...Pm3 essay | Project Procurement Management in Information Systems Projects | Mogamat Shaheed Adams (207191948) | | INFORMATION SYSTEMS III (MODULE A) | 21 September 2010 LECTURER: Mr S Dunn | Project Procurement Management in Information Systems Projects ABSTRACT It is becoming increasingly important for information technology professionals to understand project procurement management. Procurement management has become a tool that can save organizations huge amounts of cost. Therefore the emphasis on expert knowledge surrounding the procedures and stages through project procurement management are becoming so necessarily. There are numerous tools and techniques available to project procurement teams to get favourable results and outputs. These outputs become important tools to organizations to use in the future on similar projects. INTRODUCTION Acquiring products or services under contract using outside buyers or sellers has become a very important aspect to many organizations. The reasons is that it reduce both fixed and recurrent costs, allowing client organizations to focus on its core business, organizations can gain access to specific skills and technologies, providing flexibility where extra staff can be provided during periods of peak workload, and increasing accountability because contracts are legally binding. To be successful in project procurement management there are four main processes for organizations to follow. They are planning...
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...Construction Projects: Establishing a Procurement Strategy Introduction The construction industry is one of the major contributors to the gross domestic product of many economies, and as a result, it is important that the environment of the industry is kept as healthy as possible. Previous research studies based on the construction industry (NWPC, 1990; Latham, 1994) have emphasised the key improvement areas, and one of these areas is the selection and use of a suitable procurement strategy in any construction project. The construction process has been seen as involving “all those activities, be they technical, managerial or strategic which make up the realisation phase of a project where the physical facility actually appears, and on completion, the facility is in a useable state, which is an important part of the whole project endeavour and actually impacts the perception of the client” (Rowlinson & McDermott, 1999: pp. 27). But then the concept of success is generally an ambiguous one in a construction project because of the varying perceptions of the project participants, since they will all have their own view of success (Chan, Scott & Lam, 2002). Therefore, several issues need to be considered in order to ensure the success of the outcome of a construction project. However, current research (Chinyio, Olomololaiye & Corbett, 1998) confirms that construction clients have been dissatisfied with the performance of construction consultants and contractors on most...
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...Masters in Information Technology Project Management Project Budgeting, Procurement, and Quality Integrated change Control Plan TS5332 Project Budgeting, Procurement, and Quality Instructor: Thursday, July 14, 2016 Contents Triplicty Events Integrate Change Control Plan 1 Plan to Setup Change Control Board (CCB) 1 Category 1. Changes to Project Objectives 1 Category 2. Forced Modification of Scope 1 Category 3. Possible Modification of Scope – 1 Plan to Review and Approve Requested Changes 3 Change management process 4 Change Request Process Flow Requirements 4 Change Request Form and Change Management Log 5 Plan for Managing Approved Change Procedures 5 Evaluating and Authorizing Change Requests 6 Types of Change Requests 7 Status of Change Requests 7 Plan for Corrective and Preventative Action Procedures 8 Overview of CAPA 8 Corrective and Preventative Action Procedure 8 Plan for Areas that Needed to be Updated After Approved Changes Are Implemented 10 Plan for Controlling Project Quality from Standards Based on Quality Report Procedures 10 Control procedures 11 Control methods 11 Quality procedures 11 References 12 Triplicty Events Integrate Change Control Plan Plan to Setup Change Control Board (CCB) Change requests are inevitable in any project. In order to effectively manage the changes for the Triplicty project, a change control board (CCB) has been devised to review and prioritize changes presented during...
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...Procurement of Projects and Services – The possibility of adopting the NEC3 family of contracts Sustainable procurement for construction or engineering relies upon making value for money decisions over the life of the asset and not solely on capital costs. A value for money solution to meet user requirements relies upon the optimum combination of whole –life costs and quality. Any procurement strategy should identify the best way of achieving the projects objectives, taking into account the likes of key objectives, constraints, funding, risk and asset ownership. It is the optimum balance of these factors that one strives for. The procurement route is the means of achieving the procurement strategy. This will include the contract strategy that best meets the client’s needs. The contract strategy will determine the level of integration of design, construction and maintenance for a project. This should support the main project objectives in terms of the likes of risk allocation, incentivisation and delivery. There are many procurement routes available including traditional, design and build, prime contracting, management contracts and private finance initiative/public-private partnership. The NEC3 family of contracts is designed to be flexible enough to work in most currently available procurement routes. All parties involved in the project delivering process can be employed under one of the “family” of integrated NEC3 contract forms which allows the parties to benefit...
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...Legal Aspects of Procurement Management for a Successful Project Class: PROC 5890-Government Procurement Law Date: July 16, 2014 Instructor: The purpose of this paper is to focus on the legal aspects of procurement management and how procurement management plays a significant role in the success and management of a project. The topics that will be covered include the following: basics of common contract laws, cases involving procurement management decision, Federal Acquisition Regulation (FAR) regarding procurement management, Uniform Commercial Code (UCC) regarding procurement management, Statement of work (SOW), and project manager duties regarding procurement management. In order to discuss procurement management we need to first define what procurement management means in our society today. Procurement is the act of obtaining or buying goods and services. “The process includes preparation and processing of a demand as well as the end receipt and approval of payment. It often involves: (1) purchase planning, (2) standards determination, (3) specifications...
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...make a reasonable make-or-buy decision. | | Instructor Explanation: | PMBOK® Guide, Chapter 12 | | | | Points Received: | 10 of 10 | | Comments: | | | | Question 2. | Question : | (TCO A) In industry, there are four processes one follows in the procurement area of project management. Describe and explain these four processes in the procurement management process for the buyer. | | | Student Answer: | | There are four processes in procurement management; plan, conduct, administer, and close procurement. Plan Procurement Process of documenting project purchasing decision, specifying the approach and identifying potential sellers. The first out of four procurement-related project management processes is in the Planning Process group, and is the process which creates the guidelines for all of the procurement activities on the project. It helps document the project procurement decisions, specifies the approach taken to identify potential sellers and carry out the procurement. Conduct Procurement Process of obtaining quotations, offers, information, and proposals from sellers, and then selecting a seller and awarding a contract. Administer Procurement Process of managing procurement relationship, monitoring performance and making changes and corrections as needed. The buyer...
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...INFORMATION COMMUNICATIONS TECHNOLOGY (ICT) PROCUREMENT MANUAL TABLE OF CONTENTS SECTION 1 INTRODUCTION ABBREVIATIONS AND ACRONYMS SECTION 2 PREPARING FOR ICT PROCUREMENT PLANNING How do we prepare for ICT Procurement? Looking at Total Cost Ownership What is the value of Hiring ICT Procurement Consultant? What are the classifications of ICT Procurement? Drafting the Technical Specifications, Scope of Work and Terms of Reference Drafting Service Level Requirements Reference to Benchmarks Use of Brand Names in ICT Procurement “Green” Considerations in Making Technical Specifications PREPARING THE BIDDING DOCUMENTS What are Bidding Documents? Who shall participate in the preparation of the Bidding Documents? BAC for ICT Projects What various types and sizes of contracts may be provided in the Bidding Documents How should Pre-Procurement Conference be conducted? Conducting Proof-of-Concept SECTION 3 INSTRUCTIONS ON THE PROCEDURAL STEPS FOR ICT PROCUREMENT Competitive Bidding ICTO-DOST Standards Development SECTION 4 GUIDELINES ON CONTRACT IMPLEMENTATION FOR ICT PROCUREMENT OF GOODS Dispute Resolution ANNEX A: Definition of Terms ANNEX B: Process Flow for Goods and Infrastructure ANNEX C1: Process Flow Quality Based Evaluation ANNEX C2: Process Flow Quality Cost Based Evaluation ANNEX D: Sample Technical Specification Checklist ANNEX E: Sample Bid Evaluation Template 1 2 3 3 4 4 5 7 10 11 11 11 13 13 14 14 14 17 17 18 18 18 19 SECTION 1 INTRODUCTION This Manual seeks to...
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...'Procurement is essentially delivering value through relationships' Procurement and Contract Management This article is a literature review on the topic ' Procurement is essentially delivering value through relationships' . Procurement has been always considered to be the least among functions like Marketing, Finance, Human Resource Management etc...even though about 60% of the operating cost is for procurement and in cases like a manufacturing company it is even more. The recent Economic crisis has forced the top management to focus on this aspect of the business more carefully. This review explores the various aspects of procurement, in order to understand the concept of procurement some of the basic concepts like buyer and supplier, business relationships and customer value have been defined. Further I have tried to establish how procurement can add value to a business and to do this I have quoted examples from various business websites and journals. The review is also able to describe how a long term business relationship between the Buyer and Supplier can benefit each other both in terms of growth and financially. Every positive side has a negative side to it, I have been able to show some aspects of the negative side of it. Overall it can be concluded that procurement does deliver value through relationships. Introduction Procurement process is one of the most essential part of a business or a project. Through this process you are exposed to the potential market...
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...Procurement topics. 1. Negotiation as a cost reduction technique in material procurement 2. Role of inspection in product quality management drive in an organization 3. Effect of store design on materials handling 4. Impact of information technology on the supply function of an organization 5. Importance of inventory planning and control in material handling 6. Negotiation as a tool for effective material pricing 7. The impact of material handling cost reduction effort in public institution 8. An assessment of physical distribution in the performance of an organisation 9. Effect of material inspection on product quality in an organization 10. Impact of material sourcing in enhancing the organizational profitability 11. Variety reduction as a tool for effective materials control 12. The impact of material management on purchasing 13. Impact of public procurement act(Regulations) on the accountability of procurement officers in public sector 14. Inventory control and its impact on profitability. 15. Role of sourcing in the achievement of the profit objective of organization 16. An analysis of the procurement reforms act as a tool for cost savings and accountability in an organization 17. Impact of sourcing decision on material availability in an organization 18. Negotiation skills as a tool for enhancing timely delivery of material 19. Store coding and material identification and effect on store efficiency 20. Public procurement...
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...…………….………………………………………3 MONITOR AND CONTROL…………………..……………………….....4 Executive Summary BAL is considering options for e-procurement and trying to decide if they need to find a new system that they can integrate with their current legacy ERP and other software. The following report will present an approach to continue with incremental changes to their current strategy. The organization has achieved much in a short period of time and I expect they can improve upon the foundation of what they have by further development of their current software and processes. Issue Identification Boeing Australia Ltd. (BAL) Need to decide if they will move forward with finding, purchasing and implanting an e-procurement system that will integrate with their current legacy systems. The current systems manage their procumbent, inventory, work in process, time capture, and finical. BAL has goals that will improve the supply chain extensively. They are looking to: reduce the amount of suppliers they have, improved relationships with their suppliers, reduce costs, reduction in rogue purchasing, and standardize best practices for procurement. BAL has already taken many steps to meet their goals and is achieving headway. By moving procurement, administration finance, engineering, logistics projects, and IT for 4 of the companies key divisions to one building they have improved internal communication. Because of this move they would have also been able to roll...
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...Submitted by: Atif Rasheed Instructor Name: Qazi subhan Bahria University Islamabad Campus Department of management Science (Graduate Studies) Title: E-Business in Supply Chain Management Short Statement of Problem: The web is having a significant impact on how firms interact with each other and their customers. Past stumbling blocks for supply chain integration such as high transaction costs between partners, poor information availability, and the challenges of managing complex interfaces between functional organizations are all dissolving on the web. how the web is changing supply chain management It specifically explores the role of e-procurement as an example of how e-business concepts have been applied to one key SCM activity, namely purchasing and procurement. Significance: Nothing has rocked the young field of supply chain management like the emergence of the Internet. While the management of information flows have always been a key aspect of supply chain management, the rapid growth of web-based information transfer between companies, their suppliers, and their customers has decidedly increased the importance of information management in creating effective supply chains. In the past ten years, e-business, as an overarching business concept, has received increasing attention from academics and practitioners alike. The term ‘e-business’ was introduced by IBM in 1997. In its origins it is defined as “the transformation of...
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...cost and profit of a project is the type of contract expected. The confidence by which a bid is prepared is usually dependent on how much of a risk the contractor will incur through the contract. Certain types of contracts provide relief for the contractor since onerous risks2 exist. The cost must therefore consider how well the contract type covers certain high- and low-risk areas. Prospective clients are always concerned when, during a competitive bidding process, one bid is much lower than the others. The client may question the validity of the bid and whether the contract can be achieved for the low bid. In cases such as this, the client usually imposes incentive and penalty clauses in the contract for self-protection. Because of the risk factor, competitors must negotiate not only for the target cost figures but also for the type of contract involved since risk protection is the predominant influential factor. The size and experience of the client’s own staff, urgency of completion, availability of qualified contractors, and other factors must be carefully evaluated. The advantages and disadvantages of all basic contractual arrangements must be recognized to select the optimum arrangement for a particular project. Procurement can be defined as the acquisition of goods or services. Procurement (and contracting) is a process that involves two parties with different objectives who interact on a given market segment. Good procurement practices can increase...
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...• The PMBOK phases of Project Procurement Management: Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, and Contract Close-Out • Be familiar with Input, Tools and Techniques, and Output for each phase) • VERY IMPORTANT: Understand the viewpoint of the PMBOK. Project Procurement Management is discussed from the perspective of the buyer in the buyer-seller relationship. The buyer is the organization seeking the service or product. The seller is the provider of the service or contract and is referred to as the vendor, the supplier, or the contractor. Project Management should be done by both the buyer and the seller. • Understand the definitions and terms. (buyer, seller, express and implied warranties, "fitness for a particular use", invitation to bid, request for proposal, etc.) • Understand the viewpoint of the reading material. Is procurement management discussed from the viewpoint of the buyer (the organization or person seeking to outsource) or the seller (the person or organization selling their services / products)? • Understand the different types of contracts: fixed price, cost plus percentage, cost plus fixed fee, cost plus incentive fee, and fixed price plus incentive fee. Know who assumes the most risk (buyer or seller) in each type of contract. Study examples of each type of contract so that you are comfortable with the different types and can adequately distinguish between each type of contract (especially the...
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...Name of the Project: Highway 407 improvement Executive summary In 2013, following 3 years of program definition, research and planning, the province of Ontario’s ministry of transportation and infrastructure launched the project to improve the existing highway 407. This highway is the busiest route and convenient to access different parts of Toronto. The proposal of highway 407 was launched in 1959 and opened to the public in June 7 1997. 407 its one of the busiest highway, the total trips in 2010 was 114.691 Million. 407 ETR is the world’s first all-electronic toll road of its kind, and from the day it was opened up to the present day it continues to fulfill its mission of relieving traffic on local highways and roads. The goal of the project “Highway 407 improvement” includes reducing congestion and travel time; improve safety; expanding networks and transportation choice for high occupancy vehicles. Given the cost of the project and other provincial priorities, a key objective was to be self-financing, paid for through ERT system. The present value cost is estimated more than $5 billion, which is calculated over the period of 35 years. Key features of the project include extending the high occupancy vehicles lanes and commercial vehicle priority access. The project will also provide the reintroduction of the public transit to a corridor that has been too crowded to support reliable service for the past few years. The request of proposal was submitted on...
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...ASHESI UNIVERSITY COLLEGE INVESTIGATING THE EFFECT OF THE PUBLIC PROCUREMENT LAW ON THE GHANAIAN EDUCATIONAL SECTOR By EYRA LYDIE GNANIH Thesis submitted to the Department of Business Administration Ashesi University College In partial fulfilment of Bachelor of Science degree in Business Administration APRIL 2012 i Declaration I hereby declare that this thesis is the result of my own original work and that no part of it has been presented for another degree in this university or elsewhere. Candidate’s Signature:…………………………………………………………………… Candidate’s Name: Eyra Lydie Gnanih Date: Thursday, 12th April 2012 I hereby declare that the preparation and presentation of the thesis were supervised in accordance with the guidelines on supervision of thesis laid down by Ashesi University College. Supervisor’s Signature:…………………………………………………………………….. Supervisor’s Name: Dr Stephen E. Armah Date:………………………………….. ii Acknowledgement Gratitude goes to my parents for their encouragement, support, and inspiration. To Dr Stephen E. Armah, my thesis supervisor, thank you for the constructive criticisms and timely feedback which were of exceptional help in completing this project. For the reception and openness of the Secretary of the Public Procurement Authority and for the reports and information made available by Mr Alex Osei-Bonsu of the same institution, thank you. This project would not have been possible without the generosity and willingness of the heads...
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