Lecture on

project procurement
Adapted from Video Lessons of Trudy Robinson
(source:BSBPmG408A,www.trudyrobinson.com)

Trudy Robinson-the Author

Teaches Project Management at an institute in South/East Queensland

Often takes on contracts/assignments

Has 20 year history as a Business Analyst and Business Consultant in Australia and the UK

Has covered a broad range of industries, including Agriculture, Not for Profit, Public Relations, Production/Manufacturing, Construction & Mining and Banking (discover(@)trudyrobinson)

Presenter

Masilamani R

.has more than 30 years of working,

teaching and consulting experience

.qualified in two professional project

management certificates

. regular reading, writing and training in

project management

.contactable at misilamani@yahoo.com
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Objectives

To understand and apply knowledge regarding,

Purchasing Contract Project Inputs & Outputs

Which need to be managed by a formal procurement process

(PMBOK V4 reference-pg 313, Chapter 12)
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Procurement Indices

Attainment Fulfillment Contract Appropriation Securing Providing Tender

Gaining Acquisition Vendor Buying Purchasing Furnishing

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PROCUREMENT
Inputs to Projects

Project Activities activities

Outputs from Project

Project Procurement Management

Inputs to Project

Project Procurement Process/ Activities

Project Procurement Management

Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier)

incoming
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Project Procurement Management

Contract Management Process, DIFOT(Delivery In Forlorn Time) Payments

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incoming
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Project Procurement Management

PROCESS Identify procurement requirements(Concept) Plan procurement(Design) Conduct & Administer(Implementation) Close procurements(Finalization)
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(Referrence: PMBOK pg 317)

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Project Procurement Management

CONTRACTS Agreements Purchase order Memorandum of Understanding(MOU) Sub- contract Service level agreements
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Project Procurement Management

Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier)

incoming
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Project Procurement Management

Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier)

incoming
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Project Procurement Management

CONTRACTS-cont Terms & Conditions Clear points of payment Specific product/service provisions Schedule Exclusions 14 Model-Time & Material

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Project Procurement Management

WIDER PICTURE Organizational policies

Who decides? Occupational safety & health

Quality/OHS

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Project Procurement Management

WIDER PICTURE-cont Other projects Legal counsel Existing commitments

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Project Procurement Management

YOU Will CREATE Procurement management plan Procurement statement of work(SOW)-similar to a PD but for the contract; not the individual Invitation To Tender(ITT) Request for Information(RFI), request for 17 Proposal(RFP) etc.

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Project Procurement Management

SELECTION CRITERIA Clear outline of requirement Ensure all responses received are in identified format Think ahead- word the ITT to enable numerical value to be applied to a suppliers response(simplifies overall analysis)
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Project Procurement Management

SELECTION CRITERIA-cont. No duplications or ambiguity in requirements Provide one point of contact where questions can be asked Evaluate, compare, choose
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Project Procurement Management

MANAGE DIFOT Performance Adherence of contract Payment approvals Change requests/variations

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Project Procurement Management

Identifying what you Need to Buy In Clear requirements Who you are going to work with(supplier)

incoming
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Project Procurement Management

CLOSE Final review

DIFOT Performance

Final payments
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Project Procurement Management

CLOSE Input to lessons learned resources management

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Summary

Procurement is managing contracts, inputs to the project as well as outputs Influences outside the project will influence (organizational policies..) Identify, Clarify, Invite, evaluate & decide Know your contracts and the clients of each DIFOT FORMAL PROCESS-stick to it 24

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Thank You
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