The Textbook References Purchasing And Outsourcing As Types Of Procurement

Managers need to put in place time tables and deadlines to, not only get an understanding between the team members and the manager on when projects have to be complete, but to keep a good track on what everyone should be doing at what time for

Second, always make sure there is an alternative source. As I mentioned before, this is much easier with single source procurement (but not sole source), since other similar suppliers could be able to supply similar products with more or less that same quality as the previous suppliers.

Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a

{Build the Supply Base: supplier selection1. supplier evaluation- find potential suppliers, supplier certification (qualification, education, certificationISO 9000,14000). 2. Supplier development- integrate supplier in system, quality require, product specs, schedule/delivery, procurement polices, training, engineer/production help, information transfer procedures. 3. Negotiation- significant element, strategies: Cost based price model (open books to supplier, based on time and materials) Market based price model (based on published, auction, index prices: commodities) Competitive bidding (most common, no longterm relationship, request for rfq). 4. Contracting- share risks, benefits, incentives. Centralized purchasing, E procurement (online catalogs/exchanges, online auctions).} Logistics MGT- obtain efficient operations through integration of all material acquisition, movement, and storage activities. Frequent for outsourcing, allow competitive advantage from reduce costs and improve customer service. 1.Shipping systems: truck(flexible, moves majority manufactured goods) rail( large loads, containers) Airfreight( fast/flexible light loads, expensive) water( used for bulky low value cargo, oldest way of transportation) Pipelines( transport oil, gas,

Describe common practices to estimate the duration of project activities as well as real reasons that cause project delays.

The second stage is market/commodity this needs to be taken place after the buyer has got the buyer needs to a high specification to ensure that at this stage the right product is chosen. At this stage the procurement department need to research all options available within the market. By getting an estimate of what is on the current market, it enables the buyer to pick out potential suppliers also familiarising the buyer with the competition in the market. This is also the stage where the procurement department would be able to look into conducting an analysis on how they are going to achieve the product i.e. make or purchase it/ utilize the service. By conducting market research it gives stakeholders a clear picture of the market.

This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical

Procurement management is the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. Project Procurement Management involves not just purchasing products, services or results, but also ensuring that those that are purchased are right for the project, meets standards and is based on project requirements. This life cycle includes tracking from order through deployment and completing with invoice reconciliation.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

One of the main concerns during the meeting was the impact of cost and time constraints on networking techniques and project schedules. Under the ideal situation, the project start and end dates are fixed. Adding resources is not usually feasible as it increases cost. There should be a balance between time and cost constraints as it avoids wasting of resources. Also most people are willing to accept that costs could exceed expectations, and might even take a perverse delight in recounting past examples, the same is not true for time constraints. This is probably due to the fact that cost over runs are resolved in-house, while schedule issues are open and visible to the customer. A company has a lot of useful, desirable work that could be done, but has limited and finite resources available with which to do that work. Choices have to be made about which work to do and how to allocate resources. This leads to constraints especially, the time constraint and the cost constraint. Time, in project management, is analyzed down to its smallest detail. Each and every component of the project is analyzed with respect to the time required for completion. After completion of this analysis these components are broken down even further into the time required to do each task.

Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making

All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning

Proper following and acknowledgement of the timeline is vital to the success of this project. If the project goes overtime, it can cause serious budget mess-ups and furthermore delays.

Hence, proper time management is crucial in meeting the deadlines of the projects. As a team, we agreed upon realistic deadlines for all distributed tasks as it helped us complete projects in timely manner.

It helps you identify which tasks need to be completed on time for the whole job to be done on time and it also identifies which task can be delayed if resources need to be reallocated to catch up on missed or overrunning task.