procurement professionalization master plan. materi... · adoption of basic and ... •this...
TRANSCRIPT
PROCUREMENT
PROFESSIONALIZATION
MASTER PLAN
Prepared by:
R.Djokopranoto
For Symposium on 23 October 2012
LKPP1
MASTER PLAN
1.The Vision
2.Management Maturity level
3.Five Maturity Levels
4.Nine Key Process Areas
5.Define Characteristics
of each KPA and Key Features
6.Mapping outMaturity Level
7.Road Mapping
8.Pilot projecting:ITB ULP
ApproachAnalysis,
Mapping andRoadmap
Action Plan
9. LKPPPositioning
10. Mastering theMaster Plan
11. StrategicAction Plan
2
MASTER PLAN
1.The Vision
2.Management Maturity level
3.Five Maturity Levels
4.Nine Key Process Areas
5.Define Characteristics
of each KPA and Key Features
6.Mapping outMaturity Level
7.Road Mapping
8.Pilot projecting:ITB ULP
APPROACHAnalysis.
Mapping andRoadmap
Action Plan
9. LKPPPositioning
10. Mastering theMaster Plan
11. StrategicAction Plan
3
1.The Vision
2.Management Maturity level
3.Five Maturity Levels
4.Nine Key Process Areas
5.Define Characteristics
of each KPA and Key Features
6.Mapping outMaturity Level
7.Road Mapping
8.Pilot projecting:ITB ULP
Approach ANALYSIS, MAPPING &ROADMAP
Action Plan
9. LKPPPositioning
10. Mastering theMaster Plan
11. StrategicAction Plan
MASTER PLAN
4
Will be presented by Mr. Sonny Sumarsono
MASTER PLAN
1.The Vision
2.Management Maturity level
3.Five Maturity Levels
4.Nine Key Process Areas
5.Define Characteristics
of each KPA and Key Features
6.Mapping outMaturity Level
7.Road Mapping
8.Pilot projecting:ITB ULP
ApproachAnalysis.
Mapping andRoadmap
ACTION PLAN
9. LKPPPositioning
10. Mastering theMaster Plan
11. StrategicAction Plan
5
Will be presented by Mr. Bambang
Adi Subagiyo
THE MASTER PLAN
APPROACH
6
1. THE VISION (1)
The Vision Statement of Procurement Professionalization:
• To regard procurement as a professional field where all procurement officers or staffs, public or private, are suitably qualified and expert for the job they conduct, through training and experience, where they adhere to a professional code of ethics and code of conducts.
7
1. THE VISION (2)
What are the Key Activities that should be done to reach the ‘The Vision’ ?Derived and inspired from the best practice in Indonesia (oil companies), the following 9 key activities (Key Process Area) are vitally required. THE 9 KEY PROCESS AREA
1. Training2. Human Development3. Career Development4. Professional Certification5. The Development of Code of Ethics and Code of
Conducts6. Governance Standardization7. Partnership with Professional Association8. Partnership with Training Providers9. Knowledge Management Development
8
2. MANAGEMENT MATURITY LEVEL
• To measure the performance of the Key Process Areas, a management framework model is required.
• The Framework model: developed from Carnegie Mellon’s Concept of Capability Maturity Model Integration (CMMI)
• It becomes the Procurement Professionalization Maturity Model (P2M2)
9
3. Five Maturity Levels
Level 1Ad Hoc
No formal and consistent process to execute a task/project
Adoption of basic and consistent approach to task/project execution
Consistent and comprehensive approach task/project execution
Task/project portfolio management is integrated and institutionalized
Level 2Planned
Level 3Managed
Level 4Integrated
Level 5Sustained
Established andStandardizedApproach to continuous improvement
10
THE BENEFITS OF PROCUREMENT
PROFESSIONALIZATION MATURITY
MODEL (P2M2)
• Indicates the key activities that have to be carried out;• Determines the maturity of the organization
management process;• Map out a logical path to improve the organization
performance;• Sets priorities for short-term process improvement
actions;• Tracks progress against management plan;• Provides general direction for long-term process
improvement plan;• Indicates best practice;• Builds culture of management process;
11
5. DEFINE CHARACTERISTICS OF
EACH KPA (1)
• By defining characteristics of each Key Features of every KPA
• For Example: KPA Training consists of 6 Key Features i.e.
• Training Activity
• Training Process
• Training Scope
• Training Infrastructure
• Training Database
• Training of Capacity Building12
5. DEFINE CHARACTERISTICS OF
EACH KPA (2)
Level 1Ad Hoc
Level 2Planned
Level 3Managed
Level 4Managed
Level 5Sustained
Training, if any, is conducted at non formal and inconsistent basis
* A basic and consistent training process is conducted* A Training Department is not established yet
* Training activities are conducted based on consistent and comprehensive approach* Trainingdepartment is established*Publish procurement magazine
* All types ofTraining within organization are programmed, integrated, and institutionalized* Run procurement book review at least once a year* Doing procurement research
* All training activities are already established and standardized* Focus in on continuous review and improvement
Example: TRAINING Activity
13
Matrix of Maturity Level ofTHE HUMAN RESOURCE DEVELOPMENT OF PROCUREMENT
PROFESSIONALSKey
Process Area
Level 1Ad Hoc
Level 2Planned
Level 3Managed
Level 4Integrated
Level 5Sustained
1.Training
2. HumanDevelopment
3. CareerDevelopment
4. ProfessionalCertification
5. Training Partnership
6.Establishmentof Code of
Ethics and Codeof Conducts
7. Professional Association Partnership
8.GovernanceStandard
9. Knowledge Management Development
V.C1 – I1
VI.C1 – H1
VIII.G1 – K1
V.C2 – I2 V.C3 – I3 V.C4 – I4 V.C5 – I5
VI.C2 – H2
VIII.G2 – K2
VI.C3 – H3 VI.C4 – H4 VI.C5 – H5
VIII.G3 – K3 VIII.G4 – K4 VIII.G5 – K5
CMMI Approach
Best Practice In Oil
companiesIn Indonesia
14
THE RELATIONSHIP
BETWEEN MASTER PLAN
AND PREVIOUS HRD PLAN
15
RELATIONSHIP OF THIS MASTER
PLAN WITH THE PREVIOUS HRD
PLAN BY ISP3 TEAM (1)
• In 2010, a HRD Plan was recommended by the ISP3 team. • This Procurement Professionalization Master Plan does not
in any mean replace, revise, nor correct the very well prepared ISP3 HRD Plan.
• While the ISP3 HRD Plan records the ideal job descriptions, the important issues and challenges, analyzing the key functions and responsibilities, and strategic initiatives to be undertaken by the respective directorates involved in professionalizing the field, this Master Plan focusing in positioning the organization in the capability maturity level map, showing the short term and long term roadmap, and indicating the best practice in every key factor area of procurement professionalization by the using of Management Maturity Level Model.
16
RELATIONSHIP OF THIS MASTER
PLAN WITH THE PREVIOUS HRD
PLAN BY ISP3 TEAM (2)
• Furthermore, while the ISP3 HRD Plan is mainly prepared for the three directorates of LKPP, the Procurement Professionalization Master Plan is mainly prepared for the M/A/R/I or K/L/D/I.
• In short the Procurement Professionalization Master Plan is the continuation of ISP3 HRD Plan, which can be used as LKPP standard guidance for the M/A/R/I to enhance the procurement professionalization.
17
The Difference Between hrd plan and
masterplan
• 3 Directorates Function Based Approach
• Analyzing and elaborating 11 Key Functions and Responsibilities of 3 Directores
• Suggesting Action Plan for each Directorate
* Applicable for LKPP only
• Management Maturity Model Approach
• Analyzing 9 Key Process Area for Professionalization
• Providing Management Tools for measuring capability and showing roadmap for I improvement
• Suggesting Action Plan in using the Tools
• Applicable for LKPP and K/L/D/I
HRD PLAN (Australia Indonesia
Partnership)
MASTER PLAN (Asian Development Bank
D/S/B)
Title: HRD STRATEGY FOR THE HUMAN RESOURCES DEVELOPMENT
Title: PROCUREMENT PROFESSIONALIZATION MASTER PLAN
18
THE SHARING
EXPERIENCE
19
WHY IS PROCUREMENT IN OIL
COMPANIES CONSIDERED AS BEST
PRACTICE?
• Procurement professionalization has been their tradition and practice since 1950.
• Logistics Department (procurement, inventory control, warehousing, distribution) has been established since the beginning.
• Logistics jobs are full time jobs;• Since the beginning, logistics job is considered as
professional job.• Recruiting logistics staffs were done through a long
pre-employment training program (2 years)• Human development, career path advancement, job
establishment have been fully established, etc.20
The Formation of Pertamina
PNPERTAMINA
Stanvac
ShellCaltex
PNPertamin PN
Permina
PNPermigan
Tahun 1970-1975 dipimpin perwira
ABRIBPM, Shell and ABRI
serious and long tradition of logistics
training is inherited to PERTAMINA
1965-1975Permina/PERTAMI
NA managed by ABRI
BPM
21
Procurement Pre-Employment
Training – Perusahaan Migas
BPM/Shell
PERTAMINA
1950-1961PETROLEUM COLLEGE (2 years)• Study program ‘Materials Administration’ (Procurement,
Inventory Control, Warehousing, Distribution)Only after graduation, a student was officially accepted as Shell employee in Materials Department
1970-2000In House Training• CPT (Crash Program Training) Logistik, S1 + 9 months;• BPSL (Bimbingan Profesi Sarjana Logistik), S1+12 months;• BPAL (Bimbingan Praktis Ahli Logistik), D3 Poli + 24 months,
Dirjen Migas• Akamigas (Akademi Minyak dan Gas Bumi) SMA+24
months;Only after graduation, a student was accepted as employee;
22
Procurement Pre-Employment
Training – Perusahaan Migas
Total Indonesie
2001-2004LST (Logistics Supervisory Training), D3 + 24 months;Conducted in English (textbook and tutorial)
23
WHY DOES PRE-EMPLOYMENT
TRAINING TAKE SO LONG (1)?
• To prepare and equip them with the knowledge and skills to do purchasing/procurement with the following principles:
• Buy at the right price• Buy at the right source• Buy at the right quality• Buy at the right quantity• Buy at the right time
• To prepare and equip them with the knowledge and skill to synchronize the purchasing/procurement with the inventory control
24
Why does the pre-employment
training take so long (2)?
Curricula Competency Method• Logistics knowledge (50%) * Mastering the
• Procurement knowledge and skill
• Inventory control of procurement, invent.
• Warehousing control & warehousing
• Industrial knowledge (15%) * Understanding the
• Oil and gas industry oil exploration, drilling,
operation production & refinery
• Materials knowledge (30%) * Mastering the name,
• All the materials that are description, standard,
procured, stored and and usages of materials
controlled and equipment
• Procedures and Regulation (5%) * Mastering in logistics
procedures & regulations
70% classroom
30% field experience (practical)
25
Field Experience (Practical)
during Pre-employment training
Logistics*Procurement office*Inventory control office*Warehousing
Oil Industry*Oil well Drilling*Production site*Refinery *Mechanical workshop*Electrical workshop*Instrumentation workshop*Fire and safety operation
26
Example of Industrial Knowledge
Procurement Professionalshould know:
* How does the oil drilling rig work?* What is the sequence of drilling?
* What is the jobs of its crews?* What is the function of every parts?
* What is happening underneath?* How decide the correct location of drilling?
etc.
The Logistics student spends one week works together with the shift crews to fully
understand the real operations of the drilling rigs.
27
Example of Materials Knowledge
Procurement Professionalshould know the name and the function of all
parts/equipment of the drilling rigs1. Crown block2. Drilling mast3. Drilling cable
4. Travelling block5. Rotary table
6. Derrick substructure7. Mud pump
8. Drilling upper platform9. Hook
10. Drilling platform12. Blow out preventer, etc.
and all materials used during drilling: casing, tubing, oil well cement, drilling chemicals, etc.
1
2
3
4
56637
8
9
10
12
11
28
Example of Materials Knowledge
Exam for Procurement Professional
(1)
Question:What is the name and
the complete description of this material ?
29
Example of Materials Knowledge
Exam for Procurement Professional
(2)
Answer:
Gate Valve,Carbon steel, class 300,
ASA flanged end,Raised face,
Bolted bonnet, Inside screwed wheel,
Diameter 4”30
Why Should a Procurement
Professionals know about the
materials they procure?
• To understand the degree of importance of materials to be procured to the operation;
• To facilitate the negotiation;
• To understand the market of the materials to be procured (monopoly, oligopoly, pure competition)
• To review the quality and quantity of materials to be procured, if required;
• Etc.
31
Pertamina Procurement Training and
Human Development (1)
• PLPM (Penataran Logistik Penyegaran Manajemen), for senior staff, 6 weeks, to maintain knowledge
• PLPGM (Penataran Logistik Pemantapan Gol Madya), for junior staff, 4 weeks, to maintain knowledge
• Kader Logistik A, S1 + 12 months (employee with S1 diploma who has no logistics training)
• Kader Logistik B, D3 + 18 months (employee with D3 diploma with has no logistics training)
32
Pertamina Procurement Training and
Human Development (2)
• On the job training in Procurement Department, British Petroleum, UK (3 months)
• Logistics Management Program at various universities/institutes such as London Business School, Princeton University, Northwestern University, World Bank, etc..
• MBA majoring in Logistics US universities;
• Tour of Duty within Pertamina organization;
• Tour of Area within Pertamina offices;
• Etc.33
Pertamina Career Path for
procurement professional
(Job/Salary Group Based)
PEMBINA 4 Executive321
Gol.UTAMA 1 Senior Manager23
Gol. MADYA 4 Junior Manager567 Supervisor8 9
Gol. Non Staf 10 Non staffs/d16
Procurement ProfessionalCareer Path
34
Pertamina Career Path for Procurement
Professional (department based)
LogisticHead Office
LogisticForeign Office
(4)
LogisticUnit Office (7)
LogisticField Office (14)
Logistic employee* Total 1700* Staff 270* Certified :
staff : 80%manager : 100%
35
Pertamina Career Path for
Procurement Professional
(Function Based)
Warehousing &Distribution
Inventory Control
Procurement
36
Pertamina Logistics Certification
• Professional Certification in Indonesia at those days was not established yet;
• Professional recognition was expressed in certificates of the long terms professional training as already mentioned:
• Petroleum College: ‘Materials Administration’;
• BPSL: Bimbingan Profesi Sarjana Logistik;
• Akademi Minyak dan Gas Bumi, majoring in Logistics;
• BPAL: Bimbingan Praktis Ahli Logistik
• Etc.37
Pertamina Training Partnership
• 80% of the training dan human development in Pertamina were conducted in house;
• Some Training Partners:
• Universitas Indonesia (trainers for related knowledge to logistics)
• ITB (ditto)
• British Petroleum, UK (on the job training)
• Akamigas, Cepu
• Lemhanas (for executives)
38
THANK YOU
THANK YOU
LKPP39