Planning: Procurement
12.1 Plan Procurement Management
Process Definition
Procurements are often a key element of a project. Sometimes there is a critical technology which is only available from an outside supplier, or there is a manufacturing element to the project that requires use of a supply chain, which in turn can put cost and schedule at risk. Without good procurement management an otherwise well-run project can be completely derailed by a long-lead critical item that didn't get ordered properly or on time. The planning phase of procurements involves make-or-buy decisions, the development of work statements and generation of a procurement management plan.Process Assessment
I've never seen a "procurement plan" but I've been on a lot of projects that were having procurement problems. I think procurement plans should get more attention from project managers than they do. I know the supply chain people would appreciate it.
Figure 26. Plan Procurement Management: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 358. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
- Expert Judgment: Writing a procurement management plan can be a daunting task for the manager of a small project, often resulting in the task being left undone. This paper outlines a technique for developing a simple but useful procurement management plan for small projects.
- Procurement Statements of Work: This essay outlines key elements of a good Procurement Statement of Work, an output of the procurement planning process. This important document forms the basis for the contract between you and your supplier, and in turn becomes the foundation of the project plan your supplier executes to provide you with deliverables.
- Project Procurement Management Plan: This procurement management plan, an output for this process, was developed for a Fleet Precision Navigation Upgrade (FPNU). It identifies the key procurement items, the schedule they are required to be delivered to and the types of contracts to be used.