PPMT CE408T

1. PPMTCE408T Engr. Faisal ur Rehman

2. Presentation Outline • Project Porcurement Managment • Project Closure

3. Project Porcurement • Plan Purchases and Acquisitions – determining what to purchase or acquire and determining when and how. • Plan Contracting – documenting products, services, and results requirements and identifying potential sellers. • Request Seller Responses – obtaining information, quotations, bids, offers, or proposals, as appropriate. • Select Sellers – reviewing offers, choosing among potential sellers, and negotiating a written contract with each seller. • Contract Administration – managing the contract and relationship between the buyer and seller, reviewing and documenting seller performance • Contract Closure – completing and settling each contract, including the resolution of any open items, and closing each contract applicable to the project or a project phase.

4. Project Porcurement • A complex project can involve managing multiple contracts or subcontracts simultaneously or in sequence.

5. Plan Purchases and Acquisitions • The Plan Purchases and Acquisitions process identifies which project needs can best be met by purchasing or acquiring products, services • It also includes consideration of potential sellers, particularly if the buyer wishes to exercise some degree of influence or control over contracting decisions. • It includes reviewing the risks involved in each make-or-buy decision • The project schedule can significantly influence the Plan Purchases and Acquisitions process.

6. Plan Purchases and Acquisitions Inputs • Enterprise Environmental Factors • Organizational Process Assets • Project Scope Statement • WBS • Project Management Plan

7. Plan Purchases and Acquisitions Tools • Make-or-Buy Analysis • Expert Judgement • Contract Types • Time & Material Contracts

8. Plan Contracting • Plan Contracting: Inputs • Procurement Management Plan • Contract Statement of Work • Make-or-Buy Decision • Plan Contracting: Tools and Techniques • Standard Forms • Expert Judgement • Plan Contracting: Outputs • Procurement Documents • Evaluation Criteria

9. Request Seller Responses • Tools and Techniques • Bidder Conferences • Advertising • Develop Qualified Sellers List

10. Request Seller Responses • Outputs • Qualified Sellers List • The qualified sellers list are those sellers who are asked to submit a proposal or quotation. • Procurement Document Package • The procurement document package is a buyer-prepared formal request sent to each seller and is the basis upon which a seller prepares a bid • Proposals • Proposals are seller-prepared documents that describe the seller’s ability and willingness to provide the requested products, services, or results described in the procurement documentation.

11. Select Sellers • Price or cost can be the primary determinant for an off-the-shelf item • but the lowest proposed price may not be the lowest cost if the seller proves unable to deliver the products, services, or results in a timely manner.

12. Select Sellers: Tools and Techniques • Weighting System • A weighting system is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selection. • Independent Estimates • Screening System • A screening system involves establishing minimum requirements of performance for one or more of the evaluation criteria • Contract Negotiation

13. Select Sellers: Output • Selected Selers • Contract • Resource Availibility • Project Procurement Plan

14. Contract Administration: Tools and Techniques • Inspections and Audits • Performance Reporting • Payment System • Records Management System • Contract Administration: Outputs • Requested Changes • Recommended Corrective Actions

15. Contract Closure • The Contract Closure process supports the Close Project process, since it involves verification that all work and deliverables were acceptable. • Tools and Techniques • Procurement Audits • Records Management System • Outputs • Closed Contracts • Organizational Process Assets • Contract file • Deliverable acceptance • Lessons learned documentation

16. Ending a Project • Ending a project: more than project closure • Project life-cycle • Project termination is difficult • Failure or success? • Timing of termination • How should a project be terminated? • Projects take place in business networks • Planning the ending strategy • Project-ending competences • The ending means managing changes in different relations • Success in ending • The Ending Project: a case study from the aircraft industry • Key points for managers • Managing Project Ending by Virpi Havila and Asta Salmi

17. Thanks Topics to be covered further: • Project Risk Management • Study of PC forms and Cashflow • Study of Bids

18. Appendix • Project Management in Context of Pakistan • Project Identification & Preparation • Project Appraisal & Approval • Project Authorization • Project Activation • Pay Package • Project Allowance • Delegation of Powers • Allocation of Funds • Opening of Accounts • Release of Funds • Project Implementation • Project Completion/Closure

19. Project Management in Context of Pakistan • Financial Management • Project Monitoring & Evaluation System • Result Based Monitoring (RBM) • Project Evaluation • Do’s and don’ts

20. Project Management in Context of Pakistan