Contracts and

Procurement
Management
Dr. Arshad Zaheer
Introduction
and Course
Discussion
Introduction of the Participants

Name Educational Background Professional Background What motivated you to What are your
and Experience start MSPM? Is that expectations regarding the
motivation still the same? course?
Introduction of the Facilitator

Arshad_zz@yahoo.co MSc Engineering

Dr. Arshad Zaheer 0333 5135751
m Management

15+ years of
PhD Management academic and
MS E-Commerce
Sciences practical
experience
Ground Rules

Plagiarism Policy (less Punctuality: Including Follow all university No eatables/drinks in

than 10%) Come Prepared rules the classroom

Avoid using mobile Break time will be Interaction/Participation Provide feedback on as

phones in the classroom exactly 20 minutes is mandatory and when basis
 Management

A Science or an Art
 Management

POSDCORB
POSDCORB

What is Planning?
Why do we plan?
 Planning…
Planning by Purpose
Vision
Mission
Strategy
Policy
Rule
Procedure
Project,
Program and Portfolio
Contract and Procurement
 Planning…
Components of Strategy
Scope
Resource Deployment
Competitive Advantage
Goals/Objectives
Synergy
 Planning…
Sources of Competitive Advantage and
Sustainability

Technology
Management Style
Business Processes (BPR)
HR
 What is a Project
A project is an investment activity which is
?
• Economically viable
• Technically sound
• Financially profitable
• Managerially efficient
• Socially acceptable
• Institutionally desirable
“Projects are the Building Blocks of an Invest Plan”
 What is a Project ?
A project is a sequence of unique, complex and connected activities
having one goal or purpose and that must be completed by a specific
time, within budget, and according to specifications.
 What is a Project (Contd)
 Unique Activities
 The project has never happened before and will never happen again
under the same conditions.
 Complex Activities
 Not simple, repetitive acts, such as mowing the lawn, running the weekly
payroll, washing the car, or loading the delivery truck
 Connected Activities
 There is some order to the sequence in which the activities that make up
the project must be completed. Connected-ness follows from the fact that
the output from one activity is input to another.
 What is a Project (Contd)
 One Goal
 Projects must have a single goal as compared to a program

 Specified Time
 Projects have a specified completion date

 Within Budget
 Projects also have resource limits (people, money, machines)
 What is a Project (Contd)
 According to Specification
 The customer or recipient of the deliverables from the project expects a
certain level of functionality and quality from the project. These may be
self-imposed or customer-specified, and are fixed as far as the project
manager is concerned

 What is a Program ?
 A program is different from a project. Programs are larger in scope and
comprise multiple projects.
 Project

WHAT IS A TEMPORARY REQUIRES OUTPUT IS

PROJECT? RESOURCES DELIVERABLE
Project

Temporary (Has a definite beginning, and end)

Endeavor (Involving effort)

To create (Produce Deliverables)

Unique (One of a kind, rather than collection of similar items

• Products (Tangible objects, like building, telecommunication products,
software)
• Services (Like Mobile Services, Transportation Services, Security Services,
Banking Services)
• Results (Survey and Research like Improving Customer Relations, Marketing)

Plan is progressively elaborated

 Examples of Projects

Please write at least 5 examples of projects as per

the definition provided

Projects can be
Change in structure Develop an Implementation of a
Product
or management style Organization’s Building Construction new process or
Development
of an organization Information System procedure
Project Parameters

 Cost

 Time

 Resources
 What is a Project (Contd)
 The Scope Triangle: Time, Cost, Resources

Cost Time
Scope
and
Quality

Resources
Types of Projects

Internal Project External Project

•Any change or value- •Any project beyond the

based initiative organization’s capacity,
•Within the organization capability, and
•Doing it yourself competency
•The component of the
organizational project is
outsourced
•Procurement VS Project
 Types of projects
External Projects
Outsourced to some external party
For a new programme, AU may
outsource the construction part to some
contractor
Party A’s procurement will be party B’s
project
Internal Projects
Carried out by organization with their
own resources
Hiring and capacity development of
faculty members may be carried out by
AU’s own senior faculty members
Classification of Project Types
Projects can be classified as social sector and
infrastructure. Some examples are:
TransportationHighways, mass transit, airports
Utilities Electric power, gas, telephones
Education Schools, colleges, dormitories
Public Safety Police, fire, National guard
Recreation Parks, playgrounds, historic sites
Development Harbors, dams, irrigation,
Research Health, space, agriculture
Defense Military equipment and systems
Conservation Forests, shorelines, pollution
 Project Management

Set of good practices Increase the probability May be tailored as per

(not best practices) of success the needs of the project
Project Management
Scientific application of modern tools and techniques in planning,
financing, implementing, monitoring, controlling and coordinating
unique activities or tasks to produce desirable outputs in consonance
with pre-determined objectives, within the constraints of time, cost,
quality.
Project Management
The art of using management tools and skills for managing and
controlling the company resources for a given investment activity in
order to achieve specific goals and objectives within time, within
budget and according to the specification.
 Modern Tools - Technique
 PERT/CPM (Program Evaluation & Review Technique)
 Linear Responsibility Charts
 Gantt Charts
 Work Breakdown Structures
 GERT
 Project management softwares
 Project Selection Models
 Non-numeric Models
 The sacred cow
 The operating necessity
 The competitive necessity
 The product line extension
 Comparative benefit model
 Numeric Models:
 Payback period
 Discounted cash flow, NPV
 Benefit Cost Ratio
 IRR
 Project Life Cycle
 Conception/selection
 Planning
 Implementation
 Control
 Evaluation
 Termination
 Project Manager
 Project is responsible for the project from cradle to grave
 This person will take responsibility for planning, implementing, and
completing the project
 The PM can be chosen and installed as soon as the project is selected for
funding or at any earlier point
 PM is chosen late in the project life cycle, usually to replace another PM
 Project Manager (Contd)
 The PM’s first set of tasks is typically to prepare a preliminary budget and
schedule, to help select people to serve on the project team, to get to
know the client, to make sure that the proper facilities are available, to
ensure that any supplies required early in the project life are available
when needed, and to take care of the routine details necessary to get the
project moving.
 Responsibilities of Project Manager

 To complete the project within time, within budget and according to

specifications

 To act as an intermediary between top management and project team

 To obtain feedback for learning lessons

 To train and educate the project staff

 Selecting the project manager

 Mature, Calm and aggressive

 Good terms with senior management
 Generalist
 Credibility- Technical and Administrative
 Sensitivity
 Leadership Style
 Ethical Responsibilities
 Benefits of Project Management
• To make the investment activity economically viable,
technically sound, financially profitable, managerially
efficient, socially acceptable and institutionally desirable
• Aims at achieving specific goals and objectives
• Aims to complete investment activity within triple
constraints
• Project management is essential for complex project
needs coordination of multiple people, multiple
resources, multiple tasks and multiple decision points
Project management allows us to accomplish more work
in less time and with less people.
*Project
management provides a means for solving
problems.
* Project management increases quality.
*Project management allows people to make good
company decisions.
* It ensures better return on investment.
* Project management will provide better control of
scope changes.
* Project management makes the organization more
efficient and effective through better organizational
behavior principles.
Causes of Project Failure

Projects that have failed generally display

several of the following characteristics:
The customer’s conditions of
satisfaction have not been negotiated.
The project no longer has a high priority.
No one seems to be in charge.
The schedule is too optimistic
The project plan is not used to manage
the project.
 Causes of Project Failure
 Sufficient resources have not been
committed.
Project status is not monitored against
the plan.
No formal communications plan is in
place.
The project has lost sight of its original
goals.
There is no change management
process in place.
 Project
Management
Organization
Overview of Contracts and
Procurement

“Contracts” Procurement

Importance in
Project
Management