Chapter Name: Plan procurement management
Description:Learners will develop a procurement management plan that outlines the processes for purchasing goods, services, or contracts necessary for the project. This includes vendor selection criteria, contract terms, and procurement schedules.
Purpuse:To establish a framework for managing project procurement activities.
Rational:Effective procurement planning ensures that the project receives the necessary external resources on time, within budget, and with favorable terms.
Chapters Topics
Procurement management planning concepts and flow of data
Procurement Management Planning Concepts and Flow of Data (KT0101): This process involves defining the procurement needs of the project, identifying potential suppliers, and creating strategies for managing external resources. The flow of data includes the collection of input information (e.g., risk register, activity resource requirements), the application of tools and techniques, and the creation of outputs such as procurement documents and management plans.
The importance and benefits of procurement management planning
The Importance and Benefits of Procurement Management Planning (KT0102): Procurement management planning ensures that the project acquires necessary goods and services efficiently and cost-effectively. It helps define clear procurement strategies, identifies potential suppliers, and aligns procurement activities with the project's needs, objectives, and constraints. A well-planned procurement process helps mitigate risks and ensures timely delivery.
Procurement management planning inputs (Project management plan, Risk register, Activity resource requirements, Project schedule, Activity cost schedule, Stakeholder register, Entrerprise environmental factors, Organisational process assets)
Procurement Management Planning Inputs (KT0103): The key inputs include the Project Management Plan, Risk Register, Activity Resource Requirements, Project Schedule, Activity Cost Schedule, Stakeholder Register, Enterprise Environmental Factors, and Organizational Process Assets. These documents provide the information needed to define procurement needs and plan the procurement process.
Procurement management planning tools and techniques (Make or buy analysis, Expert judgment, Market research, Meetings)
Procurement Management Planning Tools and Techniques (KT0104): Tools and techniques used in this process include Make or Buy Analysis (deciding whether to outsource or keep in-house), Expert Judgment (consulting with specialists), Market Research (analyzing the market for suppliers), and Meetings (discussions with stakeholders and suppliers). These tools help define procurement strategies and ensure alignment with project goals.
Procurement management planning outputs (Procurement management plan, Procurement statement of work, Procurement documents, Source selection critieria, Make or buy descisions, Change requests, Project document updates)
Procurement Management Planning Outputs (KT0105): The outputs include the Procurement Management Plan (defining procurement processes), Procurement Statement of Work (outlining the scope and requirements for procurement), Procurement Documents (contracts, RFPs, RFQs), Source Selection Criteria (criteria for choosing suppliers), Make or Buy Decisions (deciding the outsourcing strategy), Change Requests (if necessary), and Project Document Updates (reflecting procurement strategies and decisions). These outputs guide the procurement process throughout the project.