Project Procurement

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    project procurement

    Lecture on

    Adapted from Video Lessons of Trudy Robinson(source:BSBPmG408A,www.trudyrobinson.com)

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    Trudy Robinson-the AuthorTeaches Project Management at an

    institute in South/East QueenslandOften takes on contracts/assignments

    Has 20 year history as a Business Analyst and Business

    Consultant in Australia and the UK

    Has covered a broad range of industries, includingAgriculture, Not for Profit, Public Relations,

    Production/Manufacturing, Construction & Mining and

    Banking (discover(@)trudyrobinson)

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    PresenterMasilamani R

    .has more than 30 years of working,teaching and consulting experience

    .qualified in two professional projectmanagement certificates

    . regular reading, writing and training inproject management

    .contactable at [email protected]

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    Objectives

    To understand and apply knowledge

    regarding,

    Purchasing

    Contract

    Project Inputs & Outputs

    Which need to be managed by a formal

    procurement process(PMBOK V4 reference-pg 313, Chapter 12)

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    Procurement Indices Attainment

    Fulfillment

    Contract

    Appropriation

    Securing

    Providing

    Tender

    Gaining

    Acquisition

    VendorBuying

    Purchasing

    Furnishing

    Supplier

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    PROCUREMENT

    ProjectActivities

    Outputsfrom

    Project

    Projectactivities

    Inputs toProjects

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    Project

    ProcurementProcess/Activities

    Project Procurement Management

    Inputsto

    Pr

    oject

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    Project Procurement Management

    Identifying what you Need to Buy In

    Clear requirements

    Who you are going to work with(supplier)

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    incoming

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    Project Procurement Management

    Contract Management

    Process, DIFOT(Delivery In Forlorn Time)

    Payments

    incoming

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    Project Procurement Management

    PROCESS

    Identify procurement requirements(Concept)

    Plan procurement(Design)

    Conduct & Administer(Implementation)

    Close procurements(Finalization)

    (Referrence: PMBOK pg 317)

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    Project Procurement Management

    CONTRACTS

    Agreements

    Purchase order

    Memorandum of Understanding(MOU)

    Sub- contract Service level agreements

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    Project Procurement Management

    Identifying what you Need to Buy In

    Clear requirements

    Who you are going to work with(supplier)

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    incoming

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    Project Procurement Management

    Identifying what you Need to Buy In

    Clear requirements

    Who you are going to work with(supplier)

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    incoming

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    Project Procurement Management

    CONTRACTS-cont

    Terms & Conditions

    Clear points of payment

    Specific product/service provisions

    Schedule Exclusions

    Model-Time & Material

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    Project Procurement Management

    WIDER PICTURE

    Organizational policies

    Who decides?

    Quality/OHS

    Occupational safety & health

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    Project Procurement Management

    WIDER PICTURE-cont

    Other projects

    Legal counsel

    Existing commitments

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    Project Procurement Management

    YOU Will CREATE

    Procurement management plan

    Procurement statement of work(SOW)-similar

    to a PD but for the contract; not the

    individual

    Invitation To Tender(ITT)

    Request for Information(RFI), request for

    Proposal(RFP) etc.5/11/12

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    Project Procurement Management

    SELECTION CRITERIA

    Clear outline of requirement

    Ensure all responses received are in identified

    format

    Think ahead- word the ITT to enable

    numerical value to be applied to a suppliers

    response(simplifies overall analysis)

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    Project Procurement Management

    SELECTION CRITERIA-cont.

    No duplications or ambiguity in requirements

    Provide one point of contact where questions

    can be asked

    Evaluate, compare, choose

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    Project Procurement Management

    MANAGE

    DIFOT

    Performance

    Adherence of contract

    Payment approvals Change requests/variations

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    Project Procurement Management

    Identifying what you Need to Buy In

    Clear requirements

    Who you are going to work with(supplier)

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    incoming

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    Project Procurement Management

    CLOSE

    Final review

    DIFOT

    Performance

    Final payments

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    Project Procurement Management

    CLOSE

    Input to lessons learned

    resources management

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    Summary

    Procurement is managing contracts, inputs to

    the project as well as outputs

    Influences outside the project will influence

    (organizational policies..)

    Identify, Clarify, Invite, evaluate & decide

    Know your contracts and the clients of each

    DIFOT

    FORMAL PROCESS-stick to it

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    Thank You

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