1. PROCUREMENT MANAGEMENT
By – Amrit Subedi & Asiri Buddhakoralage
Project management I
5/23/2014

2. AGENDA
 What procurement management is ?
 Four processes in procurement management.
 Procurement objectives.
 Tools used in procurement management.
 Using Software in procurement management.
 Ups and Downs of procurement management.
 Conclusion
 References
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3. WHAT IS PROCUREMENT MANAGEMENT
Is a tool or a technique which firms use in the process of
acquiring supplies / raw materials.
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http://www.ask.com/question/what-is-procurement-management

4. FOUR PROCESSES IN PROCUREMENT
MANAGEMENT.
 Plan Procurement
 Conduct Procurement
 Administer Procurement
 Final Procurement
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Conduct
Procurement
Administer
Procurement
Plan
Procurement
Final
Procurement
http://www.wisegeek.com/procurement-processes/

5. Make-or-buy analysis
Expert judgment
PLAN PROCUREMENT.
 Procurement planning, is the process of deciding what to
buy, when and from what source.
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Required Documentations
Teaming Agreements
Risk-Related Contract
Decisions
Activity Cost Estimates
Tools or Techniques
Procurement
Management Plan
Selection of the
source
Procurement
Documents
Make or Buy
Decisions
OutputsInputs
http://my.safaribooksonline.com/book/certification/pmp/9788131733134/project-procurement-
management/the_conduct_procurements_process

6. Advertising
Expert judgment
Independent estimates
CONDUCT PROCUREMENT.
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Procurement plan
Procurement documents
Qualified seller’s list
Make-or-buy decisions
Tools or Techniques
Selection of the
sellers
Project
management plan
Project
documents
OutputsInputs
 Main idea is to select a seller/sellers.
http://preparepm.com/notes/procurement.html

7. Inspections and audits
Procurement
performance reviews
Records management
system
ADMINISTER PROCUREMENT.
 This process is to manage procurement relationships,
monitor contract performance of the seller/s.
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Procurement documents
Project management plan
Contract
Performance report
Tools or Techniques
Progress report
Updated
procurement
documents
OutputsInputs
http://tapuniversity.com/2009/07/01/administer-procurements-process/

8. FINAL PROCUREMENT
This process includes –
 Completing each and every procurement project.
 Involves verification of all work performed
 Completing all payments and formally closing the
contract.
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http://www.eacads.com/courses/pmp-certification/training/project-procurement-management/close-
procurements-process

9. PROCUREMENT OBJECTIVES
 Continuous supply .
 Quality improvement.
 Supplier development.
 Gaining access to technology and innovation.
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http://www.ox.ac.uk/sites/files/oxford/field/field_document/Academic%20good%20practice%20a%2
0practical%20guide.pdf

10. TOOLS USED IN PROCUREMENT MANAGEMENT
 It provides the ability to easily Organize , find and
archieve procurement –related documents.
 Procurement audits identify lessons learned in the
procurement process.
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http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-
C/reports/Report_-_Building_Procurement_Methods.pdf

11. USING SOFTWARE IN PROCUREMENT
MANAGEMENT
 Word-processing.
 Spreadsheets.
 Database.
 Presentation software.
 E-procurement software does many procurement
function electronically.
 Other internet tools are also used to find information on
suppliers auction goods and services.
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http://www.ox.ac.uk/sites/files/oxford/field/field_document/guide.pdf

12. ADVANTAGE OF PROCUREMENT MANAGEMENT
 Improved co-ordination and collaboration between
designers and construction.
 Time savings.
 The contractor assumes risk and responsibility.
 Work packages can be let competitively at price that are
current.
 Roles, risk and responsibilities for all parties are clear.
 Flexibility for change in design.
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http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf

13. DISADVANTAGE OF PROCUREMENT
MANAGEMENT
 Price certainty is not achieved until the final works
package has been let.
 Informed client is required.
 Poor price certainty.
 Close time and information control required.
 Client loses direct control of design quality.
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http://faculty.ksu.edu.sa/sqasem/Documents/Management.pdf

14. CONCLUSION
 Is a tool or a technique which firms use in the process of
accruing supplies / raw materials.
 Four main procurement stages in the buying process.
 Uses Software's such as M/S Word, Database,
Spreadsheet.
 In fact, procurement management makes the purchasing
process flexible and easier.
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15. REFERENCES
 www.wisegeek.com
 www.preparepm.com
 www.tapuniversity.com
 www.eprocurement.com
 www.ox.ac.uk
 www.faculty.ksu.edu.sa
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