PROCUREMENT Lecture

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A PMP Style Approach to Procurement

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Lecture on:

Partly adapted from Video Lessons of Trudy Robinson (source:BSBPmG408A,www.trudyrobinson.com) (misilamani@yahoo.com) ) project procurement Lecture on

PowerPoint Presentation:

10/6/2013 PROJECT PURCHASING 2

Objectives:

O bjectives 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) 10/6/2013 3

PowerPoint Presentation:

10/6/2013 It’s all a load of Balls! 4

Procurement Indices:

Procurement Indices Attainment Fulfillment Contract Appropriation Securing Providing Tender Gaining Acquisition Vendor Buying Purchasing Furnishing Supplier 10/6/2013 5

PowerPoint Presentation:

10/6/2013 Public Procurement 6

Procurement:

Procurement Inputs to Project Outputs from project Project Activities 10/6/2013 7

Procurement:

Procurement (supply, deliver & purchase) 10/6/2013 OUTPUTS to PROJECT INPUTS To PROJECT PROCUREMENT CONTROL 8

PowerPoint Presentation:

10/6/2013 RESPONDING 9

Project Procurement Management:

Project P rocurement Management Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier) 10/6/2013 incoming 10

Project Procurement Management:

Project Procurement Management Contract Management Process, DIFOT(Delivery I n F orlorn Time) Payments OUTGO ing 10/6/2013 11

PowerPoint Presentation:

10/6/2013 PROJECT PROCUREMENT PRACTICE 12

Project Procurement Management:

Project Procurement Management PROCESS Identify procurement requirements(Concept) Plan procurement(Design) Conduct & Administer(Implementation) Close procurements(Finalization) ( Referrence : PMBOK pg 317) 10/6/2013 13

Project Procurement Management:

Project Procurement Management CONTRACTS Agreements Purchase order Memorandum of Understanding(MOU) Sub- contract Service level agreements 10/6/2013 14

Project Procurement Management :

Project Procurement Management CONTRACTS-cont Terms & Conditions Clear points of payment Specific product/service provisions Schedule Exclusions Model-Time & Material 10/6/2013 15

PowerPoint Presentation:

10/6/2013 TROUBLE SHOOTING 16

Project Procurement Management:

Project Procurement Management WIDER PICTURE Organizational policies Who decides? Quality/OHS Occupational safety & health 10/6/2013 17

Project Procurement Management:

Project Procurement Management WIDER PICTURE-cont Other projects Legal counsel Existing commitments 10/6/2013 18

PowerPoint Presentation:

10/6/2013 Procurement Process Procurement Process PROCUREMENT PROCESS 19

Project Procurement Management:

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 T o Tender(ITT) Request for Information(RFI), request for Proposal(RFP) etc. 10/6/2013 20

Project Procurement Management:

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 supplier’s response(simplifies overall analysis) 10/6/2013 21

PowerPoint Presentation:

10/6/2013 PROJECT CONTRACTING 22

Project Procurement Management:

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 10/6/2013 23

PowerPoint Presentation:

10/6/2013 Boeing’s Procurement Process 24

Project Procurement Management:

Project Procurement Management MANAGE DIFOT Performance Adherence of contract Payment approvals Change requests/variations 10/6/2013 25

Project Procurement Management:

Project Procurement Management CLOSE Final review DIFOT Performance Final payments 10/6/2013 26

Project Procurement Management:

Project Procurement Management CLOSE Input to lessons learned resources management 10/6/2013 27

PowerPoint Presentation:

10/6/2013 PROJECT CLOSING 28

Summary:

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 10/6/2013 29

PowerPoint Presentation:

10/6/2013 procurement cycle 30

Thank You:

Thank You 10/6/2013 31

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