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.There are several such cost estimating modelsavailable, particularly for use in the aerospace and defense industry.Firm proposals from viable sellersThe final method to determine a reasonable cost estimate for anyprocurement is by simply laying out the responses from trusted suppliers,preferably three or more in a competitive bid environment.Assuming thatan adequate and complete RFP was issued, and there The Procurement Management Plan 131is no collusion on the part of the responding sellers, there can be no bettersource of estimated costs than from analysis of the firm responses receivedfrom suppliers who will actually perform the work.Other Procurement Planning Issues of ImportanceIn addition to the triple constraint issues covering scope, schedule, andcosts, there are a number of other important matters which must be includedin any viable procurement plan.In order to be complete, the plan for themanagement of project procurements must include some additional subjectsof importance.Project Organization and Staffing Plans for ProcurementManagementMost companies have in place the necessary processes and controlsallowing them to order, track the delivery, inspect, and put in place the manycommodities, purchased parts, and raw materials needed by the project.These items will be managed nicely under what is typically called a MaterialResource Planning system (MRP), which is sometimes a subset of a moresophisticated process called Enterprise Resource Planning (ERP).The MRP and ERP systems will work nicely with the 80 to 90 percent ofthe articles (parts) to be bought for the project.But how about the other 10percent of the articles needed, which might represent perhaps 90 percent ofthe purchased costs, and perhaps 90 or more percent of the risks associatedwith such procurements.While the bulk of the purchased commodities canbe tracked adequately with the MRP and ERP systems, the management ofselected high value, highly complex, high-risk buys must be performed bypeople not computers.Automated systems, no matter how good, will not dothe job.Whenever a project has procurements which require people skills,the project must organize itself accordingly.Shown in Figure 7.8 is an imaginary project which has one TeamingAgreement buy, and one Major Complex buy.In these circumstances 132 Project Procurement ManagementFigure 7.8 Organizing for Project Procurementsthe project manager will likely want to form separate project teams todeal exclusively with these two highly complex buys.They constituteprocuring something new to the projects unique specification.Typicallysuch buys represent considerable risks, large dollar investments, andextend for the full life-cycle of the project.Also, this same project might have a number of what may be con-sidered minor complexity procurements which could represent highmonetary values, but the articles would be classified as low risk becausethey are available from identified sellers, according to the seller's ownproduct specification.Often a single project team can manage severallarge commodity purchases, as long as they represent articles which existfrom dependable suppliers.The majority of the purchased articles can be secured with use of thecompany MRP or ERP or e-systems, which will allow for the continuoustracking and status of all procured items, often available to the projectteam with a separate website.The last critical player in the project's organization will be the seniorexecutive who will go by the tide of Vice President of Purchasing, The Procurement Management Plan 133Procurement, or most recently Supply-Management.This individual willprovide the project with experienced professional buyers, who will supportthe project's procurement needs, but always conducted stricdy in accordancewith the formal purchasing policies, procedures, and instructions.The procurement plan should specify the organizational arrangementthe project manager proposes to employ to buy the necessary work scopefrom external sources [ Pobierz całość w formacie PDF ]
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.There are several such cost estimating modelsavailable, particularly for use in the aerospace and defense industry.Firm proposals from viable sellersThe final method to determine a reasonable cost estimate for anyprocurement is by simply laying out the responses from trusted suppliers,preferably three or more in a competitive bid environment.Assuming thatan adequate and complete RFP was issued, and there The Procurement Management Plan 131is no collusion on the part of the responding sellers, there can be no bettersource of estimated costs than from analysis of the firm responses receivedfrom suppliers who will actually perform the work.Other Procurement Planning Issues of ImportanceIn addition to the triple constraint issues covering scope, schedule, andcosts, there are a number of other important matters which must be includedin any viable procurement plan.In order to be complete, the plan for themanagement of project procurements must include some additional subjectsof importance.Project Organization and Staffing Plans for ProcurementManagementMost companies have in place the necessary processes and controlsallowing them to order, track the delivery, inspect, and put in place the manycommodities, purchased parts, and raw materials needed by the project.These items will be managed nicely under what is typically called a MaterialResource Planning system (MRP), which is sometimes a subset of a moresophisticated process called Enterprise Resource Planning (ERP).The MRP and ERP systems will work nicely with the 80 to 90 percent ofthe articles (parts) to be bought for the project.But how about the other 10percent of the articles needed, which might represent perhaps 90 percent ofthe purchased costs, and perhaps 90 or more percent of the risks associatedwith such procurements.While the bulk of the purchased commodities canbe tracked adequately with the MRP and ERP systems, the management ofselected high value, highly complex, high-risk buys must be performed bypeople not computers.Automated systems, no matter how good, will not dothe job.Whenever a project has procurements which require people skills,the project must organize itself accordingly.Shown in Figure 7.8 is an imaginary project which has one TeamingAgreement buy, and one Major Complex buy.In these circumstances 132 Project Procurement ManagementFigure 7.8 Organizing for Project Procurementsthe project manager will likely want to form separate project teams todeal exclusively with these two highly complex buys.They constituteprocuring something new to the projects unique specification.Typicallysuch buys represent considerable risks, large dollar investments, andextend for the full life-cycle of the project.Also, this same project might have a number of what may be con-sidered minor complexity procurements which could represent highmonetary values, but the articles would be classified as low risk becausethey are available from identified sellers, according to the seller's ownproduct specification.Often a single project team can manage severallarge commodity purchases, as long as they represent articles which existfrom dependable suppliers.The majority of the purchased articles can be secured with use of thecompany MRP or ERP or e-systems, which will allow for the continuoustracking and status of all procured items, often available to the projectteam with a separate website.The last critical player in the project's organization will be the seniorexecutive who will go by the tide of Vice President of Purchasing, The Procurement Management Plan 133Procurement, or most recently Supply-Management.This individual willprovide the project with experienced professional buyers, who will supportthe project's procurement needs, but always conducted stricdy in accordancewith the formal purchasing policies, procedures, and instructions.The procurement plan should specify the organizational arrangementthe project manager proposes to employ to buy the necessary work scopefrom external sources [ Pobierz całość w formacie PDF ]