American PropertyDevelopment Corporation

Project Management Procurement Procedures

Strategy for Failure

No procurement or contract strategy plan has in place.

When procurement or contract strategies was used, the plans was substandard making the project a failure.

Inferior procurement and contract strategy plans used. Projects were finished after completion date, costing the company millions.

Failures were commonplace due to the lack of a proper procurement procedures, as each division ran the projects how it wanted.

The following presentation will highlight what the company needs to do to follow a path to success and streamline the procurement and contract strategy processes for APDC to increase revenues and decrease failures.

Reasons for Previous Failures

Overview

The value of the procurement professional to an organization is enhanced by:

Understanding the project management process.

Utilization of specific procurement tools at specific steps during the project life cycle.

These steps include Negotiation, Solicitation Methods, Cost/Price Analysis and Total Cost of Ownership

An understanding of the benefit of integrating the procurement tools, as opposed to having the procurement process occur in isolation, i.e., the project manager and the procurement professional working in “silos”. (Hairston 2005)

Role of the

Project Manager

in relation to

Procurement

The Five Steps of the Procurement Process

Select Supplier

Produce Agreement

Administer Daily

Assess Performance

Procurement Chart

Project Management Process

Initiation

Planning

Closeout

Desktop Scheduling Tool

Linked

Fast

Integrated

Lean Solutions

Achievable ROI

Reduce Cycle Time

Increased Profitability and Quality

Roles and Responsibilities

Team Project Manager

Project TeamMembers

Project Sponsor

Proposal Team

Selection Committee

Customer

CustomerReps

Final Customer Decision Maker

Discussion Points

There is commonality between the processes and there is a need for both processes. (Parker 1998)

In the execution of a project, procurement value comes from understanding.

References

Hairston, Robert J. (2005) Integrating Procurement & Project Management, retrieved from the worldwide web on January 19, 2009 from www.ism.ws/files/pubs/proceedings/behairston.pdfProject Management Handbook, Project Management Institute/Jossey-Bass Publishers, 1998

Glenn M. Parker, Cross-Functional Teams, Jossey-Bass Publishers, 1994 J. Davidson Frame, Managing Projects in Organizations, Jossey-Bass

Publishers, 1995 Jack R. Meredith/Samuel J. Mantel, Jr, Project Management: A

Managerial Approach, JohnWiley & Sons, Inc., 2000

A Guide to the Project Management Body of Knowledge (PMBOK Guide), Project

Management Institute, 2000 Joseph L. Cavinato, Ralph G. Kauffman, The Purchasing Handbook 6th

Edition, 1999 Guiding Successful Six Sigma Projects, Oriel Incorporated, 2002