Wednesday, March 19, 2008

A Decision Making Model in Purchasing Operations, a look into the Marikina City Hall

Prof. Sofronio C. Dulay, AB (UP), MDM (AIM)
Consultant, Office of the Mayor, Marikina City

A general impression is that students who take doctoral studies are so conceptual, they exist in the ivory tower and lacks savvy in the ground level. As in the garbage can theory, these students have the “collection of choices looking for problems, issues and feelings looking for decision situation in which they might be aired, solution looking for issues to which they might be the answered and decision makers waiting for work.”[1] The trick therefore is to make some sense of what these students know by way of making them relevant and doable to the ground level, on concerns that matters on the daily lives. This paper therefore wishes to connect a theoretical public administration concept like decision making to a grounded concept like purchasing.
Unfortunately, the term purchasing is not even in the book of H. George Frederickson, The Public Administration Theory Primer, basing on its index, despite the fact that purchasing is very important part of any organization, or said negatively, it is the main source of corruption in most organizations. This leads me to a conclusion that there is an intellectual culture in the doctoral studies of public administration that seem to be avoid clear – cut and mundane topics in favor of fuzzy and speculative concepts, a case of trying to appear sophisticated in the midst of clear - cut discourse, which at its extreme worst, borders on intellectual dishonesty.
The closest thing to purchasing discussed in the said book is contracting out. “In the last fifteen years, a steadily increasing percentage of public activities are carried out “indirectly” by contractors and for virtually every conceivable government functions. The work of public administration is increasingly ….management of contracts.”[2]
One thing noticeable however in the discussion of contracting out concept in the book is that it seems to be independent or stand alone from purchasing management when in fact, a portion of purchasing management is the processing and the awarding of contracts.
Anyway, for the purpose of this paper, purchasing of goods or services is synonymous to contracting out in simpler sense since both of them require a third party to do the job - provide services, or goods to the government in exchange for a sum of money. I need to intentionally simplify the concept to pull down the discussion from the ivory tower to the ground level. I will not even attempt to touch on the legal side of purchasing because it may hinder my discourse trying to fit this paper into the legalities. This is more true in the Philippine context where bureaucratic capture is strongly probable, making our laws a piece of paper with full of loopholes and are designed to be broken.
In the recent Senate hearing for instance about the ZTE Deal, the star witness Jun Lozada, a management practitioner, said that there is a dysfunctional purchasing management in the Philippines, (maybe he is referring to the top level government purchasing). The dysfunction is rooted on the fact that projects here are supplier driven rather than buyer driven. Furthermore, projects are decided by people like him, Consultants, who are not direct accountability to the people.

Purchasing operations as defined in the management books
As stated in my objectives, this paper seeks to bring down the public administration concept to the ground level and this can be done by benchmarking my concepts and terminology on mainstream management textbooks. “Purchasing management refers to all activities required to manage supplier relationships. It is focused on structuring and continuous improvement of the purchasing process within the organization and between the organization and its suppliers. Purchasing management, hence, has an internal aspect and external aspect. The idea behind purchasing management is that if suppliers are not managed by their customers, the customers relations will be managed by the suppliers”.[3] Put in the current lingo, the purchasing management of a certain country is not buyer driven, it will become supplier driven. Therefore, it is necessary that the Marikina City Hall for instance, or any public organizations for that matter should be on top of the purchasing process and should dictate the tempo in order to squeeze the suppliers with the best deal for the lowest cost for the good of the government and by extension, of the people. The purchasing process should be mastered and reviewed regularly to avoid connivance between the agents of the suppliers and the agents of the buyers, because connivance is the breeding ground for capitulation or corruption.

The Importance of Purchasing Management and Contracting out
If we look at contracting - out as engaging the non-government sector to perform traditional services being done by the public sector in a relatively bigger scale than before, then, contracting - out is threading on a policy level issue and not merely on the technical level of purchasing management. Is the policy of contracting - out good for governance? Without the corruption in the technical level purchasing, contracting - out is maybe less costly and even more efficient because the buyer (government) can squeeze the best out of the suppliers in terms of quality and timeliness. It will also prevent the bloating of personnel since there will be no regular employment obligation between the buyer and the personnel of the suppliers. The burden of providing regular employment to the workers is transferred from the buyers to the suppliers ”In abstract and theoretical sense, it is argued that contracting out should allow managers to focus on goal setting, performance standards and policy framing – referred to in the popular literature as steering and leave the contractors to do the rowing.”[4] Contracting may result in further hollowing of the government and relatively, strengthening of the non government sector and the international community. Is this a good phenomenon? The answers to this will depend upon what kind of lens are one is using. For “no matter how compelling and relentless the “here and now”, the daily world of administration, its underlying nature and broad aims, are always open to conflicting views. In short, what the field “is” (or should be), depends on the lookers.”[5] If one is using the lens of the state, contracting out will not lead to a tightly controlled administrative apparatus and therefore is not good. Using the lens of the market, contracting out is good because it would mean bigger possibility of cornering a contract from the government. From the lens of civil society, contracting out is good because it will entail greater and more direct public involvement. What is therefore the best lens to look from? The basic logic of the now popular Balance Score Card approach is the way to go, meaning, the notion of contracting - out should be viewed through the lens of an integrated public governance, which “assumes that dispersed public action must remain integrated from the standpoint of the government’s central role and administration ‘s involvement is that role.”[6] All we need to do from here is to go back to the basic, which the government is one of the four elements of the state, in addition to sovereignty, territory and population. Abandoning government’s role is just like abandoning the state, which in the long run will lead to either a stateless society or a world government.
During the early years of the term of Engr. Bayani Ferrnando as the Mayor of Marikina City (now the MMDA Chairman), he introduced the concept of “by administration”. In doing public works. “by administration”, is the antinomy of contracting - out. It means the government will be the one to do public works that are usually done by the private contractors. The result of Bayani Fernando’s ‘by administration” approach is tremendous. The Marikina government was able to build more roads and other infrastructures given a certain budget. One reason for this is that the profit margins that could have gone to the contractors are added to the budget. Also, the corruption side or the “tongpats” that usually goes to the corrupt government officials are also added to the budget. Ballpark estimates roughly peg a cool 30 to 40 percent is added to the budget by just implementing the “by administration” concept.
But whether one will do contracting out or “by administration”, a good purchasing management is a must because “an analysis of the cost structure of manufacturing companies immediately shows the importance of purchasing to organizations. In general, the largest part of the cost of goods sold is approximately 50%. If the other business costs, which have important purchasing component are added to the purchasing value, the total amounts to approximately 68%.”[7]
Since a good purchasing management had been determined as a requirement for good governance - whether contract - out or by administration - then organizations might as well focus on the mastering the universal purchasing process, which is as follows:
STEPS
ROLE
ELEMENTS
DOCUMENTS
1. Define specifications

Get specification
1.Funstional specifications

2.Technical changes

3. Bring supplier knowledge to engineering
1.Functional specification

2.norm/spec control
2. Select supplier

Assure adequate supplier selection
1. Prequalification of suppliers.

2. Request for quotation
Supplier selection proposal
3. Contract agreement

Prepare contract

1.Contracting expertise

2. Negotiating expertise
Contract
4. Ordering
Establish order routine
1.Develop order routines

2.Order handling
Order
5. Expediting
Establish expediting routine
1.Expediting

2.”Trouble shooting”
1.Exception report

2.Due date listings

3.Invoices
6. Evaluation
Assess supplier
1.Supplier evaluation

2.Supplier rating
1. Preferred supplier list

2. Supplier ranking scheme
Figure 1: Six Steps in Purchasing Management

Take note that Steps #1 and #2 of Figure 1: Six Steps in Purchasing Management will require the steps in Figure 2: Steps in Decision Making

Decision Making in Purchasing Management
Based on the above purchasing process, the most important part (as well as the most prone to corruption) is Step #3: Contract Agreement, which is the step where the buyer (Marikina City Hall for instance) will have to prepare, negotiate and award the contract. This is the stage where corruption occurs, because it is in this stage, particularly the negotiation stage, where the “tongpats”, “bukols” are being negotiated. A real corrupt government unit can start as early as in Step #2 by eliminating other suppliers and accrediting only one. So, if one sees that there is only one supplier in the bidding, it should already attract attention as probable site of a “killing”. A real advance corrupt government will go as far as Step # 1 by playing with specifications and making sure that only one supplier will qualify. The ZTE deal has the making of this advance state of corruption when the loan release from the China government specifies that ZTE will get the contract.
In a backdrop of a corrupt government, good decision making will not work, because the prerequisite for a good decision making procedure will be diluted. But let us work on a normal scenario where corruption is under control. Under this scenario, Step #3 is very important because “a decision is a choice from among the available alternatives. Decision making is the process of developing and analyzing alternatives and making a choice.” Dessler,p108. This is a management textbook definition appears to be very clear - cut, a hallmark of management academic discipline and devoid of fuzzy and speculative “ifs and buts” which on the other hand seems to be the prevailing culture, at least, in the doctoral level of public administration. This culture of fuzzy “ifs and buts” might breed graduates who know a lot data and information, who know a lot of rationalizations but are not well verse in decision making and implementation. I remember a staff of mine who was good in rationalization (explanation why something can not be done) and another staff who is good on how to do a thing. Guess who became successful later on their careers?
As a further criticism to the culture of the doctoral level public administration study, it seems that our culture is “clear-cut averse”, meaning avoidance of a straight line definition and categorization in favor of seemingly sophisticated but patently intellectually dishonest environment of hiding from among so many fuzzy “ifs and buts” to the point of not arriving to the consensus or definite conclusion. To some academicians, not arriving to the consensus, or to a universal “best way” in the tradition of time and motion study on Frederick Taylor, is a perfect educational experience or a manifestation of democracy, but to the practitioners of decision making, this is the height of training for indecisiveness. We are training rubble rousers, not honest and efficient administrators, by mixing the concept of democracy and efficiency. Just to add to my observation, let me show you a definition of decision making that has been indexed by Frederickson himself in his book under “decision making”. “The bureaucratic decision rules hypothesis……holds that government services are allocated according to rules formulated in the bureaucracy. Most research on urban service delivery tends to reject the underclass hypothesis and the elections hypothesis and to support the bureaucratic decision rules hypothesis.”[8] It seems indeed that our doctoral culture tends to encourage fuzzy reactions to a fuzzy statements, accepting them as very profound and sophisticated, until the whole system has been buried into the avalanche of fuzzy concepts reaching to the symbolical question of Gary Wamsley, as away of a title to his book: “From Reorganizing to Reinventing: Sixty Years and “We Still Don’t Get It”.
After criticizing badly the intellectual culture of the academic discipline that I intend to have a doctorate degree with, and with due apology, I wish to remain clear - cut by defining the steps in decision making, to wit;
STEPS
DESCIPTION
1.Identification of a problem
Decision making is just a part of problem solving. You decide to do a certain alternative because you want to address a problem. A problem exists went her is a gap between a desirable or a necessary situation with the actual situation,

2. Identification of a decision criteria
Simply put, one has to put the basis from which to select the best among the given alternatives. Without the criteria, one will have no basis why it selected an alternative. Criteria must be universally proper and must be known to all stakeholders.
3.Allocation of weights to the criteria
The weight will show the value system, or what is important to the organization and to decision makers. The weights should follow the rule of probability, that is, the summation of all the probabilities of the weights of all criteria should be equal to one.
4.Develop alternatives
“Whether we are choosing between alternative plans, job, candidates, cars or computers, the existence of some choice is a prerequisite to effective decision making. In fact, when a manager has no choice, there really isn’t any decision to make.”[9]

5.Analyze the alternatives

Analysis may go quantitative when dealing with cost, price or profit. Contrary to some impression, values can be analyzed quantitatively by way of weighted ranking. This is one of the highlights of this paper, the reconciliation of Herbert’s facts orientation and Waldo’s value orientation in decision making, into a clear – cut mathematical model.
6.Make a choice
This is the decision making part, selecting the best from among the given alternatives using the set criteria.
7.Implementation of the decided alternatives
A decision is useless if it is not implemented. Although one can also argue that to implement a decision or not to implement is in itself a decision.
8.Evaluation of decision effectiveness
Evaluation is necessary to see if the decision is good and the implementation of the decision is efficient. The decision making steps can be considered a cycle. After the evaluation, one can go back to step #1 or review step #7, and then prescribe a better one.
Figure 2: Eight Steps in Decision Making

Take note that from Step # 1 to Step #6, the sequence is called decision making. From Step #1 to Step # 8, the sequence is called problem solving. From Step #1 to Step# 4, the sequence is called structuring the problem. Step #5 is called analyzing the problem. Step # six is making a decision. Analysis can be qualitative and quantitative. Also take note that Figure 1: Six Steps in Purchasing Management, are regular activities being done by most big organizations. It is usually headed by a senior manager. Figure 2: Eight Steps in Decision Making can be a part of Figure 1, especially in deciding to which supplier a certain contract will be awarded.

Herbert Simon’s Idea on Decision Making
The first time I encountered the name Herbert Simon was in the subject I am teaching in the university, mathematical modeling in the Quantitative Approach to Decision Making. As a way of encouraging my students to use mathematical modeling sparingly, I keep on quoting Simon who said that mathematical model need not be perfect. It only has provide data for decision making that are slightly better than what one could have got had one used mere common sense. I thought then that Simon is one of us, a true blue management guy. When I enrolled in my doctorate in public administration, I realized that Simon is an icon in public administration. When I was assigned in the class to report on Simon, I discovered that Simon’s Nobel Prize is on economics. The more I know Herbert Simon, the more omnipresent he is in the different academic disciplines.
There are lots of topics in which Simon has expounded, but on this paper, I will only touch on two of his important concepts that have relevance on decision making: bounded rationality and satisficing.

Rational versus Bounded Rationality

“Managers, says decision - making expert Herbert Simon, have to juggle so many problems and assimilate so much information that even an approximation to complete rationality is hard to achieve.”[10] That is why, “decision making as it is portrayed in Administrative Behavior is purposeful but not rational. Rational decision making involve a comprehensive specification of all possible outcomes, in order to choose the single alternative action that is best – but such comprehensive calculation is not possible. In this way, Simon introduced his well – known on limits to human rationality. Administrative theory, he argued, must be concerned with the limits of rationality, and the manners in which organizations affects those limits. Organization makes it possible to make decisions because they constrain the rest of alternatives to be considered and the consideration that can be trusted as relevant. Organization can be improved by improving the ways in which these limits are defined and imposed.” [11] Looking at Figure 2: Eight Steps in Decision Making, bounded rationality can be applied in structuring the problem sequence, meaning Steps #1 to #4. In effect, putting limitations on the number of alternatives and on the criteria means that one is putting the boundary to the structure of the problem, which will make decision making lot easier and doable.



Satisficing versus Optimizing
“A particular important difference between the rational and the bounded rational decision making is this: the rational manager continues to review solution until he or se finds the optimal choice, while in contrast, managers in practice often “satisfice.” To satisfice means that managers in practice tend to be concerned with just discovering and selecting satisfactory alternatives, and only in exceptional cases with finding optimal alternatives. This is not to say that managers don’t try to be rational; it is simply recognizing the fact that, in practice, their attempts to be rational will be limited or “bounded” by the sort of decision-making barriers.”[12] Searching for optimal solution through lots of data and information gathering and analysis will lead to phenomenon of ‘paralysis of analysis’ , meaning, one can not simply move on to decision making and implementation stage because one is bugged down on making too complicated analysis. In the real word, time is of the essence - time is gold. Losing time through rational decision making’s optimal solution is a waste of resources. Successful managers are those who have the knock to decide based on limited available information.

Dwight Waldo’s Take on Decision Making
If we try to simplify Simon and Waldo, just for memory aid, using Waldonians antinomies, Simon appears to be positivists, or in a common lingo, quantitative. Waldo appears to be more qualitative. Simon is closer to facts while Waldo is closer to values. In fact, Waldo linked “public administration to the history of ideas, and challenged the field to consider other form of inquiry as reliable criteria to decision making and action.”[13] Waldo is reacting to the extreme fascination of Herbert Simon to positivism and facts. Waldo objects to the idea that efficiency is a value neutral concept. He “believes that here is no realm of ‘factual decisions “from which values are excluded. To decide is to choose between alternatives; to choose between alternatives is to introduce values.”[14] In a way, Simon argued with Waldo that facts and values can co – exist in decision making when he wrote in response to Waldo: ” no one who has studied seriously the writing of logical positivists, or my own discussion of facts and values in Administrative Behavior, could attribute to us the “proposition that there are “value decisions” and “factual decisions.”[15] Although they traded intellectual insults, only few scholars have highlighted the fact that Simon and Waldo has no major disagreement on this, that facts and values can be co equal tools in decision making.

A decision making Mathematical Model that reconciles the debates of Simon and Waldo Over Facts and Values, call it “Marikina Model of Decision Making.”

Six Important Characteristics of the “Marikina Decision Making Mode”l:
It applies bounded rationality rather than optimal rationality.
It adopts the concept of satisficing.
Facts (Simon) and values (Waldo) are recognized as co equal requirements for coming out with decisions.
Uses the Eight Steps in Decision Making. When applied to purchasing, the Eight Steps in Decision Making will become an integral part of the Six Steps of Purchasing Management.
It follows basic rules in mathematics, like the rules on probability, summation, percentage and ranking
Designed to prevent corruption.



Basic Template:
STEPS
Mathematical Modelling
1.Identification of a problem
State the problem in a very simple way.
Example: the Marikina needs a city wide broadband network to connect all government offices all over the city and enhance E-Governance.
2. Identification of a decision criteria
List the basis to select the best project proposal:
Example: (lets assume that these are the criteria set by the committee called by Mayor Marides Fernando, composition of the committee is multicultural)

Quantitative (facts/Simon):
1. Bid Price
2. Capitalization
Qualitative(values/Waldo)
2. Nationalism
5. Good quality
3.Allocation of weights to the criteria
Give weights to the 4 criteria (2 quanti/2 quali). In actual, one can add or subtract any criteria.
Example: (Assume that the committee gave the following weights)
Criteria percentage probability
Price 50% .5
Capitalization 10% .1
Nationalism 20% .2
Quality 20% .2
------- -----
100% 1
4.Develop alternatives
List the bidders who pre qualified and who submitted the sealed bid on or before the deadline. It should be at least 3. No connivance from among them.

Example:

ZTE
PLDT
Amsterdam Holdings

Take note that the alternatives are those who pre qualified in the call for bidding. If the committee tried to disqualify all bidders except one, it is an indication that someone is trying to set up the bidding for a kill.


5.Analyze the alternatives
1. Tabulate the basic offers of the bidders on the 8 criteria

Example:
Bidders Criteria
--------- -------------------------------------------------------
1 2 3 4
P C N Q

1.ZTE $350M $10B China 2nd class

3.PLDT $100M $ 5B RP US

4.AH $ 125M $ 10M US Europe
2. Rank them in every criteria:

Bidders Criteria
--------- -------------------------------------------------------
1 2 3 4
P C N Q

1.ZTE 3 1 3 3

3.PLDT 1 2 1 2

4.AH 2 3 2 1


3. Compute:

Formula –
Final Rank= Summation of Rank x Probability

Bidders Criteria
--------- -------------------------------------------------------
1 P 2 P 3 P 4 P
P .5 C .1 N .2 Q .2

1.ZTE 3 1.5 1 .1 3 .6 3 .6

3.PLDT 1 .5 2 .2 1 .2 2 .2

4.AH 2 1.0 3 .3 2 .4 1 .4
4. Final Summation Summary of Probabilities and Ranks/ declaration of winning bid.


Bidders Criteria
--------- -------------------------------------------------------
Summation/P Rank Final Choice


1.ZTE 2.8 3rd

3.PLDT 1.1 1st WINNER

4.AH 2.1 2nd

6.Make a choice
Pick the best alternatives according to the criteria, weights and mathematical model.

Example:

Based on the computation, we must pick PLDT as the winning bidder

7.Implementation of the decided alternatives
Press release the result of the bidding.
Inform all the bidders and the committee of the result of the bidding.
Inform PLDT that they won the bid.
Coordinate the contract signing
Facilitate the paper works.
8.Evaluation of decision effectiveness
Evaluate the whole procedures and take not of the exceptions.
Evaluate the implementation.
Figure 3: Mathematical Modeling and Computation of Marikina Model of Decision Making
A Narrative on the Current Purchasing Operation’s Practices in the Marikina City Hall

In my earlier paper, I wrote about public administration, the Marikina Way. The paper documented the eclectic approach of getting judgementally the applicable theories and concepts and applying it to the ground level, in that case, a local government unit Marikina City. The proposition is this, just like in a garbage can theory, if an organization was able to select and apply the most appropriate theory given the circumstances of the organization, then, the result will be good. The trick on this assumption is to be able to know when to apply the and where. This by itself requires talent and value judgment.
Apparently, the public administration theories and concepts that had been applied in Marikina is the right eclectic pick. “Proof positive of the city's standing in the league of metropolitan cities in the Philippines are the numerous awards and citations that have been bestowed. Marikina was first awarded as The Cleanest and Greenest City not only in Metro Manila but in the entire Philippines which Marikina was the first local government to set as Hall of Famer in that category awarded by the Philippine government. The most recent and most prestigious award received the city of Marikina was the Most Competitive Metro City in the Philippines from the prestigious Asian Institute of Management (AIM) Policy Research Center, Asia Foundation, International Labour Organization (ILO), German Technical Foundation, and Konrad Adenauer Stiflung, and the Continuing Excellence Award in Local Governance given by the Galing Pook Foundation, DILG, Local Government Authority and the Ford Foundation. Marikina was the first local government in the Philippines that has been honored with the prestigious Global 500 Roll Of Honour of the United Nations Environmental Programme (UNEP). Marikina also placing one of the Most Healtiest and Livable City in Asia-Pacific region. It won over 150 awards and recognitions, both local and abroad, in a span of just 15 years. Marikina has become an ideal location for industry, business, commerce and for residences. Marikina was also one of the host cities of the recent 23rd Southeast Asian Games in the Philippines which held the women's football event at the Marikina Sports Park.”[16]

This paper, on the other hand, boldly name a decision making model as “Marikina Decision Making Model” which features 8 characteristics, including a reconciliation of the conflict of Simon and Waldo on facts and values. Am I so enamored with my hometown that I always make it a point to name a cooked up concept and name after it? Actually, my objective is more on branding. Just like a recipe – one puts together several ingredients and cooks them in a certain way and calls it paella with French sounding name and charge scandalous price for those pieces of onions, rice and garlic mix with other stuff. Marikina as a brand of a concept features a certain combination of public administration concepts done in a certain way, resulting into something relevant to the ground level. Because of good result, a lot of people might be curious of its ingredients and my paper will precisely tell them those ingredients. “Public administration the Philippines undoubtedly has largely been atheoretical, ahistorical and inattentive to the development of its intellectual and ontological well – being. It a not sufficiently articulated its theoretical legacies, its conceptual foundations, or its basic normative values mainly because it has chosen to avoid or perhaps remain indifferent to introspective questions which may be all too subversive of its current fundamental commitment.”[17] The boldness that I have done - the branding of a certain public administration recipe into “Marikina Way” or “Marikina Decision Making Model” is a response to the implied call of Prof. Danny Reyes to be subversive enough against the “current fundamental commitment” of the discipline. If the emerging trend of the public administration in the Philippines is towards eclectism and applying the picked concepts and theories to a ground level execution, then by all means, let the discipline flourish this way. After all, it is better to die trying than to die doing nothing.

So, I will continue to write papers on Marikina Way, Marikina Dcision Making Model or Globalist Manifesto and hopefully, my efforts can be seen as a response to the current fundamental commitment – for or against it. At least, I contribute to the state of confusion from which will eventually evolve a discernable pattern, as in the chaos theory. An effort is better than nothing at all.
As a Consultant of the Mayor of Marikina City, I have vantage point of view. After studying the purchasing operations in the city hall, studying its structure which is available in the internet anyway using this website address, http://city.marikina.gov.ph/, I went into a realization that I should never impose “Marikina Way” or “Marikina Decision Making Model” to Marikina City Hall. I don’t want to hear people saying that “we have been successful with the way with do things and here you come telling us what to do.” If they say that, they are perfectly correct because as the Americans will say, “if it aint broke, don’t fix it.” The game plan is to popularize the brands and let people, maybe out of curiosity, ask for them.
“Marikina Decision Making Model” or “Marikina Way” may be viewed as a brand, like BCG Matrix, Balance Score Card, and Porter’s Framework. Reviewing the purchasing in Marikina City Hall using the model, the review will look like this:
STEPS
ROLE
ELEMENTS
DOCUMENTS
ANOVA FINDINGS ON MARIKINA
1. Define specifications

Get specification
1.Funstional specifications
2.Technical changes
3. Bring supplier knowledge to engineering
1.Functional specification
2.norm/spec control
1. NORM AND SPECS ARE IN ORDER
2. FOR NEW PROJECTS, SUPPLIERS HELP IN SETTING THE SPECS.
2. Select supplier

Assure adequate supplier selection
1. Prequalification of suppliers.
2. Request for quotation
Supplier selection proposal
1. E-PROCUEMENT IS IN PLACE
2. ANY SUPPLIER CAN BID; THEY JUST HAVE TO BE PRE QUALIFIED.
3.THEY ARE NOTIFIED THRUOGH LETTERS
3. Contract agreement

Prepare contract

1.Contracting expertise
2. Negotiating expertise
Contract
1.CONTRACT DRAFTING IS ROUTINARY.

2.THE MARIKINA DECISION MAKING MODEL WAS NEVER APPLIED. ITS THE BAC WHO DECIDES BASED ON THEIR OWN EVALUATION.

4. Ordering
Establish order routine
1.Develop order routines
2.Order handling
Order
1.ORDERING IS ROUTINARY, WITH DEADLINES
5. Expediting
Establish expediting routine
1.Expediting
2.”Trouble shooting”
1.Exception report
2.Due date listings
3.Invoices
1. SCHEDULED FOLLOW UP ARE DONE
6. Evaluation
Assess supplier
1.Supplier evaluation
2.Supplier rating
1. Preferred supplier list
2. Supplier ranking scheme
1. EVALUATUAN ON SUPPLIERS ARE NOT DONE
Figure 1: Six Steps in Purchasing Management

Take note that this kind of review can be institutionalized and used into some other LGUs or government offices. It is with this same principle - a standard and analysis of variance (ANOVA) from the standard – that ISO and other accrediting organizations are doing.

Conclusion
This paper has proven, through a mathematical model, that the debates of Simon and Waldo on facts and values in decision making can be reconciled. In fact, in one portion of this paper, it quoted Simon to have, in a way, agreed with Waldo’s contention that values are needed in making decision. This Waldonian argument was reflected in the mathematical model.
This paper has also argued that concepts and theories need not be too fuzzy and sophisticated. It has to be honest and compelling. They have to be relevant to the ground level; otherwise, they will just be useless exercise of mental calisthenics - just like playing chess for several hours only to prove that you are good in playing chess and nothing more.
In a way, this has also proven that mathematical modeling should never be taken as a toxic item but as something that could help in decision making. In fact, the mathematical model I presented here can be programmed into the computer. A simple Excel program can be applied here, leaving the decision makers or the BAC focused on determining the criteria and the ranking of the alternatives with regards to the criteria.
Looking back, if PGMA only used this model in working for the National Broadband Project, her present problem would had been avoided. But then again, the greedy groups would have missed all the “bukols” and the “tongpats”. This is really a matter of choice for the group: to moderate their greed or to moderate the opposition. Apparently, they chose the latter.
The “Marikina Decision Making Model”, as this paper would like to call it, is aspiring to be a brand, it is just like a recipe that offers a certain menu, of how to decide. But the author is not aspiring to push any organization, even the Marikina City Hall where he is a Consultant of the Mayor, to apply it. Strong branding, the way the author sees it, is his response to the call of Prof. Danny Reyes to challenge or energize a lethargic Public Administration discipline in the Philippines, hoping that when lots of students, faculty and practitioner of public administration have tried retooling some concepts and theories, and brand them with exotic names, it will be the start of a very vibrant market place of ideas in the public administration castle in the country.

END
Annotated Bibliography of Top 10 Books, Article and Websites used in this paper:
Frederickson, H. George and Kevin B. Smith.2003. The Public Administration Theory Primer. Boulder, Colorado: Westview Press.
The book provides theories and approaches and their role in the field of public administration. The political control theory talks about relationship of the bureaucracy wit regards to law and lawmakers, the bureaucratic politics theory is about shows the weakness of politics-administration dichotomy, theories of public institutions is about management and organization of public institutions, theories of public management discuss different thoughts and concepts that shapes public administration, postmodern theory questions existing paradigms and thoughts as to their ability to provide the universal truths, decision theory shows a formal, mature and distinct model indigenous to public administration, rational or public choice theory talks about rational self – interest motivates purposive action, theories of governance describes a changing public administration, and the theory in public administration tried to assemble facts and approaches related to public administration in a coherent way.

Goodsell, Charles T.2006. “A New Vision for Public Administration.” Public Administration Review (July/August) 66(4), 623-635.
The article gives rationale to the seemingly conflicting views about a certain public administration phenomenon. It argues on 3 different ways of looking events and each way has a different slant. At the end, it offers the best way of looking at these phenomena which is in a way a balancing act of the earlier lens it mentioned. The proposed lens is grounded on the point of view of the government, coordinating with the rest of the stakeholders.

Van Weele, Arjan J. 2000. Purchasing and Supply Chain Management Analysis, Planning and Practice, 2nd Edition. Chapman and Hall, London.
The book is a main college textbook in the field of purchasing. It covers all the basic general data and concepts related to purchasing and supply chain management. It provides updated industry examples and basic questions for the readers. The book is easily, the authority in the field.

Dessler, Gary. 1998. Management: Leading People and Organizations in the 21st Century, International Edition. Prentice-Hall International, Inc. Upper Saddle River, NJ 07458.
The book provides the basic and fundamental concepts of management discipline with well research discussion of management concepts coupled with actual examples from the industry. The book is a basic textbook in subjects like principles of management and other basic subjects. It covers basically planning, organizing, leading and controlling – discussed in so many chapters for every main topic.

Caroll, James D. and George Frederickson. 2001.”Dwight Waldo 1913-2000.” Public Administration Review. Vol.61,no.1 (January/February),pp.2-8.
The article talks about the life and works of Dwight Waldo covering his early life, the middle years and the later years. Waldo’s early career, as described by him is characterized by recurring “failed his way upward” thing. The middle years, is mostly his life at Berkeley which to him is the best years of his life as a teacher. His later years are mostly his works based on Woodrow Wilson Institute. The article talks about Waldonian pedagogy.


Augier,Mie and James G. March.2001. “Remembering Herbert A. Simon (1916-2001).” Public Administration Review.Vol.6i, no.4(July/August), p.396-402.
The article is about the life and works of Herbert Simon. It is structured into 4 basic parts: the beginning, the early works, the later woks and the ending. The introductory and the initial parts of the article talks about the personal life of Simon talks about a general commentary of his impact to the society and the academe. It is followed by the discussion on his early works that seems to have impact on his later works. The article touches on important ideas of Simon which include decision making, bounded rationality and satisficing.

Reyes, Danilo R.1995. “Life Begins at Forty: An Inquiry on Administrative Theory in the Philippines and the Structure of Scientific Revelations.” In Proserpina D. Tapales, Nestor N. Pilar and Leonora D. Romblon (eds).Public Administration by the Year 2000: Looking Back into the Future. Quezon City: U.P. CPA, pp.18-73.
This article offers an interesting general commentary of Public Administration as an academic discipline in the Philippines. The author’s observation on the state of this academic discipline may appear negative to some, but most will agree that the paper is offering some challenge to the stakeholders of this academic discipline. After the introduction and purpose of the paper, it proceeded to the focus of the discipline, the perspective, a discourse on self awareness and a comprehensive review of public administration in the Philippines. The article is a nice and authoritative reading on the topic of Philippine public administration.




http://en.wikipedia.org/wiki/Marikina_City
Wikipedia is a multilingual, Web-based, free content encyclopedia project. It covers wide variety of topics written and edited by volunteers world wide. Although Wikipedia articles do not have the rigors of pure academic articles because they did not pass the peer review, Wikipedia articles can be a good initial reference or lead of an academic article because most article of Wikipedia are listed prominently in the leading search engines and are therefore read or are accessible to a big number of readers.

“A Guide to Key government Services”. Marikina Citizens Factbook, 2nd Edition, 2007. City government of Marikina, Marikina City
This publication is a very helpful tool to the researchers and residents of Marikina. It outlines the whole structure of the city government including the people and the offices doing the works. It provides practical information on the services of the city as well as the contact numbers and office addresses of the service providers. The publication provides pictures and other symbolisms of the city which include Marikina Hym, Marikenan Pledge and Marikina: Lungsod ng May Mabubuting Ugali. The publication further provides some of the guiding principles of the leaders of Maikina.

http://city.marikina.gov.ph/
This is the official website of the city government of Marikina. This is rating #1 in the Google search in the topic of Marikina. It has won the best website in recently concluded national competition. It offers news, general information about the city hall, history and culture of the city. It has a lot of links and pictures. It is so interactive. It has a forum with membership.




[1] Frederickson, H. George and Kevin B. Smith.2003. The Public Administration Theory Primer. Boulder, Colorado: Westview Press. p 178.
[2] Ibid, p.117.
[3] Van Weele, Arjan J. 2000. Purchasing and Supply Chain Management Analysis, Planning and Practice, 2nd Edition. Chapman and Hall, London. p 17.
[4] Frederickson, p123.
[5] Goodsell, Charles T.2006. “A New Vision for Public Administration.” Public Administration Review (July/August) 66(4), 623-635. p623.
[6] Ibid. p. 628.
[7] Van Weele. P. 17.
[8] Frederickson. p. 31.
[9] Dessler, Gary. 1998. Management: Leading People and Organizations in the 21st Century, International Edition. Prentice-Hall International, Inc. Upper Saddle River, NJ 07458. p.116.
[10] Ibid. p.117.
[11] Augier, Mie and James G. March.2001. “Remembering Herbert A. Simon (1916-2001).” Public Administration Review.Vol.6i, no.4(July/August), p. 398.
[12] Dessler p.121.
[13] Caroll, James D. and George Frederickson. 2001.”Dwight Waldo 1913-2000.” Public Administration Review. Vol.61,no.1 (January/February), p.3.
[14] Frederickson p 163.
[15] Ibid. p.163.
[16] http://en.wikipedia.org/wiki/Marikina_City
[17] Reyes, Danilo R.1995. “Life Begins at Forty: An Inquiry on Administrative Theory in the Philippines and the Structure of Scientific Revelations.” In Proserpina D. Tapales, Nestor N. Pilar and Leonora D. Romblon (eds).Public Administration by the Year 2000: Looking Back into the Future. Quezon City: U.P. CPA, pp.18-73.p 19.

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