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    Program Procurement Management

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    Ashi Sharma
    This document describes the processes, inputs, tools and outputs for performing procurement for a program. It focuses on obtaining economies of scale and quality integration. The processes covered are plan program procurements, conduct program procurements, administer program procurements, and close program procurements.

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    © All Rights Reserved
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    Program Procurement Management

    Uploaded by

    Ashi Sharma
    46 views19 pages
    This document describes the processes, inputs, tools and outputs for performing procurement for a program. It focuses on obtaining economies of scale and quality integration. The processes covered are plan program procurements, conduct program procurements, administer program procurements, and close program procurements.

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    This document describes the processes, inputs, tools and outputs for performing procurement for a program. It focuses on obtaining economies of scale and quality integration. The processes covered are plan program procurements, conduct program procurements, administer program procurements, and close program procurements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views19 pages

    Program Procurement Management

    Uploaded by

    Ashi Sharma
    This document describes the processes, inputs, tools and outputs for performing procurement for a program. It focuses on obtaining economies of scale and quality integration. The processes covered are plan program procurements, conduct program procurements, administer program procurements, and close program procurements.

    Copyright:

    © All Rights Reserved
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    Chapter 12 Program Procurement Management

    Mahindra Satyam 2009

    Procurement Management
    Describes the processes, inputs, tools and outputs associated with performing procurement for a program Focuses on obtaining economies of scale Ensures overall quality and integration of procured components

    Program Procurement Management Processes Plan Program Procurements Conduct Program Procurements Administer Program Procurements Close Program Procurements

    Group P E M&C C

    Mahindra Satyam 2009 2

    Program Procurement Management

    Mahindra Satyam 2009 3

    12.1 Plan Program Procurements


    Determining what to procure Risk Management Developing the following for procurement

    Strategies Tools Methods M ti Metrics Assessment parameters Reporting p g and review mechanisms Intervals for revisiting contracts

    Mahindra Satyam 2009 4

    Plan Program Procurements


    Tools and Techniques Competitive analysis of service providers Procurements planning Expert judgment Assessment of organizational competencies Make-or-buy analysis

    Inputs M Marketing k ti environmental factors Program budget allocation a ocat o Component scope statements Program charter

    Outputs P Program budget b d t estimate updates Program procurement management g p plan Contract management plan Qualified seller list

    Mahindra Satyam 2009 5

    Plan Program Procurements Data Flow Diagram

    Mahindra Satyam 2009 6

    Procurement Management Plan


    Component Statement of Work updates Contract type Identification of required and available resources Sourcing decisions Identification of required procurements Proposals Q lifi d seller Qualified ll lists li t Management of contracts

    Mahindra Satyam 2009 7

    12.2 Conduct Program Procurements


    Acquire the desired services, resources, products or materials so that the program meets its objectives Involves identifying potential suppliers, issuing RFPs, supplier selection, agreed contracts and eventual supplier engagement Also involves agreements for insurance or services to de-risk the program

    Mahindra Satyam 2009 8

    Conduct Program Procurements


    Tools and Techniques Procurement planning Bidder conferences Distribution of RFPs Develop qualified seller list Contract negotiation Proposal evaluation system Expert judgment Contract management procedures Change control procedures Seller selection

    Inputs
    Program assets Subcontract procurement plans Program procurement management plan Program management plan Qualified seller list Contract management plan Component cost estimates

    Outputs Selected sellers Identified internal service providers Request for proposals Contract management plan updates Program procurement management plan updates Contracts Component payment schedules updates
    9

    Mahindra Satyam 2009

    Conduct Program Procurements Data Flow Diagram

    Mahindra Satyam 2009 10

    Proposal Evaluation Systems


    Weighting system Screening g system y Seller rating system

    Mahindra Satyam 2009 11

    12.3 Administer Program Procurements


    Ensures that conditions and requirements of the agreements are understood and adhered to Ensures that formal relations between the customer and supplier are not terminated before all requirements have been met This includes:

    Deliverables are delivered as specified Id tif i when Identifying h agreement t conditions diti are violated i l t d Relationship is terminated as stipulated Post-program p g commitments are fulfilled as agreed g

    Mahindra Satyam 2009 12

    Administer Program Procurements


    Tools and Techniques Change control system Engage and manage suppliers Payment control system Contract performance review Inspection and audits Budget management system

    Inputs Program procurement management plan Program budget baseline Contracts Approved change requests Program performance reports t Payment approval requests Component payment schedules
    Mahindra Satyam 2009

    Outputs Program budget baseline updates Program procurement management plan updates Contracts updates Program budget updates Program performance reports updates Payment approval Program payment schedules updates
    13

    Administer Program Procurements Data Flow Diagram

    Mahindra Satyam 2009 14

    Engaging and Managing Suppliers important factors


    Contracts

    Contract types yp Country of origin


    Contract Management plan Program Procurements Management plan Performance reports Change management

    Mahindra Satyam 2009 15

    12.4 Close Program Procurements


    Concludes all procurement activities in a program This includes:

    Notifying program and component stakeholders, and the finance department Ensuring all contract conditions are met Reviewing contract termination clauses and warranty arrangements

    Mahindra Satyam 2009 16

    Close Program Procurements


    Tools and Techniques Contract closure procedure Supplier performance review Budget allocation reconciliation Outputs Closed contracts Procurement performance reports Closed budget allocation

    Inputs Program management plan Contracts Program budget Program performance reports Component closure notification tifi ti

    Mahindra Satyam 2009 17

    Close Program Procurements Data Flow Diagram

    Mahindra Satyam 2009 18

    Questions?

    Mahindra Satyam 2009 19

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