- program procurement management

Chapter 12

Program ProcurementProgram ProcurementManagement

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 GroupPlan Program Procurements P

Conduct Program Procurements E

Administer Program Procurements M&C

Close Program Procurements CClose Program Procurements C

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Program Procurement Management

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12.1 Plan Program Procurements

Determining what to procure

Risk ManagementRisk Management

Developing the following for procurement

Strategies Tools Methods

M t i Metrics Assessment parameters Reporting and review mechanismsp g Intervals for revisiting contracts

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Plan Program Procurements

Competitive analysis of Tools and Techniques

M k tiInputs

service providers Procurements planning Expert judgment Assessment of Marketing

environmental factors Program budget

allocation P b d tOutputs

Assessment of organizational competencies

Make-or-buy analysisa ocat o Component scope

statements Program charter

Program budget estimate updates

Program procurement management plang p

Contract management plan

Qualified seller list

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Plan Program Procurements Data Flow Diagram

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Procurement Management Plan

Component Statement of Work updates

Contract typeContract type

Identification of required and available resources

Sourcing decisions

Identification of required procurements

Proposals

Q lifi d ll li t Qualified seller lists

Management of contracts

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12.2 Conduct Program Procurements

Acquire the desired services, resources, products or materials so that the

program meets its objectivesprogram 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

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Conduct Program Procurements

Procurement planningTools and Techniques

Bidder conferences Distribution of RFPs Develop qualified

seller listInputs

Selected sellers Identified internal

Outputsseller list

Contract negotiation Proposal evaluation

system

Program assets Subcontract procurement

plans Program procurement

service providers Request for proposals Contract management

plan updates

Expert judgment Contract management

procedures Change control

Program procurement management plan

Program management plan

Qualified seller list plan updates Program procurement

management plan updates

Change control procedures

Seller selection

Qualified seller list Contract management

plan Component cost estimates

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Contracts Component payment

schedules updates

Conduct Program Procurements Data Flow Diagram

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Proposal Evaluation Systems

Weighting system

Screening systemg y

Seller rating system

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12.3 Administer Program Procurements

Ensures that conditions and requirements of the agreements are understood

and adhered toand 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 specifiedId tif i h t diti i l t d Identifying when agreement conditions are violated

Relationship is terminated as stipulated Post-program commitments are fulfilled as agreedp g g

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Administer Program Procurements

Change control

Tools and Techniques

Outputs

Change control system

Engage and manage suppliersInputs

Program budget baseline updates


Payment control system

Contract performance review


Program budget baseline Contracts management plan

updates Contracts updates Program budget

review Inspection and audits Budget management

system

Contracts Approved change

requests Program performance

t updates Program performance

reports updates Payment approval

reports Payment approval

requests Component payment

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Payment approval Program payment

schedules updates

Component payment schedules

Administer Program Procurements Data Flow Diagram

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Engaging and Managing Suppliers important factors

Contracts

Contract typesyp Country of origin

Contract Management plan

Program Procurements Management plan

Performance reports

Change management Change management

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12.4 Close Program Procurements

Concludes all procurement activities in a program

This includes:This includes:

Notifying program and component stakeholders, and the finance department

Ensuring all contract conditions are met Reviewing contract termination clauses and warranty arrangements

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Close Program Procurements

Contract closure

Tools and Techniques

Contract closure procedure

Supplier performance reviewInputs

Outputs

Budget allocation reconciliation

Program management plan

Contracts Program budget Closed contracts

Procurement performance reports

Closed budget

Program budget Program performance

reports Component closure

tifi ti Closed budget allocationnotification

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Close Program Procurements Data Flow Diagram

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Questions?

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- program procurement management

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