studies on procurement projects have been conducted. In the case studies data have been gathered and case study analyses have formed a comprehensive view of procurement projects. The research in this thesis offers insight on the impact of procurement strategy on allocation of responsibilities and risks in procurement projects and the importance of a well formulated procurement strategy is stressed. The procurement strategy is important when to efficiently utilize available competencies and resources. Also, the importance of how to formulate requirements that enable the best possible contribution to the project of all the available and involved actors has been examined. How the requirements are formulated and communicated determine to very large extend how the project should be organised, both by the client and the supplier.

This thesis gives guidelines on the organisation of procurement projects for complex technical systems. It further discusses the formulation of procurement strategies depending on the involved actors’ competencies. A framework for procurement of complex technical systems is also presented.

Place, publisher, year, edition, pages
Stockholm: KTH , 2005. , p. xiii, 92
Series
Trita-ICS, ISSN 1104-3504 ; 0601
Keywords [en]
Project, Procurement, Complex Systems, Project Management, Systems Engineering, Acquisition
National Category
Other Mechanical Engineering
Identifiers
URN: urn:nbn:se:kth:diva-593OAI: oai:DiVA.org:kth-593DiVA, id: diva2:14548
Public defence
2006-02-03, sal F3, Lindstedtsvägen 26, KTH, Stockholm, 10:00 (English)
Opponent
Supervisors
Note
QC 20101011Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2010-10-11Bibliographically approved
List of papers
1. Towards a Cost Effective Procurement Process: In Search of New Strategies
Open this publication in new window or tab >>Towards a Cost Effective Procurement Process: In Search of New Strategies
1999 (English)In: 6th International Conference on New Available Technologies: proceedings : June 1-4, 1999, Stockholm, Sweden, 1999Conference paper, Published paper (Other academic)
National Category
Engineering and Technology
Identifiers
urn:nbn:se:kth:diva-9012 (URN)
Note
QC 20100512Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2010-10-11Bibliographically approved
2. How to manage complex, multinational R&D projects successfully
Open this publication in new window or tab >>How to manage complex, multinational R&D projects successfully
2002 (English)In: Engineering Management Journal, ISSN 1042-9247, E-ISSN 0960-7919, Vol. 14, no 2, p. 53-60Article in journal (Refereed) Published
Abstract [en]

The globalization of markets, mergers of international companies, and integration of managerial and business processes in global corporations are changing project management fundamentals. A clearly recognizable trend in multinational companies since the mid-1980s has been globalization of R & D and competence portfolios. Applied development is usually conducted in the form of a distributed project organization. A project team is formed across geographical, organizational, and cultural boundaries, engaging in a project with a global focus. Although a multinational project organization has great potential in many dimensions, there is no doubt that the execution of a distributed high technological project is still a great challenge. This article identifies success factors in the management of distributed projects with global goals. The authors have focused on the practical experiences of the execution of complex multinational projects in the area of applied system development for power industry.

Keywords
Decision making, Information management, Managers, Mergers and acquisitions, Product development, Research and development management, Societies and institutions, Multinational projects, Project managers
National Category
Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:kth:diva-9013 (URN)
Note
QC 20100519Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2017-12-14Bibliographically approved
3. Project management competence requirements when procuring complex systems
Open this publication in new window or tab >>Project management competence requirements when procuring complex systems
2002 (English)In: IEMC-2002: IEEE INTERNATIONAL ENGINEERING MANAGEMENT CONFERENCE, VOLS I AND II, PROCEEDINGS - MANAGING TECHNOLOGY FOR THE NEW ECONOMY, 2002, p. 459-464Conference paper, Published paper (Refereed)
Abstract [en]

How the client organization (the buyer) should manage its resources when procuring a large technical system, referred to as a complex system, is the scope of this paper. This issue is interesting due to the ever-increased competition, leading to the downsizing of client organizations, and the search for higher organizational effectiveness. Therefore, it is essential that projects be managed in a more efficient way than they have in the past.

The paper summarizes the results from an ongoing research project carried out at the Department of Industrial Information and Control Systems at the Royal Institute of Technology in Sweden. The results are based on case studies and interviews, which have been conducted in close co-operation with major clients, vendors and consultants in Swedish companies.

The projects included in the research have been studied from an organizational competence perspective. Finding out "who" is most suitable to do "what" according to different initial conditions in the projects studied. The paper addresses those aspects of management that are critical for successful completion of projects in this field.

Keywords
Control systems, Decision making, Large scale systems, Maintenance, Research and development management, Project management competence requirements
National Category
Other Mechanical Engineering
Identifiers
urn:nbn:se:kth:diva-9014 (URN)10.1109/IEMC.2002.1044209 (DOI)000179247300083 ()0-7803-7385-5 (ISBN)
Conference
IEEE International Engineering Management Conference
Note
QC 20101011Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2010-10-11Bibliographically approved
4. How to formulate a strategy when procuring a large technical complex system
Open this publication in new window or tab >>How to formulate a strategy when procuring a large technical complex system
2003 (English)In: IAMOT 2003: 12th International Conference on Management of Technology, Nancy, France, May 13-15, 2003, 2003Conference paper, Published paper (Other academic)
National Category
Other Mechanical Engineering
Identifiers
urn:nbn:se:kth:diva-9015 (URN)
Note
QC 20101011Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2010-10-11Bibliographically approved
5. Procurement of complex technical systems: the importance of assessment of the initial project conditions
Open this publication in new window or tab >>Procurement of complex technical systems: the importance of assessment of the initial project conditions
2005 (English)In: IAMOT 2005, 14th International Conference on Management of Technology, 2005Conference paper, Published paper (Other academic)
National Category
Other Mechanical Engineering
Identifiers
urn:nbn:se:kth:diva-9016 (URN)
Note
QC 20101011Available from: 2006-01-18 Created: 2006-01-18 Last updated: 2010-10-11Bibliographically approved

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