Procurement Management Summary

Topics: Project management, Cost-plus contract, Procurement Pages: 18 (2341 words) Published: December 26, 2012
Project Management (IT)

Semester Project

Submitted By:

S. Muhammad Tamoor Akram



Submitted To:

Sir. Nayyar Kazmi

Due Date: 14th December, 2012

Summary of Chapter 12

PM BOK 4th Edition

Project procurement management

Project procurement management:

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

Procurement means acquiring goods and services from an outside source. The term procurement is widely used in government, many private firms used the term purchasing, and information technology professionals use the term outsourcing.

A Procurement Management Process, or Procurement Process, is a method by which items are purchased from external suppliers. The procurement management process involves managing the ordering, receipt, review and approval of items from suppliers. A procurement process also specifies how the supplier relationships will be managed, to ensure a high level of service is received. This is a critical task in Procurement Management. In essence, the procurement process helps you "get what you have paid for".

Four steps/processes involve in procurement management. Those are:

1. Plan procurement

2. Conduct procurement

3. Administer procurement

4. Close procurement


Processes involved in project procurement management and their description

|S. No. |Process Name |Description | |1. |Plan procurement |Process of documenting project purchasing decision, specifying the approach and identifying | | | |potential sellers | |2. |Conduct procurement |Process of obtaining quotations, offers, information, and proposals from sellers, and then | | | |selecting a seller and awarding a contract | |3. |Administer procurement |Process of managing procurement relationship, mentoring performance and making changes and | | | |corrections as needed | |4. |Close procurement |The process of completing each project procurement, It supports the CLOSE PROJECT or PHASE | | | |Process |

This procurement process will also help us to:
• Identify the goods and services to procure
• Complete Purchase Orders and issue to suppliers
• Agree on delivery timeframes and methods
• Receive goods and services from suppliers
• Review and accept the items procured
• Approve supplier payments

1. Plan procurement:

Plan procurement is the process of documenting project purchasing decisions, specify the approach, and identifying potential sellers.

This process involves determine whether to acquire outside support and if so what to acquire, how to acquire it, how much is needed, and when to acquire it. When the project obtains products, services, and...
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