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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.
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PMP project management-project procurement management
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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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