continue reading hover preload topbar hover preload widget hover preload

Six Components of a Procurement Management Plan

May 4 2015

The Procurement Management Plan is a part of the overall Project Management Plan. The document describes how items will be procured during the project and the approach you will use to managing vendors on the project. Specific areas to describe include:

Procurement process. This section provides a brief overview of the process requirements necessary to manage procurement of the identified needs. This process should include:

  • Initiating a request
  • Development of requirements (technical, timing, quality, constraints)
  • Request approval
  • Purchasing authority
  • Bid / proposal review
  • Contract management responsibility
  • Contract closure requirements
  • Procurement process flowchart

Roles and responsibilities. This section describes the various roles on the project that have some connection to procurement. This section should describe who can request outside resources, who can approve the requests, any secondary approvers, etc.

Identified procurement needs. This section details the material, products or services identified for outside procurement.  Each listed item should include a justification statement explaining why this should be an outside purchase if there is the possibility of inside sourcing (make vs. buy decision).

Timing. This section will describe the timeframe that resources are needed. This will provide a better sense for when the procurement process needs to be started for each item.

Change review and approval process. Describe how changes are made to procurement documents to ensure the changes are valid, understood and approved by the appropriate people.

Vendor processes. Describe the processes that the vendors should use for timesheet approval, invoice processing, contract renegotiation, status reporting, scope change requests, etc.

There may be additional information in the plan as well to ensure the procurement process is understood and managed effectively.


Schedule Estimating Threshold

April 20 2015

When you create a schedule you generally don’t know enough to enter all of the detailed activities the first time though. Instead, you identify large chunks of work first,…

Manage the Schedule for Small Projects

April 6 2015

All projects need a schedule. If you have a small project perhaps the schedule is a simple checklist or Excel spreadsheet. As projects get larger they need more formal…

Define the Objectives of Your Project

March 23 2015

Objectives are concrete statements that describe the things the project is trying to achieve. They are included in your Project Charter. An objective should be written in a way…

Four Steps to Show the Value of Training

March 9 2015

Many businesses struggle with whether they are getting their money’s worth in sending employees to training classes. This question can be applied to project management training as well as…

Three Techniques for Scope Change Management

February 23 2015

1. Hold Everyone Accountable for Scope Management

Many scope management processes work well at the project manager level, but get compromised by team members. If the project manager is diligent…

Five Steps Before Estimating Work

February 9 2015

Estimating is hard enough. It is even harder if you are not prepared. Estimating a 20 hour chunk of work is not so hard. Estimating for full projects or…

Understand the Risk Tolerance Level in Your Organization

January 29 2015

All projects have risks and all risks have the potential for negatively impacting the project. You use risk management to determine the risks that are important enough to manage….