1. Introduction
In this next series of posts on memorizing the processes, we move on to the final step 6, which is memorizing the INPUTS & OUTPUTS associated with each of the 42 processes. In order to breakdown the memorization into more bite-size chunks, I am going to break down this topic into at least 9 posts, one for each knowledge area. (There may be some knowledge areas that require more than one post.)
This post covers chapter 12 of the PMBOK® Guide, which covers the Procurements Knowledge Area. This knowledge area contains 4 processes, one of which is in each process group except for the Initiating Process Group.
2. Review of processes in Procurements Knowledge Area
As a review, here is a chart which gives a summary of the processes themselves, plus the tools & techniques used as part of that process.
| Process Number & Name |
Process Description | Tools & Techniques |
| 12.1 Plan Procurements | Project purchasing decisions, identifying potential sellers. | 1. Make-or-buy analysis 2. Expert judgment 3. Contract types
|
| 12.2 Conduct Procurements | Selecting a seller through bids or proposals, awarding a contract. | 1. Bidder conferences 2. Proposal evaluation techniques 3. Independent estimates 4. Expert judgment 5. Advertising 6. Internet search 7. Procurements negotiations
|
| 12.3 Administer Procurements | Managing procurement relationships, monitoring contract performance, making changes as needed. | 1. Contract change control system 2. Procurement performance reviews 3. Inspections and audits 4. Performance reporting 5. Payment systems 6. Claims administration 7. Records management system
|
| 12.4 Close Procurements | Verification that deliverables are acceptable, formal closure of contract. | 1. Procurement audits 2. Negotiated settlements 3. Records management system |
3. Definition of inputs, outputs
The inputs for a given process are the documents or results of other processes that are used in order to do the process. The results of going through the process are the outputs. These outputs are then used as inputs for some other process.
4. Generic inputs
Before we start, there are two “generic” inputs that are used in many, many processes. The term “generic” inputs is not to be found in the PMBOK® guide; that’s just my term I made up in our study group to clue people in to the fact that they are included as an input in more processes than you could probably name off the top of your head.
A. ENVIRONMENTAL ENTERPRISE FACTORS (EEF)
This is the “company culture”, or factors that are external to the project but which influence the project’s success. These can include the company databases and, in particular, the project management software used by the company.
B. OPERATIONAL PROCESS ASSETS (OPA)
Written procedures, policies, and guidelines that are used by the company to guide all operations, including projects. Lessons learned would be an important part of OPA.
Think of the operational process assets as the “hard copy” (written procedures), and the environmental enterprise factors as the “soft copy” (software and the company culture or “unwritten rules” that govern how work is done).
NOTE: Tools & Techniques will be listed for the purpose of completeness and for reference, but their detailed description will be omitted, because it is contained in the blog posts specifically covering Tools & Techniques for that knowledge area.
12.1 PLAN PROCUREMENTS
To remember the inputs for this process, remember that the purpose of this process is to document the purchasing decisions for the project, specifying the requirements and identifying potential sellers.
INPUTS
12.1.1 Scope baseline
The scope baseline consists of the scope statement, the WBS, and the WBS dictionary. It is the output of the process 5.3 Create WBS.
12.1.2 Requirements documentation
This is an output of the process 5.1 Collect Requirements.
12.1.3 Teaming agreements
This is a contractual arrangement between two or more entities to form a partnership or joint venture for the duration of the project.
12.1.4 Risk register
This is an output of the process 11.2 Identify Risks.
12.1.5 Risk-related contract decisions
If the risk for a company for a certain activity is too high for its level of tolerance, then the company may transfer that risk through transferring that risk to another company by procurement contract, or through some sort of insurance arrangement.
12.1.6 Activity resource requirements
This is an output of the process 6.3 Estimate Activity Resources.
12.1.7 Project schedule
This is an output of the process 6.5 Develop Schedule.
12.1.8 Activity cost estimates
This is an output of the process 7.1 Estimate Costs.
12.1.9 Cost performance baseline
This is an output of the process 7.2 Determine Budget.
12.1.10 Enterprise environmental factors
The marketplace information on the past performance of suppliers.
12.1.11 Organizational process assets
Company procurement policies.
TOOLS & TECHNIQUES (for details, see Tools & Techniques Procurements post)
12.1.1 Make-or-buy analysis
12.1.2 Expert judgment
12.1.3 Contract types
OUTPUTS
12.1.1 Procurement management plan
This includes the following elements
|
Element |
Description |
|
| 1. | Risk management issues | Mitigation of risk through performance bonds, insurance contracts |
| 2. | Evaluation criteria, procurement metrics | Metrics such as independent estimates to evaluate sellers |
| 3. | Scheduling and performance reporting | Coordinating procurements with other work on project |
12.1.2 Procurement statements of work
The Statement of Work or SOW defines only that portion of the project scope which is to be included within the related contract. It describes the item to be procured in sufficient detail to allow prospective sellers to determine if they are capable of providing it. The SOW is included in the procurement documents (see output 12.1.4).
12.1.3 Make-or-buy decisions
This documents the conclusion of the decision regarding which products, services, or results of the product will be acquired from outside the project organization as opposed to being performed internally by the project team. This includes not just issues of cost, but issues of risk as well.
12.1.4 Procurement documents
These are the documents used to solicit proposals from prospective sellers. These may include a Request for Information (RFI), Invitation for Bid (IFB), Request for Proposal (RFP), and/or Request for Quotation (RFQ).
12.1.5 Source selection criteria
These criteria include such things as the risk involved, the overall cost, the financial capacity of the seller, intellectual property issues, etc.
12.1.6 Change requests
The procurements process may result in change requests to the project.
12.2 CONDUCT PROCUREMENTS
To remember the inputs for this process, remember that the purpose of this process is to obtain seller responses to a bid or proposal, to select a seller, and to award a contract to that seller.
INPUTS
12.2.1 Project management plan
The procurement management plan is part of the project management plan. It is the output of the process 12.1 Plan Procurements.
12.2.2 Procurement documents
This is an output of the process 12.1 Plan Procurements.
12.2.3 Source selection criteria
This is an output of the process 12.1 Plan Procurements.
12.2.4 Qualified seller list
This is a list of sellers who have been qualified as sellers on previous projects with the company.
12.2.5 Seller proposals
The proposals by the sellers form the basic information used to select one or more successful bidders.
12.2.6 Project documents
The risk register, and risk-related contract decisions.
12.2.7 Make-or-buy decisions
This is an output of the process 12.1 Plan Procurements.
12.2.8 Teaming agreements
In a teaming agreement, the roles of the buyer and seller are decided by executive management.
12.2.9 Organizational process assets
Listings of prospective sellers and any information on past experience with them.
TOOLS & TECHNIQUES (see Tools & Techniques Procurements post for details)
12.2.1 Bidder conferences
12.2.2 Proposal evaluation techniques
12.2.3 Independent estimates
12.2.4 Expert judgment
12.2.5 Advertising
12.2.6 Internet search
12.2.7 Procurement negotiations
OUTPUTS
12.2.1 Selected sellers
The sellers are those selected based on the evaluation of their proposal or bid.
12.2.2 Procurement contract award
A procurement contract is awarded to each selected seller.
12.2.3 Resource calendars
This shows the availability of the resources that have been contracted for.
12.2.4 Change requests
The project management plan may be updated by change requests.
12.2.5 Project management plan updates
Cost, scope, schedule baselines, and the procurement management plan.
12.2.6 Project document updates
Requirements documentation and risk register.
12.3 ADMINISTER PROCUREMENTS
To remember the inputs for this process, remember that the purpose of this process is to manage the procurement relationships, monitor the performance of the sellers on the contract, and to make any changes or corrections as needed.
INPUTS
12.3.1 Procurement documents
This is an output of the process 12.1 Plan Procurements.
12.3.2 Project management plan
The procurement management plan is a component of the project management plan, and is an output of the process 12.1 Plan Procurements.
12.3.3 Contract
This is a contract awarded as an output of the process 12.2 Conduct Procurements.
12.3.4 Performance reports
These are reports from the seller which indicated which deliverables have been completed.
12.3.5 Approved change requests
These are any modifications to the contract with regards to the pricing and/or scope of the products to be provided.
12.3.6 Work performance information
This includes the extent to which the quality standards have been satisfied, what costs have been incurred in the fulfillment of the contract.
TOOLS & TECHNIQUES (see Tools & Techniques Procurements post for details)
12.3.1 Contract change control system
12.3.2 Procurement performance reviews
12.3.3 Inspections and audits
12.3.4 Performance reporting
12.3.5 Payment systems
12.3.6 Claims administration
12.3.7 Records management system
OUTPUTS
12.3.1 Procurement documentation
This includes the procurement contract, technical documentation, and other work performance information.
12.3.2 Organizational process assets updates
Updates to the seller performance evaluation documentation.
12.3.3 Change requests
If there are any constructive changes to the contract, these may result in a change request to the project.
12.3.4 Project management plan updates
The procurement management plan may be updated as a result of this process.
12.4 CLOSE PROCUREMENTS
To remember the inputs for this process, remember that the purpose of this process is to formally complete and close each project procurement.
INPUTS
12.4.1 Project management plan
The procurement management plan is a component of the project management plan, and is an output of the process 12.1 Plan Procurements.
12.4.2 Procurement documentation
This is an output of the process 12.1 Plan Procurements. All the documentation is required because it is filed and indexed as a result of this process.
TOOLS & TECHNIQUES
12.4.1 Procurement audits
12.4.2 Negotiated settlements
12.4.3 Records management system
OUTPUTS
12.5.1 Closed procurements
The buyer provides the seller with formal written notice that the deliverables have been received and approved, and that the contract has been completed.
12.5.2 Organizational process assets updates
Lessons learned, procurement file (for use in future projects).
This concludes the discussion of Inputs and Outputs for the 42 processes in the PMBOK® Guide.
Filed under: Uncategorized |
4squareviews 
Leave a Reply