Week 8 Project Management Plan
Running head: DUPLANTIERMDHA7010-7 1
DUPLANTIERMDHA7010-7 2
Procurement Management Plan
Maria Duplantier
DHA-7010 - Project and Resource Management in Integrated Systems
4/26/20
Dr. Robert Clegg
Procurement Management Plan
The procurement management plan highlights the procurement framework this project adheres to while guiding on the undertaken procurement throughout the development of a treatment for the chronic conditions in Florida. Within this plan, there is a highlight of the items to be procured, type of contracts to be used, procurement risks, management of the procurement risks, cost determination, documentation, procurement constraints, the process of contract approval, vendor management, and performance metrics for procurement activities.
The determination of the treatment of chronic conditions in Florida requires the cooperation of the project manager and all other staff associated with the project. In the realization of the items required in the completion of the project, there shall be the cooperation of the project management and all the departments directly impacted by the project. Importantly, with the user department being the medical practitioners who have a greater understanding of the needs of the patient, their cooperation would be essential in developing the specifications of the equipment and drugs required in the treatment of the chronic condition. The formulated procurement list would have to go through the sores department to avoid reordering of items that are already stocked. The remaining items that are unavailable would be forwarded to the procurement department. This department shall make plans for ordering while sourcing the products to the best suppliers. Sourcing of the items could be through direct purchase or even tendering. The mode of purchasing will depend on the available time, ability of suppliers, and the urgency of the items in question.
The following are some of the important equipment for the treatment of chronic conditions in Florida and which would be procured upon approval by the procurement management office. The unavailability of these items hinders the progression of the project, ultimately impacting its success.
Item |
Reason |
Timeframe |
Linear accelerator (LINAC) |
Equipment needed for the treatment of cancer patients |
1st June 2020 |
Surgical instruments |
Needed in undertaking major surgical procedures |
1st June 2020 |
Physical therapy equipment |
Needed to help patients going through treatments gain back their strength while ensuring their mobility |
1st June 2020 |
Maintenance drugs |
Needed in the treatment of chronic diseases and pain management |
1st June 2020 |
The following are the authorized individuals to approve the procurement of the above-listed items;
Name Role
Eric Smith Project Manager
Tobias John Executive Director
Caleb Maxwell Business Manager for direct operations (BMDO)
Susan Jane Medical Director
Mosey (2009) highlighted the single-stage procurement as entailing the selection of a supplier who is best-suited to supply products and services depending on their ability to align with designs developed by other individuals. Procurement during this project shall rely on the medical equipment developed by other practitioners with the sourcing of suppliers motivated by the ability to align with the specifications of the medical equipment in the market. Direct procurement would be undertaken for the equipment requiring high specialization with tendering opted for the readily available equipment. Hackett and Statham (2016) highlighted the procurement tender documents as enabling the creation of schedules of rates offered by the different suppliers in the market. The use of the tender document helps in ensuring fairness while ensuring that the project benefits through the right products, delivered at the right place and time, and in the right conditions. The suppliers would have to purchase the tender document from the project management office and returning the duly filled document within the required timeframe.
Procurement risks are the challenges that the procurement process is bound to face that might derail the acquisition of the items meaning that the project would not be complete within the set time frame. Hiccups in the procurement process are at times inevitable, and there is a need for the management of the same to avoid comprising the completion of the project. The following are some of the impending procurement risks that require management.
1. On-time delivery of the ordered items.
2. The ability of the supplier to meet the quality specifications.
3. Inflated prices due to the scarcity of the medical equipment
4. Technological obsolesce of the medical equipment
5. Communication challenges that create bottlenecks in the delivery of the ordered items.
Management of project risks needs to be in line with the project management office. However, for the risks associated with procurement, their management requires collaboration with the procurement and even the development of a supplier relationship. Lambert (2008) highlighted the supplier relationship management as having strategic elements that aid in the creation of linkages throughout the supply chain. The above-stated risks have a lot to do with, suppliers and developing a good supplier relationship would be one means of mitigating these risks. In handling these risks, there would be a need to treat suppliers as partners as opposed to vendors. Making the suppliers feel part of the project ensures their motivation in ensuring the success of the project to have something to vouch for their delivery abilities. Characteristically, the project manager could consider investment in supplier management software. All in all, the important thing is conducting a background check on the suppliers to determine their past performance in projects of equal magnitude hence gauging their ability to deliver.
In determining the costs of the medical equipment, it is not all about the prices. Quality is key in this project as one cannot compromise quality for the price. Lower costs may translate to poor quality products. The first batch of suppliers, as selected by the tendering department, shall make a request for quotation (RFQ) from the shortlisted suppliers. The schedules on price, quality, delivery costs, and time shall help in the determination of the overall cots so of the equipment. The project would go for the equipment of the highest quality regardless of the costs incurred for the same.
This project touches on a crucial health issue, which has been a leading cause of death in the world. Raghupathi and Raghupathi (2018) highlighted the high prevalence rates of chronic diseases in the world. According to the authors, almost half of the American citizens suffer from one chronic illness. This statistic translates to 133 million Americans. Considering the sensitivity of the project, there shall be the formulation of the procurement management documents that are in line with the needs of the project. The document shall rely on other documents developed for projects of the same magnitude. The documents shall be created by a team of experts before being examined by other experts to endure that they are in line with the requirements of the project. However, other standard documents could be used in the procurement management process. These are such as;
· Supplier selection evaluation forms
· Non-disclosure agreement
· Procurement performance evaluation form
There are procurement constraints that require consideration during the procurement management plan. These are such as
1. Costs. The project budget has additional financial resources that would act as buffers during shortages. However, these resources are limited to other activities linked to the project other than procurement.
2. Project schedule. There is a timeframe within which the project needs to be complete. The inability to meet deadlines compromises the intentions of the project.
3. Technology. Specifications of technology of the equipment need to be strictly adhered to with allowed deviations being above what is stated as opposed to below.
Contract approval has a lot to do with the financial aspect and what is at skate so long as technology is concerned. The contract for less-complicated items of a lower budget could be approved by the project manager. However, for equipment with huge investments and sophisticated technologies, approval would involve the project manager, procurement and user departments, and quality assurance. Others are the technical team. Bigger projects may require the approval of the project’s sponsors.
The following are the elements that would guide the evaluation and selection of suppliers and determining the chosen supplier.
a) Quality
b) Technology
c) Adherence to specifications
d) Past performance
e) Costs
Cost is ranked as the fifth attribute as opposed to the first. It, therefore, means that the project gives quality more importance as opposed to the costs of the product. The evaluation of a supplier’s ability to meet the highlighted criteria would be undertaken by the project manager and the tendering committee. The chosen supplier would be the one that performs best in all the highlighted.
The project manager is tasked with the role of managing the vendors. As such, there would be a need to remain proactive during the vendor management process. The project manager would need to maintain constant communication with the vendors while also making impromptu visits to their premises.
The procurement and project management department would need to develop an internal metrics gauging the performance of the suppliers basing on the following.
Vendor |
Quality |
Technology |
Delivery |
Past performance |
1 |
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2 |
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3 |
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4 |
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Sponsor Acceptance
Approved by the project sponsor: Date:
References
In Hackett, M., & In Statham, G. (2016). The Aqua Group guide to procurement, tendering and contract administration. John Wiley & Sons
Lambert, D. M. (2008). Supply chain management: Processes, partnerships, performance. Sarasota, Fla: Supply Chain Management Institute