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Module - 12 •PM Process Groups

Know ledge Initiating Planning Executing Monitoring and Closing
Areas Controlling
P roject Integration • Develop Project • Develop Project Management Plan • Direc t and Manage • Monitor & Control • Close Project/Phase
Management Charter Project Work Project Work

Project P roject Scope

Management
•
•
•
•
Plan S c ope Management
Collec t Requirements
Define S c ope
Create WBS
• Perform Integrated
Change Control

• Validate S c ope
• Control S c ope

Procurement P roject Time Management •

•
•
•
•
•
Plan S c hedule Management
Define Ac tivities
S equenc e Activities
Est. Ac tivity Resourc es
Est. Ac tivity Duration
Develop S chedule
• Control S c hedule

P roject Cost Management • Plan Cost Management • Control Costs

Management
• Estimate Costs
• Determine Budget

P roject Quality • Plan Quality Management • Perform Quality • Control Quality

Management Assuranc e

P roject Human Resources • Plan Human Resourc e • Ac quire Project Team

Management Management • Develop Project Team
• Manage Project Team

P roject Communication • Plan Communic ations • Manage Communic ations • Control Communic ations
Management Management

P roject Risk Management • Plan Risk Management • Control Risks

• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses

Summary Notes P roject P rocurement Management

P roject Stakeholder
Management
• Identify
S takeholders
• Plan Proc urement Management

• Plan S takeholder Management

• Conduc t Proc urements

• Manage S takeholder
Engagement
• Control Proc urements

• Control S takeholder
Engagement
• Close Procurements

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Procurement Management Processes Procurement Management Highlights

Plan Procurement Management
Plan
Conduct Procurements Control Procurements Plan Procurement Management – The outcomes of this sub process are
 Make-or-Buy Decisions,
 Procurement Management Plan,
 Procurement Statement Of Work, and
 Source selection criteria

 Make-or-buy Decisions
 Selected Sellers
 Procurement Management Plan
 Procurement Contract Award
Conduct Procurements – The outcomes of this sub process are
 Procurement Statement of work
 Source Selection Criteria  Selected Sellers,
Close Procurements  Agreements and Contract Award

Control Procurements – The outcomes of this sub process are

 Work Performance Information (contract
administration)

Close Procurements – The outcomes of this sub process are

 Close Procurements

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Contract Types Fixed Price Contract

 Means that you are going to pay one fixed amount regardless of how much
The contract is simply an elaborated agreement between two or more parties
it costs the contractor/seller to do the work
 A fixed price contract only makes sense in cases where the scope is very
Contract Types well defined

 In the fixed price contact the RISK is HIGH on the SELLER side

Fixed Price Contract

Fixed Price Cost Reimbursable Time & Material

Firm Fixed Price Fixed Price Incentive Fixed Price with

Contracts (FFP) Fee Contracts (FPIF) Economic Price
 Purchase Order also a type of fixed price contract Adjustments Contracts
(FP-EPA)

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Cost Reimbursable Contract Time & Material Contract

 Means that you pay the seller back for the costs involved in doing the work,
plus you agree to an amount that you will pay on top of that

 In the Cost Reimbursable price contact the RISK is HIGH on the BUYER
side. Because the buyer does not have any control on the sellers expenses
 T&M Is used in labor contracts

Cost Reimbursable Contract  It means that you will pay a rate for each of the people working
on our project plus their materials cost

 The “time” part means the at the buyer pays a fixed rate for
the labor, and the “materials” part means that the buyer also
pays for the materials, equipment, office space..etc overhead
costs
Cost Plus Fixed Fee Cost Plus Incentive Fee Cost Plus Award Fee
Contracts (CPFF) Contracts (CPIF) Contracts (CPAF

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Plan Procurement Management Conduct Procurements

• Project Management Plan
• Requirements Doc.
• Risk Register
• Activity Resource Req.
• Project Schedule
Tools & Techniques Input Tools & Techniques
• Activity Cost Est.  Procurement Management Plan  Bidders Conference
Input • Make or buy analysis Input
• Stakeholder Register  Procurement Documents  Proposal Evaluation Techniques
• Expert Judgment
• Enterprise Env. Factors  Source Selection Criteria  Independent Est.
• Market Research
• Organizational Process Assets  Seller Proposals  Procurement Negotiations
Input • Meetings
 Project Documents  Expert Judgment
Plan Procurement Management  Make-or-Buy Decisions  Advertising and
 PSOW  Analytical Skills
Documenting project purchasing decision, specifying the Conduct Procurements
approach, and identifying potential sellers
Process of obtaining quotations, offers, information, and proposals from sellers, then
selecting a seller and awarding a contract
• Procurement Management Plan
• Procurement Statement Of Work
• Procurement Documents  Selected Sellers
• Make-or-buy Decisions  Agreements
• Source Selection Criteria
 Resource Calendars
 Change Requests and
• Change Requests
 Project Management Plan and
• Project Document Updates
Documents Updates
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Control Procurements Close Procurements

Input Tools & Techniques

• Contract Change Control System
• Work Performance Reports • Payment Systems •Project Management Plan Tools & Techniques
• Work Performance Data •Procurement Documentation • Record Management System
• Claims Administration
• Agreements • Record Management Systems • Procurement Negotiations
• Procurement Documents • Procurement Performance Reviews Input
• Project Management Plan and • Inspection and audits and
• Approved Change Request • Performance Reporting Close Procurements
Control Procurements The process of completing each project procurement
Process of managing procurement relationships, monitoring
contract performance, and making changes and corrections as • Closed procurements
needed • Organizational Process Updates

• Work Performance Information

• Change Requests
• Project Management Plan, Project Documents,
and Organizational Process Updates

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Procurement Management Conclusion Procurement Management – Process Summary

Project Procurement Management includes the processes necessary to Plan Procurement The process of documenting project purchasing
Management decisions, specifying the approach, and identifying
purchase or acquire products, services, or results needed from outside
potential sellers.
the project team

Conduct The process of obtaining seller responses, selecting a

Plan Procurement Conduct Control Close Procurements seller, and awarding a contract.
Management Plan Procurements Procurements Procurements

Control The process of managing procurement relationships,

 Make-or-buy Decisions
 Procurement Management Plan
 Procurement Statement of work
 Source Selection Criteria
Procurements monitoring contract performance, and making
 Selected Sellers changes and corrections as needed.
 Procurement Contract Award

Close Procurements The process of completing each project procurement.

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Procurement Management - Glossary Procurement Mgmt. - End

FFP Firm Fixed Price This is the end of the Project Procurement
CPF Cost Plus Fee Management Knowledge Area
CPFF Cost Plus Fixed Fee

CPIF Cost Plus Incentive Fee Next Step(s):

T&M Time and Material • Print Procurement Management student notes (PDF
Single Source From preferred seller document)
Sole Source Only one qualified seller • Please review this presentation one more time and
RFQ Request for quote
then
• Read this topic from the PMBOK® Guide one more time
Fait Accompli A party may claim that what is being asked for has
already been accomplished and cannot be changed
• Then take the practice test on this topic
Withdrawal One party may make an attack upon an issue, then
retreat • After taking the practice test, please enter your score in
page#4 of Preface Student Printout Notes
Deadline Imposing a deadline to reach an agreement

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