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Description
Mind Map by farzanajeffri, updated more than 1 year ago
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Created by farzanajeffri
about 8 years ago
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Project Procurement Management
- Definition
- Procurement means acquiring goods and
services from an outside source
- The term procurement is mostly used in government
- Many private companies use the terms purchasing and outsourcing
- Offshoring means to outsource to other countries
- Procurement means acquiring goods and
services from an outside source
- Deciding whether to outsource,
what to outsource, and how to
outsource
- Companies outsource to achieve the following:
- Access skills and technologies
- Reduce both fixed and recurrent costs
- Allow the client organization to focus on its core business
- Provide flexibility
- Increase accountability
- Access skills and technologies
- 4 main processes
- 1. Planning procurement management
- involves deciding whether to procure, how to
procure, what to procure, how much to procure, and
when to procure
- Inputs needed
- project management plan
- requirements documentation
- risk register
- activity resource requirements
- project schedule
- activity cost estimates
- stakeholder register
- enterprise environmental factors
- organizational process assets
- types of contracts
- Fixed price (lump sum)
- Cost reimbursable
- time & material
- Fixed price (lump sum)
- types of contracts
- project management plan
- Tools and techniques
- Make-or-Buy Analysis
- Expert Judgment
- Market Research
- Make-or-Buy Analysis
- output
- Procurement Management Plan
- Guidelines for types of contract to be used in different
situations
- Standard procurement documents or templates to be used, if applicable
- Guidelines for creating contract work breakdown structures, statements of work, and other procurement documents
- Roles and responsibilities of the project team and related departments, such as the purchasing or legal department
- Guidelines for using independent estimates to evaluate sellers
- Suggestions for managing multiple providers
- Processes for coordinating procurement decisions with
other project areas, such as scheduling and performance
reporting
- Constraints and assumptions related to purchases and acquisitions
- Lead times for purchases and acquisitions
- Risk mitigation strategies for purchases and acquisitions, such as insurance contracts and bonds
- Guidelines for identifying prequalified sellers and organizational lists of preferred sellers
- Procurement metrics to assist in evaluating sellers and managing contracts
- Guidelines for types of contract to be used in different
situations
- Statement of Work
- Procurement Documents
- Procurement Management Plan
- involves deciding whether to procure, how to
procure, what to procure, how much to procure, and
when to procure
- 2. Conducting procurements
- involves obtaining seller responses, selecting sellers, and awarding contracts.
- involves obtaining seller responses, selecting sellers, and awarding contracts.
- 3. Controlling procurements
- involves managing relationships with sellers, monitoring
contract performance, and making changes as needed
- Both the project manager and key team members should be
involved in writing and administering the contract
- involves managing relationships with sellers, monitoring
contract performance, and making changes as needed
- 4. Closing procurements
- involves completion and settlement of each
contract, including resolution of any open items
- tools and techniques
- procurement audits
- negotiated settlements
- records management systems
- procurement audits
- involves completion and settlement of each
contract, including resolution of any open items
- 1. Planning procurement management
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