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Procurement Management Importance of Project Procurement Management Procurement means acquiring goods and/or services from an outside source Other terms include purchasing and outsourcing Debates on Outsourcing Some companies, such as Wal-Mart, prefer to do no outsourcing at all, while others do a lot of outsourcing. GM recently announced plans to switch from outsourcing 90% of IT service to only 10% Most organizations do some form of outsourcing to meet their IT needs and spend most money within their own country Why Outsource? To access skills and technologies To reduce both fixed and recurrent costs To allow the client organization to focus on its core business To provide flexibility To increase accountability PM Network – Risks of Outsourcing Boeing’s Dreamliner Following suit and not minding risks Vendor Issues Misunderstanding Information Exchange Schedule Overruns PM Network – The More the Merrier More providers, more problems Differing methodologies and tools Service and Operating Level Agreements Find a balance that works for the organization Contracts A contract is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them Contracts can clarify responsibilities and sharpen focus on key deliverables of a project Because contracts are legally binding, there is more accountability for delivering the work as stated in the contract Project Procurement Management Processes Project procurement management: Acquiring goods and services for a project from outside the performing organization Processes include: Planning procurement management Conducting procurements Controlling procurements Closing procurements Planning Procurement Management Identifying which project needs can best be met by using products or services outside the organization Types of Contracts: Fixed Price (or lump sum) Cost Reimbursable Time and Material Unit Price Point of Total Assumption The Point of Total Assumption (PTA) is the cost at which the contractor assumes total responsibility for each additional dollar of contract cost Contractors do not want to reach the point of total assumption, because it hurts them financially, so they have an incentive to prevent cost overruns The PTA is calculated with the following formula: PTA = (ceiling price – target price)/government share + target cost Cost Reimbursable Contracts Cost plus incentive fee (CPIF Cost plus fixed fee (CPFF) Cost plus percentage of costs (CPPC) Contract Clauses Contracts should include specific clauses to take into account issues unique to the project Can require various educational or work experience for different pay rights Often includes: Termination clause Limitation of liability clause Tools and Techniques for Planning Purchases and Acquisitions Expert judgment Market research Make-or-buy analysis: General management technique ...
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Procurement Management Template Procurement Management Plan (Project Name) (Company Name) (Street Address) (City, State Zip Code) (Date) Here's YourProcurement Management Plan Template This Procurement Management Plan template has been written to include instruction for creating the final document along with actual verbiage for each section. You are free to edit and use this template and its contents; however, we do ask that you don't distribute this template as a template on the web without explicit permission from us. Revision History Name Date Reason For Changes Version Table of Contents 2 1.0 Purpose 2 2.0 Procurement Roles and Responsibilities 3 3.0 Procurement Requirements 3 4.0 Vendor Identification and Selection 4 5.0 Vendor Management 4 6.0 Contract Requirements 4 7.0 Approvals1.0 Purpose Many projects require items or services that cannot be provided from within the organization. In these cases it is necessary for the project team to procure the necessary items or services required to successfully complete the project. This section should provide a high-level explanation of purpose of the Procurement Management Plan. Generally, the purpose of the Procurement Management Plan is to define what items will be procured for the project and how vendors will be identified, selected, and managed. Additionally, the plan should outline roles and responsibilities relating to procurement as well as any contract requirements which must be met. The purpose of the Procurement Management Plan is to define procurement parameters for the Software Upgrade Project in order to ensure its successful completion. Procurement is a deliberate process which involves many internal departments as well as external vendors. This Procurement Management Plan has been created to provide a framework in which all procurement actions will be managed across all of the organizations involved. 2.0 Procurement Roles and Responsibilities This section describes the roles and responsibilities of all key project personnel as they relate to procurement actions. These roles must be clear to prevent any gaps or overlap in project procurement actions. Additionally, roles and responsibilities help establish accountability throughout the project’s lifecycle. To facilitate effective procurement management, the following roles and responsibilities have been established for all procurement actions for the Software Upgrade Program: Role Responsibilities Project Sponsor Approve Procurement Management Plan Approve vendor selection Approve all contracts prior to award Approve any procurement action in excess of $50,000 Project manager Provide oversight for all procurement actions Approve procurement actions under $50,000 Develop procurement requirements Manage vendor selection process Measure vendor performance Closing out vendor contracts Contracting Department Director Assist procurement actions by submitting requests for proposal (RFPs) to i.
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Procurement Management TemplateProcurement Management Plan.docx
briancrawford30935
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Organisational success today depends on effective communication and collaboration with individuals from cultures with varying beliefs and practices. Indeed, with the workforce increasingly comprised of people of varying cultural backgrounds, leaders must now prioritise the significance of cultural competence in the workplace. Ensuring cultural competence at every level of your organisation cannot be understated. While cultural disparities can manifest in different ways, as a leader, you must build deep and nuanced cultural competence skills and education to accurately spot, address and alleviate the various scenarios that can arise. Failing to recognise the importance of cultural competence or not acting to improve it can lead to cultural negligence. There are a few things to consider to ensure your organisation is on the right track. In this deck, you'll understand the importance of building cultural competence in the workplace. You'll also learn • The three (3) dimensions of Cultural Competence in the workplace • Key strategies to build a culturally competent workforce • Major benefits you stand to gain by having a culturally competent team.
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Transformation is even harder than we thought “Only 22% of companies successfully carry out transformation. The failure rate was 78%.” “Often the business value of digital transformation is not realized. One of the most common causes is an abundance of technology projects, not a true business culture transformation” - Phil Le-Brun, Enterprise Strategist, AWS
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Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
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Procurement Mgmt Supplement1
1.
Chapter 11: Project
Procurement Management
2.
3.
4.
5.
Figure 11-1. Project
Procurement Management Processes and Key Outputs
6.
7.
8.
9.
10.
11.
12.
13.
Figure 11-2. Contract
Types Versus Risk
14.
15.
Figure 11-3. Statement
of Work (SOW) Template
16.
17.
Figure 11-4. Outline
for a Request for Proposal (RFP)
18.
19.
20.
Figure 11-5. Sample
Proposal Evaluation Sheet
21.
Figure 11-6. Detailed
Criteria for Selecting Suppliers
22.
23.
24.
25.
26.
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