BSBPMG518: Manage Project Procurement Assessment

This assessment provides a scenario on how to Manage Project Procurement. It covers procurement requirements, procurement management plan, procurement procedures, legal obligations of contracts, and more.

Assessment 1 of 2
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presentation
Course and Code: BSB50815 Diploma of International Business
Unit/s of Competency: BSBPMG518 Manage Project Procurement
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Assessment Type: Scenario, Assignment, Report
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ALL QUESTIONS MUST BE ANSWERED. TO ANSWER THE QUESTIONS, USE THIS DOCUMENT.
Assessment 1 – BSBPMG518: Manage Project Procurement
Please complete this assessment and submit for marking. This forms part of your assessment for
BSBPMG518 Manage Project Procurement.
The following documents are related to this unit.
 BSBPMG518 Unit of Competency
 BSBPMG518 Learner Guide
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In this assessment some of the questions include a word count. This is a guideline only, but your
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Performance objective
The students need to understand how to determine procurement requirements, establish agreed
procurement processes, conduct procurement activities, implement and monitor procurement,
and manage procurement finalisation procedures.
Assessment description
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This assessment provides a scenario on how to Manage Project Procurement.
To complete this assessment successfully answer the questions in as much detail as possible.
Scenario
The scenario will be a continuation of the case study from the previous unit in which the
student has to solve tasks related to managing the project scope.
This unit will take us one step further into researching and managing the procurement of
required services. The services are required to realize the project of updating the information
system database with the goal of establishing better control over the condition and status of the
stock material for the TruEco’s retailers. It has been decided that the task will fall onto an
outsourced software development team which will then develop a solution.
Question 1
Objectives  Identify procurement requirements with input from stakeholders
as basis for procurement planning
 Work with others to determine procurement requirements and
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produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Monitor activities across a project's life cycle and resolve issues
that could affect achievement of project objectives
 Document a review of procurement management processes and
procedures
 Organise, evaluate and critique ideas and information from a
range of complex texts
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Participate in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Recognise cost parameters and interpret numerical information
accordingly
 Select and use appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Sequence and schedule complex activities, monitor implementation
and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
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A) Identify the objectives of your project. (within 60-80 words)
B) Identify all the stakeholders within TruEco’s project and document their expectations
and suggestions for the procurement requirements. (within 80-100 words)
C) What will you need to consider prior to planning procurement? (within 60-80 words)
D) Explain what is meant by the following procurement requirements:
 Analysis of work breakdown structure
 Budget review
 Organisational procurement policy and procedures
 Resource analysis
 Resource types
 Service level agreements
 Specifications and performance requirements for goods and services
 Statement of work
 Vendor supply options available
(within 60-80 words for each)
A) The project is based on the development and upgrading of a new system for
understanding the processes in which they could keep a track of their stock levels and
monitor the activities of the retail store. The other most important objective set for the
project is to provide a notification to the store manager whenever the stock of a certain
product would get replenished.
B) The different stakeholders within the project are:
1. The Retail Store Manager – They would expect that the new system would be able
to bring about massive kind of changes with upgrading of the system infrastructure.
2. Logistics Departmental Manager – They would expect a simplified information
database system, which would help in understanding the levels of stock within the
retail store.
3. Database Developers – The database developers would expect that the project
would be able to meet to the requirements provided by the retail store manager. This
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information system should have some kind of automation features that would add
capability to the managers for producing relevant information about stocks.
C) Before the plan for making procurement, some of the needs that should be considered
are:
1. Needs of the retail store – The current problems should be analysed and hence the
database developers should proposed solutions.
2. Budget – After planning over the possible solutions, the budgetary considerations
should be made efficiently.
3. Suitable technologies – The database developers should design the necessary
documents for providing update to the retail manager about the most possible
technology.
D) 1. The analysis of work breakdown structure for procurement requirements helps in
understanding the factors based on which the different items would be procured before
the progress over the project. The WBS also helps in understanding the different levels
within the working factors within the industry.
2. Budgetary considerations form an important factor for procuring of required items.
The items that need to be procured for the store should be purchased within a certain
budget. Any kind of out-of-scope budget should be reported immediately to the retail
store manager for taking into consideration.
3. The procured items should meet according to the policy and procedures set by the
organisation. Any of the procured items, which would not be following according to
the norms of the organisation should be returned immediately.
4. After the business requirements have been set, an analysis should be made about the
different type of resource that would be set for the project.
5. The different type of resources should be mentioned properly. This could be in the
type of human resource, material resource or budgetary resource. These different
resource types should be selected properly and should be provided to the approval over
the resource types.
6. During procuring of the required items, a certain kind of SLA should be signed
between the retailer who is procuring the items and supplier of goods and other
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services. The SLA also provides an assurance that each of the procured items would be
meeting with the standards expected by the retail store. Any kind of discrepancy should
be reported to the supplier as per the set norms of the policy.
7. Each of the goods and services that would be procured should be checked for their
specifications and the requirements necessary for meeting with the performance
standards.
8. A SOW can be defined as routine document that would help the project manager to
understand the working capabilities of different people employed over a certain task.
Specific activities, timelines and deliverables that would be provided to the vendor
would also help in improving the services that would be offered to the client.
9. The different vendor supply options that are available should be selected in advance.
The options that would be available for procurement of resources should be collected
from vendors.
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Question 2
Objectives  Establish and maintain, within delegated authority, agreed
procurement-management plan
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Monitor activities across a project's life cycle and resolve issues
that could affect achievement of project objectives
 Document a review of procurement management processes and
procedures
 Understand responsibilities and boundaries of own role
 Sequence and schedule complex activities, monitor implementation
and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) In accordance with the delegated authorities within the TruEco’s project, document
your agreed procurement management plan, using diagrams if applicable, including
information on the following areas:
 How procurement arrangements are communicated to stakeholders
 Process to be used for procurement of resources
 Process for monitoring and evaluating procurement related to the project
 Procurement objectives, strategies and time lines
 Resources to be obtained against a time line and budget
 Responsibilities for staff/team members.
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 Contract administration
 Contract closure processes
 Statement of work
 Procurement statement of work
 Potential risks and constraints
 Key performance indicators for procurement activities
(within 100-120 words)
A) 1. The procurement arrangements that would need to be communicated to stakeholders
could occur in the following ways – increasing the visibility factor for procurement
activities and improving the engagement of stakeholders.
2. In the case of the particular case of procuring of goods for the retail store, the
suppliers of goods should be negotiated and then the logistics providers should be
contracted who would transport the goods to the retail store.
3. The procured materials should be monitored and evaluated based on meeting with
the needs of the organisation. The materials, which have been procured should meet
with the law and ethical standards set by the industry.
4. The retail manager who would be mainly responsible for managing the stock of
items and procuring of new stocks should set certain kind of objectives, timelines and
strategies. A strategy should be formed by the retail store manager based on procuring
of the best kind of items for the store.
Question 3
Objectives  Obtain information from suppliers capable of fulfilling
procurement requirements
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Create and maintain procurement records and documentation
according to requirements of project and organisation
 Document a review of procurement management processes and
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procedures
 Organise, evaluate and critique ideas and information from a
range of complex texts
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Participate in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Select and use appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Sequence and schedule complex activities, monitor implementation
and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) What sort of suppliers will you need to use within the procurement processes and why?
(within 60-80 words)
B) How will you intend to obtain information from potential suppliers in order to
determine selection and what information will you request? How does this link to the
project’s objectives? (within 60-80 words)
C) What are your selection criteria for selecting suppliers? List in order of importance and
explain the reasons for this order. Are there any criteria essential criteria and if so,
which and why? (within 80-100 words)
A) In order to manage the procurement processes, wholesalers and distributors should be
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selected. The primary reason behind this is that they would firstly have a strong supply
of products from which the process of procurement would be made easy. This is due to
the fact that the stock of goods would be replenished soon by the wholesalers whenever
the retail store manager would place a request for an order.
B) In order to obtain information about a certain product from the potential suppliers, a
particular criteria should be set. The vendors would then show the different products,
which would be requested. Based on the goods shown, the retail store manager would
select the goods and then finalise the selection of goods with a proper pricing. Thus,
the demands of customers from the store would also be need to be taken care of during
the procurement process.
C) The selection criteria for the selection of suppliers are discussed as:
1. Safety and Quality of supplied goods – The quality of goods supplied would
determine the authenticity of the supplier. Hence, the supplier should provide high
quality of goods to customers in order to maintain their reputation.
2. Risk Responsibility – Any kind of defective product that would be supplied to retail
stores would be the sole responsibility of the vendor. Hence this factor should also be
greatly considered during selecting the supplier.
Question 4
Objectives  Determine or adopt established selection processes and selection
criteria, and communicate to vendors to ensure transparency
 Obtain relevant approvals for procurement processes to be used
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Create and maintain procurement records and documentation
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according to requirements of project and organisation
 Document a review of procurement management processes and
procedures
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Participate in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Select and use appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) From whom within the organisation do you have to obtain approvals for the procurement
processes you wish to use for the project? (within 40-60 words)
B) Describe the procedure in place within TruEco’s project for obtaining approvals
including information, where applicable, about:
 The format of the proposal (written, verbal, electronic, paper-based)
 To whom it is directed (this may depend on a designated cost ceiling)
 The form on which it is submitted (possibly a standard template – please refer to the
Appendix)
 The time scale in which it must be submitted
 The content of the proposal which may include:
 Reasons for the specific procurement processes requested
 Cost implications and whether they adhere to the budget you were given for
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procurement processes and if not, why not?
 How they relate to the project objectives
 Selection criteria and how it relates to the project objectives and the organisation’s
business ethics
 Any legal compliance or regulations
 Potential risks, constraints and relevant contingency plans
 Ethical considerations
 Environmental impact
 Transparency
 Time lines for selection processes
 Market restrictions
 Benefits to the project of these processes
Prepare a report addressing all the above points. (within 80-120 words)
A) In order to gain an approval over the procurement processes for the retail store, approval
should be sought from the retail store manager. A list of the procurable items would be
made and thus a final budget would be procured accordingly. Based on their approval, the
list would be sent to the warehouse or the vendor who would supply the goods.
B) The proposal for obtaining approvals for the procurement of items would be presented in
a paper-based format. It would be directed to the Retail store manager.
The procurement processes within the organisation would be mainly aimed at replenish
the stock of items that would be in demand by customers. In order to handle the entire
process of keeping a record of the stock of the items, a proper computerised system
should be set at the retail store.
The database would store the items that would be present within the store. In case any
item that would be nearing towards ‘out of stock’ status, the system would automatically
provide notifications. The aspect of regulations and legal compliance would also be put in
order to maintain the quality of products.
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Question 5
Objectives  Identify and act according to probity and project-governance
constraints
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Organise, evaluate and critique ideas and information from a
range of complex texts
 Understand responsibilities and boundaries of own role
 Sequence and schedules complex activities, monitor
implementation and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
 Explain probity and project governance constraints that relate to
project procurement in a project and industry context
A) What does the standard code of ethics outline in relation to procurement?
(within 40-60 words)
A) A standard code of ethics in relation to procurement of goods would be considered as
to be useful as it outline the particular laws during procurement of goods from
suppliers. Based on this code of ethics, a supplier and retailer would be bounded within
a certain ethical way in order to supply goods. This ethical code would also be required
to maintain the quality of goods.
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Question 6
Objectives  Communicate agreed proposals and/or specifications to
prospective vendors to ensure clarity of understanding of project
objectives
 Solicit vendor responses according to proposal requirements
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Participate in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Select and uses appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Sequence and schedules complex activities, monitors
implementation and manages relevant communication
 Makes decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) List all the information for prospective vendors that could be included in any request
for quotation.
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B) What additional questions could be asked of prospective vendors in a more in-depth
request for proposal, and what specific questions in relation to your project?
(within 100-120 words)
C) What are the guidelines for preparing an RFQ/RFP? (within 100-120 words)
D) What other instructions/assistance should you provide to prospective vendors in the
RFQ/RFP? (within 100-120 words)
A)
 The date of closing for submission, issuing date and RFQ number
 The issuer name, location, address and contact details
 The contact details of the person based on solving of queries based on commercial and
technical
 The detailed delivery instructions and delivery address
B)
 Is there a project lead or project manager for the project?
 Are the key project evaluators and stakeholders have been chosen clearly?
 Is a proper budget established for the project?
 Is a proper kind of RFP request being placed?
 Who would be the crucial kind of deal-breakers?
 What are the end goals of the entire procurement processes?
 What are the certain determining factors that would determine the success criteria of
the entire process of procurement?
 What are the certain processes of audit based on the determining that proper products
are being procured?
 Are proper kind of sub-contractors being hired for the procurement processes and
during the logistics part?
C)
 There should be an inclusion of deadlines, the mailing address of the company, queries
regarding the contact person during the preparing of an RFP
 An executive summary and an introduction should be provided.
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 Each of the sections that would be included within the RFP should have a detailed
explanation and justification
 The assumptions for the procurement processes should be listed.
 The constraint for the vendors should be provided within the guidelines.
 Any kind of terms and conditions that would be set for the procurement process should
be listed and followed up accordingly.
D)
 The requirements as defined by the retailer should be matched accordingly to the
number of items within the warehouse.
 Each of the items that would be sent to the retail stores should be secured in advance
whenever a request is placed.
 The logistics team should be hired after the items have been arranged for
transportation.
 Each of the items that have been seen selected for transportation should be packed
properly so as not to dispose them.
 The budget breakdown of each of the items that have been procured and the costs of
logistics should be put together and sent to the retailer for calculating of bill and paying
off.
Question 7
Objectives  Evaluate responses and select preferred vendors according to
current legal requirements and agreed selection criteria
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Organises, evaluates and critiques ideas and information from a
range of complex texts
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 Develops plans using vocabulary, structure and conventions
appropriate to text
 Creates documents for external use using required format and
vocabulary suitable for audience
 Drafts requests for approvals using organisational formats
 Understands responsibilities and boundaries of own role
 Sequences and schedules complex activities, monitors
implementation and manages relevant communication
 Makes decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Identify criteria that could be used to select vendors or suppliers
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Using the table from the Appendix, evaluate the responses based on quality-quantity,
price and delivery time from prospective vendors.
For each product/service you require, select preferred vendor based on legal and ethical
requirements, agreed selection criteria and added value.
Compile a report to the relevant authority who makes the final decision on preferred
vendors within your project or organisation detailing your recommendations for
preferred vendors and your reasons for this selection.
(within 150-200 words)
A) The most preferred vendors who would be selected would be signed with a particular
kind of contract. A certain recommendation that would be put for the preferred vendors
is that the listed items would be procured in the best possible manner. The vendors
should carefully check each of the items that would be requested from them. In case
any item would not be present within the warehouse, a certain notification about the
stock availability of the items would be sent to the retailer.
After each of the items have been sorted, they would be packed together. They would
also contain the logistics provider about the supply of goods to the retailer.
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Question 8
Objectives  Negotiate with preferred contractor or supplier, to agree on terms
and conditions of supply
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Participates in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Select and use appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Of the preferred vendors you have selected following your evaluation of their
suitability, select the type of supply contract you intend to use and the terms and
conditions of supply you desire from three of the vendors. Use the template from the
Appendix and research and select at least three potential vendors for the project.
(within 80-100 words)
B) Identify the terms and conditions with which each vendor is not in agreement and with
what they wish to replace them. (within 80-100 words)
C) What, if any, are the terms and conditions your organisation is adamant must be in the
supply contract. (within 60-80 words)
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D) List and briefly explain a choice of five practices for good negotiation?
A) The three potential vendors for the project are:
1. Vendors providing computer related applications such as hardware and software.
2. Vendors providing computer services
3. Vendors providing cell phones and related devices.
B) The terms and conditions at which the vendor might not agree and might replace them
are:
1. The logistics provider would not be recruited by the vendor or supplier of the
product. Moreover, the logistic service provider should be appointed by the retailer and
sent to the warehouse of the vendor.
2. The packaging of the goods would be done by the vendor. However, the cost of
packaging would be included within the budget list.
3. The purchase order for the items should be provided in a bulk form.
C) Any kind of terms and conditions that would need to be implemented within the supply
contract would be implemented with a mutual kind of understanding between the
vendor and retailer. This contract should be signed before making any kind of
transactions.
D)
 The power of listening during making good negotiation should be enhanced.
 The timing of making negotiations should be considered as to be highly important.
 A proper kind of approach should be made in order to frame the negotiation process.
Question 9
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Objectives  Implement established procurement-management plan and make
modifications in line with agreed delegations
 Review progress and manage agreed variations to ensure timely
completion of tasks and resolution of conflict within the legal
framework of the supply agreement
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Organise, evaluate and critique ideas and information from a
range of complex texts
 Document a review of procurement management processes and
procedures
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Participate in verbal exchanges using clear language to seek and
provide information, or request approvals
 Use active listening and questioning techniques to confirm
understanding
 Select and use appropriate conventions and protocols when
communicating with internal and external stakeholders to seek or
share information
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Use the tables from the Appendix to review and evaluate the objectives you set in your
procurement management plan for effectiveness, highlighting areas for improvement
and suggestions for modifications to the procurement processes in place.
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B) For each modification, document the authorities or approvals required to implement the
changes. (within 60-80 words)
C) What, if any, disputes might arise from the modifications, including internally and
externally? (within 80-100 words)
D) What measures will you take to resolve the disputes? (within 80-100 words)
E) Will there be any legal action required for any of the conflict resolution procedures?
If so, what and why? (within 80-100 words)
A) Mentioned in Appendix
B) In the case of transportation to the final point of entry, it can be seen that the
transportation would be made directly to the customers in case a certain customer
would request for home delivery of services.
C) Any kind of disputes that would be made to the modifications would be sought
internally between the supplier and vendor. A contract would be signed previously
based on making of modifications. In case, the violation of contract would be made, a
court case could be claimed against the party making disputes and who would be at
fault.
D) In case of disputes, the retail store manager would be holding responsibility for
resolving the cases of disputes. They would have to maintain a good communication
and relationship with the supplier of goods so as to resolve the matter at the earliest and
increase the business efficiency.
On the other hand, the external disputes would have to be sought at court, which would
be able to handle the cases.
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E) During any kind of conflict resolution procedures, legal action could be sought in order
to maintain a proper kind of law and order. Legal actions could be sought during cases
of fraud and used products, if supplied to the retail store.
Question 10
Objectives  Identify and report procurement-management issues and
implement agreed remedial actions to ensure project objectives are
met
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Using the tables from the Appendix and the information from the review of your
procurement management plan in Question 9, identify and report procurement
management issues to the relevant authority and agree upon and obtain approvals for
remedial action to resolve the issues.
A) Mentioned in Appendix
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Question 11
Objectives  Conduct finalisation activities to ensure vendor deliverables meet
contracted requirements
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Sequence and schedule complex activities, monitor implementation
and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Using each of the supply contracts, evaluate each vendor’s performance in relation to
their contractual requirements. Identify any last-minute issues that may compromise
the deliverables meeting the contracted requirements and put in place actions to ensure
they do. Please use the tables provided in the Appendix section.
A) Mentioned in Appendix
Question 12
Objectives  Review project outcomes using available procurement records and
information to determine effectiveness of procurement processes
and procedures
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 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
agreed processes
 Document a review of procurement management processes and
procedures
 Organise, evaluate and critique ideas and information from a
range of complex texts
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Create documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Sequence and schedule complex activities, monitor implementation
and manage relevant communication
 Make decisions based on analysis of options against set criteria
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) State all of the procurement records and information available to you to determine the
effectiveness of procurement processes and procedures. (within 60-80 words)
B) State the metrics you intend to use to measure the effectiveness of procurement
processes and procedures. Please use the table provided in the Appendix section.
C) Using the tables of Question 12, measure the effectiveness of your procurement
processes and procedures with the metrics stated above and suggest ways in which they
could be improved. (within 80-100 words)
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A) Each of the procurement of items that would be performed should have an individual
ID. The important documents that would be in relation to the procurement should be
kept with the retail manager. On the other hand, a copy of the order list should also be
kept at the vendor side.
B) Mentioned in Appendix
C) The measuring of the effectiveness within the procurement processes are:
1. Quality – The quality of the products that would need to be procured should be
selected in advance. These products should be properly checked and thus quality
should be matched with the standards set for quality.
2. Savings in cost – The products should be chosen in such a manner that it would lead
to certain savings within cost based on transportation and packaging services.
3. Management speed – A certain checking system of each of the goods that would be
managed and sent should be implemented. The team who would manage the shipment
of products should be aware of the importance for delivery of goods.
Question 13
Objectives  Document lessons learned and recommended improvements for
application to future projects
 Work with others to determine procurement requirements and
produce a procurement management plan for a project
 Carry out procurement and contracting activities according to
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agreed processes
 Document a review of procurement management processes and
procedures
 Develop plans using vocabulary, structure and conventions
appropriate to text
 Creates documents for external use using required format and
vocabulary suitable for audience
 Draft requests for approvals using organisational formats
 Describe the general features of a procurement management plan
 Summarise procurement procedures and required documentation
 Explain the general conditions and legal obligations of contracts as
they relate to project procurement
A) Using the evaluation of the effectiveness of your procurement processes and
procedures from Question 12, write a lesson learned in a report format appropriate to
the organisation, making recommended improvements for application to future
projects. (within 150-200 words)
A) Based on the understanding of the various strategies implemented during the
procurement processes and the effectiveness required to manage each of the handling
of items, it can be understood that such kind of procedures are highly critical in nature.
Hence, the entire task of procurement, creating documents, signing of contracts and
negotiations should be carried out properly. The understanding of the vendors and
making negotiations with them would be considered as highly important.
Approval and proper kind of signing of agreements should be done in advance before
the goods would be sent to the retailers in advance and within deadlines. This wold
help in replacing of goods before they would run out of stock. Based on the following
certain kind of effective desired objectives, it could be concluded that it would be
highly easy to impact the future of procurement services. It would also lead to
improvement in the ways in which goods are received by customers from the retail
stores.
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APPENDIX
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Question 4
Purchase Request Form
Address: Company: TruEco
Requested by: Retail Store Manager
Date: 10.4.2019
Purchase order No.: 2345
Vendor Information:
Item Quantity Description Fund Unit Price TOTAL
Soap 4 Soaps are to be
procured for
stock
replenishment
$50 $12 $48
Hand wash 6 Hand wash are to
be procured for
stock
replenishment
$150 $20 $120
Shipping and Handling Cost: $5 TOTAL: $183
Authorisation for Purchase: $10 Final Approval: Retail Store Manager
Bill To: Vendor Ship To: TruEco
Question 7,8
Product/service required
Potential supplier(s) Criteria in order of
importance and score/weight
Does supplier meet
criteria?
Overall score and
any other added
value information
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1
2
3
4
5
6
7
8
9
10
1
2
3
Preferred suppliers in order of importance:
Question 9
Procurement activity Met deadline/on schedule?
If not, why not?
Suggested modification to
procurement management plan to
meet deadline
Tendering Met with deadlines These meetings should be
performed in advance
Selection of supplier Met with deadlines The supplier of goods should be
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selected during procuring of items
Transportation to final entry point Met with deadlines Logistics team should handle the
handling of goods and services
Insurance Met with deadlines Insurance should be covered for the
project management team and
logistics provider
Services of Inspection Met with deadlines After services have been restored,
they should be continuously
modified in order to support regular
updates.
Procurement activity Within budget?
If not, why not?
Suggested modification to
procurement management plan to
meet budget requirements
Tendering Yes The tendering should be set within
the budget.
Selection of supplier Yes The supplier should be selected
based on rating and rate basis.
Transportation to final entry point Yes The transportation of the goods
would be based on the logistics
supplier
Insurance Yes Insurance would be based on the
kind of work being performed and
the risk level impacts
Services of Inspection Yes Inspection of procured goods should
be done at a careful basis
Procurement activity Within budget?
Yes/no
On time?
Yes/no
Lessons learned
Tendering Yes Yes The tendering would be done after bids
would be made over the project plan.
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Selection of supplier Yes Yes The selection of supplier of goods
forms an important factor as this would
help the retail store to replenish goods
whenever it would be needed.
Transportation to final entry
point
Yes Yes This activity is highly crucial as based
on this, the final output to customers
would be provided.
Insurance Yes Yes Insurance should be present as this
would help in protecting the security of
work.
Services of Inspection Yes Yes The inspection services should be done
in order to ensure that the quality of
goods are highly maintained.
Procurement activity Problem/issue faced or facing
Reasons for issue
Suggested modification to
procurement management plan to
resolve issue
Tendering Late issuing of bids Advertisement should be set in
regards to setting of bids
Selection of supplier Improper filling of criteria’s for
suppliers
The supplier should be selected
based on proper kind of analysis of
their previous records
Transportation to final entry point Unavailability of logistic provider
within budget
The logistic provider should be
selected based on their reputation
and record history
Insurance Lack of proper insurance provider
company
Insurance provider should be
selected based on their reputation
Services of Inspection Goods are not being inspected
properly
The inspection services should be
selected based on their skill levels.
Question 10
Procurement management issue Project objective not being met Authority to whom the issue must
be reported and format of report
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Excessive cost of transportation of
goods
Budget Project Lead Manager via email
Improper items being sent Communication Vendor via email
Tender selection by vendors Communication Retail store manager via direct
communication.
Procurement management issue Remedial action and agreement and
approval from whom?
Necessary procedure and time
scale to resolve the issue
Excessive cost of transportation of
goods
Budgetary planning and consideration Quality check meetings
1 week
Improper items being sent Checking of items before
transportation from warehouse
Review meetings
2 days
Tender selection by vendors Proper tender selection Quality checking
1 day
Question 11
Vendor No.:
Contracted requirement not being
met/unlikely to be met
Action to be taken Procedure(s) necessary to
implement action to be taken
Inaccurate form of defined
deliverables
Setting of proper aims and objectives The needs of client and vendor
should be sought clearly.
Informal agreements Agreements should be made before
project plan
The agreements that would be
signed between the vendor and
retailer.
Inclusion of new assumptions Setting of assumptions during project
planning phase
Inclusion of new assumptions would
be done in accordance to the terms
and conditions.
Question 12
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Metrics used to measure
effectiveness
Successes Suggested improvements to process
Quality Meeting with the exact deliverables
sent by retailer
Quality of items should be checked
carefully before sending to retail
stores.
Savings in cost Cost should be met properly and
within the estimated budget
The budgetary planning of each of the
items that would be sought should
have a proper cost estimation
technique.
Management speed Management of listed orders in a
quick speed with high accuracy level
The speed of management of goods
that would be shipped should be more
accurate.
Any further comments:
Marking Sheet for Assignment: Manage Project Procurement
Did the candidate
Competent
Yes No
Answer all questions and address all the requirements specified in the
Assessment Task?
☐ ☐
Student Submission Checklist:
Assessor name is written on the first page ☐
Student name is written on the first page ☐
Student number is written on the first page ☐
The student submits the assessment within the due date ☐
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1. The student incorporates employability skills (such as communication, team
work, problem solving, initiative, technology, self-management& learning)
2.
☐
The student used the required style for this document ☐
Comments:
Comments will be provided as feedback files or in ACCIT Moodle
Result: ☐ Satisfactory ☐ Not Satisfactory
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The declaration below will appear when you click submit in ACCIT Moodle assessment
submission link. You must check the checkbox and click submit. A draft copy will not be
accepted as submission.
Student Declaration:
This assignment is my own work, except where I have acknowledged the use of the works of
other people. I have retained a copy for further reference.
Assessor:
I declare that I have conducted a fair, valid, reliable and
flexible assessment with this student, and I have provided
appropriate feedback
Date:
Signature:
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