Assessment of procurement challenges in implementing Ethiopian Sugar Corporation projects the case of Kessem Sugar Factory project
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Date
2018-08-06
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Addis Ababa University
Abstract
The study focused on procurement challenges in ESC. This study was designed to fill the gap by
identifying procurement challenges to deliver ESC project on time and within the allocated budget.
It sought to answer the questions: What are challenges the project procurement and their influence
in the of ESC project in the case of kessem sugar factory project? Consequently, it proposed to
achieve the objectives: to assess the challenges the project procurement and their impact in the of
ESC project in the case of kessem project and to examine factors need to be improved in order to
overcome the procurement challenges in ESC project in the case of kessem sugar factory project.
The researcher used questionnaires to collect quantitative data, distributed to purposefully
selected respondents from project procurement staffs of ESC and used key informant interview for
qualitative data collection for selected project managers, staffs, and procurement managers.
Methodologically, this study was designed to be descriptive.The study presented in five chapters
each with various sections through which the researcher has tried to discuss the different issues
related procurement challenges on the project performance.The key findings of the study were that
project procurement function affected by various factors. Among them the performance of main
contractor, sub-contractors, suppliers and venders, the performance of procurement staff and
consultants in practicing the project procurement and quality of the work performed and
equipment supplied are the major project procurement challenges which affected the performance
of ESC Kessem sugar factory project. The findings of this study should be understood and
evaluated in light of the limitations of the study. This study is especially helpful to ESC projects
and other similar projects. It should be particularly helpful to the project procurement team and
project managers whose responsibilities include attainment of the project objective to the desired
customer satisfaction. The study recommends to ESC project procurement team and top
management to look at the challenges of project the procurement discussed herein and adopts the
suggested recommendations including usage of recent technology, standard contractor selection
criteria, skilled and experienced procurement staff, organized list of contractor, subcontractor,
suppliers and recorded performance in order to overcome the challenges. Further study should be
directed to the project procurement for further improvement.
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Keywords
Procurement challenge, Kessem Sugar Factory, Contractor performance