PM342 Project Procurement and Contract Management [Onsite]
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1 PM342 Prject Prcurement and Cntract Management [Onsite] Curse Descriptin: This curse examines prject cntracts and prcurement prcesses and explres the stages f cntracting and prcurement in the prject envirnment. The curse will include skills and techniques designed t develp a prcurement plan, cntract statement f wrk, cntract evaluatin criteria, request fr prpsals, prject management plans. The curse als includes the prcesses f cntract administratin and clsure. Prerequisite(s) and/r Crequisite(s): Prerequisite: PM333 Prject Cmmunicatin and Dcumentatin r equivalent. Credit hurs: 4 Cntact hurs: 40 (40 Thery Hurs)
2 Prject Prcurement and Cntract Management : Prject Prcurement and Cntract Management Instructr: Office hurs: Class hurs: Majr Instructinal Areas 1. Prcurement management a. Planning f purchases and acquisitins b. Bidding prcesses c. Prcurement decisin analysis 2. Plan cntracting a. Cntract statement f wrk b. Standard frms and templates c. Evaluatin criteria d. Prcurement management plan 3. Cntract administratin and change cntrl a. Cntract management plan b. Cmmunicatin and relatinships c. Ethics d. Change management 4. Cntract clsure 5. Lgistics ITT Educatinal Services, Inc. Date: 7/10/2009
3 Prject Prcurement and Cntract Management Curse Objectives 1. Analyze the relatinship f the prcurement management and ther prject management knwledge areas. 2. Analyze when and hw t plan prcurement fr a prject n the basis f the prcess utlined in A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). 3. Analyze the prcurement dcuments fr cmpleteness and accuracy. 4. Implement the prcess fr requesting seller respnses and selecting sellers as described in A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). 5. Implement the prcess fr cntract administratin and clsure as described in A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). 6. Analyze the lgistics f prcurement. 7. Analyze the ethical cnsideratins assciated with prcurement management in a prject. SCANS Objectives SCANS is an acrnym fr Secretary s Cmmissin n Achieving Necessary Skills. The cmmittee, created by the Natinal Secretary f Labr in the early 1990s, created a list f skills and cmpetencies that the cmmittee feels are necessary fr emplyees t functin in a hightech jb market. 1. Identify relevant details, facts, and specificatins. 2. Analyze infrmatin and derive cnclusins. 3. Prpse ptins r slutins based n research. 4. Synthesize infrmatin and create detailed supprting dcuments. 5. Evaluate dcuments and prpsals. 6. Validate cntent in a dcument r a prpsal. 7. Cmmunicate apprpriate verbal and nnverbal messages. Curse Outline ITT Educatinal Services, Inc. Date: 7/10/2009
4 Prject Prcurement and Cntract Management Nte: All graded activities, except the Curse Prject and Mid Term Exam, are listed belw in the pattern f <Unit Number>.<Assignment Number>. Fr example, Analyses 1.1 refers t the 1 st Analysis assignment in Unit 1. Unit 1 Prcuremen t Management and Other Prject Management Areas Activities Cntent Cvered: The Prcurement and Supply Manager s Desk Chapter 1, Prcurement and Best Business Practices Sectin 1.1, Understanding Prcurement Sectin 1.2, Understanding and Cnveying Requirements Sectin 1.3, Creating Strategic Plans and Tactics Sectin 1.4, Finding Innvative Methds and Explring Alternatives Sectin 1.6, Accepting Orders Sectin 1.7, Placing Orders Sectin 1.8, Mastering Prcurement and Business Tactics Sectin 1.9, Budgets and Expense Allcatin Sectin 1.10, Internal Cntrl Systems Chapter 10, Prcurement s Internal Relatinships, Sectin 10.1, Understanding Key Departmental Rles Analyses: Purchases and Acquisitins Read frm The Prcurement and Supply Manager s Desk Chapter 12, Financial Decisins fr ITT Educatinal Services, Inc. Date: 7/10/2009
5 Prject Prcurement and Cntract Management Unit Activities Planning Surcing Sectin 12.1, Perfrming Make-r- Buy Analysis Sectin 12.2, Perfrming Lease-r- Buy Analysis Chapter 17, The Prcurement Organizatin Sectin 17.1, Planning Prcurement Strategies and Objectives Sectin 17.2, Develping Departmental Gals and Objectives Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin 12.1, Plan Purchases and Acquisitins Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 4 th ed.: Chapter 12, Prject Prcurement Management, Sectin 12.1, Plan Prcurements Quizzes: 2.1 Writing Assignments: 2.1 Analyses: Cntracting Read frm The Prcurement and Supply Manager s Desk Chapter 2, Surcing Management, Sectin 2.3 (b), Statement f Wrk Chapter 17, The Prcurement Organizatin, Sectin 17.9, Wrking with ITT Educatinal Services, Inc. Date: 7/10/2009
6 Prject Prcurement and Cntract Management Unit Activities Operatinal Frms Read frm f A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin , Standard Frms [Nte: There is n cmparable reading in the 4 th editin f A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide)] Quizzes: 3.1 Writing Assignments: Seller Respnse Slicitatin Read frm The Prcurement and Supply Manager s Desk Chapter 1, Prcurement and Best Business Practices, Sectin 1.13, Keeping Supplier Infrmatin Chapter 2, Surcing Management Chapter 15, Prviding Value t the Organizatin, Sectin 15.1, Standardizing Purchased Materials Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin 12.3, Request Seller Respnses Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 4 th ed.: Chapter 12, Prject Prcurement Management, Sectin 12.2, Cnduct Prcurements Quizzes: 4.1 ITT Educatinal Services, Inc. Date: 7/10/2009
7 Prject Prcurement and Cntract Management Unit Activities Writing Assignments: 4.1 Analyses: 4.1 Curse Prject Part 1 5 Seller Selectin Read frm The Prcurement and Supply Manager s Desk Chapter 3, Selecting Suppliers and Measuring Perfrmance Chapter 7, Negtiatins Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin 12.4, Select Sellers Quizzes: 5.1 Writing Assignments: 5.1 Analyses: Seller Relatinship Management Read frm The Prcurement and Supply Manager s Desk Mid Term Exam Chapter 11, Supplier Relatinship Management Analyses: 6.1 Curse Prject Part 2 7 Cntract Administratin Read frm The Prcurement and Supply Manager s Desk Chapter 4, Cntract Administratin Chapter 5, Administering Cntracts fr Optimum Supplier Perfrmance Read frm A Guide t the Prject Management Bdy f ITT Educatinal Services, Inc. Date: 7/10/2009
8 Prject Prcurement and Cntract Management Unit Activities Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin 12.5, Cntract Administratin Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 4 th ed.: Chapter 12, Prject Prcurement Management, Sectin 12.3, Administer Prcurements Quizzes: 7.1 Writing Assignments: 7.1 Analyses: Cntract Clsure Read frm The Prcurement and Supply Manager s Desk Chapter 6, Prject Management, sectin 6.7 (v), Cntract Clsure, p.144 Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 3 rd ed.: Chapter 12, Prject Prcurement Management, Sectin 12.6, Cntract Clsure Read frm A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), 4 th ed.: Chapter 12, Prject Prcurement Management, Sectin 12.4, Clse Prcurement Quizzes: 8.1 Writing Assignments: 8.1 Curse Prject Part 3 9 The Prcurement Read frm The Prcurement and Supply Manager s Desk ITT Educatinal Services, Inc. Date: 7/10/2009
9 Prject Prcurement and Cntract Management Unit Lgistics Activities Chapter 14, Lgistics Sectin 14.1, The Lgistics Prcess Sectin 14.2, Mdes f Transprtatin Sectin 14.3, Traffic Management Sectin 14.4, Custms Sectin 14.5, Lgistics in the Cntext f Internatinal Trade Sectin 14.6, Gvernment Organizatins and Rles, Regulatins, and Cntrls Quizzes: 9.1 Writing Assignments: Ethical Cnsideratin s Read frm The Prcurement and Supply Manager s Desk Chapter 2, Surcing Management Sectin 2.10 (d), Enable Fair and Ethical Bidding Prcesses, p. 43 Sectin 2.10 (e), Hld an Open Prebid Cnference Chapter 4, Cntract Administratin, Sectin 4.3 (b), Ethical Principles, p. 96 Quizzes: 10.1 Writing Assignments: 10.1 Analyses: 10.1 Curse Prject Part 4 ITT Educatinal Services, Inc. Date: 7/10/2009
10 Prject Prcurement and Cntract Management Unit 11 Curse Review and Prject Presentatin Activities Curse Prject Part 5 Instructinal Methds This curse explres the need and nuances f prject prcurement and cntracting. It aims t enable yu as a prject manager t successfully carry ut prcurement management respnsibilities whenever there is a need fr the same in yur prjects. The curse uses the fllwing teaching and assessment strategies: Teaching Strategies The textbk fr the curse, The Prcurement and Supply Manager s Desk Reference, cvers the prcurement and cntract management cncepts frm the perspective f a prcurement manager. It is imprtant fr prject managers t understand this perspective because they may ften have t play the rle f a prcurement manager fr their wn prject. T add the prject management perspective, hwever, the curse is designed t fllw the structure f the chapter Prject Prcurement Management in the third editin f A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). The third editin f A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide) will be used extensively thrughut this curse as bth a reference and a reading assignment. Fr students wh have access t the furth editin f A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide), the classrm instructr will highlight the differences between the tw editins. Readings will als be assigned frm the textbk fr this curse, The Prcurement and Supply Manager s Desk Reference. Assessment Strategies ITT Educatinal Services, Inc. Date: 7/10/2009
11 Prject Prcurement and Cntract Management All assignments required in this curse are specifically designed t stress the cntributin f prcurement t a prject s success. Yu will practice creating varius prject prcurement and cntract administratin dcuments and use these. Yu will als reinfrce yur cmmunicatin skills thrugh the use f scenaris and a presentatin. Yur wrk will be evaluated bth in terms f the quality f the cmmunicatin and the cntent. The writing assignments will be assigned as hmewrk and help yu build n the ideas and cncepts cvered in classrm sessins. These assignments will prvide yu enugh pprtunities t create and analyze imprtant plans, dcuments, and reprts that a prject manager ften needs t create. The cmplexity f the assignments shuld challenge yu t prduce well thught-ut dcuments that indicate that yu have given sufficient time and attentin t the subject. Discussin assignments are based primarily n the prcurement and lgistics aspects f prject management. These discussin questins will give the class an pprtunity t explre tpics in mre depth, think independently, and build n the cmments f thers. Hwever, there are nly a few discussin questins and these are ungraded. This enables yur instructr t discuss nly thse questins that he r she deems apprpriate, and useful class time is saved fr learning and clarifying cncepts. T prepare yu fr the decisin making invlved in the day-t-day life f a prject manager, this curse includes sme use cases r case studies-based assignments. Mst f these assignments need yu t analyze the given situatin and make a decisin based n imprtant parameters. The curse prject is a series f assignments in which each assignment builds upn previus wrk. The aim f the curse prject is t give the students an understanding f the prcurement issues that arise in real wrld prjects. The end result will be a prcurement management plan and a presentatin that might be given t a prject spnsr. Prject assignments are assigned in Units 2, 4, 6, 8, and 10 with their submissins due in Units 4, 6, 8, 10, and 11, respectively. The prject presentatin is due in Unit 11. Instructinal Materials and References Student Textbk Package ITT Educatinal Services, Inc. Date: 7/10/2009
12 Prject Prcurement and Cntract Management Sllish, Fred B., and Jhn Semanik. The Prcurement and Supply Manager s Desk Reference. Hbken, New Jersey: Jhn Wiley & Sns, Other Required Resurces In additin t the student textbk package, the fllwing is als required in this curse: Prject Management Institute, Inc. A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). 3 rd ed. Newtwn Square, PA: PMI Publicatins, This bk is nrmally issued with the fllwing curse: Intrductin t Prject Management. If students have nt registered fr the curse, the bk will be issued in this curse. Sme students might have the furth editin f this bk. Its details are: Prject Management Institute, Inc. A Guide t the Prject Management Bdy f Knwledge (PMBOK Guide). 4 th ed. Newtwn Square, PA: PMI Publicatins, References ITT Tech Virtual Library Lg n t the ITT Tech Virtual Library at t access nline bks, jurnals, and ther reference resurces selected t supprt ITT Tech curricula. Bks Yu may click Bks r use the Search functin n the hme page t find the fllwing bks. Bks24x7 ITT Educatinal Services, Inc. Date: 7/10/2009
13 Prject Prcurement and Cntract Management An, Chae, and Hansjörg Frmm, eds. Supply Chain Management n Demand: Strategies, Technlgies, Applicatins. New Yrk: Springer, Assaf, Michael, Cynthia Bnincntr, and Stephen Jhnsen. Glbal Surcing & Purchasing Pst 9/11: New Lgistics Cmpliance Requirements and Best Practices. Frt Lauderdale, Flrida: J. Rss Publishing, Inc., Hines, Tny. Supply Chain Strategies: Custmer Driven and Custmer Fcused. Burlingtn, MA: Butterwrth-Heinemann, Kendrick, Tm. The Prject Management Tl Kit: 100 Tips and Techniques fr Getting the Jb Dne Right. New Yrk: AMACOM, Kerzner, Harld. Prject Management: A Systems Apprach t Planning, Scheduling, and Cntrlling. 8 th ed. Hbken, NJ: Jhn Wiley & Sns, Inc., Kezsbm, Debrah S., and Katherine A. Edward. The New Dynamic Prject Management: Winning Thrugh the Cmpetitive Advantage. 2 nd ed. Hbken, NJ: Jhn Wiley & Sns, Inc., Mrris, Peter W. G., and Jeffrey K. Pint, eds. The Wiley Guide t Prject Technlgy, Supply Chain & Prcurement Management. Hbken, NJ: Jhn Wiley & Sns, Inc., Pirier, Charles C., and Michael J. Bauer. E-Supply Chain: Using The Internet T Revlutinize Yur Business. San Francisc, CA: Berrett-Kehler Publishers, Rushtn, Alan, Phil Crucher, and Peter Baker. A Handbk f Lgistics and Distributin Management. 3 rd ed. Pentnville Rad, Lndn: Kgan Page, Smck, Duglas A., Rbert A. Rudzki, and Stephen C. Rgers. On-Demand Supply Management: Wrld Class Strategies, Practices and Technlgy. Frt Lauderdale, FL: J. Rss Publishing, Inc., Wincel, Jeffrey P. Lean Supply Chain Management: A Handbk fr Strategic Prcurement. New Yrk: Prductivity Press, Ebrary ITT Educatinal Services, Inc. Date: 7/10/2009
14 Prject Prcurement and Cntract Management Simchi-Levi, David, Philip Kaminsky, and Edith Simchi-Levi. Managing the Supply Chain. New Yrk: McGraw-Hill Prfessinal, Frazelle, Edward H. Supply Chain Strategy. New Yrk: McGraw-Hill Educatin Grup, Paquette, Larry. Surcing Slutin: A Step-by-Step Guide t Creating a Successful Purchasing Prgram. New Yrk: AMACOM, Rudzki, Rbert A. Straight t the Bttm Line: An Executive s Radmap t Wrld Class Supply Management. Frt Lauderdale, Flrida: J. Rss Publishing, Inc., NetLibrary Anklesaria, Jimmy. Supply Chain Cst Management: The AIM & DRIVE Prcess fr Achieving Extrardinary Results. New Yrk: AMACOM, Blstrff, Peter, and Rbert Rsenbaum. Supply Chain Excellence: A Handbk fr Dramatic Imprvement Using the SCOR Mdel. 2 nd ed. New Yrk: AMACOM, Schl Of Study Yu may click Schl Of Study r use the Search functin n the hme page t find the fllwing resurces. Schl f Infrmatin Technlgy> Prfessinal Organizatins Prject Management Institute Other References The fllwing resurces may be fund utside f the ITT Tech Virtual Library, whether nline r in hard cpy. Bk ITT Educatinal Services, Inc. Date: 7/10/2009
15 Prject Prcurement and Cntract Management Fleming, Quentin W. Prject Prcurement Management: Cntracting, Subcntracting, Teaming. Vienna, VA: FMC Press, Web site Max s Prject Management Wisdm (accessed June 2, 2009). This Web site cntains material related t prject management in general. All links t Web references utside f the ITT Tech Virtual Library are always subject t change withut prir ntice. Curse Evaluatin and Grading Evaluatin Criteria Table The final grades will be based n the fllwing categries: CATEGORY WEIGHT Quizzes 15% Writing Assignments 20% Mid Term Exam 10% Analyses 25% Curse Prject 30% Ttal 100% Nte: Students are respnsible fr abiding by the Plagiarism Plicy. Grade Cnversin Table The final grades will be calculated frm the percentages earned in the curse, as fllws: ITT Educatinal Services, Inc. Date: 7/10/2009
16 Prject Prcurement and Cntract Management A % 4.0 B % 3.5 B 80 84% 3.0 C % 2.5 C 70 74% 2.0 D % 1.5 D 60 64% 1.0 F <60% 0.0 ITT Educatinal Services, Inc. Date: 7/10/2009
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