CONTEMPORARY PROJECT MANAGEMENT, 4E Timothy J. Kloppenborg Vittal Anantatmula Kathryn N. Wells ‹#› Project Supply Chain Management Chapter 13 ‹#› Chapter 13 Core Objectives: Identify the role of supply chain management in project management and its importance for ensuring project success. Describe how to plan, conduct, & control project procurements. Chapter 13 Technical Objectives: Describe the various formats for supply contracts and when each is appropriate. Given a project situation, determine which activities, supplies, or services should be purchased; create bid documents; determine criteria you would use to select a seller; & determine which type of contract you would use. Chapter 13 Behavioral Objectives: Explain how to use the contemporary approach to project partnering and collaboration. Super Absorbent Polymer Turf (SAPTURF) “The SAPTURF project required a strong team. Successful commercialization of IP is a long shot, so room for project management error is slim. I realized I would need to compensate for lack of in-house resources. Lack of in-house resources is an advantage! I was free to look for the best resources…” Chris Tetrault, owner and founder, SAPTURF 6 Introduction to Project Supply Chain Management Inter-organizational purchasing-related issues  supply chain management A supply chain consists of all parties involved in fulfilling a customer request Integrating SCM into PM can significantly enhance the effectiveness of project management Introduction to Project Supply Chain Management Integration of related functions to acquire needed products and services Purchasing Supply management Procurement Project Supply Chain Management A system approach to managing flows of physical products, information, & funds from suppliers and producers, through resellers  the project organization for creating customer satisfaction SCM Components Make-or-buy decision Contract types Collaboration and cooperation System integration Make-or-buy decisions – deciding whether to make something in-house or purchase it from a vendor SCM Factors The importance of SCM to general project management depends on a number of factors: Value of outsourced products/services relative to value of the project The timing of the work being purchased Capability of the project team Role of the outsourced work in the entire project Number of suppliers required Structure of the procurement supply chain SCM Decisions Distribution network configuration Inventory control in supply chain Logistics Supply contracts Distribution strategies Supply chain integration & strategic partnering Outsourcing & procurement strategies Product design Information technology & decision-support systems Matching internal inadequacies with external experience Project Procurement Management Processes Plan Procurement Management Conduct Procurements Control Procurements Plan Procurement Management Plan for purchasing and acquisition Complete most of pr.