A Framework to Enhance the Procurement Processes Based on Hybrid Approach of FMEA-DEA

Organizational processes are the most important dimensions in the development and growth of organizations. Identifying effective factors in decreasing the efficiency of processes can provide great help to enhance the organization. In the present study, the re-engineering of procurement processes, as a crucial process in any organization, is investigated based on the FMEA-DEA hybrid approach. Using the Business Process Reengineering (BPR) method and holding many meetings with the industry elites, the prime challenges of procurement processes are detected. The FMEA method is implemented to assess these challenges and the DEA method is also utilized to prioritize them. In addition, the sub-processes of procurement process with higher levels of priority are then selected and the feasibility of using information technology in these sub-processes for tackling the identified problems is investigated. This study is conducted using a descriptive survey method in which the information is collected through completing questionnaires by a statistical population of 25 people of organization elites participating in the system of procurement processes. Inappropriate purchase plans, fluctuation of prices for supplied materials and prolongation of the purchase procedure are the main ranked challenges based on the proposed model. Finally, providing a suitable purchase plan, implementing a cost management system, and enhancement of documentation system are the main suggested actions to be executed for improving the procurement process.