Project Procurement Management Project Procurement Management is defined by the Project Management Institute (PMI) (2013) as a set of defined processes that support the acquisition of products, services, or results. The success or failure of a project is accredited to the project team’s ability to balance scope, schedule, and cost constraints. The need for procurement management increases the project’s level of complexity and likelihood of risks. Moreover, the procurement management processes are a project within a project. This singular knowledge area produces a procurement scope document, contractual agreements, and management plan, which align with the project management plan and objectives. Procurement processes play an essential role in the success of the project. Receipt of procurement deliverables drives the potential for the timely achievement of project objectives and managing costs. Procurement …show more content…
Closing processes are dependent on the control and audit outputs from the control procurement processes (Project Management Institute, 2013). EP repositories are a comprehensive and include contract requirements, accompanying change requests, performance reports, and audit results (Neupane, et al.,2012). These documents are essential to ensure that all scope and change requests are satisfied prior to Procurement Officer requesting formal acceptance (Project Management Institute, 2013). Once formal acceptance is provided, procurement teams have an opportunity to document any lessons learned or opportunities for improvement as guidance for future projects (Project Management Institute, 2013). Finally, EP systems offer B2B project teams a sustainable mechanism for storing documents whereas physical documents are susceptible to damage or
The Project Management Institute (PMI) was formed in 1969 to provide a non-profit organization for project professionals. This global organization offers eight different endorsements to aid project management professionals in acquiring positions with higher wages and career prospects (Learn about PMI, n.d.). The Project Management Institute is the foremost authority in project management (PM) fundamentals and serves as the lead organization for project administration. With organizational groups that extend globally, this institution
A procurement document is used for petitioning offers from potential sellers (PMBOK, 2013). The document is used widely in a contractual nature in terms of obtaining information, bids, quotations, and
Gray, C., Larson, E. (2008). Project Management: The managerial Process. New York, NY: The McGraw-Hill Companies Inc.
While there are positive takeaways from all aspects of the project, better strategies and approaches could have been taken to manage the human resources and procurement phases of the project. The success of the integration aspect was in part due to proper profiling and characterization of the project. A positive lesson learned about communication with clients was to define the scope of the project with full transparency to the client. The frequent communication with the client and soliciting their involvement in important decision making throughout the project allowed for mutual understanding of project
The projects in today’s world are given a lot of importance and it will continue to grow in the coming years. There are a lot of companies which do not have production, but all of them do have projects. There are a lot of books which have been published on which related to planning and managing the projects. The one of the most important one was published by the author Eli Goldratt in his book ‘Critical chain’. This book basically talks and shows how the application of theory of constraints in the field of project management. The novel is basically based on one of the MBA classes in America where a number of ideas are developed in discussions among the students and the lecturers. The lecturer is basically fighting for a tenure with the president of the university who expects a downturn in the executive MBA. The lecturer who teaches project management has a word with one the senior colleagues and project management was the right topic to teach. There were three students who were placed in the project management team of their company which manufactures electronic products. The students are enrolled in this MBA class along with other students, here they discover a new approach to project management which is known as the
Project Management Institute (PMI) (2013). Project Management Professional (PMP) Handbook. [ONLINE] Available at: http://www.pmi.org/certification/~/media/pdf/certifications/pdc_pmphandbook.ashx. [Last Accessed 20 April 2014].
The topic of my group (group 4) was “How to totally float through your project for free” and the presentation was held by Roger Goodman who works for PMI NZ and Ernst & Young supply chain management with many years of working experience in many different countries such as Saudi Arabia and China.
You’d think it would be simple to perform a simple project to accomplish a simple goal. Despite what you might have heard, you’re right. In a perfect world, every single project would finish up two weeks ahead of schedule, with absolutely no snags along the way. In a perfect world, every project would finish safely under-budget, allowing the team to go out to a fancy steak restaurant to celebrate. And in a perfect world, the customer would always happily skip off singing the praises of the team that made it happen.
This system connects, accumulates, processesas well as provides imperative information to all parties thus enhancing continuity in the procurement process. However, if valid output is to be expected, features as well as requirements of the procurement process must be compatible to current system technologies (Giner, et al, 2011). The harmonization of suppliers as enhanced through the adoption of electronic sourcing enables firms to readily identify new potential suppliers for specific needs when old suppliers` capabilities are in question. The adoption of E-tendering that supports sending requests of pricesand information to suppliers as well as receiving suppliers responses improves on procurement efficiencies as it leads to significant cost reductions thus leading to better procurement performance through cost savings.For this system to achieve desired results however,all users must beready and willing to adopt the new systemsso enable seamless adoption and consequently ensure optimal
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
Project management involves all activities that encompass scheduling, planning, and controlling projects. A successful project manager ensure that an organization’s resources are being used both efficiently and effectively. Most projects need to be uniquely developed require a sense of customization and the ability to adapt to any posed challenges. The scope of effective project management includes defining what the project is and what is being expected to be accomplished. Projects are imposed to fulfill a certain need and project managers must have the ability to create the proper definition. Goals and the means used to attain those goals have to be clearly stated. Project Managers must also have the ability to plan
E-procurement technologies is an improved development for the procurement processes (Neef, 2001) which has benefits of increasing the efficiency of procurement process and price reduction (Essig and Arnold, 2001; de Boer et al., 2002), notwithstanding it promotes collaborative relationships (Holland, 1995; Dyer, 2000; Tang et al., 2001). According to Duyshart et al. (2003) and Costa et al. (2013) the use of e-procurement generates a benefit of more than 3% reduction in public expenditure meanwhile governments spend about 50% of their expenditure on procurement. Chomchaiya and Esichaikul (2016) stated that to realized the achievement of these benefits of e-procurement, performance measurements are required to reflect these benefits
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
Since the procurement manager is responsible for executing contracts for most companies, the Agent should support the project manager in making sure the technical aspects, schedule, scope, and risk are captured completely in the SOW. In closing, this paper examines the legal aspects of procurement management, along with how procurement management can be an effective tool for managing projects. This paper focused on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects that pertain to the Federal Acquisition Regulations (FAR). The company’s position on deciding not to procure all of the material in a contract was examined, along with how that position can be strengthened by understanding the legal aspects of procurement management. Finally, the paper analyzed how the project manager is supported by the contract management function.
“Project management is the application of knowledge, skills, tools, and techniques to organisational and project activities to achieve the aims of an organisation through projects” (PMI, 2003).