Plan Procurement Management
Figure 26:Plan Procurement Management: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), (5th Edition)" by Project Management Institute, 2013, p. 358. Newton Square, PA: Project Management Institute, Inc. Reprinted without permission
Figure 26: Plan Procurement Management above depicts all the possible inputs tools and techniques resulting in Procurement management plan, Procurement statement of work, Procurement documents, Source selection criteria, Make or buy decisions, Change requests and Project document updates.
12.1 Plan Procurement Management
Process Definition
A document generated giving legal authority to enter into legally binding contracts to obtain the resources and selling vendors needed to support the project. Giving procurement the legal means to deliver the end product to buyers.
Process Assessment
Procurement decides what is manufactured internally or subcontracted outside the company. Procurement ensures that the needed materials are delivered in time for each phase of the schedule and hedges against supply interruptions with sub-subsidiary contracts. When necessary take out insurance contracts to hedge against buyer default, natural disasters, and political upheaval. Procurement protects and defends the company against risks. It is imperative to have a good line of communication and working relationship with procurement.
Plan Procurement Management
12.1.1
Input
An input used by procurement to obtain the necessary resources on a time frame.
12.1.2
Tools and Techniques
Technical Summary Procurement 612:
A summary of the tools and techniques utilized in procurement to plan, execute and control and monitor resources.
12.1.3
Outputs
The output authorization document to acquire the necessary resources and legal authority to move forward.