Providing an practical model of contractor selection and prioritization in project - based companies (Case Study: MAPNACompany)

Subject Areas : Industrial Management

HOSEIN KARBAKHSH RAVARI ¹ , sanjar salajegheh ² , ayyub Sheikhi ³

1 - PhD. student,Management,Faculty of Literature,Islamic Azad University of Kerman ,Kerman,Iran
2 - Associate Professor, Management,Faculty of Literature,Islamic Azad University of Kerman,Kerman,Iran
3 - Associate Professor,Department of Statistics, Faculty of Mathematics and Computer, Shahid Bahonar University of Kerman,Kerman,Iran

Received: 2019-07-30 Accepted : 2019-10-09 Published : 2020-01-18

Keywords: prioritization, Grounded Theory, MCDM, Selecting contractor,

Abstract :

Accurate decision making for selecting contractors in order to manage a project is one of the most important factors of success and enhancing productivity of a project. So, extracting a practical model from the set of factors affecting the selection of contractors can play an important role in improving the project performance, therefore, providing the proposed model is the main objective of this fundamental-applied research. The approach of this research is the integration of the qualitative and quantitative research and the statistical community are the experts of project management. At first, the model structure has been explained by analysis of data collected from the fundamental data theory approach. In the next step to test the conceptual model of research and hypothesis, the method of confirmatory factor analysis and structural equations based on variance was used using partial least squares method and data processing was performed using SMART PLS software. In the last step, to improve and applicability of the model, fuzzy analytic hierarchy technique, the weight of the criteria has been measured and prioritized .Finally, using fuzzy TOPSIS technique, an applied sample of contractor selection has been implemented. The results show that for the efficient selection of a contractor, by using a proposed model based on the determined coefficients and prioritize the sub-criteria of behavioral and technical capability, the company's capabilities and outsourcing goals, the achieving of optimal decision-making conditions is possible.

References:

1-   Banaitienė, Nerija. Neringa GudienėAudrius Banaitis, Jorge Lopes. (2013). Development of a Conceptual Critical Success Factors Model for ConstructionmProjects: a Case of Lithuania. 11^th International Conference on Modern Building Materials, Structures and Techniques, MBMST.

2-        Chan, R., Kumar, M. (2007). Lean management model for construction of high-rise apartment buildings. Journal of construction engineering and management American Society of Civil Engineers, Reston, 133(5): 374-384.

3-        Chen, Chen- Tung, Sue- Fen Hung. (2007). Applying fuzzy method for measuring criticality in project network.International Journal of Information Sciences 177:2448- 58.

4-        Chen, M Bubshalt. A. A. & Al-Gobali, K. H. (2013). Contractor prequalification in Saudi Arabia. Journal of Management in Engineering, 12: 50–54.

5-        El Mokadem, M. (2017). The classification of supplier selection criteria with respect to lean or agile manufacturing strategies. Journal of Manufacturing Technology Management, 28 (2): 232-249.

6-        Fikri, Dweiri. Kumar, Sameer. (2016). Designing an integrated AHP based decision support system for supplier selection in automotive industry. Expert Systems with Applications, 72(15): 467-468.

7-        Hasani Derakhshandeh, Sholeh. (2017). Multi-criteria Decision Making Technique for Selecting the Best Oil and Gas Equipment Supplier. 5^th International Conference on Economics. Management, Accounting with Value Creation Approach. Shiraz.

8-        Herroelen, W.S. Leus, R. Demeulemeester, E.L. (2014). Critical chain project scheduling-do not oversimplifies. Project Management Journal 33(4): 46–60.

9-        Hosseinpour, Afsaneh. & Mahmoud Alborzi. (2017). Combining Data Envelopment Analysis and Hierarchical Analysis Process in Selection of Contractors Tendered. 2^nd International Conference on Management and Accounting. Tehran.

10-    Jain, Vipul. & Kumar, Arun. (2018). Supplier selection using fuzzy AHP and TOPSIS. Neural Computing and Applications, 29 (7): 555–564.

11-    Monfared, Masoud & Salari, Masoud. (2016). Investigating Selection of Top Contractors by Considering the Role of Internal Resources of the Organization. Project Management Quarterly, 3 (1): 18-27.

12-    Olson, N, Soetanto, AR J Dainty, J Glass, A D F Price. (2006).Towards an explicit design decision process: the case of the structural frame. Construction Management and Economics, 24(6): 603-614.

13-    Samiaah M. Hassen M. Al-Tmeemya, Hamzah Abdul-Rahmanb, Zakaria Haruna (2011). Future criteria for success of building projects in Malaysia, International Journal of Project Management

14-    Sarayloo, Zahra & Farhadi, Ali. (2017). Supplier Selection and Ranking Using Delphi Techniques, Hierarchical Analysis and Taguchi Loss Function. 2^nd International Conference on Management and Accounting Techniques, Tehran.

15-    Taghvaei, C. Hadyeh & Esmaeilian, Majid. (2017). Supplier Evaluation and Ranking Using a Combined Approach of Kano and TOPSIS Methods in the Fuzzy Environment. 2^nd International Conference on Industrial Management. Babolsar, University of Mazandaran.