Procurement Management (Lim Keng Liang TP028092)Issues covered in Procurement Management #9 No proper tendering process even though acquisition and spending went through PROC manager #10 No proper tendering process for purchasing of I assets! "eading to #udget overrun #1$ No monitoring reports to review as none were proper"% documented #1& 'ardware and software de"iver% were sti"" #eing negotiated with potentia" vendors whi"e there are on"% four months "eft to comp"ete the pro(ect1)1 IntroductionPro(ect procurement management! defined #% PM*O+ is ,the process necessar% to purchase or acquire the products! services or resu"ts needed from outside the pro(ect team- .Carr! /0110) here are four main process groups in pro(ect procurement management! which wi"" #e mentioned #e"ow) he processes are1i) P"an Procurements .P"anning01 the first ma(or process! which invo"ves the creation of the procurement p"an for a pro(ect) he pro(ect manager is pivota" here as to ma2ing decisions! such as which items are to #e outsourced and which are to #e se"f3made #% the pro(ect team) Procurement documents are preempted in this phase! in which a se"ection of vendors are chosen) 4ocuments inc"ude ris2 register! scope #ase"ine and pro(ect schedu"es) ii) Conducting Procurements .56ecuting01 the second process in procurement management) In this phase! vendors are short"isted and given a procurement contract) here are man% t%pes of too"s and techniques used for conducting procurements! suchas a #idder7s conference! a ma2e3or3#u%3ana"%sis and e6pert (udgement to o#tain the #est vendor for the pro(ect outsourcing) One vendor wi"" #e chosen and a contract wi""#e awarded)iii) 8dministering Procurement .Monitor and Contro"01 the third process in procurement management) his is the phase where the pro(ect team has to manage re"ationships with the chosen vendor! ensure se""er performance meets the procurement requirements! corrective actions and contro""ing the changes if an% e6ists within the procurement stage) iv) C"osing Procurements .C"osing01 the fina" process in procurement management) In this phase! processes are needed to end procurement contracts are administrated) 8"" p"anned wor2 as per contract is verified and comp"eted! with information archived forfuture needs) 1)/ Procurement P"anningIn procurement p"anning! the pro(ect team shou"d identif% which part of the pro(ect7s needs can #est #e fu"fi""ed #% using a third part% product or service) his is ca""ed as outsourcing) Outsourcing can #e eva"uated #% how a procurement cou"d #e done! how much mone% needs to #e spent and a"so the time that needs to #e a""ocated to perform the procurement) 8 ma2e3or3#u% ana"%sis can #e done in this stage) 8 make-or-buy analysis is a technique used to determine whether a product or service shou"d suita#"% #e #ought e6terna""% or to #e done interna""% #% the pro(ect team) here are man% e"ements to #e ta2en into consideration during this ana"%sis! such as in the ta#"e shown #e"ow)M8+5 *9:3Ma% cost "ess 39sua""% costs more! "ess in rarest of cases35asi"% integrated into pro(ect operations 34epends on s2i"" "eve" of supp"ier3Pro(ect manager has direct contro" over wor2 3Indirect contro" 3Maintain organi;ationa" ta"ents and a#"e to protect compan% personne" from "a%off3Pro(ect management a#"e to spend time on primar% #usiness38#"e to avoid unre"ia#"e supp"iers 3"ump sum contract! #ecause it matches the requirements of the pro(ect) ?urthermore! an e6amp"e spreadsheet for prices can #e o#tained from China or hai"and! who have their services a"read% up and running) hus! an estimation of costs and necessar% equipment can #e easi"% o#tained) he pro(ect manager and his procurement team wi"" identif% a"" items that are required for the pro(ect to commence) he "ist of items are then compi"ed and reviewed #% the Pro(ect Management Office .PMO0) *e"ow is an e6amp"e of items that are required for @ACMP)Num#er Categor% Product Apecifications1 'ardware Aervers/ *ac2up Aervers= Internet RoutersB Aecurit% Measures .?irewa""s0C e"ecommunicationDires$ Aoftware Aupp"% Chain A%stemE 4ata#ase& 'e"pdes2 A%stemhe pro(ect management team wi"" have to wor2 cohesive"% with the procurement management department in order to o#tain said products) he procurement department wi"" then request for a Request for Proposa" .R?P0 or a Request for Fuote .R?F0) In this situation! a Request for Quote shou"d #e more appropriate! as a spreadsheet of the equipment needed can #e o#tained from China or hai"and! comp"ete with pricing for a"" the items defined #% the pro(ect team) his too" can #e used to solve problem #9 and #10) 8 samp"e R?F is shown #e"ow)4ear GCOMP8N: N8M5HDe are p"eased to inform %ou that we are interested in purchasingG45ACRI*5 PRO49CA>A5RIIC5A '5R5! INC>preparepm)com>notes>procurement)htm" G8ccessed $ 8ug) /01CH)N6tasia)com! ./01C0) NxtAsia onsu!ting " Procurement Audit) Gon"ineH 8vai"a#"e at1 http1>>www)n6tasia)com>what3we3do>procurement3audit> G8ccessed & 8ug) /01CH)