5th Edition PMBOK® Guide–Step 6: Memorizing Inputs & Outputs (Procurement Management Part 2)


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 47 processes.   In order to breakdown the memorization into more bite-size chunks, I am breaking down the processes in the 10 knowledge areas into 2 or 3 posts each.

This post covers chapter 12 of the PMBOK® Guide, which covers the Procurement Knowledge Area. This knowledge area contains 4 processes, one in the Planning Process Group, one in the Executing Process Group, one in the Monitoring & Controlling Group, and one in the Closing Process Group.    The Procurement Knowledge Area is the only knowledge area other than the Integration Knowledge Area to have a process in the Closing Process Group.

I am splitting the discussion of the Inputs & Outputs into two different posts, each covering two processes.   This post will cover the last two of the four procurement processes, Process 12.3 Control Procurements and 12.4 Close Procurements.

2.  Review of processes 12.3 and 12.4 together with their ITTOs (Inputs, Tools & Techniques, Outputs)

12.3 Control Procurements is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as appropriate.

12.4 Close Procurements is the process of completing each project procurement.

As usual, in the list of inputs, I use abbreviations for the generic inputs of Enterprise Environmental Factors (EEFs) and Organizational Process Assets (OPAs).

Process Name Tools & Techniques Inputs Outputs
12.3 Control Procurements 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

1. Project management plan

2. Procurement documents

3. Agreements

4. Approved change requests

5. Work performance reports

6. Work performance data

 

1. Work performance information

2. Change requests

3. Project management plan updates

4. Project documents updates

5. OPAs updates

12.4 Close Procurements 1. Procurement audits

2. Procurement negotiations

3. Records management system

1. Project management plan

2. Procurement documents

1. Closed procurements

2. OPAs updates

3.  Outputs of Process 12.3 Control Procurements and 12.4 Close Procurements

a. Work performance information (12.3 Control Procurements)

As a result of the process 12.3 Control Procurements, work performance information provides a basis for identification of current or potential problems, which may assist in the event that there is a dispute with the vendor.

Contract compliance reports provide procuring organizations a mechanism to track specific deliverables expected and received from vendors.

b. Change requests (12.3 Control Procurements)

Change requests may result from the 12.3 Control Procurements process, and may includes changes to any of the subsidiary plans of the Project Management Plan.   These requests are processed for review and approval in the process 4.5 Perform Integrated Change Control.

c. Project management plan updates (12.3 Control Procurements)

The elements of the project management plan that may be updated as a result of 12.3 Control Procurements are:

  • Procurement management plan–updated to reflect any approved change requests that affect procurement management, including impacts to costs or schedules
  • Schedule baseline–if there are slippages that impact overall project performance, the schedule baseline may need to be updated
  • Cost baseline–if there are changes that impact overall project costs, the cost baseline may need to be updated

d. Project documents updates (12.3 Control Procurements)

The procurement documentation that may be updated as a result of 12.3 Control Procurements includes the following:

  • Procurement contract–with all supporting schedule, approved change requests, and requested but unapproved change requests
  • Technical documentation developed by the seller
  • Work performance information–including deliverables, seller performance reports and warranties
  • Financial documents–including invoices and payment records
  • Results of contract-related inspections

e. OPAs updates (12.3 Control Procurements and 12.4 Close Procurements)

The OPAs that may be updated as a result of the process 12.3 Control Procurements:

  • Correspondence–contract terms and conditions often require written documentation of certain aspects of buyer/seller communications
  • Payment schedules and requests–should be made in accordance with the procurement contract terms and conditions
  • Seller performance evaluation documentation–this is prepared by the buyer; it documents the seller’s ability to continue to perform work on the current contract

The OPAs that may be updated as a result of the process 12.4 Close Procurements are:

  • Procurement file–a complete set of indexed contract documentation, including the closed contract
  • Deliverable acceptance–documentation of formal acceptance of seller-provided deliverables
  • Lessons learned documentation–what has been experienced, process improvement recommendations

f. Closed procurements (12.3 Control Procurements)

The buyer provides the seller with formal written notice that the contract has been completed.  The requirements for formal procurement closure are usually defined in the terms and conditions of the procurement contract and are included in the Procurement Management Plan.

4.  Inputs of Process 12.3 Control Procurements and 12.4 Close Procurements

a. Project management plan (12.3 Control Procurements and 12.4 Close Procurements)

Okay, the PMBOK® Guide says the overall Project Management Plan is an input, but in reality, the particular subsidiary management plan of the overall Project Management Plan that is relevant to the process 12.3 is, of course, the Procurement Management Plan (the output of process 12.1 Plan Procurement Management).    As I mentioned in the previous post, the Procurement Management Plan, like the Risk Management Plan, has elements that are related to all of the other knowledge areas.   Here are the elements of the Procurement Management Plan, which are arranged by the knowledge area that they relate to:

Related Knowledge Area  Plan Element
1. Integration Project constraints and assumptions that could affect planned procurements
2. Scope Direction to sellers on developing and maintaining work breakdown structure (WBS)
3. Format for procurement statement of work (SOW) to be put in contract
4. Time Coordination of procurement with project scheduling
5. Handling long lead times to purchase certain items from sellers and coordinating extra time needed with project schedule
6. Linking make-or-buy decision with Estimate Activity Resources and Develop Schedule processes
7. Setting scheduled dates for delivery and acceptance of contract deliverables
8. Cost Whether independent estimates will be used as evaluation criteria
9. Quality Performance criteria for acceptance of deliverables
10. Human Resources Roles and responsibilities for project management team coordination with the organization’s procurement or purchasing department
11. Communications Coordination of procurement with performance reporting
12.. Risk Risk management issues related to procurement
13. Requirements for performance bonds or insurance contracts to mitigate project risk
14. Procurements Types of contracts to be used (fixed price, cost-reimbursable, or time & material)
15. Identifying pre-qualified sellers
16. Procurement metrics to be used in evaluating sellers and managing contracts
17. Management of multiple suppliers
18. Stakeholder Include sellers as one of stakeholder groups to be managed
19. EEFs Industry or professional organization information resources regarding potential sellers
20. OPAs Standardized procurement documents

b. Procurement documents (12.3 Manage Procurements and 12.4 Close Procurements)

The following documents support the administration of procurement processes:

  • Procurement contract awards
  • Procurement Statement of Work (SOW)

The following documents support the closure of procurement processes:

  • Information on contract performance related to schedule, scope, quality and cost
  • Contract change documentation
  • Payment records
  • Inspection results

This information is used for lessons learned.

c. Agreements (12.3 Control Procurements)

Agreements are the understandings between parties, including the understandings of the duties of each party.

d. Approved change requests (12.3 Control Procurements)

In the case of procurements, the approved change requests include modifications to the terms and conditions of the procurement contract, including the following:

  • Procurement SOW
  • Pricing
  • Descriptions of the products, services, or results to be provided

All procurement-related changes are formally documented in writing and approved by the process 4.5 Perform Integrated Change Control before being implemented in the process 12.3 Control Procurements.

e. Work performance reports (12.3 Control Procurements)

The documentation related to procurement performance includes the following:

  • Technical documentation–technical documentation developed by the seller in accordance with the terms of the contract
  • Work performance information–the seller’s performance reports indicate which deliverables have been completed and which have not

f. Work performance data (12.3 Control Procurements)

Work performance data relevant to the process 12.3 Control Procurements includes the following:

  • the extent to which quality standards are being satisfied
  • the costs that have been incurred or committed
  • identification of the seller invoices that have been paid

This can be used as lessons learned and as a basis for evaluating contractors for future projects.

5.  Conclusion

This concludes the review of the inputs and outputs for the last two processes of Procurement Management.   Next week, I will finish off this project by reviewing the inputs and outputs for the last knowledge area in the PMBOK® Guide, Stakeholder Management.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: