7 Steps in Planning Project Procurement
Effectively planning project procurements help document the project purchasing decisions, specify the approach to be used in project procurements, identify potential sellers for the project, and add this information to the procurement management plan.
Here are the guidelines…
To generate an effective procurement management plan, you have to follow the following guidelines…
#1 Identify the project needs
You need to identify the project needs that can be fulfilled by acquiring products, services, or results. You need to determine what is to be acquired, how to acquire it , how much to acquire as well as when to acquire it.
#2 Study input documents
You have to study the various documents required for planning procurements to determine information related to the procurement documents. The documents include the project scope baseline, the requirement documentation, existing teaming agreements, project risk registers, risk-related contract decisions, activity resource requirements, the project schedule, activity cost estimates, the cost performance baseline, appropriate enterprise environmental factors as well as existing organisational process assets.
#2 Consult technical experts
There is a need for you to consult technical experts to define specifications for the project needs clearly, call concisely and completely. They will be able to explain areas that you could not understand clearly and put their suggestions into their planning process.
#3 make or Buy Analysis
You need to perform a make-or-buy analysis to determine whether particular work can be accomplished by the project team or must be procured from outside the organisation.
#4 Determine contract type
You have to determine the contract type to be used for specific procurement need to the project. You must determine how the contractors will be paid and how the various procurements will be confirmed.
#5 Procurement information
You need to document the procurement information you identified so far in the procurement management plan.
#6 Generate relevant outputs
After the procurement management plan is created, you will also generate other relevant outputs of the procurement process including the procurement statement of work, procurement documents, source selection criteria as well as change requests.
Some of the information developed in generating these outputs will be used to finalize the procurement management plan.
The Project Manager at Fourth Mouse Consulting Andre Samson is creating the procurement management plan for the project. Samson discusses with stakeholders the various project requirements that include the warehouse management software, related computer hardware, networking, database and project staffing. He studies the project scope baseline to determine the scope of the warehouse procurement software implementation within Fourth Mouse Consulting. He goes through the required documentation for each of the project requirements.
Samson involves Brian Wells, the IT Consultant of Fourth Mouse Consulting, to draw up the technical specifications of the project requirements. Further discussions with Brian indicates that the warehouse management software and other requirements of this project have to be procured outside the organization because the current infrastructure at FMC does not support the requirements of this project.
Based on the procurement information collected, Samson presents the procurement management plan for FMC Warehouse Management Software project.
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