Discussion: Procurement Management

John Smith

4 years ago

Procurement Management

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

Importance

Make or buy decision

Types of contracts

Procurement cycle

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

The acquisition of products or services not produced or delivered by the project team

May require the assistance of experts

Your project may be on the other side alsoproviding services to another organization

Legal implications of signing a contract

The make or buy decision

Expertise

Resource availability

Licensing, regulatory requirements

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

Fixed Price

Cost reimbursable

Time and materials

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Fixed Price Contract

Figure 17.6.1: A fixed price contract the cost constant regardless of effort applied or delivery date.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Cost Reimbursable Contract

Figure 17.6.2: In a cost reimbursable or cost plus contract, the seller is guaranteed a fee.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Time and Materials

Figure 17.6.3: In a time and materials contract the cost (or revenue to the vendor) increases with increased effort.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Fixed Price Contract types

Figure 17.6.1.1 Table of Fixed Price Contracts and Characteristics

Source: http://pm4id.org/9/5/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Cost-Reimbursable Contract Types

Figure 17.6.2.1 Table of Contract Types and Characteristics

Source: http://pm4id.org/9/5/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Cycle

Procurement Plan

Selecting the Contract Approach

Skill level, uniqueness

Type of relationship: supplier, vendor, partnership

RFP, RFQ, personal contact

How well known is the scope of the work?

Riskswhat are they? Who assumes them?

How much float if any?

How important to be sure of cost in advance?

Soliciting bids

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Cycle – continued

Qualifying bidders

Request for Quote (RFQ)

Request for Proposal (RFP)

Evaluating the bids

Usually a matrix approach

Cost is NOT the only consideration

Awarding the contract

Managing the contracts

Logistics and expediting

Change coordination

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management Summary

Make or buy analysis

Contract types

Fixed Price

Cost reimbursable

Time and materials

The Procurement Cycle

Bidder qualification

RFP or RFQ

Analysis and selection

Contract negotiation

Contract administration

Contract closure

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Chapter Summary

Procurement is an important activity for project managers

Procurement management includes deciding about contracts and relationships with vendors, suppliers, partners

All stages of procurement should be closely monitored

Reporting to the team and to management are important components in budget and procurement management

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Questions?

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

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Chapter13-ProcurementManagement.pptx
Home>Business & Finance homework help>Management homework help>planning the project
Procurement Management

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

Importance

Make or buy decision

Types of contracts

Procurement cycle

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

The acquisition of products or services not produced or delivered by the project team

May require the assistance of experts

Your project may be on the other side alsoproviding services to another organization

Legal implications of signing a contract

The make or buy decision

Expertise

Resource availability

Licensing, regulatory requirements

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management

Fixed Price

Cost reimbursable

Time and materials

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Fixed Price Contract

Figure 17.6.1: A fixed price contract the cost constant regardless of effort applied or delivery date.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Cost Reimbursable Contract

Figure 17.6.2: In a cost reimbursable or cost plus contract, the seller is guaranteed a fee.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Time and Materials

Figure 17.6.3: In a time and materials contract the cost (or revenue to the vendor) increases with increased effort.

Illustration from Barron & Barron Project Management for Scientists and Engineers, http://cnx.org/content/col11120/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Fixed Price Contract types

Figure 17.6.1.1 Table of Fixed Price Contracts and Characteristics

Source: http://pm4id.org/9/5/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Cost-Reimbursable Contract Types

Figure 17.6.2.1 Table of Contract Types and Characteristics

Source: http://pm4id.org/9/5/

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Cycle

Procurement Plan

Selecting the Contract Approach

Skill level, uniqueness

Type of relationship: supplier, vendor, partnership

RFP, RFQ, personal contact

How well known is the scope of the work?

Riskswhat are they? Who assumes them?

How much float if any?

How important to be sure of cost in advance?

Soliciting bids

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Cycle – continued

Qualifying bidders

Request for Quote (RFQ)

Request for Proposal (RFP)

Evaluating the bids

Usually a matrix approach

Cost is NOT the only consideration

Awarding the contract

Managing the contracts

Logistics and expediting

Change coordination

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Procurement Management Summary

Make or buy analysis

Contract types

Fixed Price

Cost reimbursable

Time and materials

The Procurement Cycle

Bidder qualification

RFP or RFQ

Analysis and selection

Contract negotiation

Contract administration

Contract closure

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Chapter Summary

Procurement is an important activity for project managers

Procurement management includes deciding about contracts and relationships with vendors, suppliers, partners

All stages of procurement should be closely monitored

Reporting to the team and to management are important components in budget and procurement management

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management

Questions?

This work is licensed under a

Creative Commons Attribution 3.0 Unported License (CC-BY).

Project Management

Chapter 13: Procurement Management