Presentation on theme: "1 Picture source: Refer bottom left hand corner of picture Project Procurement Management (Outsourcing)"— Presentation transcript:
1 Picture source: Refer bottom left hand corner of picture Project Procurement Management (Outsourcing)
2 What is Procurement Management? Deciding what work to give to outside contractors (if any) and how to do that. Requesting and receiving proposals. Selecting the right contractor and proposal. Negotiation and managing a contract.
5 Government Order What parts have to be outsourced? A What can Alpha make itself? ABCDEFABCDEF
6 Government Order What parts have to be outsourced? B What can Bravo make itself? ABCDEFABCDEF
7 Government Order What parts have to be outsourced? C What can Charlie make itself? ABCDEFABCDEF
8 Tutorial: Deciding what to outsource Mmm.. we need to outsource the engine and the undercarriag e We have to contract out the frame & the undercarriage I’m hungry Bravo Flying Boats Alpha Aircraft Charlies Cargo
10 Our criteria are “Must look like our drawing” & “A promise that it will be delivered before our time deadline”. Let’s prepare RFP’s for the two items we must outsource and send them to two different suppliers Tutorial – Preparing RFPs
11 Tutorial: RFP to 1 st supplier Alpha Aircraft Bravo Boats 3:20pm
12 A “real” RFP Source:IT Project Management, Schwalbe 1.Purpose of RFP 2.Background of organisation 3.Hardware and Software Environment 4.The RFP process 5.Statement of Work and Schedule Information 6.Appendices a)Current system overview b)System requirements c)Volume and size data d)Required contents of Vendor’s repsonse to RFP e)Sample Contract
A.Select the proposal with the most beautiful drawing. B.Choose at random so as to be fair to everyone. C.Select the company which employs your best friend. D.Determine which supplier is offering the largest bribe. E.Use the original criteria as the basis for selection. 23 Which is the correct way to select the winning proposal/bid?
30 Assemble and hand over to government and keep the gold bars
The finished product in the last photo matches which government proposal? 31 A.The one given to Alpha B.The one given to Bravo C.The one given to Charlie D.None of them – it’s original work of art E.None of them – there’s been a diabolical breakdown in communications!
So far, I understand what’s going on 1.Strongly agree 2.Agree 3.Not sure 4.Disagree 5.Strongly disagree 32