PUBLIC PURCHASING IN FLORIDA. PURCHASING MANAGEMENT (REV. 5/24/08). PURCHASING MANAGEMENT. MISSION LEADERSHIP VENDOR & CUSTOMER RELATIONS PERFORMANCE STANDARDS & MEASUREMENT ADDING VALUE PROFESSIONAL DEVELOPMENT FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS INTERNET RESOURCES.
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PUBLIC PURCHASING IN FLORIDA PURCHASING MANAGEMENT (REV. 5/24/08)
PURCHASING MANAGEMENT • MISSION LEADERSHIP • VENDOR & CUSTOMER RELATIONS • PERFORMANCE STANDARDS & MEASUREMENT • ADDING VALUE • PROFESSIONAL DEVELOPMENT • FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS • INTERNET RESOURCES
PURCHASING MANAGEMENT MISSION LEADERSHIP
PURCHASING MANAGEMENT Department of Management Services Service Motto “We serve those who serve Florida” Service Vision “Engaged employees, Satisfied customers” Service Mission “Producing smarter, better, faster services”
MISSION LEADERSHIP • Mission Leadership is a program introduced to DMS by former Secretary Bill Simon, and consultant McKinney Rogers International. • Mission Leadership draws on a military model for its inspiration. • It defines the mission of each level within an organization, and for that matter, for each individual.
MISSION LEADERSHIP • The mission of each level in an organization is to support the mission of the next level up. • Each level’s mission is set forth in a “Mission Analysis” document which contains five main parts.
MISSION ANALYSIS • MISSION STATEMENT (which itself has two parts) MISSION WHAT and WHY: “What” is your mission. “Why” is the mission of the level ABOVE. • GOALS (measures): Objectives and dates (SMART acronym: Specific, Measurable, Achievable, Realistic, Timely ).
MISSION ANALYSIS • STRATEGIC INTENT • One Level Up • Two Levels Up • Your part in the plan (“I commit to ..)
MISSION ANALYSIS • TASKS: A four-column table showing • Specified tasks • Implied tasks • Resources • Time (date to accomplish)
MISSION ANALYSIS • FREEDOMS & CONSTRAINTS • Freedoms (things that help you accomplish your mission) • Constraints (things that impede)
MISSION STATEMENTS • SECRETARY OF DMS To provide effective program support to all state agencies in order to deliver resource saving solutions to our customers.
MISSION STATEMENTS • DIRECTOR OF STATE PURCHASING To gladly deliver useful and innovative purchasing services in order to provide effective program support to all state agencies.
MISSION ANALYSIS • Each of the preceding mission analyses includes goals (measures) and dates by which they are to be accomplished, as well as specified and implied tasks along the way, and identification of the resources to accomplish them.
MISSION ANALYSIS • The value of Mission Analysis is to keep the focus on the desired outcome, and tailor the day-to-day activities in a conscious manner to accomplish the mission, instead of just working each issue which pops up, with whatever time and other resources it seems to require.
PURCHASING MANAGEMENT VENDOR & CUSTOMER RELATIONS
VENDOR & CUSTOMER RELATIONS • Vendor Guides • Purchasing Manuals • Desk Procedures • Customer Surveys
VENDOR GUIDES PURPOSE: A concise reference to assist vendors wanting to know what the agency buys, who to contact for marketing, and what the buying and selling procedures are.
VENDOR GUIDES SHOULD INCLUDE • The size, organization and purpose of the agency. • A summary of items and services typically purchased. • Purchasing and related procedures. • Contact information, including web site(s), telephone numbers and email addresses.
Table of Contents, Fla. DHSMV at:http://www.flhsmv.gov//intranet/PTurchasing/html/vgan.htm • AGENCY PROFILE • OFFICES OF PURCHASING AND LEASING • GUIDING PRINCIPLES • PURCHASING ACTIVITY • PURCHASE METHODS • MINORITY BUSINESS ENTERPRISE UTILIZATION • LEGAL AND ETHICAL REQUIREMENTS • VENDOR REGISTRATION • MARKETING APPROACH • BID INFORMATION • SPECIAL PROBLEMS • DIRECTORY
VENDOR & CUSTOMER RELATIONS PURCHASING MANUALS
PURCHASING MANUALS PURPOSE: A policy & procedures reference to assist INTERNAL customers wanting to know how to buy their requirements, how to resolve problems with vendors, what the governing laws, rules and policies require, where to find necessary forms and information, who to contact for purchasing assistance, and timelines.
SUGGESTED TABLE OF CONTENTS • Purpose • Authority • Standards of Conduct • Definitions • Requirements of Law, Rule & Policy, including Procurement Methods • General Process • Special Processes • Problem Resolution • Contact Information
VENDOR & CUSTOMER RELATIONS DESK PROCEDURES
DESK PROCEDURES PURPOSE: A procedures reference guide to assist purchasing personnel in processing requisitions, understanding and applying various procurement methods, analyzing and planning for purchasing success, and problem resolution.
DESK PROCEDURES • Mission • Office organization & workflow • Evaluating a requisition for clarity, completeness, justification & authority • How to handle various deficiencies
DESK PROCEDURES • Selecting contracting options, including standalone process or order consolidation • Data gathering and analysis • Choice of procurement method • Composition of the solicitation • Purchase Order Issuance • Record keeping
DESK PROCEDURES • Problem resolution • Customer Issues: Adding value, and marketing problem resolution • Vendor performance • Change orders • Addenda to solicitations • Receipt of bids • Public Records requests • Protests
VENDOR & CUSTOMER RELATIONS CUSTOMER SURVEYS
CUSTOMER SURVEYS • TWO PURPOSES • Find ways to improve • Educate the customer
A GENERAL SURVEY FOR YOUR WEB SITE • Service issue (perhaps drop down) & date • Were you treated in a professional & courteous manner by staff? • Was response timely? • Was your transaction processed accurately & in accordance with law & rule? • Rate overall satisfaction with your experience (provide a scale). • Please provide any additional comments.
CUSTOMER SURVEYS From DMS State Term Contracts: • Rating the Contractor, 1-5 scale • Performance to specifications • Delivery • Invoicing • Customer Service
CUSTOMER SURVEYS • Rating the Division of State Purchasing, 1-5 scale • Pricing • Ease of use • Product selection & quality • Customer Service • Comment box • Do you want to be contacted?
PURCHASING MANAGEMENT PERFORMANCE STANDARDS & MEASUREMENT
PERFORMANCE STANDARDS & MEASUREMENT WHY DO THIS?
PERFORMANCE STANDARDS & MEASUREMENT EXAMPLES • FINANCIAL MEASURES • STATE OBJECTIVES MEASURES • CUSTOMER SERVICE MEASURES • PROFESSIONAL DEVELOPMENT MEASURES • ISSUES & INITIATIVES
PERFORMANCE STANDARDS & MEASUREMENT • ANOTHER VIEW: DEFINE & MEASURE • EFFECTIVENESS • EFFICIENCY • ECONOMY • MISSION DELIVERY
FINANCIAL MEASURES • Savings achieved, dollars and percentages (economy) • Cost of the purchasing operation as a % of contract values (efficiency) • Return on investment (efficiency) • Percentage of spend on centrally awarded contracts (effectiveness) • Cost as a % of agency budget (efficiency) • Centralized vs. Decentralized transactions (efficiency & effectiveness)
STATE OBJECTIVES MEASURES (effectiveness) 1. Equity in Contracting 2. Environmental Considerations 3. Certification of Drug-Free Workplace 4. RESPECT • PRIDE Examples of measurement: % of contracts contributing to each objective, % of contracts improved or declined vis-à-vis previous contract for each objective.
CUSTOMER SERVICE MEASURES (effectiveness) For example, number and percentage of customer survey results reflecting a satisfactory to excellent rating.
PROFESSIONAL DEVELOPMENT MEASURES (effectiveness) • For example, number and percentage of staff who have attained professional certification. • In Florida now, can include UPPCC, State certifications and PMP certification.
ISSUES & INITIATIVES (mission delivery) For example, a list of accomplishments and challenges addressed during the reporting period. Can include status on a major negotiation or process improvement. Can also be in the area of one of the “3 Es”, EFFECTIVENESS, EFFICIENCY & ECONOMY.
PURCHASING MANAGEMENT ADDING VALUE
ADDING VALUE WHAT IS VALUE?
WHAT IS VALUE? • SERVICE LEVEL • TIMELINESS • EFFECTIVE DELIVERY • FINANCIAL LEVEL (Purchases & Processes) • COST REDUCTION • COST AVOIDANCE • REVENUE • PROCESS LEVEL • LEGALITY • ETHICS • PROFESSIONALISM • STAFF LEVEL • ADVICE, PLANNING, EDUCATION & PROCEDURES
ADDING VALUE THROUGH PROCESS CHANGES TWO WAYS TO CONSIDER THIS • OPPORTUNITIES TO RE-ENGINEER, ADDING PROCESSES, STEPS AND HANDLING WHERE VALUE CAN BE ADDED • OPPORTUNITIES TO RE-ENGINEER, DROPPING PROCESSES, STEPS, AND HANDLING WHERE NO VALUE IS ADDED
ADDING VALUE CONSIDER • PROCESSES: WHAT OPPORTUNITIES MAY BE MISSED BY PRESENT PROCESSES? ARE COSTS MANAGED? IS PERFORMANCE MANAGED? IS MISSION ACCOMPLISHED? • DO ALL STEPS, PARTICIPANTS, APPROVALS, ETC. CONTRIBUTE TO ONE OF THE VALUES?
ADDING VALUE • EVERYTHING MAY BE JUST THE WAY YOU WERE TAUGHT BUT…
ADDING VALUE • THERE IS NOTHING PUT IN PLACE BY HUMAN BEINGS THAT CAN NEVER BE IMPROVED, OR REPLACED BY SOMETHING BETTER. IS THERE?
ADDING VALUE • REVIEW YOUR MISSION & YOUR MEASURES • CONSIDER WHAT ACCOMPLISHMENTS WOULD REALIZE THEM • CONSIDER THE PROCESSES AND INPUTS NEEDED, AND COST VS. VALUE ADDED OF EACH INPUT & PROCESS • DELETE OR REPLACE THE REST
PURCHASING MANAGEMENT PROFESSIONAL DEVELOPMENT