Supply Chain Management Practices on Life Cycle Costs of Marine Equipment in Offshore Vessels: A Life Cycle Management Approach

Abstract

This study aims to assess the level of importance and extent of implementation of downstream Supply Chain Management (SCM) practices on life cycle costs of marine equipment in offshore vessels of Swire Pacific Offshore in a life cycle management approach. The data gathered on this study serve as the basis for the proposed improved downstream SCM practices on life cycle costs of marine equipment. This study is a descriptive-correlational type of research employing a survey questionnaire, validated by a panel of five Subject Matter Experts, which was administered to 63 respondents from three different strata: ship-owner, shipbuilder, and suppliers. The data were collected, tallied, tabulated, ranked and analyzed using the appropriate statistical tools. In the respondents’ assessment on the level of importance of downstream SCM practices on life cycle costs of marine equipment of offshore vessels of Swire Pacific Offshore, the computed average weighted means show that all downstream SCM practices were at least recognized by the respondents and interpreted as “important” and “very important”. On the extent of implementation, the computed average weighted means show that all downstream SCM practices were at least “implemented” and “somewhat implemented”. In the tests of significance, it was observed that the distribution of the respondents’ assessment on the extent of implementation of Supplier-Customer Partnership and Leadership, Cost Reduction Mechanisms, and Measurement and Continuous Improvement SCM practices were statistically significantly different when grouped according to Type of Business Entity. On the extent of implementation of Supplier-Customer Partnership and Leadership, Strategic Planning and Design Process, and Measurement and Continuous Improvement SCM practices, it was observed that there were statistically significantly differences when grouped according to Group of Marine Equipment Key Players. On the extent of implementation of Strategic Planning and Design Process SCM practices, it was observed that there was statistically significantly difference when grouped according to the Number of Years of Operation.