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Smsvn pmp training_slides_chapter_12

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Smsvn pmp training_slides_chapter_12

  1. 1. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 PROJECT PROCUREMENT MANAGEMENT 1  The process necessary to process and acquire product or services, or result needed from outside the project team.  Involve planning, acquiring the product or services from sources, choosing a source, administering the contract, and closing out the contract.  Buyers and Sellers  Buyers: Client, Customer, prime contractor, contractor, purchaser. -> that’s us ^^  Sellers: Contractor, Subcontractor, provider, vendor, supplier.
  2. 2. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 PROJECT PROCUREMENT MANAGEMENT  Centralized/Decentralized Contracting  Centralized Contracting: There is one procurement department, and a procurement manager may handle procurements on many projects.  Decentralized contracting: A procurement manager is assigned to one project full-time and reports directly to the project manager. 2
  3. 3. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 PROJECT PROCUREMENT MANAGEMENT 3 Knowledge Area Process Initiating Planning Executing Monitoring & Contol Closing Project Procurement Management 12.1 Plan Procurement Management 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
  4. 4. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 12.1 PLAN PROCUREMENT MANAGEMENT  Plan Procurement Management is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.  The Plan Procurements process answers the questions of "What goods and services do we need to buy for this project, how will we purchase them, and who are potential sellers to use?" 4 Inputs Tool&Techniques Outputs .1 Project management plan .2 Requirements documentation .3 Risk register .4 Activity resource requirements .5 Project schedule .6 Activity cost estimates .7 Stakeholder register .8 EEFs .9 OPAs .1 Make-or-buy analysis .2 Expert judgment .3 Market research .4 Meetings .1 Procurement management plan .2 Procurement statement of work .3 Procurement documents .4 Source selection criteria .5 Make-or-buy decisions .6 Change requests .7 Project documents updates
  5. 5. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 12.1 PLAN PROCUREMENT MANAGEMENT  The Plan Procurements process includes the following activities:  Performing make-or-buy analysis  Creating a procurement management plan  Creating a procurement statement of work for each procurement  Selecting a contract type for each procurement  Creating the procurement documents  Determining the source selection criteria 5
  6. 6. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 12.1 PLAN PROCUREMENT MANAGEMENT  Make-or-Buy Analysis, It is better to "make'' if:  You have a limitted plant or workforce.  You want to retain control.  The work involves proprietary information or procedures.  One of the main reasons to "buy" is to decrease risk to the project's constraints.  Contract Types  Fixed-price contracts  Cost-reimbursable contracts  Time and Material Contracts (T&M) 6
  7. 7. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 FIXED-PRICE CONTRACTS  Used for acquiring goods or services with well defined specifications or requirements.  Bad points:  Seller would need huge amount of reserves  Seller can try to increase profit by cutting scope  Type of FP contracts:  Fixed Price (FP), or Lump Sum, or Firm Fixed Price (FFP)  Example: ??  Fixed Price Incentive Fee (FPIF)  Example: ??  Fixed Price with Economic Price Adjustment (FP-EPA)  Example: = ??  Purchase order : simplest type of fixed-price contract; unilateral (signed by one party) 7
  8. 8. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 COST-REIMBURSABLE CONTRACTS  Used when work is uncertain and, therefore, costs cannot be estimated accurately enough  Bad points?  Types:  Cost Plus Fixed Fee (CPFF) or Cost Plus Percentage of Cost (CPPC). Ex: Contract = cost + fee (10% of cost)  Cost Plus Incentive Fee (CPIF) : cost + additional fee based on performance  Cost Plus Award Fee (CPAF): cost + additional fee bases on manager satisfaction (performance criteria) 8
  9. 9. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 TIME & MATERIAL (T&M) CONTRACTS  Used for service efforts in which the level of effort cannot be defined at the time the contract is awarded  To make sure the costs do not become higher than budgeted, the buyer may put a "Not to Exceed" and time limits clause in the contract.  Often used for staff overtime, acquisition of experts, outside support 9
  10. 10. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 TYPES OF CONTRACT - EXAMPLES  Fixed-Price?  Cost-reimbursable?  Time & Material?  100$/shot -> ?  1000$/trip -> ?  500$/month -> ? 10
  11. 11. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 RISK FOR WHO? 11 Fixed Price FFP FPIF Time and Materials Cost Reimbursable CPIF CPFF CPF CPPC SELLER RISK Low BUYER RISK High T&M can be a high risk for buyer if contract does not include a “total not-to-exceed” (NTE) HighLow
  12. 12. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 PROCUMENT DOCUMENTS  Request for Information (RFI)  Invitation For Bid (IFB)  Request For Proposal (RFP)  Request For Quotation (RFQ)  Tender notice  Invitation for negotiation  Invitation for seller’s initial response  …. 12 Procurement document Contract Type RFP CR IFB FP RFQ T&M
  13. 13. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 11.2 CONDUCT PROCUREMENTS  This process involves getting the procurement documents that were created in the Plan Procurements process to the sellers, answering the sellers‘ questions, having them prepare responses, and reviewing the responses to select a seller. 13 Inputs Tool&Techniques Outputs .1 Procurement management plan .2 Procurement documents .3 Source selection criteria .4 Seller proposals .5 Project documents .6 Make-or-buy decisions .7 Procurement statement of work .8 Organizational process assets .1 Bidder conference .2 Proposal evaluation techniques .3 Independent estimates .4 Expert judgment .5 Advertising .6 Analytical techniques .7 Procurement negotiations .1 Selected sellers .2 Agreements .3 Resource calendars .4 Change requests .5 Project management plan updates .6 Project documents updates
  14. 14. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 11.2 CONDUCT PROCUREMENTS  Tools and Techniques  Bidder Conferences  Proposal Evaluation Techniques  Independent Estimates  Expert Judgment  Advertising  Analytical Techniques  Procurement Negotiations  Outputs:  Selected sellers  Agreements  Resource calendars  Change requests  Project management plan opdates  Project documents updates 14
  15. 15. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 12.3 CONTROL PROCUREMENTS  This process ensures both the seller’s and buyer’s performance meets procurement requirements according to the terms of the legal agreement. 15 Inputs Tool&Techniques Outputs .1 Project management plan .2 Procurement documents .3 Agreements .4 Approved change requests .5 Work performance reports .6 Work performance data .1 Contract change control system .2 Procurement performance reviews .3 Inspections and audits .4 Performance reporting .5 Payment systems .6 Claims administration .7 Records management system .1 Work performance information .2 Change requests .3 Project management plan updates .4 Project documents updates .5 OPAs updates
  16. 16. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 11.4 CLOSE PROCUREMENTS  The process of completing each project procurement 16 Inputs Tool&Techniques Outputs .1 Project management plan .2 Procurement documents .1 Procurement audits .2 Procurement negotiations .3 Records management system .1 Closed procurements .2 OPAs updates
  17. 17. SMSVN – PMP Training Course 2013 – Chapter 12 Prepared by Nguyen Quy Son – Nguyen Nam Trung - 03/09/2013 17

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