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
Question : Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or serv

QUESTION (a) (i) Discuss the empirical evidence in relation to weak form market efficiency (ii) Explain fully how you would conduct a test of semi-strong form of the Efficie

. Write a note on tracing a closed loop. What are the characteristic features of a closed loop?..

"Sustainable" is a word/concept that is more frequently being used in Mauritius, both by government bodies and private companies. Some are working towards environmental protection

Question: (a) Conflicts, as an aspect of managing change, is inevitable in organisations. Show the main sources of conflict in the workplace and elaborate on three of them?

It is one thing to understand the basic importance of being a media literate individual of knowing its basic elements and necessary skills. It is quite another to live a media lit

Question: Jaimie and Mary are work colleagues in the support team of a large department at the University. Mary has been on maternity leave and the department was reorganised

MODEN MANAGEMENT AND BIHAVIOUR

Q uality improvement Quality improvement can be defined as the organised creation of the beneficial change along with the attainment of unprecedented levels of the performance

LOCATING RESEARCH REPORTS: While review  of  literature you  should explore and get acquainted with relevant key words  and major subject heading,  Be  flexible and thin