Introduction
GAAM International, an internationally reputed company for hydraulic systems, building systems and metal products has 3800 employees operating at 27 facilities in seven countries.
To retain its competitive edge it has decided to investigate its departments and we are now about to analyse its purchasing department and provide inputs and recommendations for improving upon the current processes.
Purpose
The purpose of this analysis is to understand the “procurement process of the purchasing department” as it currently works for placing purchase orders for its inventory as well as Material, Repair and Operaions (MRO) supplies. The scope is to work out betterments to improve upon it. As such, the current process starts from the receipt of MRO cards / requisition slips to placement of the purchase order and ends with the distribution of the requested material to the concerned.
Participants; Inputs and Outputs
• Participants: There are mainly 4 participants in the purchasing department itself –
o A Purchasing manager
o 2 MRO buyers
o And a Secretary / Clerk
Apart from the purchasing department, the purchase requests are raised by 36 different individuals within the company. It must be ensured that the materials they request for reaches them properly and on a timely basis
• Inputs and outputs
MROs and purchase requisition slips are raised by 36 individuals from various departments. They are to be delivered all items as per the MRO card / requisition slips raised forming the deliverables at the end of the process.
Process flow – Textual
The purchasing activity starts with the raising of a MRO card which is used for the items purchased on a regular basis. For this, there are about 36 different individuals representing different departments from where the purchase requests can come. If it’s

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