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Developing Construction Project Material Procurement Strategy using Integrated FMEA-DEA Approach in Kraljic’s Portfolio Matrix

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  • Muhammad Insan Kamil
  • Nur Budi Mulyono

Abstract

This research aims to develop procurement strategies for the Central Services Division at PT Freeport Indonesia, focusing on construction material procurement. The study integrates Failure Modes and Effects Analysis (FMEA), Data Envelopment Analysis (DEA), and the Kraljic’s Portfolio Matrix to address inefficiencies and improve material management practices. These methodologies help identify critical risk factors, assess supplier performance, and categorize materials based on their impact and supply risk. The study identifies that the procurement items are distributed across the Kraljic quadrants as follows: six items in the Leverage quadrant, ten items in the Strategic quadrant, nine items in the Bottleneck quadrant, and nine items in the Non-Critical quadrant. The findings provide a robust framework for enhancing procurement strategies, leading to cost savings, reduced material wastage, and improved operational efficiency.

Suggested Citation

  • Muhammad Insan Kamil & Nur Budi Mulyono, 2025. "Developing Construction Project Material Procurement Strategy using Integrated FMEA-DEA Approach in Kraljic’s Portfolio Matrix," European Journal of Business and Management Research, European Open Science, vol. 10(1), pages 127-136, January.
    • Handle: RePEc:epw:ejbmr0:v:10:y:2025:i:1:id:52425
    DOI: 10.24018/ejbmr.2025.10.1.2425
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