1 Some Management Issues. 2 Scope Procurement Contracts Legal.
Procurement Management 2
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Transcript of Procurement Management 2
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Materials Management 1
Procurement Management
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Describes the processes required to acquire
goods and services from outside the performingorganization.
Discussed from the perspective of the buyer inthe buyer-seller relationship
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Materials Management 3
12.3. Request
SellerResponses
12.2. Plan
Contracting
12.4. Select
Sellers
12.5. Contract
Administration
12.6. Contract
Closure
12.1.Plan
Purchases
&
Acquisitions
First
Process
Is P.P
Procurement Steps
Planning
Process
Group
Executing
Process
Group
Monitoring &
Controlling
Process Group
Closing
Process
Group
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Materials Management 4
12.1. Plan Purchases & AcquisitionsDetermining what to procure and when
12.2. Plan ContractingDocumenting product requirements and
identifying potential sources12.3. Request Seller Responses
Obtaining quotations, bids, offers, or proposals
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Materials Management 5
12.4. Select SellerChoosing from among potential buyers
12.5. Contract Administration
Managing the relationship with the seller
12.6. Contract Closeout
Completion and settlement of the contract,including resolution of any open issues
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Input:- enterprise environmental factors
- organizational process assets
- project scope statement- WBS
- WBS dictionary
- PM plan
risk register
risk-related contractual agreements
resource requirements
project schedule
activity cost estimate
cost baseline
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Tools/Techniques: Make or Buy Analysis
To determine if production is cost-effective forperforming organization
Expert Judgment Contract Type Selection
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Output: Procurement Management Plan Contract Statement of Work
Clear, complete, concise description ofprocurement item for prospectivesellers to determine if they are capableof providing item
Make-or-buy decisions Requested changes
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Input:- Procurement management plan- Make or buy decisions- Contract Statement Of Work- Project management plan
risk register
risk-related contractual agreements
resource requirements
project schedule
activity cost estimate
cost baseline
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10
Protocol Get to know each other
Probing
Each party identifies issues of concern Scratch bargaining
Bargaining occurs, concessions are made
Closure
Two positions summed up and final concessionsmade
Agreement Both parties have identical understanding of
agreements
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Input: Payment Request Tools/Techniques: Completing and settlement
of contract, including resolutions of open items(audits)
Output: Contract File
Person/organization responsible forcontract admin should provide seller with
formal written notice that contract iscomplete
12.6. Contract Closure
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Materials Management 12
It Is Not AlwaysEconomical For TheCompanies To Make All
The Materials Used InManufacturing.
Some Items AreProcured From Others,
And Some Are ProducedIn The Company.
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Materials Management 13
Some Reasons For Making:- Lower Production Cost
- Unreliable Or Unsuitable Suppliers
- Assure Adequate Supply (Quantity)- Utilize Surplus Labor Capacity
- Obtain Desired Quality
- Protect Special Design Or Quality