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Contents:
Overview
J. Ray McDermott operates an international purchasing network,
handling purchases in excess of one billion US dollars per year,
through which global sourcing and procurement of materials is
accomplished to ensure that equipment and materials are provided
at the overall lowest landed cost to meet budget, contractual,
schedule and quality requirements. The purchasing department is
responsible for:
- Purchasing
- Expediting
- Inspection
- Traffic
Purchasing
 The
purchasing group ensures that requisitions are received with appropriate
specifications and that quotations are issued to "approved"
vendors. Final vendor selection is coordinated after client consultation
and approval if required.
Assigned buyers negotiate with selected suppliers and issue purchase
orders through our in-house computerized Standard Purchase Order
& Requisition Tracking System (SPORTS™).
Our buyers deal with vendor order acknowledgements as well as
potential re-orders and handle any discrepancies between the supplier's
invoice and our original order.
SPORTS:
Procurement functions are processed and in SPORTS. This system
is used to control all aspects of procurement, from requisition
data entry to receipt of goods at foreign destinations. System
output includes purchase orders, procurement plans, expediting
reports, manifests, and receiving reports. The system can receive
electronic input of bulk material purchase lists and can direct
such lists to any McDermott location for ordering. Also, included
in SPORTS is the facility to electronically generate priced material
lists based on recent past purchases.
Expediting
The expediting department has the prime responsibility for ensuring
that purchased items are delivered by the promised dates while
verifying that promised deliveries are compatible with vendor
shop loads and that progress is in accordance with the agreed
plan. In addition to expediting delivery of equipment and materials,
expediting also coordinates the delivery of vendor data and drawings.
Items critical to the project schedule are vigorously and continually
expedited by telephone, fax or email and, where required, visits
to vendor manufacturing facilities.
Inspection
 The
prime responsibility of the inspection department is to ensure
that all materials and equipment comply with the requirements
ofboth the purchase order and the project specifications. Tests
are conducted on materials or equipment to verify compliance with
purchase order requirements, using in-house or third-party inspectors,
to obtain correct, completed certification for the items or materials
inspected.
Inspection of major equipment will typically include the following
activities:
- Pre-inspection meetings - at vendor manufacturing sites, pre-fabrication
- Interim shop inspections - announced or unannounced, at vendor
manufacturing sites
- Nondestructive examinations
- Pressure tests
- Protective coatings
- Final inspections and acceptance testing
- Shop testing
Traffic
The traffic department coordinates all material movements to
ensure that all material shipping data is entered into the SPORTS
system.
This enables traffic personnel to check shipping status, arrange
necessary import permits and clearances, verify freight invoices
and process damage claims.
Export shipments may be directed to pre-established freight forwarding
and export packing locations. The freight forwarding agent/packer
has on-line access to SPORTS and is thoroughly familiar with our
company packing and shipping requirements.
Site Material Control
A dedicated project procurement coordinator controls all procurement
activities for each project.
The company's PC-based Site Material Tracking System controls
warehousing and issuance of bulk material and is capable of receiving
downloaded information from both the material take-off department
and SPORTS.
All purchased and/or client supplied materials are received by
the yard warehouse in Jebel Ali or Batam Island and are checked
against the purchase orders/delivery list to verify conformity
to description and quantity. The materials are inspected to ensure
conformity to specification requirements before being logged into
SPORTS and the material control systems. Non-conformances, where
identified, are also logged into SPORTS for further handling as
appropriate.
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