Dissertation for obtaining Master degree (M.A)
Trend: "Management of production and operation"
Dissertation abstract (including summary, objectives, implementation methods and obtained results):
With increasing competition in the field of global trade, how to supply and select suppliers of machinery and spare parts in the supply chain is considered an important challenge for most organizations. Therefore, the country's oil refining industry, understanding the needs of the domestic market, should have competitive strategies in the field of evaluating the quality level of suppliers, while improving its competitive power, it should pay attention to the creation of business opportunities and gaining a competitive advantage. Therefore, in this research, we have tried to identify the effective criteria for evaluating the quality level of suppliers in the refining industry by using the opinions and experiences of experts, analyze the relationships between them, and use the method of network analysis to rank the criteria and suppliers (on a case-by-case basis) in Lavan Oil Refining Company. By defining 22 sub-criteria in the four main criteria "economic and cost, quality and technology, supplier characteristics and services provided by the supplier" and evaluating them, strategic sub-criteria have been identified in the evaluation of the quality level of suppliers.
Key words: quality level of suppliers, supply chain management, oil refining industry and network analysis process method
Statement of the research problem:
In the last decade, how to supply raw materials and choose suppliers in the chain Procurement has been a challenge for most organizations. Since the performance of suppliers has a fundamental effect on the success or failure of the supply chain, supplier selection is known as a strategic task. On the other hand, identifying the needs of customers and trying to meet them is one of the priorities of companies in order to survive in competitive environments. In such a way that successful and progressive companies formulate these needs within the scope of their strategic plans and by implementing them, they direct all their resources and forces to meet them.
One of the important factors in meeting the needs and satisfaction of customers is the quality of materials, parts and services that are purchased by a company or organization and are used in the production/service products of a company. Therefore, in addition to the cost of supplying raw materials, the quality level of the purchased materials and parts is also considered one of the effective and important factors.
Determining the quality level of suppliers and evaluating them is a necessity for all companies that want to compete at the global level, and in this regard, creating an effective and continuous commitment and communication between the supplier and the buyer is a principle in order to create and maintain an acceptable quality level. Because in any case, in the field of product production, quality is the key to the survival of successful companies, starting with the initial stages of supplying goods and services, starting with proper production, using proper technologies, and then supplying them at the right time and place. Today, along with the increase in different purchasing methods, decision-making and choosing the right suppliers for purchasing has become more important and therefore more difficult. The more organizations depend on suppliers, the more harmful the direct and indirect results of wrong decisions. On the other hand, the globalization of business and the increasing expansion of the Internet have increased the different methods and modes of choosing a supplier. Obtaining customer satisfaction, meeting customer needs and priorities requires quick and appropriate selection of suppliers. The new organizational structures have caused more people to be involved in decision-making for the selection of suppliers, and therefore the importance and position of decision-making has increased. Therefore, as we know, the condition of providing quality products and reliable production is the purchase and supply of materials and spare parts of appropriate and desired quality; So, as we know, the issue of fuel production and its sustainable distribution is considered one of the important and leadership issues of any country, and our country, having numerous and huge hydrocarbon and fossil resources, is considered one of the rich countries in this field; So that it is the fourth country with crude oil resources and the second country with natural gas and generally the first country with hydrocarbon and fossil resources in the world. In this regard, supplying sustainable fuel to the country is one of the very important tasks of the subsidiaries of the National Refining and Distribution Company.
Lavan Oil Refining Company, as one of the refining companies, plays an important role in the production of petroleum products and fuel supply of the country by refining 60,000 barrels of crude oil as one of the refining companies.
In the meantime, the product management unit is responsible for the identification, procurement, supply, supply and logistics of the machinery and equipment needed for the production of the product. Among the problems and issues in the relevant department, the following can be mentioned:
Lack of proper procedures and guidelines for identifying and selecting suitable suppliers
Sanctioning countries with technology and not providing superior technologies
Lack of currency stability in the country and its related changes
Lack of interaction with the oil and gas industries of other countries
Lack of proper interaction with supplier companies
Far from the center and located in the waters Persian Gulf
Problems related to financial resources and the capital cost of refinery parts
The length of the process of purchasing and procuring the goods needed by the company
The lack of using scientific methods in the evaluation and selection of suppliers
The lack of necessary technical knowledge in the production and procurement of refinery equipment
The lack of unfavorable climatic conditions on Lavan Island, which causes erosion, corrosion and shortening the useful life of equipment and machinery .
1-2- The importance of the research topic and the motivation for choosing it:
In the past, the products of an organization, whether services or goods, were purchased by customers, and organizations did not have any special concern for making changes and transformations in their system and improving it. In other words, customers were forced to buy any type of product that was found in the market. But little by little, with the increase in the number of manufacturers and the appearance of competitors, most customers were not forced to buy and choose their products, and the variety of products and providing organizations was so great that customers could choose the products they needed with the appropriate and desired options. Rapid technological developments, increased risks, globalization and expectations of privatization are the features of the environment that current business organizations face. To succeed in this environment, agility creates a competitive advantage that can be maintained with a reputation for innovation and quality. (Mehdi Karbasian et al.; pp.: 22-107; 2019) Therefore, in the last two decades, by applying the concept of supply chain management in industries, the topic of supplier selection has attracted a lot of attention, and various identification methods have been presented for it. (Qudsipour et al., 1998) Since the raw materials and parts needed for production machinery account for the most important part of a company's costs, correct purchasing management is of significant importance in the efficiency, effectiveness and profitability of an organization. Suppliers and customers are no longer known as competitors of the organization, but are members of a main set called "supply chain", the goal of each of which is to maximize profits and increase the productivity of the entire supply chain. Thus, it is quite clear that deciding on the choice of supplier plays a significant role in the production and logistics management of factories, and many experienced companies believe that the choice of supplier is the most important activity of an organization. Also, because the performance of suppliers has a fundamental effect on the success or failure of a chain; Choosing the best supplier is known as a strategic task. As a result, incorrect decisions in the field of supplier selection will have negative consequences and many losses for the company. Choosing suppliers who can meet the quality requirements of the company is one of the duties of the supply department. Quality also puts supply in the flow of suppliers' quality performance so that this information can be used in the future selection and evaluation of suppliers. Over the past years, the reliance of organizations on the provision of needed supplies has increased, so that a large amount of the basic needs of factories are provided by suppliers and outside the organization.