Project Procurement Management - Project Management

Project Procurement Management

Procurement management is important for providing the project with resources. The system of providing the project with resources should:

- to ensure a sustainable supply of the project with materials, raw materials, components in the volumes and assortment dictated by the project consumers;

- create material conditions for the gradual diversification of the product range;

- to ensure a timely transition to the release of new, competitive products;

- to help reduce the material intensity of production, including through the use of new technologies and materials, reducing the level of inventories and transport and procurement costs;

- to ensure the supply of resources in accordance with the project documentation and technology implementation of the project.

The requirements for materials and supplies for the implementation of the project should be determined, analyzed and refined both quantitatively and qualitatively. At the same time, various factors should be considered that can influence the species, quantity and quality of resources. These include, in particular:

- socio-economic factors - social and cultural environment, socio-economic infrastructure (public policy, regulation, transport and communications system, etc.);

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- financial and economic factors - the size of the project, the qualifications and productivity of staff, market requirements for product quality, competition among suppliers of materials and services, etc.

- technical factors - industry, technology and production process, type of machinery and equipment, production capacity and estimated production volume, etc.

It is necessary to show how the project will be provided with the required materials and resources. Information on the general availability of resources, on materials, potential consumers, sources and support programs should be analyzed. The interrelations between the project of an enterprise, the needs for materials and resources and the supply of them should be considered. This means that it may be necessary to adjust for equipment, production process, capacity, etc., if resources with specific characteristics and in certain quantities can not be delivered in accordance with project requirements.

At the initial stage of the study, the required quantities of basic material resources should be assessed, mainly, in terms of their availability and sources to meet immediate and long-term needs. A final estimate of the resource requirement can be made only after determining the production capacity, the choice of technology and equipment.

In many projects, different raw materials can be used for the same production. In such cases, you should analyze these materials to determine the most appropriate ones.

When analyzing the resource market, it is necessary to identify possible suppliers and determine the amount of raw materials purchased from each of them, taking into account:

- price competitiveness (including costs of storage, transportation and insurance):

- special conditions (terms of payment, just-in-time delivery, repair and maintenance of spare parts, etc.);

- the vendor's expected compliance with quality requirements;

- the risk of additional processing of raw materials in case of deviation from the specified condition;

- the expected stability of communications with the provider;

- reorganization costs due to a forecasted supplier change;

- the possibility of purchasing directly from manufacturers or from wholesalers.

Based on the marketing of supplies, a supply program is prepared, containing:

- establishing sources of supply and suppliers;

- agreements and rules; quantity and quality;

- consignments;

- means of transportation;

- storage;

is a risk assessment.

Supply agreement is a contract whereby a supplier who is an entrepreneur undertakes to transfer in a timely manner (in full to the economic management, operative control) to the buyer the goods intended for entrepreneurial activity or other purposes, not connected with personal consumption, and the buyer undertakes to accept the goods and pay a certain price for it.

The contract specifies:

- the name, quantity, the expanded nomenclature of the products to be delivered. For the supply of machinery and equipment, the contract is based on a specification;

- quality, completeness, grade of products, confirmed by standards, technical conditions, the numbers of which are specified in the contract. The warranty period for products is also specified in the contract;

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- the general term of the contract and the delivery time of structures, building materials;

- the contract price for the unit of delivered products;

- the order and forms of calculations;

- payment, postal and shipping requisites of the supplier and the buyer;

- the type of transport that supplies equipment and materials;

- other conditions provided for in accordance with the law and the conditions that the supplier and the consumer recognize are necessary to provide for in the contract or in the special conditions attached to it;

- the order of shipment of equipment and responsible storage of its nodes on the construction site.

The contract should note the duties of the consumer:

- the assignment of orders based on planned needs in strict accordance with the design estimates;

- ensuring timely reception and unloading of vehicles, as well as payment of receipts in accordance with orders for building materials, structures and parts.

The right choice for the project's success is the right choice of its suppliers. To do this, you must answer the following questions:

• What types of contracts will be used when supplying project resources?

• If independent evaluations of suppliers and resources are needed, then who will produce them and when will they be produced?

• How will the interaction between the project team and the supplier organization (the contractor) and its procurement units be built?

• What are the standard contract documents needed?

• How will the work with many suppliers be organized?

• How are deliveries coordinated with other project processes?

The initial data for project resource planning are:

- the project schedule and budget, broken down by quarter and month;

- a quarterly plan for putting objects into operation and assignments at the end of the project;

- the annual resource purchase plan;

- the annual schedule for the supply of materials from specialized organizations.

Under the supply contract, the buyer must perform all necessary actions to ensure the acceptance of goods, and check the quality and quantity of goods received.

When controlling the delivery of products by date and amount are different:

• Delay in delivery - when the supplier delayed delivery against the time limit stipulated in the contract;

• shortage of products - if the supplier has delivered less quantity of products in the contract period due to the contract than specified in the contract specification;

• Replenishment - additional delivery of previously unsold products;

• responsible storage - the acceptance by the customer of the delivered products without the right to use it with the obligation to preserve it.

Distinguish the following estimates of the delivered products in the control of process equipment by the criterion quality:

• qualitative - there is a combination of consumer properties and the ability to meet certain needs for the construction of facilities and start-up facilities, providing technical, social, aesthetic requirements established in regulatory documents;

• Inadequate quality - the equipment meets the requirements of regulatory documents and can be used for its intended purpose, but the quality indicators are lower than those specified in the supplier's shipping documents;

• incomplete - all necessary parts, equipment, accessories, ancillary devices, spare parts, all items that are part of the strictly established assortment are not available;

• With production shortcomings - there are flaws or defects in the process of manufacturing and deviations from the project,

• with design flaws - there are flaws or defects caused by inadequate study of design decisions that determine the design;

• Poor quality - the products do not meet their requirements for regulatory documents, and it can not be used for their intended purpose.

The quality of the delivered products must correspond to the indicators of state standards, industry specifications, approved samples. If they are not available, product quality control is carried out according to standards and technical conditions approved by the supplier in agreement with the customer.

At the end of the product acceptance an act is signed, which is signed by all persons participating in the quality and completeness check of the equipment.

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