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PMP-12 Procurement Management
This mind map is for Xisai PMP, Chapter 12 - Procurement Management - Summary of knowledge points, At the same time, there are PMP test questions with relevant knowledge points. From knowledge points to corresponding test questions, It can deepen your understanding and memory of knowledge points!
Edited at 2023-05-06 17:46:28- bacteria
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PMP-12 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
PMP-12 Procurement Management
1.Plan procurement management
definition
The process of documenting project procurement decisions, clarifying procurement methods, and identifying potential sellers
process
output
1. Procurement Management Plan
Various activities in the procurement process
1. How to coordinate procurement with other work on the project
Project schedule development and control
2. Timetable for carrying out important procurement activities
3. Procurement metrics used to manage contracts
4. Procurement-related stakeholder roles and responsibilities
If the performing organization has a purchasing department, The project team’s authority and restrictions
5. Constraints and assumptions that may affect procurement efforts
6. Jurisdiction and currency of payment
7. Whether an independent estimate needs to be prepared
and whether it should be used as an evaluation criterion
8. Risk management matters
Includes requirements for a performance bond or insurance contract
to mitigate certain project risks
9. Pre-qualified sellers to be used
2. Procurement Planning-Contract Payment Type
1. Total price contract
fixed price contract
The buyer likes it best, the risk lies with the seller
No changes are allowed unless the scope of work changes
Total price plus incentive fee contract
There are upper and lower limits
If the upper limit is exceeded, the seller will bear the responsibility
Below the lower limit, reward will be given
Total price plus economic price adjustment
1. Coping with large economic fluctuations
2. If the performance time is long or payment is in different currencies
2. Work and materials contract
When an accurate work description cannot be written quickly, but the nature of the work is clear
such as agile projects
Use work and materials contracts to add personnel, hire experts, and seek other outside support
Can be effectively used for projects with small amount, short construction period, and uncomplicated
3. Cost compensation contracts
cost plus fixed fee
Reimburse the seller for all allowable costs incurred for contract work and pay a fixed fee
cost plus incentive fee
If the cost exceeds or is lower than the original cost, the buyer and seller shall share it proportionally.
cost plus incentive fee
The buyer makes a subjective judgment. If he wants to give, he will give. If he doesn’t want to give, he won’t.
Choice of contract type
Determine the scope first
1. The range is clear and the total price category is selected.
2. The scope is unclear, continue to judge
Then determine whether the type of work is clear
1. Clear selection of materials
2. Unclear choice of cost compensation contract
3. Procurement Statement of Work (SOW)
Detailed description of purchased products, services, and results
Prepare a statement of work for each procurement based on the project scope baseline, defining only that portion of the project scope that will be included in the associated contract
Procurement statement of work that describes in sufficient detail the products, services or results to be procured
To allow potential sellers to determine whether they have the ability to provide such products, services or results
content
1. Specification
2. required quantity
3. quality level
4. performance data
5. performance period
6. work place
7. other request
4. Procurement Terms of Reference (TOR)
For procurement of services, the term "Torem of Work (TOR)" may be used
content
1. Tasks the contractor needs to perform
Task
and the collaborative work required
2. Applicable standards that contractors must meet
Applicable standards
3. Data needs to be submitted for approval
data
4. provided by the buyer to the contractor
A detailed list of all data and services that will be used for the performance of the contract
Data and listings provided by buyer
5. Schedule for submission and review (or approval) of initial results
schedule
5. Supplier selection criteria
Provide criteria for selecting suppliers
include
1. Ability and potential
2. Product cost and life cycle cost
3. Delivery date
4. Technical expertise and methods
5. specific relevant experience
6. Work methods and work plans in response to a statement of work
7. Qualifications, availability and competencies of key staff
8. Company financial stability
9. Management experience
10. Knowledge transfer programs (including training programs)
6. Make or outsource
Compare the costs of making and outsourcing to determine whether outsourcing is necessary
Factors to consider
1. The organization’s current resource allocation and its skills and capabilities
2. demand for expertise
3. Unwilling to assume the obligations of permanent employment
4. and the need for unique technical expertise
5. Also assess the risks associated with each make-or-buy decision
7. independent cost estimate
Make sure you know the price within the market range and compare it to the seller's price
For large purchases
1. Procurement organizations can prepare independent estimates themselves
2. Or hire an outside professional estimator to make a cost estimate
3. and use it as a benchmark for evaluating the seller's offer
If there is a significant difference between the two
1. may indicate a flaw or ambiguity in the procurement statement of work.
2. or the potential seller misunderstood
3. or failure to fully respond to the procurement statement of work
2. Implement procurement
process
Publish tender advertisements or tender documents
Invitation for Tender (Quotation) (RFQ)
Identify the cost to suppliers of meeting needs
cost
Request for Information (RFI)
Make sure you get more information about purchasing services or goods
More information about services or goods
Request for Proposal (RFP)
Used when a problem arises and the solution is difficult to determine
Solution
Identify shortlist of qualified sellers
Hold bidders meeting
1. nickname
Also known as contractor meeting, supplier meeting, pre-bid meeting
2. time
Before the seller submits a proposal, all potential sellers meet to answer
A meeting between a buyer and a potential seller before the seller submits a proposal
3. effect
Ensure that potential bidders understand the bidding documents clearly and consistently
4. Purpose
Ensure that all potential bidders have a clear and consistent understanding of the procurement requirements
and ensure that no bidder will receive special treatment
The seller submits a proposal (tender document)
The proposal needs to be prepared based on the buyer's procurement policy and other aspects and submitted
Evaluation of proposals (technical and cost)
Buyer Evaluation Proposal (Supplier Selection Analysis)
Based on supplier selection criteria, proposals are selected and screened
include
1. lowest cost
2. Qualifications only
3. Score based on quality or technical solutions
4. Based on quality and cost
5. exclusive source
6. fixed budget
Select the winning proposal
Procurement negotiation, contract signing
Before signing the contract, clarify the structure of the contract, the rights and obligations of the parties, and other terms so that both parties can reach a consensus
The role of the agreement
It has a binding effect on both parties to the contract. For all inconsistencies involving suppliers in the project, priority shall be given to the contract.
Agreement includes
1. Procurement statement of work, or key deliverables
2. A schedule, milestone, or date specified in a schedule
3. performance report
4. Inspection, quality and acceptance criteria
5. Pricing and payment terms
6. Warranty and ongoing product support
7. Insurance and performance bonds
8. Approval of subordinate subcontractors
9. General terms and conditions
10. Change request processing
11. Termination Provisions and Alternative Dispute Resolution
12. incentives and punishments
3. Control purchasing
process
Execution of the contract
performance review
1. Measure, compare and analyze quality, resource, schedule, cost performance to review performance of contract work
2. include
Determine whether work packages are ahead of schedule, behind schedule, over or under budget
1. schedule
2. Budget
and whether there are resource or quality issues
1. resource issues
2. Quality issues
examine
refers to the work being performed by the contractor
1. Conduct a structured review
2. may involve
deliverable
simple review
3. or to the work itself
field review
audit
1. is for the procurement process
structured review
2. should be in the purchase contract
Clearly defined
Rights and obligations related to audits
3. Buyer's Project Manager
4. Seller's project manager
Everyone should pay attention to the audit results
to make necessary adjustments to the project
change
1. inconsistent with contract requirements
2. beyond the scope of the contract
claim
1. definition
If the buyer and seller
Unable to agree on change compensation
or disagreement as to whether the change occurred
The requested change then becomes a disputed change or potential constructive changes
Such disputed changes are called claims
2. Supplier and Party A have claims
Negotiate first
negotiation
The preferred method of resolving all claims and disputes
Negotiation is the preferred method
Negotiation is not possible
It is Alternative Dispute Resolution (ADR) (recorded in the contract, usually mediation or arbitration)
If the parties to the contract are unable to resolve the claim themselves, may have to follow the procedures specified in the contract, Use Alternative Dispute Resolution (ADR)
If ADR fails, legal action will be taken
Secondly, choose arbitration or litigation
Procurement closed
1. All deliverables delivered
2. No claims pending
3. All final payments have been made