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Tenaga Nasional Berhad 108 Annual Report 2009Operations reviewprocurement (Cont’d.)the Asia Pacific region. The memberscollaborate on supply chain managementactivities, share experiences and developcommon processes and systems, improvingefficiency and generating savings for boththeir companies and their suppliers.APUG is a reliable and independent sourceof intelligence information necessary inoperationalising TNB’s procurementintelligence functions. APUG also provides asupport network through other memberutilities, as well as the introduction to keyindustry contacts such as alternative andniche suppliers, and commodity consultants.This will be beneficial to TNB in terms ofknowledge sharing in developing procurementbest practices, strategies, procedures aswell as commercial and technologyintelligence.• Value ManagementValue Management is a rigorous, systematiceffort to improve the value and optimise thecost of projects, facilities, systems, productsand procedures without sacrificing therequired performance levels. Theimplementation of Value Managementprovides opportunities to identify and realisesavings and optimise costs for TNB. This isachieved through mobilisation of crossfunctional teams to rationalise and challengeproject specifications against projectfunctional requirements, with the aim ofmaximising TNB’s overall performance. Fourpilot projects were successfully completedand the Value Management Framework wasapproved by the management for furtheroperationalisation of Value Management inTNB’s business processes.• Heads of ASEAN Power Utilities/Authorities (HAPUA) Procurement CircleThe HAPUA Procurement Circle headed byTNB was established to serve as a platformfor ASEAN member countries to shareprocurement best practices and provide analternative source of information forprocurement market intelligence. Its thirdmeeting was successfully held in Jakarta,Indonesia in February 2009, and hosted byour counterpart, PT PLN (PERSERO). Amongothers, the meeting agreed that there aresignificant tangible, intangible and potentialbenefits to be derived from the HAPUAProcurement Circle. These include actualrealised savings, stronger bargaining power,networking relationships, best practicesbenchmarking and sharing of information.Process ImprovementGuided by the ISO framework, ProcurementDivision conforms to approved and up to datestandardised processes, procedures, and workinstructions for all quality activities. The qualitymanagement system helps to achieve theDivision’s targets and objectives through aclosed-loop ‘Plan, Do, Check, Act’ (PDCA) cyclewhich provides the capability to control, measureand continuously improve our processes.To date, thirty three procedures and nine workinstructions relating to procurement had beendeclared MS ISO 9001:2008 certified after there-certification audit conducted by SIRIM inJanuary 2009.TNB Vendor Development ProgrammeTNB Vendor Development Programme is part ofthe Company’s initiative to support the NationalDevelopment Policy. In addition it helps to ensurematerial supply reliability to TNB. Through thisprogramme, vendors are selected and developedto manufacture products and provide servicesthat meet TNB’s requirements and businessneeds without compromising the quality. Thisprogramme promotes the utilisation of localmaterials and specialised services which havethe ability to ensure competitive pricing thuspromoting and sustaining local industries. Todate, there are eighty vendors under theprogramme.