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Advantages of procurement process
Procurement aspects
Project procurement management mainly involves
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Recommended: Advantages of procurement process
Procurement in the main stream of the business world is to ensure organizations has the proper necessities for the selections process of the suppliers. Procurements within an organization helps to develop the right tools necessary when selecting and maintaining performance criteria, speciation’s and defines the terms and conditions in an organization. As set forth by the company the procurement area of the company conveys and develops the necessary values and mission with an in organization. In looking further into the importance of procurements we can determine the alternative methods to procurement, the methods necessary to keep procurement in order and the overall value of procurement with in management project.
Procurement within a project can help organizations create and develop the right elements necessary to obtaining goods and services. In which, allows organization to help streamline the buying process, while making sure the good and services adhere with the market conditions at the present time. As stated by Sollish and Semanik (2012) “Supply and demand continually drive process up and down. As economic conditions change, demand increases or declines, generating shortages or excesses in supply or decreased demand (or combinations) generally lead to reduced prices.” Understanding the market gives the organization the knowledge necessary to making the right buying decisions. Ultimately, the organization has the buying power to take advantage of reduces prices within the markets. Also, gives the organizations the ability to negotiate prices with the suppliers to reduce or maintain cost. Having the right procurement process can thoroughly examine and define the requirements and understand the company objectives and underst...
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...ion even though risk might apply.
All in all, procurement is an important part of any organization it gives the organization the necessary factors to help gain the knowledge of market conditions, competition and the overall essential conditions to keep an organization in line with the companies mission, vision and the overall objectives of an organizations wish to obtain. Learning and gaining knowledge to help avoid mistakes in executed project management.
Works Cited
Heaton, B. (2012).Transforming Procurement: Will iPads Replace Binders?. Retrieved http://www.governing.com/blogs/view/gov-will-ipads-replace-binders.html
Kumar, A. (2013).Apple’s Procurement Strategy. Retrieved http://spendmatters.com/2013/06/04/apples-procurement-strategy/
Sollish, F.B., & Semanik, J. (2012).The procurement and supply manager’s desk reference. Hoboken, NJ: JohnWiley & Sons, Inc.
Knowledge is very important because if a project is based or awarded on competitive bidding then a contractor may not know the information about possible design flaws, submit a low bid, and recoup profits when changes are required.
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Burt, D., Petcavage, S., & Pinkerton, R. (2010). Purchasing descriptions and specifications. In Supply management (p. 129). New York, NY: McGraw-Hill/Irwin.
The purpose of any project management office (PMO) is to supply the structure and performance for every
For more than 25 years, The Little Black Book of Project Management has been introducing project managers to the incredibly effective and logical project management skill and methods to help them achieve their goal. This book has been flooded with very nee project management techniques as well as the latest standards of the Project management body of Knowledge (PMBOK) .accepted by PMI (Project Management Institute).
Every project activity may require a different combination of assets; hence being able to identify each and every one of them is critical. A project manager should also identify all the employees that the business has and match it to the project 's resource requirements. Most project managers fail in analyzing the available employees, and this leads to their under-utilization. This, in the long run, would mean the acquisition of resources that are
A project is a temporary endeavour undertaken to create a unique product or service. They are goal oriented, have a definite start and finish time, must be done within cost, schedule and quality parameters. Projects involve the coordinated undertaking of interrelated activities (Project Management: Achieving Competitive Advantage). According to Tom Peters, “Projects, rather than repetitive tasks, are now the basis for most value-added in business”. Based on this, it is clear that projects are of utmost importance to businesses in both the service and the manufacturing industries.
In today's business it is in the best interest of companies to have project managers. Common sense isn't always easily accomplished. Anyone who's ever worked on a project in a technical setting knows this. Indeed, much of working with others consists of solving unexpected problems and learning from mistakes along the way. Knowing this and having the proper tools a project manager will be able to manage and complete the most intense project out there.
The projects in today’s world are given a lot of importance and it will continue to grow in the coming years. There are a lot of companies which do not have production, but all of them do have projects. There are a lot of books which have been published on which related to planning and managing the projects. The one of the most important one was published by the author Eli Goldratt in his book ‘Critical chain’. This book basically talks and shows how the application of theory of constraints in the field of project management. The novel is basically based on one of the MBA classes in America where a number of ideas are developed in discussions among the students and the lecturers. The lecturer is basically fighting for a tenure with the president of the university who expects a downturn in the executive MBA. The lecturer who teaches project management has a word with one the senior colleagues and project management was the right topic to teach. There were three students who were placed in the project management team of their company which manufactures electronic products. The students are enrolled in this MBA class along with other students, here they discover a new approach to project management which is known as the
The purpose of this assignment is to show an understanding of Project Management and all elements involved in the planning and execution of projects.
The topic of my group (group 4) was “How to totally float through your project for free” and the presentation was held by Roger Goodman who works for PMI NZ and Ernst & Young supply chain management with many years of working experience in many different countries such as Saudi Arabia and China.
Your project has been chosen, and you have been selected as the Project Manager. Your employment now is to successfully deal with the project to fruition. For your project to be effective, you have to comprehend what precisely constitutes a project, and which criteria are used to figure out if a project is fruitful or not. I’ll tell you why should you use project management. Today 's much focused business environment strengths companies to make superb items at a lower expense and in a shorter span.
Since mid-90, technology changed procedures for evaluating supplier’s relationships. Before technology, Suppliers relationships used to be an isolated activity disconnected from others companies’ activities highly influenced by conflict of interest. But when technology started to provide accurate data, companies begin the focus on inventory management activities increasing the importance of procurements departments’ evaluation as a way to reduce supply chain cost. With data, procurement can evaluate suppliers and their benefits for the company. In today business environment, the company dilemma is evaluating if the supply chain should be vertical, full outsourced of mix, considering industry maturity impact and price competition (Chopra & Meindl, 2007; Slack & Lewis, 2011).
...ns and material necessary that need to be consumed during the business processes. The biggest part of this activity is contract and orders related to natural gas supply, purchase and modernization of pipelines, and machinery required for maintain good condition of pipelines. Company needs to predict when and what amount of natural gas needs to be transferred to meet consumer demand. Another important task of procurement is purchase of compressors required for steady flow of natural gas to end customers and the maintenance equipment required to ensure high efficiency and dependable. It is required for the company to properly plan all supply orders to lower variable costs and increase profits. Each activity level requires supply of specific materials unique for the processes and operations, which shows that procurement is present in every single stage of value chain.
The importance of project management cannot be overstated. For starters it is important that project management provides a flexibility and structure. Project management creates flexible and well-structured business organizations by combining two organization needs perfectly. The organizational needs are determined by making the organization adaptable due to constant changes in the business, secondly organization is extremely important for creating structure. What is most important is that