Selecting And Purchasing Pumps In The Information

Many firms are applying emerging information technologies during the process of selection and purchasing pumps to improve their competitiveness. Computer-based applications are often used to aid in generating pump proposals or to check part inventory status. Design departments use CAD/CAM systems to shorten the design cycle and run simulations using structural finite element methods. However, the use of computer technology alone does not guarantee a measurable economic benefit.

Organizational and process changes are usually necessary to achieve the benefits of computer automation. These process improvements often extend beyond a single firm with the formation of formal and informal alliances between pump users, owners, engineering contractors, architect-engineers, pump suppliers, and other equipment suppliers. These trends place a greater emphasis on the purchaser-supplier interface during the pump selection process. From the purchaser's perspective, the optimal choice of pumping equipment has significant cost implications over the service life of the equipment. From the manufacturer's perspective, configuring the preferred offering of pumping equipment is crucial in securing a competitive advantage during the purchase evaluation.

The information age is redefining virtually all aspects of conducting business including the way pumping systems are designed, evaluated, procured, manufactured, and main tained through their entire lifecycle. In this section, the process of selecting and purchasing pumps will be revisited in the context of the way critical information is communicated between pump purchaser and supplier. Then, four of the emerging information technologies that are contributing to improved quality and cycle time in the overall process will be described.

Information Flow Between Purchaser and Supplier Following the decision that pumping equipment is required, an Inquiry/Proposal process is undertaken involving the six major steps outlined in this chapter: (1) engineering the pumping system, (2) selecting the pump and driver type, (3) pump specification and data sheet preparation, (4) inquiry and quotation (proposal), (5) evaluate of bids and negotiation, and (6) purchase the selected pump and driver. The entire process is information intensive, consisting of both technical and commercial information. The first three steps of the process (steps 13) are technical in nature, involving the exchange of system design, pump specifications, and performance and construction details of the pump. The last three steps of the process (steps 4-6) transition toward the commercial elements of the purchasing decision such as equipment costs, life cycle cost evaluations, terms and conditions, and delivery lead-times. This flow of technical and commercial information is ascribed by the Inquiry—Quotation information exchange depicted in Figure 9.

This Inquiry—Quotation information exchange is not limited to only one purchaser-supplier interaction. With each new procurement opportunity, this information exchange effects every trading partner participating in the entire supply chain. Consider the simplified example (in Figure 10) of an Operating Company that gives three Engineering/ Design contractors the opportunity to bid on an expansion of a chemical process plant. If each of these contractors issues three inquiries to pump manufacturers, nine inquiries are issued. Now, if each manufacturer issues three inquiries to their sub-suppliers, a total of 27 inquiries are pending for this single plant expansion. In the end, only one contractor, one equipment-supplier, and one sub-supplier actually receive orders to supply equipment for the project. Thus, only 3 inquiries out of 27 representing 11% of the total application and quotation effort represent "useful" work. These engineering costs are recovered only when equipment is actually purchased. The cost of the other 89% of effort by those participants in the Inquiry/Proposal process who did not receive a customer order are "wasted"



FIGURE 9 Purchaser supplier information exchange

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Renewable Energy Eco Friendly

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