LUNAR INTERNATIONAL COLLEGE

Project Procurement Management

QUIZ ON PROJECT PROCUREMENT MANAGEMENT

Submitted by: MULUGETA YIRDAW ID No: GSR/0647/12

Submitted to: Dr. Magutu, Peterson Obara MSPM: online Section 03
 Project Procurement Management: Quiz

1. Define 'Project Procurement' and explain how procurement contributes to the

success of a Project

Procurement is the process of obtaining goods, supplies, and/or services. Therefore, project
procurement is obtaining all of the materials and services that are required for the project. Project
procurement management encompasses the processes used for making sure project procurement
is successful. Project Procurement is also a process used to acquire goods and services, but what
distinguishes project procurement from other forms of procurement are the series of procurement
activities carried out during the execution of a project, some interdependent and some not.
Project objectives are predetermined primarily in the project proposal, and there are a
corresponding set of procurement activities undertaken in accordance with the project
procurement plan over a period of time to achieve the project objectives.

procurement management contributes as many as benefits for the success of the project in many
ways. Some of the contributions are:
 It helps in identifying the goods and services needed to be procured for the successful
project completion.
 Provides a complete list of Purchase Orders and related issue to the suppliers.
 It gives agreed timeframes and methods regarding delivery.
 Helps in reviewing and procuring goods and services from suppliers.
 It validates the supplier contract milestones and approves their payment.
 It acts as a reference that helps in reviewing the supplier performance against the
contract.
 It helps in identifying and resolving supplier performance issues.
 It acts as a communication channel, that updates the project status to the upper
management.

2. In what respects is project procurement planning different from the procurement of

goods and services that are in regular demand?

The procurement management plan, like all other management plans, becomes a subsidiary of
the project management plan. Some tools and techniques you may use during the procurement
planning stage include make-or-buy analysis and definition of the contract type
The procurement management plan details how the procurement process will be managed. It
includes the following information:
 The types of contracts you plan to use and any metrics that will be used to measure the
contractors’ performance
 The planned delivery dates for the work or products you are contracting
 The company’s standard documents you will use
 The number of vendors or contractors involved and how they will be managed
 How purchasing may impact the constraints and assumptions of the project plan
 The coordination of purchasing lead times with the development of the project schedule
 Project Procurement Management: Quiz

 The identification of prequalified sellers (if known)

Procurement planning is the process of deciding what to buy, when and from what source.
During the procurement planning process, the procurement method is assigned and the
expectations for fulfillment of procurement requirements determined.
Project procurement planning differs in many ways from other forms of buying goods and
services in the following cases:

1.It helps to decide what to buy, when and from what sources.
2.It allows planners to determine if expectations are realistic; particularly the expectations of the
requesting entities, which usually expect their requirements met on short notice and over a
shorter period than the application of the corresponding procurement method allows.
3. It is an opportunity for all stakeholders involved in the processes to meet in order to discuss
particular procurement requirements. These stakeholders could be the requesting entity, end
users, procurement department, technical experts, and even vendors to give relevant inputs on
specific requirements.
4.  It permits the creation of a procurement strategy for procuring each requirement that will be
included in the procurement plan. Such strategy includes a market survey and determining the
applicable procurement method given the requirement and the circumstances.
5.  Planners can estimate the time required to complete the procurement process and award
contract for each requirement. This is valuable information as it serves to confirm if the
requirement can be fulfilled within the period expected, or required, by the requesting entity.
6.  The need for technical expertise to develop technical specifications and/or scope of work for
certain requirements can be assessed, especially where in-house technical capacity is not
available or is non-existent.
7.  Planners can assess feasibility of combining or dividing procurement requirements into
different contract packages.