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Procurement Management

This document discusses procurement and procurement management for a project management course. It defines procurement and purchasing, describes centralized and projectized procurement strategies. It also outlines the procurement process, including planning, conducting, administering and closing procurement. Negotiation skills and how effective procurement management can impact project success or failure are also examined.

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Ali Sadeddin
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615 views17 pages

Procurement Management

This document discusses procurement and procurement management for a project management course. It defines procurement and purchasing, describes centralized and projectized procurement strategies. It also outlines the procurement process, including planning, conducting, administering and closing procurement. Negotiation skills and how effective procurement management can impact project success or failure are also examined.

Uploaded by

Ali Sadeddin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MBS641 Project Management Dubai Trimester 2 2011 Assignment 1

Prepared by:

Ali Sadeddin 31542474

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 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 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

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 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 Procurement B. Conduct Procurement C. Administer Procurement D. Close Procurement

PMBOK 2008 4th ED, P313

http://www.guinnesspartnership.com

http://www.undp.org/procurement/operate.shtml#_Procurement_Process

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

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 Order
PMI, PMBOK 4th ED, 2008, P328-334

Manage the Contract or Purchase Order

Monitor the Supplier performance Evaluate the Supplier

Receive the Goods and Products.

Complete the Services

Testing and Commissioning

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/

Self Limiting Expectations

Comfort Seeking Inertia

Driven Lack of Self Control Self Absorption Ego

Attitudes to Money

http://www.negotiations.com/articles/attitude-mind/

Select Wrong Vendor/contractor

Having inappropriate type of contract

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/

Thanks for your listening

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