PM-CP7
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2
Plan Project Procurement
Unit VI
Plan Project Procurement
Part A
In most procurement procedures, several steps must be followed, which must be done in chronological order. As different suppliers are sought at various project stages, these procedures may be repeated multiple times. The first step in the procurement process is to determine whether or not there is a need for it. Therefore, the project's business case should be developed and the various options evaluated. A strategic brief, feasibility studies, and options assessments may be part of a construction project. It is also possible to develop a project execution plan, which lays out a strategy for managing the project, identifying who will do what, and specifying the policies, procedures, and priorities that will be adopted. The next step is to identify the problem and devise a solution. The client's business requirements can be addressed by creating concept designs and detailed designs, which can be tested for functionality. The development of a procurement route is the third step in the process. The procurement method that best meets the project's time, cost, and quality requirements should be chosen. The commitments for project delivery and risk are distributed differently depending on the route taken. The industry has developed a wide range of different procurement routes to carry out construction projects. The fourth step is to put the strategy into action, which includes preparing the tender documentation, issuing the invitation to tender, receiving the tenders, and signing the contract (Ahmed, 2019).
The project's completion is the subject of the next step. A process of project leadership and process production will need to be established to ensure that the contractual obligations are being met. Variations can be requested, funds can be held until the contract is completed, and damages can be awarded in the event of nonperformance. In most cases, more information can be found in the cost agreement; the supplier is still liable for defects discovered after meeting the requirements. This could be referred to as the contractual period in the main contract.
The project team will utilize the control procurement inputs in controlling the procurement process. One of the inputs to use includes the project management plan, which outlines the steps to be followed by the team in constructing the homebuilding project. The second input is the procurement documents, which complement the invoice and the procurement contracts, and the required quantity to be supplied by the third-party suppliers to the construction site. The architect and the engineer will also perform inspections and audits to ensure the project is carried out as per the plan. Any variation from the program will require the lead mansion to prepare a report explaining the variation and possible ways of making necessary adjustments concerning the interpretation et al. et al., 2020).
Part B
The following process will be followed in conducting and controlling the procurement process.
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Step |
Steps of the procurement process |
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Buy analysis |
1. Problem recognition. This involves determining the prevailing problem in determining quality materials and the quality needed to complete materials buying. The first step is to figure out what the problem is. When a customer has a complaint that a product or service can rectify, the buying process begins. There are numerous ways in which this can be seen. Shoppers may start to experience symptoms of a problem before they realize they have an issue. Because they do not know what's wrong, an office worker might notice their laptop is slowing down and wonder how to fix it. |
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Vendor identification and selection |
This involves determining the most appropriate supplier to rely on in supplying the construction materials. This is dependent on the materials needed to set up the custom building. The vendors will have to be reliable, and this will be assessed based on reputation and the time at which the supplier has been in the industry. They must offer value to their products through excellent customer service. Suppliers, for example, must reply quickly when customers want product information or warranty assistance. Reduce or eliminate waste associated with raw material purchases such as inventories, storage cost, and repeated instances of material movement by selecting products and services from suppliers with outstanding delivery ability. There must be a common understanding of goals, metrics to guide the relationship, and ongoing discussions about how difficulties and conflicts can be rest reasonably and equitably way over time with this strategy. Cost-saving and innovative product development are two possible outcomes of these partnerships. |
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Selection |
New or current suppliers are evaluated on their delivery, pricing, output, quality of management, and service quality of new or existing suppliers. All current and potential suppliers will be evaluated using a standardized approach. The framework for assessing suppliers can be used to establish a benchmark and remedial action plan for the current supplier. A company can reward its suppliers based on their excellent performance and penalize or de-list them if their performance falls short of the criteria set. In the manufacturing supplement, assessment and management have been used in the manufacturing business and construction projects; delivery reliability and cost are essential in the building sector. The quality of the procurement items should be a vital factor for supplier selection. Since product quality directly affects the quality of completed items, it is imperative that it continuously satisfy stipulated specifications. Supplier attributes such as delivery lead time, in addition to product quality, should be carefully considered. Evaluation of suppliers must consider more than just the price per unit. An essential consideration is the total cost of ownership (TCO). Cost of materials, payment terms, cash discount, ordering and carrying charges, logistics and maintenance fees, and other qualitative expenses that may not be readily estimated are included in the total cost of ownership (TCO). |
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Monitor and control activities |
The project manager can monitor and regulate the procurement process using a variety of tools various. To be successful require multiple resources, most of which are gathered during the acquisition planning stage. A procurement management plan, a purchasing contract, a project plan based on assessment information and performance reports, and approved change requests are critical inputs for tracking project procurement activities. There will be a comparison of any performance reports to the baseline set out in the planning phase. In most cases, the procurement process follows the same steps as the project itself: planning, carrying out, monitoring, and concluding. Procurement schedules must be aligned with the planning process, and the supplier must be able to meet the project's quality and cost standards to ensure the project's objectives are satisfied. The contract protects the vendor's relationship with the project director or a procurement manager, who monitors it throughout the project (Wei et al., 2019). |
References
Ahmed, S. (2019). A review on using augmented reality and virtual reality opportunities in construction project management. Organization, Technology, and Management in Construction: An International Journal, 11(1), 1839-1852.
Kim, S., Chang, S., & Castro-Lacouture, D. (2020). Dynamic modeling for analyzing impacts of skilled labor shortage on construction project management. Journal of Management in Engineering, 36(1), 04019035.
Wei, G., Zhang, S., Lu, J., Wu, J., & Wei, C. (2019). An extended bidirectional projection method for picture fuzzy MAGDM and its application to the safety assessment of construction projects. IEEE Access, 7, 166138-166147.