Learning Curve…

PM0010 : Compare Operation and project procurement. Also list and explain the project procurement process.

Posted on: February 22, 2012

PM0010 : Compare Operation and project procurement. Also list and explain the project procurement process.

Answer: – Project Procurement is where the decision to procure and the funding to pay the invoice comes from a project budget.

Operational Procurement is where decision to procure and the funding comes from the general budget as the commodities or services are required for the overall operation.

The method of making the procurement decision can be identical in both cases.

project procurement process:-

  • Specification. This step involves the purchasing department in communicating with the project manager to develop and approve a list of procurement items necessary for project implementation. The department must specify the approved items to external vendors.
  • Selection. This step of the project procurement process requires the department to find potential suppliers which can procure the necessary items, according to the specifications. For this purpose the department needs to set vendor selection criteria, which may include such measures as Delivery, Service Quality, Cost, and Part Performance.
  • Contracting. The department must communicate with the suppliers on delivery dates and payment conditions in order to ensure “on-time” delivery of the ordered items within the stated project budget. All the conditions should be listed in a procurement contract. Also a detailed delivery schedule should be negotiated with the procurers and approved by the purchasing department.
  • Control. Success of the procurement management process depends on how the purchasing department controls the delivery and payment processes. Through arranging regular meetings with the vendors, tracking delivery progress, reviewing the ordered items against the approved product specifications, and making necessary changes to the procurement contract, the department can control the process and ensure successful accomplishment.
  • Measurement. The final step of the project procurement management process refers to using a system of performance indicators and measures for assessing the effectiveness and success of the entire process. The project manager needs to set up such a system and the purchasing department needs to use it in measuring the process. Special meetings and workshops can be conducted to view KPIs, intermediate results of staged delivery, performance of procurers, adherence to product specifications, communications with suppliers, and the like. In case any deviations or gaps are revealed the department should notify the project manager and make necessary changes to the procurement plan.
Advertisements

4 Responses to "PM0010 : Compare Operation and project procurement. Also list and explain the project procurement process."

dear Nikhat,

kindly pls upload HR-category assignmnt also.plssssssssssssssss

Hi Divu ,

I wish I could , but I took Project Management as my specialization.So dont hv answers of other category.

Hi nikhat,
Thank you for your prompt reply.May god bless you 🙂

[…] Que – Compare Operation and project procurement. Also list and explain the project procurement… (nikhatshahin.wordpress.com) […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Author

Learning days (Calendar)

February 2012
M T W T F S S
« Jan   Mar »
 12345
6789101112
13141516171819
20212223242526
272829  

Knowledge Bank (Archives)

I am on Twitter

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

Blog Stats

  • 510,129 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 43 other followers

%d bloggers like this: