Good procurement Practices for PMs based on 3rd Ed of PMBOK

1. Project Management for Good Procurement Practices Presented by : Thomas J. Cornish PMP

7. Intro to Project Management

14. Triple Constraint Schedule Budget Quality Scope

19. Relationship - Knowledge Area & Processes Processes Knowledge Areas Initiating Planning Executing Controlling Closing Integration Management Project Plan Development Project Plan Execution Integrated Change Management Scope Management Initiation Scope Planning Scope Definition Scope Verification Scope Change Control Time Management Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control Cost Management Resource Planning Cost Estimating Cost Budgeting Cost Control Quality Management Quality Planning Quality Assurance Quality Control Human Resource Management Organizational Planning Staff Acquisition Team Development Administrative Closure Communication Management Communication Planning Information Distribution Performance Reporting Risk Management Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control Procurement Management Procurement Planning Solicitation Planning Solicitation Source Selection Contract Administration Contract Closeout

20. Understanding Procurement in Light of Project Management

23. Direct vs. Indirect Machinery, Engineering Lubricants, spare parts Vials, Tubes, stoppers, caps, etc in pharmaceutical Examples Strategic Clerical Operational Nature High Low Industry specific Value Low Relatively high High Frequency Low Low Large Quantity F E A T U R E S Capital Good and Services Maintenance, Repair and Operating (MRO) Supplies Raw Material and Production Goods Indirect Procurement Direct Procurement TYPES Direct procurement and indirect procurement

32. SUSTAINING costs are typically 2 to 20 times higher than Acquisition costs

37. User Requirement Specification (URS)

42. Quality “ Price has no meaning except in terms of the quality of the product.” Dr. W. Edwards Deming (1900-1993)

55. Requirement Collection Form

57. Vendor Management

58. Project Procurement Management Processes and Key Outputs

61. Managing Vendor Services

65. Contract Types Versus Risk

68. Outline for a Request for Proposal (RFP) * Sample Template in Appendix

70. Statement of Work (SOW) Template * Sample Template in Appendix

72. Weighted Scoring Model Total Score 1 Other 2 Return on Investment 3 Cost Benefit Analysis 2 Constraints Impact 2 Resources Required 1 Maturity of Solution 2 Technical Feasibility Total 3 Total 2 Total 1 Weight Business Process Impact Solutions Decision Criteria

73. Weighted Scoring Model

84. Budget Control and Variance Analysis

105. Project Completion and Hand Over

113. Project Engineering CPA Closed / Funding Complete Project Engineering Purchase Orders Closed PPT PQ Report Approved Project Engineering CCR(s) / ECP(s) Closed Operations Ticket(s) Approved Operations & Maintenance Training Complete Project Engineering Assets Tagged Operations Project Evaluation Complete PPT Product Validation (PV) Report Approved Project Engineering PVR Approved Project Engineering Internal Work Orders Closed Project Engineering & Maintenance Spare Parts Received Target Completion Date Operations Project Engineering Maintenance Deliverable Responsibility SOP(s) / Reference Manuals Approved Project Punch List Activities Maintenance Support of Equipment Project Turnover Checklist Insert Title Here Project Title:

114. Change Control Request Capital Project Appropriation Engineering Change Request Product and Process Technology PQ PV PVR SOP Performance Validation Product Validation Project Validation Report Standard Operations Procedure CCR CPA ECR PPT Legend

115. The purpose of the Project Turnover Checklist is to have a documented schedule showing the shift of project responsibility from Project Engineering to Operations and Maintenance. Turn Over

116. All projects should have a formal turnover meeting with Operations, Project Engineering, IT, Maintenance and the appropriate QO representative. A table similar to the previous should be filled out during the team meeting to ensure all team members are in agreement regarding deliverable responsibilities and target completion dates. Turn Over

119. Questions?

120. Case Study

124. JWD’s Project Gantt Chart

125. JWD’s List of Prioritized Risks