What are the knowledge areas of Project Procurement Management?

Knowledge Areas of Project Procurement Management :

 

Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management

 

Procurement knowledge areas contains 4  processes

Plan Procurements

Conduct Procurements

Administer Procurements

Close Procurements

1. Proper planning

2.Market awareness and studies

3.Coordiantion with sales team

4.Knowing about the product and specialties

5.Ordering at right time

6.Monitoring about the consignments

7.Administration 

8.Receiving products and closing

 

Procurement Management is the knowledge area involved in purchasing or acquiring products, services, or results from outside the project team, including developing and administering the contract or purchase order needed to obtain them.2. Procurement Management Processes There are four project management processes in the Procurement Management Knowledge Area. One is the in Planning Process Group, one is in the Executing Process Group, one is in the Monitoring & Controlling Group, and one is in the Closing Process Group. The first process, that of Plan Procurement Management, creates the Procurement Management Plan which is the framework for all of the other processes. The second process, that of Conduct Procurements, is where the bidding process for a contract is conducted. The responses or bids of the sellers are evaluated according to criteria set up in the Procurements Management Plan, and the seller is selected and the contracted awarded. During the course of the project, the Control Procurements process manages the relationship, evaluates the performance of the seller on the contract, and any changes or corrections that are required to be implemented by the seller are monitored. As the only process in the Closing process group other than Close Project or Phase, the Close Procurements process is where the deliverable from the seller is accepted and the project procurements are formally closed

Planning, Executing, Administering and Closing -procurement Deals.

Based on PMBOK 5th edition, there are4 processes belongs to Project Procurement Management, which are:

Plan Procurements

Conduct Procurements

Administer Procurements

Close Procurements

 

      The project procurements are formally closed by the following process Process Process Name Process Description Group Planning Plan Procurement Management Documents project procurement decisions, specifies the approach, and identifies potential sellers. Executing Conduct Procurements Obtains seller responses, selects seller, and awards contract. Monitoring & Controlling Control Procurements Manages procurement relationships, monitors contract performance, makes changes and corrections as needed. Closing Close Procurements Completes project procurements

Plan Procurement Management: 

Conduct Procurements  :

Monitoring & Controlling : 

Close Procurements 

Sorry, but procurement is more than just Plan, Execute, Control and Close. This is one of the most sensitive areas in a company, where the project margins are played. A good management will look for process flaws, to balance the equation price/quality/time and most of all, support the production area to its best extend. A good procurement area will not only execute the company procedures, but will do it targeting the best price, with best quality and delivery at the required timeframe. Control means followup deliveries and evaluate required KPIs. Before closing any process, it's also vital to gather the available info into an eficient piloting dashboard. 

Ref. to PMI Book edition 6, we have three areas of knowledge.

1. Plan Procurement

2. Conduct Procurement

3. Control Procurement.

Procurement decisions need to be well informed.

Sometimes suppliers with little resources try to manipulate price for winning the bid but ultimately fails to supply on time.

Giving a fair price for product and quality check are most important If you are not willing to pay for quality you are bound to use inferior quality material.

There is nothing like free meal and make sure you either do not ask for or provide for somebody one.