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As per PMI, what are activities involved in Procurement Process.?

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تم إضافة السؤال من قبل Zakir Muhammed , Contract Administrator , DS Contracting Co.
تاريخ النشر: 2017/11/11
Zakir Muhammed
من قبل Zakir Muhammed , Contract Administrator , DS Contracting Co.

As per PMI Book 6th Edition, following are the processes related to Procurement Management.

1. Plan Procurement Management

2.Conduct Procurement

3. Control Procurement

Mohammed Monir Hossain Sheak Shady
من قبل Mohammed Monir Hossain Sheak Shady , Sr Bridge Engineer (Supervision, Preparing Construction Drgs, Design review, Planning & finding Qty. , CTM JOINT VENTURE (China Railway Group Limited Toma Cons. & Co, Limited Max Infrastructure Limited

The procurement process includes five major steps, as follows:

  • 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.

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