2. AGENDA
What procurement management is ?
Four processes in procurement management.
Procurement objectives.
Tools used in procurement management.
Using Software in procurement management.
Ups and Downs of procurement management.
Conclusion
References
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3. WHAT IS PROCUREMENT MANAGEMENT
Is a tool or a technique which firms use in the process of
acquiring supplies / raw materials.
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http://www.ask.com/question/what-is-procurement-management
4. FOUR PROCESSES IN PROCUREMENT
MANAGEMENT.
Plan Procurement
Conduct Procurement
Administer Procurement
Final Procurement
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Conduct
Procurement
Administer
Procurement
Plan
Procurement
Final
Procurement
http://www.wisegeek.com/procurement-processes/
5. Make-or-buy analysis
Expert judgment
PLAN PROCUREMENT.
Procurement planning, is the process of deciding what to
buy, when and from what source.
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Required Documentations
Teaming Agreements
Risk-Related Contract
Decisions
Activity Cost Estimates
Tools or Techniques
Procurement
Management Plan
Selection of the
source
Procurement
Documents
Make or Buy
Decisions
OutputsInputs
http://my.safaribooksonline.com/book/certification/pmp/9788131733134/project-procurement-
management/the_conduct_procurements_process
6. Advertising
Expert judgment
Independent estimates
CONDUCT PROCUREMENT.
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Procurement plan
Procurement documents
Qualified seller’s list
Make-or-buy decisions
Tools or Techniques
Selection of the
sellers
Project
management plan
Project
documents
OutputsInputs
Main idea is to select a seller/sellers.
http://preparepm.com/notes/procurement.html
7. Inspections and audits
Procurement
performance reviews
Records management
system
ADMINISTER PROCUREMENT.
This process is to manage procurement relationships,
monitor contract performance of the seller/s.
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Procurement documents
Project management plan
Contract
Performance report
Tools or Techniques
Progress report
Updated
procurement
documents
OutputsInputs
http://tapuniversity.com/2009/07/01/administer-procurements-process/
8. FINAL PROCUREMENT
This process includes –
Completing each and every procurement project.
Involves verification of all work performed
Completing all payments and formally closing the
contract.
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http://www.eacads.com/courses/pmp-certification/training/project-procurement-management/close-
procurements-process
10. TOOLS USED IN PROCUREMENT MANAGEMENT
It provides the ability to easily Organize , find and
archieve procurement –related documents.
Procurement audits identify lessons learned in the
procurement process.
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http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-
C/reports/Report_-_Building_Procurement_Methods.pdf
11. USING SOFTWARE IN PROCUREMENT
MANAGEMENT
Word-processing.
Spreadsheets.
Database.
Presentation software.
E-procurement software does many procurement
function electronically.
Other internet tools are also used to find information on
suppliers auction goods and services.
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http://www.ox.ac.uk/sites/files/oxford/field/field_document/guide.pdf
12. ADVANTAGE OF PROCUREMENT MANAGEMENT
Improved co-ordination and collaboration between
designers and construction.
Time savings.
The contractor assumes risk and responsibility.
Work packages can be let competitively at price that are
current.
Roles, risk and responsibilities for all parties are clear.
Flexibility for change in design.
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http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf
13. DISADVANTAGE OF PROCUREMENT
MANAGEMENT
Price certainty is not achieved until the final works
package has been let.
Informed client is required.
Poor price certainty.
Close time and information control required.
Client loses direct control of design quality.
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http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf
14. CONCLUSION
Is a tool or a technique which firms use in the process of
accruing supplies / raw materials.
Four main procurement stages in the buying process.
Uses Software's such as M/S Word, Database,
Spreadsheet.
In fact, procurement management makes the purchasing
process flexible and easier.
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