Project Procurement
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Transcript of 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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Project Procurement Management
Identifying what you Need to Buy In
Clear requirements
Who you are going to work with(supplier)
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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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