vb.net barcode scanner programming 12: Project Procurement Management in Software

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12: Project Procurement Management
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The best approach for determining what you will need to successfully administer the project deliverables is to pull the project management team together and conduct a brainstorming session Start with the WBS and make a list of products, equipment, and/or services needed Then initiate the make-or-buy analysis (discussed later in this chapter) to see whether or not your team can provide cost-effective products or services A PM needs to clearly understand labor requirements and related costs Labor includes not only the people and their availability, but the skills, education, and experience they bring to the table to deliver the project (for example, programmer, construction manager, financial analyst, team leader, or contract manager) Then you must determine if your project team can perform these functions or if you will need to obtain (or procure) them from outside the project team As for related cost, frequently labor rates are loaded or burdened, which means that the rate includes overhead, benefits, profit, and other costs of doing business Direct labor is generally the employee s salary or pay rate, whereas the bill rate is normally the loaded rate the buyer pays the seller Make sure you know the difference
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I suggest you use the 80/20 rule, discussed in 8, to focus on the areas that are going to cost the most, especially labor Also, don t shortchange yourself on the cost of managing the project contract(s) and procurements, which can be independent of project costs These activities take time, especially if they are unfamiliar, not clear, or are misinterpreted
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Whenever possible you will want to be involved in the contract and procurement process from the beginning of your project If you are working in a centralized procurement organization, you will need to work closely with that department or group to initiate the proper requests, using the proper forms and procedures If you attempt to work outside the process, the consequences can be disastrous for example, not getting the best price from sellers, missing key information in the SOW, or even losing your job (That s correct! If you don t utilize the right people or processes for procurement, it is often considered a bypass and can cost you your job)
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Project Procurement Management Processes
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Project Procurement Management includes the processes to purchase or acquire the products, services, or results needed from outside the project team Here s an overview of the four project procurement processes:
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121: Plan procurements (Planning process group) Documenting procurement decisions on how you will manage procurements and setting the seller selection criteria on the project
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122: Conduct procurements (Executing process group) Involves initiating the bidder selection process, obtaining seller responses, choosing a seller, and awarding the contract 123: Administer procurements (Monitoring and Controlling process group) Involves maintaining the procurement relationship with the vendor selected as well as monitoring contract performance and managing the changes and corrections needed to ensure compliance 124: Close procurements (Closing process group) The process of completing each project procurement transaction and the contract services at the end of the project
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The Project Procurement Management knowledge area was reduced from six processes down to four in the fourth edition of the PMBOK, thus streamlining the processes and making them much easier to understand
1 Plan Procurements Process
The procurement planning process is all about understanding what needs to be obtained in the way of products, services, or results on the project, and then documenting the purchasing decisions and the approach you plan to take to identify the resources needed, such as marketing, advertising, vendors, subcontractors, and so on
It is important to remember the seller is often referred to as a vendor, supplier, subcontractor, provider, or even customer Also, note the procurement planning process has the highest number of inputs (11) of all the processes in the PMBOK, with project schedule being one of the biggest influencing factors during the procurement process (see the detailed list of inputs for this process in the Inputs section that follows)
When planning procurements on a project, you have many things to consider, starting with the scope (and scope baseline), requirements document, schedule, budget, and contract type This process should be closely tied to the cost and time available to deliver the project
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