procurement management
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Procurement Management
MBS641Project Management
Dubai Trimester 2 2011
Assignment 1
Prepared by:Ali Sadeddin 31542474
Procurement Management
What is procurement and procurement management?
The difference between procurement and purchasing.
Types of procurement strategies; projectized procurement and centralized procurement.
Procurement Processes Negotiation Skills
How Procurement Management can affect the success or failure of the Project.
Procurement Managment
Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the need of the purchaser in terms of quality and quantity, time and location.
Procurement Management is implementing procedures and processes to do so.
http://www.en.wikipedia.org
Procurement Vs Purchasing
“Procurement” is the comprehensive function that describes the activities and processes to acquire goods and services.
“Purchasing” refers to the process of ordering and receiving goods
Purchasing is part of procurement process
http://purchasinginsight.com/resources/what-is/definition-of-procurement-procurement-vs-purchasing
Procurement: Centralized Vs Projectized
Projectized: Project Manager with his team will take care of procurement processes.
Centralized: Independent department will take care of procurement as per project needs.
Procurement Processes
Procurement Processes is a combination of procedures and techniques which ends with acquisition of goods or services necessary for the project execution.
Procurement Processes are:A. Plan ProcurementB. Conduct ProcurementC. Administer ProcurementD. Close Procurement PMBOK 2008 4th ED, P313
Procurement Processes
http://www.guinnesspartnership.com
Procurement Process
http://www.undp.org/procurement/operate.shtml#_Procurement_Process
Plan Procurement
Specification Budget Vender List Stakeholders Specific Requirement (if any) Work Breakdown Statement (WBS) Market Place Conditions Procurement Policies
PMI, PMBOK 4th ED, 2008, P316-321
Conduct Procurement
Request For Quotation (RFQ) Invitation For Bid (IFB) Request For Proposal (RFP) Suppliers/Venders Quotations or Proposals Evaluations Suppliers/Venders Short Listing Negotiations with the Short Listed
Suppliers/Venders Awarding a Contract or Issuing a Purchase OrderPMI, PMBOK 4th ED, 2008, P328-334
Administer Procurement
Manage the Contract or Purchase Order
Monitor the Supplier performance
Evaluate the Supplier
Close Procurement
Receive the Goods and Products.
Complete the Services
Testing and Commissioning
Negotiation
Negotiation is an interactive process between two or more parties seeking to find common ground on an issue or issues of mutual interest or dispute where the involved parties seek to make or find a mutually acceptable agreement that will be honored by all the parties concerned
http://www.negotiations.com/definition/
Negotiation Attitudes
Self Limiting Expectations
Comfort Seeking Inertia
Attitudes to Money Driven
Lack of Self Control Self Absorption Ego
:// . . / /http www negotiations com articles attitu- /de mind
Procurement Management: the Success or Fail for the Project
Select Wrong Vendor/contractor
Having inappropriate type of contract
Conclusion
Having the procurement processes done and followed probably will result with selecting the right venders, closing the best deals and writing the appropriate contract. Doing so will ensure that all goods, services, technologies and deliverables required by the project will be on time and executed probably within the project time plan. All of these will conclude a successful project, failing to do so, will crucially affect the project and lead to its fail :// . / - / - - -http kareemshaker com project management why projects fail
/procurement
The End
Thanks for your listening
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