Chapter 11 - Project procurement management. After reading this chapter, you will be able to: Understand the importance of project procurement management and the increasing use of outsourcing for information technology (IT) projects; describe the work involved in planning procurements for projects, including determining the proper type of contract to use and preparing a procurement management plan, statement of work, source selection criteria, and make-or-buy analysis;. | Chapter 11: Project Procurement Management adopted from PMI’s PMBOK 2000 and Textbook : Information Technology Project Management Copyright Course Technology 2001 Contents Importance of Project Procurement Management Project Procurement Management Processes Procurement planning: ) Solicitation planning: ) planning phase Solicitation: ) Source selection: > executing phase Contract administration: ) Contract close-out: } closing Using Software to Assist in Project Procurement Management Chap 11 Importance of Project Procurement Management Procurement means acquiring goods and/or services from an outside source Other terms include purchasing and outsourcing Why Outsource? To reduce both fixed and recurrent costs To allow the client organization to focus on its core business To access skills and technologies To provide flexibility To increase accountability Chap 11 Project Procurement Management Processes Procurement planning determining what to procure and when Solicitation planning documenting product requirements and identifying potential sources Solicitation obtaining quotations, bids, offers, or proposals as appropriate Source selection choosing from among potential vendors Contract administration managing the relationship with the vendor Contract close-out completion and settlement of the contract Chap 11 Figure 11-1. Project Procurement Management Processes and Key Outputs Chap 11 Procurement planning 20th of 21 planning phase process identifying which project needs can be best met by using products or services outside the organization. It includes deciding whether to procure how to procure what to procure how much to procure when to procure determines how project needs can best be met by sourcing products or service outside the organization. Chap 11 Inputs to Procurement planning Scope statement – describes current project needs and strategies Product description – defines the end product of the project and provides important information . | Chapter 11: Project Procurement Management adopted from PMI’s PMBOK 2000 and Textbook : Information Technology Project Management Copyright Course Technology 2001 Contents Importance of Project Procurement Management Project Procurement Management Processes Procurement planning: ) Solicitation planning: ) planning phase Solicitation: ) Source selection: > executing phase Contract administration: ) Contract close-out: } closing Using Software to Assist in Project Procurement Management Chap 11 Importance of Project Procurement Management Procurement means acquiring goods and/or services from an outside source Other terms include purchasing and outsourcing Why Outsource? To reduce both fixed and recurrent costs To allow the client organization to focus on its core business To access skills and technologies To provide flexibility To increase accountability Chap 11 Project Procurement Management Processes Procurement planning determining what to procure and when Solicitation .
