Thursday, May 26, 2011

Basic steps for Project Procurement Mangement

Basic steps for Project Procurement Mangement:

Procurement means acquiring.But what we need to acquire or purchase for the project? This might be a product or a services from outside to complete the project task.From organization prospective it manages both party who buys a product,service or sell a product, service .

Procurement Management is a process which plans whether to purchase or not. What to purchase when and from whom to purchase.It has 6 following steps:

1. Define what and which part of the project service need to be purchased or acquired
    when and how as per project requirement.

2. Document the baseline or criteria for the product or service to be  acquired.

3. Request for Proposals, bids from sellers, and make sure ALL potential seller well
    understood the service requirement.

4. Use evaluation system as per organisation process asset to select potential seller.

5. Establish the relationship between buyer and seller through Contract administration,
    which is alegal binding between two.

6. Close the contarct upon successfull delivering or acquiring product or service else

    accpet teminating contract on failiure as per contract.


Before we plan for Purchase & Acquisitions we need to use techniques of

1. Make -Buy Analysis - Whether to Produce or Buy.
2. Expertise information from Experts.
3. Decide to go for either FP or Reimbusable contracts(CPF,CPFF/CPIF)
4. Time & Material contractual engagements.


Contract Administration plays a crucial Role in ensuring both the seller and buyer are performing according to terms in
the contracts..



For further clarification please email us :

pratap.sahoo@project-agile.com  

project.agile2011@gmail.com
info@project-agile.com

Thanks, -Pratap Kumar


Or Visit us at  
http://project-agile.com

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