Procurement Management Getting Resources from outside
Procurement Management   •    It is the process of purchasing the products or       services from the sources, Choosing a ...
Procurement Management   •   Focus is from Buyer’s perspective   •   Other parties are       – Contractor       – Sub-cont...
Procurement Management   •   Various Stages       –   Procurement Planning       –   Solicitation (Request) Planning      ...
Procurement Planning   • Procurement Planning –       – Determining what to procure and when       – Inputs are – Scope st...
Make or Buy analysis   •   Time to Market   •   Build Vs Buy cost   •   Study various products   •   Comparative analysis ...
Contract type selection   • Fixed price or lump-sum contracts   • Time and Material (T&M)   • Cost reimbursable contractsh...
Solicitation Planning   • Procurement Documents –       –   Invitation for Bid       –   Request for proposal (RFP)       ...
Solicitation Planning   • Evaluation Criteria     – Understanding of need     – Overall cost     – Technical capability   ...
Solicitation Planning   • SOW – It describes the procurement item     in sufficient details to allow prospective     selle...
Solicitation   • Obtaining quotations, bids, offers or     proposals   • Input – Procurement document, Preferred     vendo...
Source Selection   • Choosing from among potential sellers   • Input – Proposals, Evaluation Criteria,     Organizational ...
Contract Administration   • Managing the relationship with the seller   • Input – Contract, Work results, Change     reque...
Contract Closeout   • Completion and settlement of the     contract, including resolution of any open     issues   • Outpu...
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Pm 10 procurement

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PM Procurement process

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Pm 10 procurement

  1. 1. Procurement Management Getting Resources from outside
  2. 2. Procurement Management • It is the process of purchasing the products or services from the sources, Choosing a source, Administrating the contract and closing out the contract • It consists of – Material, Equipment, Consultants, Training and many other goods and serviceshttp://www.radiantminds.co.in
  3. 3. Procurement Management • Focus is from Buyer’s perspective • Other parties are – Contractor – Sub-contractor – Vendor or Supplier • CONTRACT is the most IMP thing in this (not SOW)http://www.radiantminds.co.in
  4. 4. Procurement Management • Various Stages – Procurement Planning – Solicitation (Request) Planning – Solicitation – Source Selection – Contract Administration – Contract Closeouthttp://www.radiantminds.co.in
  5. 5. Procurement Planning • Procurement Planning – – Determining what to procure and when – Inputs are – Scope statement, Prod. Desc. market cond. etc • Techniques used are - – Make or Buy analysis (build Vs Buy) – Expert Judgment – Outputs are – Procurement management plan – Statement of work (SOW)http://www.radiantminds.co.in
  6. 6. Make or Buy analysis • Time to Market • Build Vs Buy cost • Study various products • Comparative analysis between products • Product features • Cost analysishttp://www.radiantminds.co.in
  7. 7. Contract type selection • Fixed price or lump-sum contracts • Time and Material (T&M) • Cost reimbursable contractshttp://www.radiantminds.co.in
  8. 8. Solicitation Planning • Procurement Documents – – Invitation for Bid – Request for proposal (RFP) – Request for quotation (RFQ) – Request for Information (RFI) – Contractor Initial response • Bid and Quotation are used when source selection is based on price • Proposal is used when Tech. skills or Tech approach is more importanthttp://www.radiantminds.co.in
  9. 9. Solicitation Planning • Evaluation Criteria – Understanding of need – Overall cost – Technical capability – CMMi process implementation – Previous history – Preferred vendor – Financial capacityhttp://www.radiantminds.co.in
  10. 10. Solicitation Planning • SOW – It describes the procurement item in sufficient details to allow prospective sellers to determine if they are capable of providing those. • Sufficient details varies based on nature of itemhttp://www.radiantminds.co.in
  11. 11. Solicitation • Obtaining quotations, bids, offers or proposals • Input – Procurement document, Preferred vendor’s list • Tools – Bidder conferences, Advertising • Output - Proposalshttp://www.radiantminds.co.in
  12. 12. Source Selection • Choosing from among potential sellers • Input – Proposals, Evaluation Criteria, Organizational policies • Tools – Contract negotiation, Weighting system, Screening system, Independent estimates • Output - Contracthttp://www.radiantminds.co.in
  13. 13. Contract Administration • Managing the relationship with the seller • Input – Contract, Work results, Change requests, Seller invoices • Tools – Performance reporting, Payment system • Output – Correspondence, Contract change, Payment requesthttp://www.radiantminds.co.in
  14. 14. Contract Closeout • Completion and settlement of the contract, including resolution of any open issues • Output – Contract File, Formal acceptance and closurehttp://www.radiantminds.co.in

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