12 - pm - procurement management
DESCRIPTION
Project ManagementTRANSCRIPT
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PROJECT MANAGEMENT
Procurement Management
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Procurement Management
Includes the processes necessary to purchase or
acquire products, services, or results needed from
outside the project team
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Procurement Management
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12.1 Plan Procurement Management
Is the process of documenting project procurement
decisions, specifying the approach, and identifying
potential sellers
Determines whether to acquire outside support, and
if so, what to acquire, how to acquire it, how much is
needed, and when to acquire it
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12.1 Plan Procurement Management
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Make-or-Buy Analysis
Constraints may influence make-or-buy decisions
Budget
Direct costs as well as indirect costs
Resources available capabilities
Available contract types are also considered during the buy analysis
Fixed-price contracts
Cost-reimbursable contracts
Time and Material Contracts (T&M)
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Procurement Management Plan
Can include guidance for:
Types of contracts to be used
Risk management issues
Independent estimates and evaluation criteria
Standardized procurement documents
Managing multiple suppliers
Coordinating procurement
Handling the long lead times to purchase
Handling the make-or-buy decisions
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12.2 Conduct Procurements
Is the process of obtaining seller responses, selecting
a seller, and awarding a contract
Provides alignment of internal and external
stakeholder expectations through established
agreements
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12.2 Conduct Procurements
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Agreements
A procurement agreement includes:
Statement of work or deliverables
Schedule baseline
Performance reporting
Period of performance
Roles and responsibilities
Sellers place of performance
Pricing
Payment terms
Place of delivery
Inspection and acceptance criteria
Warranty
Product support
Etc
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12.3 Control Procurements
Is the process of managing procurement
relationships, monitoring contract performance, and
making changes and corrections to contracts as
appropriate
Ensures that both the sellers and buyers
performance meets procurement requirements
according to the terms of the legal agreement
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12.3 Control Procurements
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Tools & Techniques
Contract Change Control System
Paperwork, tracking systems, dispute resolution procedures, and approval levels
Procurement Performance Reviews
Structured review of the sellers progress
Inspections and Audits
Work performance data and reports
Payment Systems
After certification of satisfactory work by an authorized person on the project team
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Tools & Techniques
Claims Administration
Claims are documented, processed, monitored, and
managed throughout the contract life cycle, usually in
accordance with the terms of the contract
Records Management System
Is used by the project manager to manage contract and
procurement documentation and records
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12.4 Close Procurements
Is the process of completing each procurement
Documents agreements and related documentation
for future reference
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12.4 Close Procurements
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Tools & Techniques
Procurement Audits
Is a structured review of the procurement process
originating from the Plan Procurement Management
process through Control Procurements
Procurement Negotiations
Settlement of all outstanding issues, claims, and disputes
by negotiation is a primary goal
Dispute resolution by mediation or arbitration
When all else fails, litigation in the courts