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Procurement lecture

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Procurement lecture

  1. 1. Partly adapted from Video Lessons of Trudy Robinson (source:BSBPmG408A,www.trudyrobinson.com) (misilamani@yahoo.com)) Lecture on
  2. 2. 10/6/2013 PROJECT PURCHASING 2
  3. 3. 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) 10/6/2013 3
  4. 4. 10/6/2013 It’s all a load of Balls! 4
  5. 5. Procurement Indices Attainment Fulfillment Contract Appropriation Securing Providing Tender Gaining Acquisition Vendor Buying Purchasing Furnishing Supplier 10/6/2013 5
  6. 6. 10/6/2013 Public Procurement 6
  7. 7. Procurement Project Activities 10/6/2013 7
  8. 8. Procurement (supply, deliver & purchase) 10/6/2013 OUTPUTS to PROJECT INPUTS To PROJECT PROCUREMENT CONTROL 8
  9. 9. 10/6/2013 RESPONDING 9
  10. 10. Project Procurement Management Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier) 10/6/2013 10
  11. 11. Project Procurement Management Contract Management Process, DIFOT(Delivery In Forlorn Time) Payments 10/6/2013 11
  12. 12. 10/6/2013 PROJECT PROCUREMENT PRACTICE 12
  13. 13. 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
  14. 14. Project Procurement Management • CONTRACTS  Agreements  Purchase order  Memorandum of Understanding(MOU)  Sub- contract  Service level agreements 10/6/2013 14
  15. 15. Project Procurement Management CONTRACTS-cont  Terms & Conditions  Clear points of payment  Specific product/service provisions  Schedule  Exclusions  Model-Time & Material 10/6/2013 15
  16. 16. 10/6/2013 TROUBLE SHOOTING 16
  17. 17. Project Procurement Management WIDER PICTURE  Organizational policies • Who decides?  Quality/OHS • Occupational safety & health 10/6/2013 17
  18. 18. Project Procurement Management WIDER PICTURE-cont  Other projects  Legal counsel  Existing commitments 10/6/2013 18
  19. 19. 10/6/2013 Procurement ProcessProcurement Process PROCUREMENT PROCESS 19
  20. 20. 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. 10/6/2013 20
  21. 21. 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
  22. 22. 10/6/2013 PROJECT CONTRACTING 22
  23. 23. 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
  24. 24. 10/6/2013 Boeing’s Procurement Process 24
  25. 25. Project Procurement Management MANAGE  DIFOT  Performance  Adherence of contract  Payment approvals  Change requests/variations 10/6/2013 25
  26. 26. Project Procurement Management • CLOSE  Final review DIFOT Performance  Final payments 10/6/2013 26
  27. 27. Project Procurement Management CLOSE • Input to lessons learned • resources management 10/6/2013 27
  28. 28. 10/6/2013 PROJECT CLOSING 28
  29. 29. 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
  30. 30. 10/6/2013 procurement cycle 30
  31. 31. 10/6/2013 31

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