Managing project acquisitions and procurements require the project manager to efficiently work with the procurement department on the process of managing and procurement planning. Technically, project procurement management forms the part of the implementation plan to identify how the ordered products are significant for producing deliverables and can be offered within the allocated budget and time.
Project Acquisition Approach: efficient project management is essential in letting quality products at the right time, right place and bringing the right product to the organization. Talking about project Acquisition Management Process, it is a technique recognized for building the relationship between the exterior dealers and the organization purchase sector to receive, order, analyses and approve the whole acquisition which is significant for implementation of a project (Ki Fiona & Rowlins, 2011). On the other hand, the dealer associations are managed on a written agreement basis. The main aim of the producer, in this case, is to ensure a well-timed delivery of bought items acquired in keeping with the requirement and specification setup by the department of procurement and finally accepted by the project administrator.
Technically, the method of acquisition contains five more important steps that include:
Specification: this is one of the initial stages of procurement that involve the procurement department communicating with the project manager to approve and develop a list of purchase items that are required in managing the project. It is important for the department to specify the approved products to the external suppliers.
Selection: in this section of the procurement process, the procurement department is required to come up with a potential supplier who can buy the required items by specifications. Notably, it is important for the procurement department to line the merchandiser choice criteria, which include such measures such as service, delivery, cost, performance, and quality.
Contracting: it is important for the procurement department to communicate with the suppliers on the best payment conditions, delivery dates to make sure that the whole process facilitates a timely delivery of the items ordered with the recommended project budget. Notably, it is significant to list all the conditions listed in a procurement contract. Additionally, a detailed schedule of delivery is supposed to be negotiated with the procurers and approval report by the procurement department.
Control: it is important to monitor and control payment and the delivery process since they are important in determining the success of the procurement management process. This is through regular meeting arrangement with the vendors, reviewing of the order items, tracking delivery process against the approved product specification and ensuring that necessary changes to the procurement contract are made (LUFF, 2007). On the other hand, the department can have total control of the process and make sure that there exists great accomplishment.
Measurement: in project management process, this is the final step that refers to making use of performance indicators systems and measures when it comes to assessing the success and effectiveness of the whole process. It is important for the project manager to come up with an effective system and the purchasing department is required to make use of the measuring process. Workshops and special meetings can be conducted to view KPIs, performance of procurers; intermediate results staged delivery and communication with suppliers. In case of any gaps or even deviation are realized, then the department is supposed to notify the project manager to make important changes to the procurement plan.
Outline and explain contract administration procedures and policies.
Contract administration involves the process for managing the relationship and contract between seller and buyer, documenting and reviewing how a supplier has performed or performing to build one of the needed corrective actions. Contract administration is one of the integral sections of the process of procurement that offers the owner of the project with quality products for what it has bargained. Notably, contract management procedure is essential in the declaration of whether the projects requirement and objectives are on the agenda and the vendor has kept a proper record of behavior. The most significant steps for this procedure include:
Agreement this involves the associate contract that exists between the vendor and the purchaser that particulars their lawful compulsion and necessities.
Agreement administration Scheme- in agreement administration scheme, the use of the presented agreement necessities to provide the procurer and the vendor with regulations and rules for administering and managing agreements is essential.
Elected sellers the elected retailers, are recognized as vendors who are being considered by the purchaser as the most excellent applicants for the projects and who have discussed an outline agreement.
Permitted Alter desires- under permitted alter desires, it brings the confirmation that procurement process or agreement modifications have been accepted.
Performance measurement Report- involves the additional explained than job performance data; they make use of techniques, for example, S-curves and bar charts to review and offer preparation of reviewed data. This includes project task development and earned price management.
Work concert data: it is important to recognize that work concert data that have their appearance from the manage project adoption process. Technically, the project work team makes use of performance data in examining the vendors expenditure and development.
Describe techniques and tools for contract administration process, involving the following.
After being capable of obtaining throughout achievement stage/ the choice, the project administrator requirement to record agreement alters managerial problems and the vendor development and finally the excellence of a job that the project is implemented effectively.
Contract change control system involves the collection of the process allowing change requests to be approved, managed and analyzed. The system is used in gathering, communicating and tracking all the changes to project management contract. It is important to take note that contract changes can have an impact on the whole project scope and even the project requirement during the procurement process.
Procurement Performance review. Through such a system a description process in interfering with an agreement is provided. It involves the whole form, argument declaration processes, tracking systems and the process of the declaration. Additionally, the agreement stage plays an important role in the transforming, approving and the action of receiving the alteration approved inside the performing association. Transform manage scheme should be incorporated into the agreement alter manage scheme.
Inspection and Audit- it is important for a purchaser-conducted performance to evaluate and tracks the sellers development in adoption and merchandise delivery inside the factor of a contract. With future expectation, the association is containing the project and price agenda in the agreement. In this case, the main goal is in the handling of agreement performance by recognizing performance achievement, predictable finishing and breakdown point on the declaration of the agreement based on the declaration of the task and lastly recognizing regions of agreement noncooperation.
Payment process (n/30, n/60)
Regarding payment, it means the invoice amount is payable is whole within 60 days from the date of invoice. No statement on the bill payment beyond sixty days. 2/30 shows that the customer has a higher chance of opting to receive two percent discount in case the invoice amount is paid in thirty days.
Performance reporting. Conducting reviews and assessment is important in identifying some faults in the delivered merchandise. Project directors offer surety reviews and assessment; this takes place with the live incident of the latest processor examine the latest events.
Effective procurement cannot be complete without a proper performance report; it involves aggregating the information from the sellers performance and distributing it to the shareholders. It is also important to consider performance news in this case since it will assist in alerting management on whether or not the vendor is complying with the objectives of the written agreement.
Record management system- the system of record management involves a set of process, mechanization tools, and correlative management function tools that are utilized in handling contracts records and documentation.
Describe conflict resolution techniques used while managing contractual relationships?
In managing the procurement process, managing conflicts on project teams usually involves coming up with procedures and policies for managing procurement disputes. Conflict normally take place when parties go on different ways by considering two or more opposing responses, options, or cause of action to offer satisfaction on specific condition or event or when the parties who are concerned identifies a risk to their interest, concerns, and needs. Being that the construction procedure is dominated by uncertainty and the uncertainty normally is the breeding grounds for disagreement, it is important for procurement capabilities to effectively contract with the populace, elicit their cooperation and come up with conflict resolution to achieve the constructions projects.
Outline steps to be taken to close out project procurements.
Confirms if the services and product offered are meeting up acceptance criteria.
Conducting extensive financial activities
Endorsing final compensation by notifying the specific monetary records payable office.
Ensure that the procurement order is shut.
Update the agreement folder
Archive agreement folder (entails the final procurement plan with a recommend project idea)
Explain the importance of closing project procurement and accounts.
Project closure is recognized as the last process of the project, with the process being beneficial for various reasons. One of the major benefits is that the closing process offers storage of relevant information about the project future use. On the other hand, during project closure, the teams are informed on knowing their limitation and strengths as the aspect of the project handled incorrectly and correctly are normally highlighted and analyzed. The closing of accounts is important in ensuring that the existing dues concerning the project have been settled with no dispute in place.
Examining the external influence on risk management process and procurement.
Businesses are identified as vulnerable entities that are considered to be at risk of external forces, for example, the financial environment that involves the performance of the economy that has a major impact on the procurement process. Additionally, political change as an external force may include internal politics and policies which can greatly have an impact on who is doing the business and transaction in the whole process. Notably, technological advances also have an impact on procurement, with the technological changes being responsible for efficient business dealings. On the other hand, social-cultural changes have a great impact on customers expectations and behavior.
Analyzing the relationship between the external factors and the risk response plan
External responses have a great relation to the risk response plans of any process of procurement and in most cases; the ext...
If you are the original author of this essay and no longer wish to have it published on the collegeessaywriter.net website, please click below to request its removal:
- Dissertation Proposal on the FMCG Supply Chains
- Term Paper Sample on Employees Compensations in an Organization
- Review of Engstrom Case Study - Essay Sample
- Essay on Health Management Organizations
- Types of Control Processes in the Organizational Structures - Paper Example
- Critical Thinking on Styles of Leadership and Management
- The Concept of Design Thinking - A Term Paper Example