Procurement management, Other Management

Overview of Procurement Management 

Let us start our discussion with an overview of project procurement management. Procurement management is an important knowledge area in project management and it is a formal process by which many organisations acquire their goods and services from outside body. Hence, project procurement management involves getting work done by people outside the project organisation. It includes the management of purchasing or acquiring of  product, services, or projects.  

According to PMBoK1  "project procurement management includes the processes necessary to purchase or acquire products, services, or  results needed from outside the project team". The organisation can be either buyer or seller of the products, services, or results of a project".  

Project procurement is mostly managed by project managers and specialists. Project procurement process includes the following processes (as per PMBoK): 

1.  Plan procurement. 

2.  Conduct procurement. 

3.  Administer procurement. 

4.  Close procurement. 

The table shows the key deliverables in each of these processes. 

Table : Project Procurement Processes                                    392_Project procurement process.png

These processes interact with each other and involve efforts from a group or person involved in the project. The processes also interact with processes in the other knowledge areas. We must note that all these processes occur at least once in the life cycle of every project and may occur in one or more phases of the project. Although the processes look as different components but they overlap and interact with each other in real time.  The project procurement management involves legal documents signed between the buyer and the seller. This includes terms and conditions incorporated by the buyer depending on what the seller would perform or provide.

The project management team is responsible to make sure that all procurements meet the project needs while adhering to the organisational procurement policies. The project management team may seek support from experts in contracting, purchasing law, and technical disciplines  to ensure that all the project needs are met, while the organisational procurement policies are adhered. The activities involved in procurement processes form the life cycle of contracting. By continuously managing the contract life cycle the project management team can avoid some unidentified risks.  

If the project is large, then the buyer-seller relationship exists at different  levels and so the co-ordination must be maintained at each and every level correctly. Depending on the application area we can call the seller as contractor, subcontractor, vendor, service provider, or supplier. Depending on the buyer's position in the procurement cycle, we can name  the buyer as client, customer, prime contractor, service requestor, governmental agency, or purchaser.  

Posted Date: 9/27/2012 3:23:32 AM | Location : United States







Related Discussions:- Procurement management, Assignment Help, Ask Question on Procurement management, Get Answer, Expert's Help, Procurement management Discussions

Write discussion on Procurement management
Your posts are moderated
Related Questions
. During the analysis of a process that was evaluated, a situation arose where it was seen that the variability of the data points collected was non-random on several occasions, i.

QUESTION 1 Critically examine the nature of people-organisation relationship. Why is it important to distinguish between the ‘intent' and the ‘implementation' of management dec

Efficient library management: These-functions are carried out by any reasonably efficient library. The emphasis the definition is on the provision of information as a major fu

Online Database Services: We shall be referring to online databases. Most of the well-known indexing and abstracting services are now available both in the print form and in t

QUESTION (A) Define personality (B) Explain, with example, the structure of personality according to the psychoanalytic theory (C) Defense mechanisms are unconscious stra

Architecture of library building in library management Library activity is a specialised activity and it should be designed so as to carry out this activity  efficiently in a

LITERATURE SEARCH: The ultimate objective of any documentation or information activity is to provide the user with the information he needs, to the extent he requires, within

The Kardex System: This system was introduced by the Remington Rand of India, Ltd. It is a type of visible record system maintained in a steel filing cabinet. Each unit cabine

‘The overall objective of debt management is to minimise the cost of borrowing to the organisation.' Required: I. Explain factors which need to be taken into account, other t

Services and Products of Documentation and Information Centres: All functions of documentation and information centres are performed with the objective of providing informatio