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MindMap Gallery PMP project management-project procurement management

PMP project management-project procurement management

PMP exam preparation notes include the connotation of project procurement management, planning procurement management, implementing procurement, and controlling procurement. I hope this mind map will be helpful to you.

Edited at 2023-04-06 11:24:40

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PMP project management-project procurement management

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Outline

Project Procurement Management

connotation

Planning Procurement Management

Determine procurement management plan

The procurement management plan contains the various activities to be carried out during the procurement process.

A procurement management plan may include the following:

■ How to coordinate procurement with other work of the project, such as project schedule development and control;

■Timetable for carrying out important procurement activities;

■Procurement measurement indicators used to manage contracts;

■ Stakeholder roles and responsibilities related to procurement; if the executing organization has a procurement department, the project team’s authority and restrictions;

■ Constraints and assumptions that may affect procurement;

■ Jurisdiction and currency of payment;

■Whether an independent estimate needs to be prepared and whether it should be used as an evaluation criterion;

■ Risk management matters, including requirements for performance bonds or insurance contracts to mitigate certain project risks;

■Pre-qualified seller to be used (if any).

Determine whether to make or outsource

Make-or-buy analysis is used to determine whether a piece of work or deliverable is best done by the project team in-house or should be sourced from outside.

Factors to consider when making a make-or-buy decision include:

■ The organization's current resource allocation and its skills and capabilities;

■ Demand for expertise;

■ Unwillingness to assume the obligations of permanent employment;

■ and the need for unique technical expertise;

■ Also assess the risks associated with each make-or-buy decision.

Determine Procurement Strategy - Contract Payment Type

type of contract

lump sum contract

fixed price contract

Most commonly used, the buyer prefers that no changes are allowed unless the scope of work changes.

Total price plus incentive fee

There are upper and lower limits. If the price exceeds the upper limit, the seller will bear the responsibility; if the price falls below the lower limit, a reward will be given.

Total price plus economic price adjustment

Long performance times or payment in different currencies. Adjustable allowed for inflation or special item cost changes.

Work and materials contract

Add staff, hire experts, or seek outside support when you can't quickly produce an accurate statement of work.

cost reimbursement contract

cost plus fixed fee

The seller is reimbursed for all allowable costs incurred for contract work and is paid a fixed fee.

cost plus incentive fee

Reimburse costs. If the final cost exceeds or is less than the original cost, the buyer and seller share it proportionally.

cost plus incentive fee

All legitimate costs are reimbursed, but fees are paid only if the buyer's performance standards are met.

Prepare Procurement Statement of Work (SOW)

Based on the project scope baseline, a Statement of Work (SOW) is prepared for each procurement, defining only that portion of the project scope that will be included in the associated contract. The statement of work describes the products, services, or results to be procured in sufficient detail to allow the potential seller to determine whether it has the ability to provide such products, services, or results.

The procurement statement of work should strive to be clear, complete and concise. The contents of the statement of work include: specifications, required quantities, quality levels, performance data, performance period, work location and other requirements.

For the procurement of services, the term "Torem of Work (TOR)" may be used.

Similar to a procurement statement of work, an outline of work typically includes the following:

■ The tasks that the contractor needs to perform, and the coordination required

■ Applicable standards that contractors must meet;

■ Data required to be submitted for approval;

■ A detailed list of all data and services provided by the Buyer to the Contractor that will be used for the performance of the Contract (if applicable);

■ Schedule for submission and review (or approval) of initial results.

Determine supplier selection criteria

In determining the evaluation criteria, the buyer strives to ensure that the proposals selected will provide the required services of the best quality.

Supplier selection criteria may include (but are not limited to):

■ Ability and potential

■ Qualifications, availability and competencies of key staff

■ The financial stability of the company

■ Product costs and life cycle costs

■ Management experience

■ Delivery date

■ Technical expertise and methods

■ Knowledge transfer programs, including training programs

■Specific relevant experience

■ Work methods and work plans in response to the statement of work

independent cost estimate

For larger purchases, the purchasing organization can prepare its own independent estimate or hire an outside professional estimator to produce a cost estimate and use it as a baseline against which to evaluate the seller's bid. If there is a significant difference between the two, it may indicate that the procurement statement of work is flawed or unclear, or that the potential seller has misunderstood or failed to fully respond to the procurement statement of work.

Implement procurement

Publish tender advertisements or tender documents

Information invitation

A request for information is used when the seller is required to provide more information about the goods and services to be purchased. This is typically followed by an invitation to quote or an invitation to propose.

Invitation for quotation

Use a request for quotation if you need more information from the supplier about how the need will be met and/or how much it will cost.

invitation to propose

Use a request for proposal if a problem arises in the project and a solution is difficult to determine. This is the most formal "invitation" document and is subject to strict procurement rules regarding content, timelines, and seller responses.

Identify shortlist of qualified sellers

Hold bidders meeting

A bidder's meeting (also known as a contractor meeting, supplier meeting, or pre-bid meeting) is a meeting between a buyer and a potential seller before the seller submits a proposal, the purpose of which is to ensure that all potential bidders have a clear understanding of the procurement requirements Have a clear and consistent understanding and ensure that no bidder receives special treatment.

The seller submits a proposal (tender document)

Evaluation of proposals (technical and cost)

■ lowest cost

■Based on qualifications only

■ Score based on quality or technical solutions

■ Based on quality and cost

■ Unique source

■ Fixed budget

Select the winning proposal

End negotiation and sign contract

A contract is an agreement that is binding on both parties. It forces the seller to provide specified products, services or results, and the buyer to pay corresponding remuneration to the seller. A contract establishes a legally protected relationship between buyer and seller.

The main contents of the agreement text will vary and may include (but are not limited to):

■ Insurance and performance bonds

■ Procurement statement of work or key deliverables;

■ Approval of subordinate subcontractors

■ Schedule, milestones, or dates specified in the schedule

■ General terms and conditions

■Performance reporting

■ Change request processing

■ Inspection, quality and acceptance criteria

■Pricing and payment terms

■ Termination provisions and alternative dispute resolution

■ Incentives and punishments

■ Warranty and follow-up product support

Control purchasing

Execution of Contracts - Inspections and Audits

performance review

Measure, compare and analyze quality, resource, schedule and cost performance to review performance of contract work. These include determining whether the work package is ahead of or behind schedule, over or under budget, and whether there are resource or quality issues.

examine

An inspection is a structured review of the work being performed by the contractor and may involve a simple review of the deliverables or an on-site review of the work itself.

audit

An audit is a structured review of the procurement process. Rights and obligations related to auditing should be clearly defined in the procurement contract. Both the buyer's project manager and the seller's project manager should pay attention to the audit results so that necessary adjustments can be made to the project.

change

claim

If the buyer and seller cannot agree on compensation for the change, or disagree on whether the change should occur, then the requested change becomes a contested change or a potential constructive change. Such disputed changes are called claims. If not properly resolved, they can become disputes and eventually lead to grievances. Throughout the contract life cycle, claims are typically recorded, processed, monitored and managed in accordance with the terms of the contract. If the parties to the contract are unable to resolve the claim on their own, they may have to use alternative dispute resolution (ADR) in accordance with the procedures specified in the contract. Negotiation is the preferred method of resolving all claims and disputes. Arbitration and litigation are the next options. If the contract stipulates that no claim will be made for losses caused by force majeure, this is an exclusion.

Procurement closed

Planning Procurement Management

enter

Project Charter

business documents

business case

Benefit Management Plan

project management plan

scope management plan

quality management plan

resource management plan

Scope Baseline

project files

Milestone List

Project team dispatches work orders

requirements document

Requirements Tracking Matrix

Resource requirements

risk register

Interested Party Register

business environment factors

organizational process assets

Pre-approved seller list

Formal procurement policies, procedures and guidelines

type of contract

lump sum contract

fixed total price

Total price plus incentive fee

Total price plus economic price adjustment

cost reimbursement contract

cost plus incentive fee contract

cost plus fixed fee contract

cost plus incentive fee contract

Work and materials contract

Tools & Techniques

expert judgment

data collection

market research

data analysis

Make-or-Buy Analysis

Supplier selection analysis

Meeting

output

Procurement Management Plan

Procurement strategy

Bidding Documents

Information invitation

Invitation for quotation

invitation to propose

Purchasing Statement of Work

Supplier selection criteria

Make or buy decision

independent cost estimate

change request

Project file updates

Lessons Learned Register

Milestone List

requirements document

Requirements Tracking Matrix

risk register

Interested Party Register

Organizational process asset updates

Implement procurement

enter

project management plan

scope management plan

demand management plan

communication management plan

risk management plan

Procurement Management Plan

configuration management plan

cost basis

project files

Lessons Learned Register

Project schedule

requirements document

risk register

Interested Party Register

Procurement documents

seller proposal

business environment factors

organizational process assets

Tools & Techniques

expert judgment

advertise

bidders meeting

data analysis

Proposal evaluation

Interpersonal and team skills

negotiation

output

bidders meeting

protocol

change request

Project Management Plan Update

demand management plan

quality management plan

communication management plan

risk management plan

Procurement Management Plan

Scope Baseline

progress baseline

cost basis

Project file updates

Lessons Learned Register

requirements document

Requirements Tracking Matrix

Resource Calendar

risk register

Interested Party Register

Organizational process asset updates

Control purchasing

enter

project management plan

demand management plan

risk management plan

Procurement Management Plan

change management plan

progress baseline

project files

Hypothetical log

Lessons Learned Register

Milestone List

quality report

requirements document

Requirements Tracking Matrix

risk register

Interested Party Register

protocol

Procurement documents

Approved change request

job performance data

business environment factors

organizational process assets

Tools & Techniques

expert judgment

Claims management

data analysis

performance review

Earned value analysis

trend analysis

examine

audit

output

Procurement Closed (Closed Procurement)

job performance information

Procurement document updates

change request

Project Management Plan Update

risk management plan

Procurement Management Plan

progress baseline

cost basis

Project file updates

Lessons Learned Register

Resource requirements

Requirements Tracking Matrix

risk register

Interested Party Register

Organizational process asset updates

Payment plans and requests

Seller Performance Evaluation Document

Pre-Qualified Seller List Update

Lessons Learned Knowledge Base

Procurement file