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PMP-12 Project Procurement Management
Chapter 12 Project Procurement Management, PMP project management, PMBOK sixth edition knowledge structure organization, (PMBOK 6th Edition) Essential for studying and preparing for exams, 49 process tests, The ten knowledge areas of PMP, the input and output of the five process groups, PMP Exam—Knowledge Points Review (PMBOK Sixth Edition).
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PMP-12 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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- Outline
12 items Procurement management
12.1 Planning Procurement Management
organizational process assets: type of contract
total price contract
Clear range, fixed price. Advantageous to Party A
Total price plus economic price adjustment
Suitable for long-term projects
allow for changes based on conditions (such as inflation rates), Change the contract price according to the pre-agreed price adjustment method
Total price plus incentive fee
On the basis of the total price, the corresponding incentive fee is stipulated, To mobilize the enthusiasm of sellers and make the goals of buyers and sellers consistent
Contracts are elements: target cost, target profit, cost sharing ratio, maximum price
Usually a price cap is set and the seller must complete the work and be responsible All costs above the cap
fixed total price contract
The scope of work is fixed and the contract price is fully fixed
Scope changes often result in contract price changes
Most buyers prefer, minimal buyer risk
cost compensation contract
The scope is very unclear, which is disadvantageous for Party A
cost plus incentive fee
An upfront payment is made to the seller when the seller reaches specified performance targets. Determined incentive fee. This solution is the most cost-effective
Total contract price = actual cost, target incentive fee, sharing ratio
cost plus fixed fee
Total Contract Price = Actual Cost Initial Estimated Cost * Percent
Pay a fixed fee to the seller. Does not change due to seller’s performance
cost plus incentive fee
Incentive fees are paid to the seller only if certain subjective performance standards are met.
Incentive fees are determined entirely by the buyer based on his or her subjective judgment of the seller’s performance. and usually no appeals are allowed
Work materials contract
Also known as time and means contract, it is a hybrid contract that has the characteristics of both cost compensation contract and lump sum contract.
The work is not complicated, the contract is signed quickly, and both parties share the risk. Such as: Recruiting experts, urgent recruitment of replacements
Tools & Techniques
Supplier selection analysis, Determine methods to use to select sellers
sole source
Select only specific sellers
fixed budget
Make choices based on fixed costs
Qualifications only
Suitable for purchases of small value and not worth the effort
lowest cost
Suitable for standardized or routine procurement
output
Make vs. buy decisions
The decision of whether to do it yourself or outsource it
Procurement strategy
Delivery method, contract payment type, procurement stage
Bidding documents (procurement documents), procurement management plan
Procurement Statement of Work (SOW)
Technical Requirements Statement
independent cost estimate
bottom bid tendering method
Supplier selection criteria
Score seller proposals or rating criteria
Includes: product cost, delivery date; technical expertise and methods, Specific relevant experience; Qualifications, availability and competencies of key employees; Financial stability of the company; management experience
12.2 Implement procurement
Purpose: Bidding, bidding, bid evaluation, contract award, contract signing
enter
Procurement documents
· Tender documents · Procurement statement of work · Independent cost estimation · Supplier selection criteria
Statement of work detailing required product attributes and measurements required
seller proposal
Proposal prepared by the seller in response to the tender documents
Tools & Techniques
advertise
Place ads to expand your existing list of potential sellers
Used when there are insufficient suppliers
pre-bid meeting
The aim is to ensure that all potential bidders have a clear and consistent understanding of the procurement requirements
data analysis
weighted scoring method
Score each bid according to relevant evaluation criteria
independent estimate
Compare the potential seller's price with the buyer's pre-prepared bid and score the difference.
screening system
Gradually eliminate sellers who do not meet the standards until the last one is left
Proposal evaluation
Techniques for Evaluating Proposals
output
selected seller
The bidder judged to be the most competitive in a proposal evaluation or bid evaluation
protocol
Procurement statement of work or key deliverables; schedule; termination provisions and alternative dispute resolution methods
Resource Calendar
Typical purchasing steps
1. Prepare the procurement work statement sow 2. Prepare high-level cost estimates and develop budgets 3. Publish a tender advertisement 4. Identify a short list of qualified sellers 5. Prepare and issue bidding documents 6. Prepare and submit proposals by the seller 7. Carry out technical evaluation and cost evaluation of proposals 9. Prepare the final comprehensive evaluation report and issue a winning bid proposal 10. End the negotiation and the buyer and seller sign the contract
12.3 Control purchasing
Purpose: Contract Management
enter
Procurement Documents/Contracts
Approved change request
Modifications to contract terms
Tools & Techniques
Claims management
Controversial changes also become claims, demands
Negotiation is the first choice for resolving claims and disputes. Sequence: Negotiation > Alternative Dispute Resolution (Mediation/Arbitration) > Litigation
Procurement audit
Summary of lessons learned in contract preparation and management
output
End purchase
Prerequisites for closing: all deliverables have been delivered on time and with quality, and all final payments have been paid.
Requested by authorized purchasing administrator