The document provides an overview of procurement management as it relates to the PMP exam. It discusses the four primary processes involved in project procurement management: plan procurements, conduct procurements, administer procurements, and close procurements. For each process, it outlines the typical inputs, tools and techniques, and outputs involved. The document aims to explain the key concepts and components of procurement management to help study for the relevant questions on the PMP exam.
Project Procurement Management_Taipei101Hungyu Lai
Project Procurement Management, 2015 Fall
A procurement management plan based on the assumption of the Taipei101 case
Planned and Presented in UCI PM class
Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations, or individuals, generally via a contract. Procurement planning identifies which part/s of the project should be procured from resources outside of the organization. Weather or not to procure resources from outside depends upon what is more cost effective and certain other factors.
One of the most important aspects of procurement is contract and vendor management. There are different type of contract, out of which an organization chooses the most profitable one for its project. Contract closure includes setting all planned objectives with the vendor and the confirmation that all obligations of the contract were met as expected. The final step is the project closure which includes processes at various levels of the organization.
Project Procurement Management_Taipei101Hungyu Lai
Project Procurement Management, 2015 Fall
A procurement management plan based on the assumption of the Taipei101 case
Planned and Presented in UCI PM class
Procurement is the acquisition of goods and/or services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place and from the right source for the direct benefit or use of corporations, or individuals, generally via a contract. Procurement planning identifies which part/s of the project should be procured from resources outside of the organization. Weather or not to procure resources from outside depends upon what is more cost effective and certain other factors.
One of the most important aspects of procurement is contract and vendor management. There are different type of contract, out of which an organization chooses the most profitable one for its project. Contract closure includes setting all planned objectives with the vendor and the confirmation that all obligations of the contract were met as expected. The final step is the project closure which includes processes at various levels of the organization.
Project Procurement Management (PPM) includes the processes necessary to purchase or acquire products, services, or results needed from outside the project teams. It also includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.
Procurement dari cost centre menjadi profit centre
Dengan harga harga yang meningkat, namun pendapatan tidak bertambah, strategy cost saving menjadi strategi ujung tombak menjaga profit suatu perusahaan. Procurement cost saving strategy menjadi pilihan yang utama, mengingat procurement menangani 60-80% spending perusahaan (direct & indirect). Peran procurement menjadi semakin strategis, signifikan dan berubah dari cost centre menjadi profit centre.
What is the Impact of the New Standard on the Intermediate Accounting Course?Cengage Learning
Presented by: Jefferson P. Jones Auburn University and Donald P. Pagach North Carolina State University
This session will address why the new standard was issued, its impact on the intermediate accounting course, and guidance on how to teach the new standard in the intermediate accounting course. Authors Jeff Jones and Don Pagach will also discuss how the new standard will be addressed in the second edition of Wahlen/Jones/Pagach Intermediate Accounting 2e.
Procurement Guidelines
1. These Guidelines are intended to assist PI staff in handling procurement of Goods, Work and Consultancy Services in the context of IFAD Direct Supervision. It is a compendium of instructions, forms and checklists extracted from IFAD’s Guidelines for Supervision and Implementation Support.
It also draws from information distributed to IFAD staff during the Direct Supervision TrainingProgramme held at Casa San Bernardo during 2007/08.
Procurement Management is one of the key aspect of project success. As a PM you whole need a solid understanding of different contract type, how your company specific procurement process works and how does general procurement process be conducted
Guide to BS8534 British Standard on ProcurementSarah Fox
A guide to the British Standard, BS8534:2011 “Construction procurement policies, strategies and procedures – code of practice.”
This short note sets out some of the content of the Standard and how it links with the Briefing Checklist for Advisers www.slideshare.net/sarahjvfox/construct-checklist
The guide was developed by Sarah Fox, author of the 500-Word Contract.
For help writing simpler contracts or understanding complex ones, including ensuring your contract processes meet best practice and British Standards, email: sarah@500words.co.uk or visit www.500words.co.uk
Project Procurement Management (PPM) includes the processes necessary to purchase or acquire products, services, or results needed from outside the project teams. It also includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.
Procurement dari cost centre menjadi profit centre
Dengan harga harga yang meningkat, namun pendapatan tidak bertambah, strategy cost saving menjadi strategi ujung tombak menjaga profit suatu perusahaan. Procurement cost saving strategy menjadi pilihan yang utama, mengingat procurement menangani 60-80% spending perusahaan (direct & indirect). Peran procurement menjadi semakin strategis, signifikan dan berubah dari cost centre menjadi profit centre.
What is the Impact of the New Standard on the Intermediate Accounting Course?Cengage Learning
Presented by: Jefferson P. Jones Auburn University and Donald P. Pagach North Carolina State University
This session will address why the new standard was issued, its impact on the intermediate accounting course, and guidance on how to teach the new standard in the intermediate accounting course. Authors Jeff Jones and Don Pagach will also discuss how the new standard will be addressed in the second edition of Wahlen/Jones/Pagach Intermediate Accounting 2e.
Procurement Guidelines
1. These Guidelines are intended to assist PI staff in handling procurement of Goods, Work and Consultancy Services in the context of IFAD Direct Supervision. It is a compendium of instructions, forms and checklists extracted from IFAD’s Guidelines for Supervision and Implementation Support.
It also draws from information distributed to IFAD staff during the Direct Supervision TrainingProgramme held at Casa San Bernardo during 2007/08.
Procurement Management is one of the key aspect of project success. As a PM you whole need a solid understanding of different contract type, how your company specific procurement process works and how does general procurement process be conducted
Guide to BS8534 British Standard on ProcurementSarah Fox
A guide to the British Standard, BS8534:2011 “Construction procurement policies, strategies and procedures – code of practice.”
This short note sets out some of the content of the Standard and how it links with the Briefing Checklist for Advisers www.slideshare.net/sarahjvfox/construct-checklist
The guide was developed by Sarah Fox, author of the 500-Word Contract.
For help writing simpler contracts or understanding complex ones, including ensuring your contract processes meet best practice and British Standards, email: sarah@500words.co.uk or visit www.500words.co.uk
Online PMP Training Material for PMP Exam - Risk Management Knowledge AreaGlobalSkillup
Risk Management Knowledge Area in Project management defined by PMBOK 5th Edition by Project Management Institute (PMI). Provided by GlobalSkillup.com towards PMP Certification Exam.
Online PMP Training Material for PMP Exam - Procurement Management Knowledge ...GlobalSkillup
Procurement Management Knowledge Area in Project management defined by PMBOK 5th Edition by Project Management Institute (PMI). Provided by GlobalSkillup.com towards PMP Certification Exam.
مراجعة ادارة المشتريات - جمعية المهندسين المصريين في الرياض
https://www.youtube.com/watch?v=-d48_IVpud4&index=5&list=PL9HqmhqTzU-UVL9Z2wGyzo8tALNOC2ym7
I am Continuously seeking to improve my competencies and skills to provide first class professional Project Management training courses; and develop my scope experience in Project Management functions.
I am confident that my innovative and results-focused approach would make significant contribution to the continued success of your organization.
For more information do not hesitate to contact me.
Ahmad H. Maharma - PMP®
Ramallah, Palestine
Phone: + (972) (2) 2968644
Mobile: + (972) (599) 001155
E-Mail: ahmad.maharma@gmail.com
80 instrumentation interview questions with answerskirstymoore071
In this file, you can ref interview materials for instrumentation such as, instrumentation situational interview, instrumentation behavioral interview, instrumentation phone interview, instrumentation interview thank you letter, instrumentation interview tips …
Top 36 instrumentation interview questions with answers pdf
free pdf download ebook
3 Things Every Sales Team Needs to Be Thinking About in 2017Drift
Thinking about your sales team's goals for 2017? Drift's VP of Sales shares 3 things you can do to improve conversion rates and drive more revenue.
Read the full story on the Drift blog here: http://blog.drift.com/sales-team-tips
The objective of this certification program is to provide the qualified individual with a globally recognized credential as a Certified Construction Project Consultant, certificate accredited by The American Academy of Project Management AAPM®, globally recognized in over 140 countries.
Who will benefit from this course?
• If you are an engineer and have at least 4 years of experiences in construction project management, you are welcome to join this program. Once certified, you will then become an engineering consultant who serves organizations, and businesses meet their design and construction needs.
If you are already a certified project manager in the construction industry, you are automatically qualified to sit in this course to enrich your skills toward becoming a certified Consultant.
•Over 10 years of professional experience, as expert procurement professional, inventory controlling, and overseas operation.
•Participated in developing tender and contract policies according to Abu Dhabi procurement regulations 2008, Article NO.6 to improve business performance and cut cost.
•Involved in Re-engineering Procurement Process and Procedures.
•Manage multiple projects, and budget controlling.
•Suppliers sourcing & negotiation skills. Contracts performance evaluation & raw material planning.
•High potential communication and analytic skills.
Global emerging markets sourcing through procurement sub contractorsJohn William
Global emerging markets sourcing through procurement sub-contractors
Description: In present scenario emerging sourcing countries have become one of the popular destinations for effective sourcing activity. Emerging market sourcing helps to source products and services at fair price. To know more about emerging markets sourcing visit: http://www.dragonsourcing.com/
The Business Case for the Leverage of Strategic Procurement Thinking
1. Meet Organization Goals by Leveraging Expert Procurement Capabilities
2. Realize Enhanced Customer Experience
3. What is Procurement Management?
Includes the processes required to acquire
goods or services from outside the project
team.
It also includes Contract Management and
Change Control Processes.
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4. Project Procurement Management
Plan Procurements
Plan Procurements Administer Procurements
Administer Procurements
Conduct Procurements Close Procurements
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5. 1. PLAN PROCUREMENTS
INPUTS TOOLS & TECHNIQUES
1. Scope Baseline
2. Requirements Documentation 1. Make or Buy Analysis
3. Teaming Agreements 2. Expert Judgment
4. Risk Register 3. Contract Types
5. Risk Related Contract Decisions
6. Activity Resource Requirements
7. Project Schedule
8. Activity Cost Estimates
9. Cost Performance Baseline
10. Enterprise Environmental Factors
11. Organizational Process Assets
OUTPUTS
1. Procurement Management Plan
2. Procurement SOW
3. Make or Buy Decisions
4. Procurement Documents
5. Selection Criteria
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6. Change Requests
6. 1. PLAN PROCUREMENTS - Inputs
Identifies products or services that can be
acquired from outside the project organization Vs
needs that can be accomplished by the project
team.
Involves consideration of potential sellers.
Can influence project schedule, resource
estimating and make or buy decisions.
Includes reviewing the risks involved and type of
contract to be used.
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7. 1. PLAN PROCUREMENTS - Inputs
1. Scope Baseline
2. Requirements Documentation
Project Requirements
Legal and Contractual Requirements; health,
safety, warrantees, insurance, IPR, terms and
conditions, KPIs, SLAs…etc.
3. Teaming Agreements (Contractual Agreements)
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8. 1. PLAN PROCUREMENTS - Inputs
4. Risk Register
5. Risk Related Contract Decisions
6. Activity Resource Requirements (People,
equipment or location)
7. Project Schedule
8. Activity Cost Estimates (Internal Cost
Estimates for activities being procured)
9. Cost Performance Baseline (Planned Budget)
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9. 1. PLAN PROCUREMENTS - Inputs
10. Enterprise Environmental Factors:
Market place conditions: (Products and
services available in the market, from whom
and under what terms and conditions.)
Suppliers and typical terms and conditions?
11. Organizational Process Assets:
Procurement related policies and guidelines.
Centralized or Decentralized?
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10. 1. PLAN PROCUREMENTS – Tools &
Techniques
1. Make or Buy Analysis:
Determine whether a product or service
needs to be procured or can be produced
by the project team.
Purchase or make - Purchase or
renting/leasing
Reasons to Buy:
Capacity and Capability
Exploit Opportunity
Shift risk (cost, time, or scope)
Reasons to Make:
Idle resources
Want to control
Confidential information Academy
Emak International 10
11. 1. PLAN PROCUREMENTS – Tools
& Techniques
2. Expert Judgment
3. Contract types
The primary aim of considering which contract
type is most suitable for the procurement
situation is to distribute the risk between
buyer and seller.
The three major types of contracts are:
Fixed-Price
Cost-Reimbursable
Time and Material
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12. 1. PLAN PROCUREMENTS –
Tools & Techniques
A. Fixed Price:
FFP
- Well defined scope/ product.
- Fixed total Price. FPIF
- Risk is on the seller.
FP-EPA
B. Cost Reimbursable
CPFF
Contract:
- Scope and Product aren’t CPIF
exactly defined.
- Price is open based on the CPAF
final costs the product will incur.
- Risk is on the buyer.
Emak International Academy 12
13. 1. PLAN PROCUREMENTS – Tools &
Techniques
C. Time and Material:
- Cost is charged to identified tasks of an on
going activity, ex. research.
- Scope per unit is defined.
- Risk is on the buyer. (seller has no incentive to
control costs)
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14. 1. PLAN PROCUREMENTS –Outputs
1. Procurement Management Plan: It includes;
Procurement Processes
Risk Management
Standardized Procurement Documents
Types of contracts used
Responsibilities
Pre-qualified sellers
Scheduled dates for deliverables
Managing multiple providers
Emak International Academy 14
15. 1. PLAN PROCUREMENTS –Outputs
2.Procurement Statement of Work: includes
Specifications, quality levels, quantity desired
and other requirements.
Describes the procurement item in sufficient
detail to allow sellers to determine if they are
capable of providing the item.
3. Make or Buy Decisions: documented
decisions.
4. Change Requests
Emak International Academy 15
16. 1. PLAN PROCUREMENTS – Outputs
5. Procurement Documents: are used to solicit
proposals, quotes, and bids from sellers
Bid / Tender / Quotation (IRB – RFT –
RFQ)
• Selection is mainly based on price.
Proposal
• Selection will be based on price and other
factors; as technical capability, technical
approach…etc.
Terminology may vary by industry.
Emak International Academy 16
17. 1. PLAN PROCUREMENTS –Outputs
6. Source Selection Criteria:
The project team must be prepared to compare
the proposals received in an unbiased manner
based on identified and documented selection
criteria to rate or score proposals.
Includes:
Past performance
Understanding of need
Overall or life cycle cost
References
Technical capability and approach
Risk
Management approach
Financial stability and capacity
Emak International Academy 17
18. Q: With a clear scope of work a seller completes work
as specified, but the buyer is not pleased with the
results. The contract is considered to be:
a. Null and void
b. Incomplete
c. Complete
d. Waived
C. Complete
Emak International Academy 18
19. Q. In a fixed price contract, the fee or profit is:
a. Unknown
b. Part of the negotiation involved in paying every invoice
c. Applied as a line item in every invoice
d. Determined at the end of the project
a. unknown
Emak International Academy 19
20. 2. CONDUCT PROCUREMENTS
INPUTS TOOLS & TECHNIQUES
1. Bidder Conferences
1. Project Management Plan
2. Proposal Evaluation Techniques
2. Procurement Documents
3. Independent Estimates
3. Source Selection Criteria
4. Expert Judgment
4. Qualified Seller List
5. Advertising
5. Seller Proposals
6. Internet Search
6. Project Documents
7. Procurement Negotiations
7. Make or Buy Decisions
8. Teaming Agreements
9. Organizational Process Assets
OUTPUTS
1. Selected Sellers
2. Procurement Contract Award
3. Resource Calendars
4. Change Requests
5. Project Management Plan Updates
6. Project Documents Updates Emak International Academy 20
21. 2. CONDUCT PROCUREMENTS
Obtain sellers’ responses, select sellers and
award contracts.
Emak International Academy 21
22. 2. CONDUCT PROCUREMENTS - Inputs
1. Project Management Plan
2. Procurement Documents
3. Source Selection Criteria
4. Qualified Seller List (Approved Bidders List and
new pre-qualified sellers)
5. Seller Proposals (obtained from sellers)
6. Project Documents (Scope, Schedule, Cost, Risk)
7. Make or Buy Decisions
8. Teaming Agreements
9. Organizational Process Assets (Past Experience,
Bidders List)
Emak International Academy 22
23. 2. CONDUCT PROCUREMENTS –
Tools & Techniques
1. Bidder Conferences
Are also known as contractor, vendor, or pre-
bid conferences.
The purpose of these conferences is to clarify
any of the information not clearly stated in
the RFP.
Creates a clear and common understanding
of the procurement.
Proposals received will be more clearly
aligned with project requirements, due to the
fact that bidder conferences make the
requirements clear.
Emak International Academy 23
24. 2. CONDUCT PROCUREMENTS –
Tools & Techniques
2. Proposal Evaluation Techniques (agreed by
Evaluation Committee)
3. Independent Estimates (serves as a
benchmark and help uncover SOW deficiencies
and ambiguities misunderstanding of Scope)
4. Expert Judgment
5. Advertising
- Is a tool that may be used to increase the
number of potential sellers contacted via
Newspapers, Professional journals or Websites
Emak International Academy 24
25. 2. CONDUCT PROCUREMENTS –
Tools & Techniques
6. Internet Search
7. Procurement Negotiations (Team)
Negotiations can cover the following
areas:
Responsibilities and authorities
Applicable terms and law
Scope, technical and business management
approaches
Contract financing (Payment Schedule)
Price
Emak International Academy 25
26. 2. CONDUCT PROCUREMENTS –
Outputs
1. Selected Sellers
2. Procurement contract Award
A mutually binding agreement that obligates the seller to
provide the specified product and obligates the buyer to
pay for it.
Major components:
SOW Schedule Roles and responsibilities
Pricing Payment Acceptance criteria
Warranty product support Incentives
Penalties Insurance Performance bonds
Change requests Termination mechanisms
Emak International Academy 26
27. 2. CONDUCT PROCUREMENTS Outputs
3. Resource Calendars
4. Change Requests
5. Project Management Plan Updates (Scope,
Cost, Schedule, Procurement Management
Plan…etc.)
6. Project Document Updates (SOW and
Requirements Documentation)
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28. Q: Bidder Conferences are part of :
a. Plan Procurements
b. Conduct Procurements
c. Administer Procurements
d. Conduct Purchasing
Answer B
Emak International Academy 28
29. Q. The project team is arguing about whether they
should complete a work package themselves or
outsource the work. What part of the procurement
process are they in:
a. Contract administration
b. Plan Procurements
c. Conduct Procurements
d. Select sellers
Answer B
Emak International Academy 29
30. 3. ADMINISTER PROCUREMENTS
INPUTS TOOLS & TECHNIQUES
1. Procurement Documents 1. Contract Change Control System
2. Project Management Plan 2. Procurement Performance Reviews
3. Contract 3. Inspections and Audits
4. Performance Reports 4. Performance Reporting
5. Approved Change Requests 5. Payment Systems
6. Work Performance Information 6. Claims Administration
7. Records Management System
OUTPUTS
1. Procurement Documentation
2. Organizational Process Assets Updates
3. Change Requests
4. Project Management Plan Updates
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31. 3. ADMINISTER PROCUREMENTS
Manage procurements relationships,
monitor contract performance and make
changes and corrections as needed.
Emak International Academy 31
32. 3. ADMINISTER PROCUREMENTS -Inputs
1. Procurement Documents
2. Project Management Plan
3. Contract
4. Performance Reports
Technical documentation and other
deliverables information developed by the
seller.
Seller Performance Reports.
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33. 3. ADMINISTER PROCUREMENTS -
Inputs
5. Approved Change Request.
6. Work Performance Information: Includes;
The extent to which quality standards are
being met.
Indicates which deliverables have been
completed.
Identifies which costs have been incurred.
Seller invoices: submitted from time to time
to request payment for work performed.
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34. 3. ADMINISTER PROCUREMENTS –
Tools and Techniques
1. Contract Change Control System
Defines the process by which the contract
may be modified.
It includes the paperwork, tracking systems,
dispute resolution procedures, and approval
levels necessary for authorizing changes.
Should be integrated with the integrated
change control system.
2. Procurement Performance
Review; A structured review on the
sellers’ progress to deliver as per planned
scope – quality – schedule – quality, etc..
Emak International Academy 34
35. 3. ADMINISTER PROCUREMENTS –
Tools and Techniques
3. Inspections and Audits; required by the buyer
and supported by the seller to identify any
weaknesses in the seller’s work performance or
deliverables.
4. Performance Reporting: Provides information to
management about how effectively the seller is
achieving the contractual objectives.
5. Payment System: Handled by the accounts
payable department of the performing organization.
Must include reviews and approvals of seller invoices
by the project team prior to issuing a payment to a
seller.
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36. 3. ADMINISTER PROCUREMENTS –
Tools and Techniques
6. Claims Administration: (disputes or appeals)
Where buyer and seller cannot agree on
compensation for the change, or that a change has
even occurred.
Should be documented and managed in accordance
with the terms of the contract.
Might involve arbitration or litigation.
7. Record Management System:
A set of processes and automation tools
consolidated into the project Management
Information System to manage contract
documentation and records.
To maintain an index of contract records, and
correspondences for archiving and future use.
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37. 3. ADMINISTER PROCUREMENTS –
Outputs
1. Procurement Documentation: A complete
set of indexed records regarding the contract.
Includes;
Schedules
Approved and unapproved change requests
Technical documentation
Work performance information
Performance reports
Financial docs (invoices ad payment records)
2. Change Requests
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38. 3. ADMINISTER PROCUREMENTS –
Outputs
3. Updated Organizational Process Assets:
including
Correspondence: communication between buyer
and seller.
Payment Schedules and requests; if the project
is using an external payment system.
Seller performance Evaluation documentation:
performed by the buyer to document seller’s
ability to continue to perform work on the
project or to be allowed to work on future
projects.
Basis for early termination
Can be included in qualified seller lists in the
organization.
4.Updated Project Management Plan
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39. Q. All of the following statements about change control are
incorrect EXCEPT:
a. A fixed price contract will minimize the need for change
control.
b. Changes seldom provide real benefits to the project
c. Contracts should include procedures to accommodate
changes.
d. More detailed specifications eliminate the causes of
changes.
Answer C
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40. 4. CLOSE PROCUREMENTS
INPUTS TOOLS & TECHNIQUES
1. Procurement Documentation 1. Procurement Audits
2. Project Management Plan 2. Negotiated Settlements
3. Records Management System
OUTPUTS
1. Closed Procurement
2. Organizational Process Assets Updates
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41. 4. CLOSE PROCUREMENTS
The process of completing each project procurement.
Involves verification that all of the procurement work
was completed and accepted. (Product Verification)
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42. 4. CLOSE PROCUREMENTS - Inputs
1. Project Management Plan
2. Procurement Documentation
The contract.
Supporting schedules
Requested and approved changes
Technical documentation
Performance reports
Financial reports
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43. 4. CLOSE PROCUREMENTS – Tools
and Techniques
1. Procurement Audits:
A structured review of the procurement
process from Plan Procurements to Administer
Procurements.
The objective is to identify the successes and
failures that warrant recognition.
2. Negotiated Settlements
3. Records Management System.
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44. 4. CLOSE PROCUREMENTS – outputs
1. Closed Procurements: Formal written notice
that the contract has been completed.
2. Updated Organizational Process Assets:
Contract File:
A complete set of indexed contract documentation.
Deliverable Acceptance:
A formal written notice from the buyer that the
contract has been accepted.
Requirements should be defined in the contract.
Lessons Learned documentation
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