PROCUREMENT MANAGEMENT
By – Amrit Subedi & Asiri Buddhakoralage
Project management I
5/23/2014
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
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2
WHAT IS PROCUREMENT MANAGEMENT
Is a tool or a technique which firms use in the process of
acquiring supplies / raw materials.
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3
http://www.ask.com/question/what-is-procurement-management
FOUR PROCESSES IN PROCUREMENT
MANAGEMENT.
 Plan Procurement
 Conduct Procurement
 Administer Procurement
 Final Procurement
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Conduct
Procurement
Administer
Procurement
Plan
Procurement
Final
Procurement
http://www.wisegeek.com/procurement-processes/
Make-or-buy analysis
Expert judgment
PLAN PROCUREMENT.
 Procurement planning, is the process of deciding what to
buy, when and from what source.
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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
Advertising
Expert judgment
Independent estimates
CONDUCT PROCUREMENT.
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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
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.
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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/
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.
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8
http://www.eacads.com/courses/pmp-certification/training/project-procurement-management/close-
procurements-process
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
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.
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10
http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-
C/reports/Report_-_Building_Procurement_Methods.pdf
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.
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11
http://www.ox.ac.uk/sites/files/oxford/field/field_document/guide.pdf
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.
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http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf
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
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.
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REFERENCES
 www.wisegeek.com
 www.preparepm.com
 www.tapuniversity.com
 www.eprocurement.com
 www.ox.ac.uk
 www.faculty.ksu.edu.sa
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Procument managenment

  • 1.
    PROCUREMENT MANAGEMENT By –Amrit Subedi & Asiri Buddhakoralage Project management I 5/23/2014
  • 2.
    AGENDA  What procurementmanagement 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.
    WHAT IS PROCUREMENTMANAGEMENT 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.
    FOUR PROCESSES INPROCUREMENT 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.
    Make-or-buy analysis Expert judgment PLANPROCUREMENT.  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.
    Advertising Expert judgment Independent estimates CONDUCTPROCUREMENT. 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.
    Inspections and audits Procurement performancereviews 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.
    FINAL PROCUREMENT This processincludes –  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.
    PROCUREMENT OBJECTIVES  Continuoussupply .  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.
    TOOLS USED INPROCUREMENT 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.
    USING SOFTWARE INPROCUREMENT 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.
    ADVANTAGE OF PROCUREMENTMANAGEMENT  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.
    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.
    CONCLUSION  Is atool 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.
    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