Procument managenment

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Procument managenment

  1. 1. PROCUREMENT MANAGEMENT By – Amrit Subedi & Asiri Buddhakoralage Project management I 5/23/2014
  2. 2. AGENDA  What procurement management is ?  Four processes in procurement management.  Procurement objectives.  Tools used in procurement management.  Using Software in procurement management.  Ups and Downs of procurement management.  Conclusion  References 5/23/2014 2
  3. 3. WHAT IS PROCUREMENT MANAGEMENT Is a tool or a technique which firms use in the process of acquiring supplies / raw materials. 5/23/2014 3 http://www.ask.com/question/what-is-procurement-management
  4. 4. FOUR PROCESSES IN PROCUREMENT MANAGEMENT.  Plan Procurement  Conduct Procurement  Administer Procurement  Final Procurement 5/23/2014 4 Conduct Procurement Administer Procurement Plan Procurement Final Procurement http://www.wisegeek.com/procurement-processes/
  5. 5. Make-or-buy analysis Expert judgment PLAN PROCUREMENT.  Procurement planning, is the process of deciding what to buy, when and from what source. 5/23/2014 5 Required Documentations Teaming Agreements Risk-Related Contract Decisions Activity Cost Estimates Tools or Techniques Procurement Management Plan Selection of the source Procurement Documents Make or Buy Decisions OutputsInputs http://my.safaribooksonline.com/book/certification/pmp/9788131733134/project-procurement- management/the_conduct_procurements_process
  6. 6. Advertising Expert judgment Independent estimates CONDUCT PROCUREMENT. 5/23/2014 6 Procurement plan Procurement documents Qualified seller’s list Make-or-buy decisions Tools or Techniques Selection of the sellers Project management plan Project documents OutputsInputs  Main idea is to select a seller/sellers. http://preparepm.com/notes/procurement.html
  7. 7. Inspections and audits Procurement performance reviews Records management system ADMINISTER PROCUREMENT.  This process is to manage procurement relationships, monitor contract performance of the seller/s. 5/23/2014 7 Procurement documents Project management plan Contract Performance report Tools or Techniques Progress report Updated procurement documents OutputsInputs http://tapuniversity.com/2009/07/01/administer-procurements-process/
  8. 8. FINAL PROCUREMENT This process includes –  Completing each and every procurement project.  Involves verification of all work performed  Completing all payments and formally closing the contract. 5/23/2014 8 http://www.eacads.com/courses/pmp-certification/training/project-procurement-management/close- procurements-process
  9. 9. PROCUREMENT OBJECTIVES  Continuous supply .  Quality improvement.  Supplier development.  Gaining access to technology and innovation. 5/23/2014 9 http://www.ox.ac.uk/sites/files/oxford/field/field_document/Academic%20good%20practice%20a%2 0practical%20guide.pdf
  10. 10. TOOLS USED IN PROCUREMENT MANAGEMENT  It provides the ability to easily Organize , find and archieve procurement –related documents.  Procurement audits identify lessons learned in the procurement process. 5/23/2014 10 http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034- C/reports/Report_-_Building_Procurement_Methods.pdf
  11. 11. USING SOFTWARE IN PROCUREMENT MANAGEMENT  Word-processing.  Spreadsheets.  Database.  Presentation software.  E-procurement software does many procurement function electronically.  Other internet tools are also used to find information on suppliers auction goods and services. 5/23/2014 11 http://www.ox.ac.uk/sites/files/oxford/field/field_document/guide.pdf
  12. 12. ADVANTAGE OF PROCUREMENT MANAGEMENT  Improved co-ordination and collaboration between designers and construction.  Time savings.  The contractor assumes risk and responsibility.  Work packages can be let competitively at price that are current.  Roles, risk and responsibilities for all parties are clear.  Flexibility for change in design. 5/23/2014 12 http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf
  13. 13. DISADVANTAGE OF PROCUREMENT MANAGEMENT  Price certainty is not achieved until the final works package has been let.  Informed client is required.  Poor price certainty.  Close time and information control required.  Client loses direct control of design quality. 5/23/2014 13 http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf
  14. 14. CONCLUSION  Is a tool or a technique which firms use in the process of accruing supplies / raw materials.  Four main procurement stages in the buying process.  Uses Software's such as M/S Word, Database, Spreadsheet.  In fact, procurement management makes the purchasing process flexible and easier. 5/23/2014 14
  15. 15. REFERENCES  www.wisegeek.com  www.preparepm.com  www.tapuniversity.com  www.eprocurement.com  www.ox.ac.uk  www.faculty.ksu.edu.sa 5/23/2014 15

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