Assessment Of Project Procurement Management Practice In Ethio Telecom
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Date
2018-06-25
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Addis Ababa University
Abstract
Project procurement management is among the ten knowledge areas that a project manager must
be familiar with for a successful implementation of a project work. Depending upon the specific
type of project being managed, over 50 percent of the total project cost can be attributed to parts,
supplies and services procured. For many high-technology projects, this procurement fraction can
approach 90 percent. Most of the world telecom operators upgrade their procurement capabilities
to achieve best suppliers relation, to bring improved risk management, and to enhance fast growth
opportunities. Hence, this study is targeted to assess project procurement practice of Ethio
Telecom by addressing the process undergone namely: Procurement planning, Solicitation
Planning, Solicitation, Source Selection, Contract Administration and Contract Closeout. The
primary data was collected from a total of 60 respondents from a total population of 198 out of
which 15 was approached for answering questions related to planning procurement process and
the rest 45 are approached for answering the remaining process which are selected using nonprobability
purposive sampling and the collected data analyzed using SPSS version 20.0. Then the
data presented quantitatively using descriptive statistics with the help of table, frequency and
percentage. Semi-structured interview was also conducted with the 5 project managers and 4
Contract Management Program Managers, and analyzed qualitatively by integrating secondary
data obtained from the company policy and procedure documents, project management working
manual, reports, process templates and magazines. Accordingly, the finding of the study reveals
the company fail to provide training related to project and project procurement, fail to arrange
pre-proposal visit, not considering suppliers risk management issue as evaluation criteria, week
monitoring system for products arrived at the project site and not gathering suppliers’
performance status report from concerned stakeholders. Thus, a recommendation has been made
under this study on what actions should be taken in order to improve project procurement
management practice of Ethio Telecom.
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Keywords
Project Procurement Management,, Procurement Planning, solicitation planning, contract administration and contract closeout