Manage Project Procurement BSBPMG537

Manage Project
Procurement
BSBPMG537

Contents
TASK 1............................................................................................................................................3
Identify criteria that could be used to select vendors or suppliers...............................................3
2. Explain the following in detail................................................................................................5
3. List and briefly explain the following when managing project procurement:.........................6
4. Describe the features of a procurement management plan......................................................7
5. Provide a summary of the procurement processes and procedures which are in place at John
Readings......................................................................................................................................8
6. Provide an overview of the project lifecycle and how it applied to project procurement.....10
TASK 2..........................................................................................................................................11
PART A (Plan Procurement).........................................................................................................11
1. Prepare a meeting agenda......................................................................................................11
2. Discuss the key points listed in the agenda...........................................................................13
a. The key procurement requirements for this project...................................................................13
b. How information will be sourced from suppliers to determine the appropriate suppliers........13
c. The supplier selection process &criteria which will be established..........................................13
d. The approval process for procurement activities.......................................................................13
e. The tender process which will be followed if tendering is required..........................................14
f. How procurement issues will be reported..................................................................................14
PART B (Implement project procurement process)......................................................................15
1. Create a request for proposal for landscaping requirements including a statement of work
for the procurement of landscaping around the external café and playground area..................15
2. Research two suitable providers and obtain information from them.....................................17
3. It is essential project manager to determine the right and accurate sources so Word
document titled: Project Procurement Management Plan.........................................................17
4. Email to the Procurement Director seeking approval for the procurement management plan
...................................................................................................................................................20
5. CEO has requested a report for all stakeholders addressing key project requirements which
need to be understood. Concise report outlining the following information:............................20
9. Case study..............................................................................................................................21
PART C.........................................................................................................................................21
Draft an email to the procurement director................................................................................21

Draft a procurement director.....................................................................................................23
PART D.........................................................................................................................................24
1. (a) Completing financial transactions....................................................................................24
1. (b) Consolidating and storing all project data........................................................................24
2. (a) How did you identify project procurement requirements?...............................................24
(b) How did you obtain information from suppliers capable of fulfilling procurement
requirements?.............................................................................................................................25
(c) What process did you use to determine or adopt established selection processes and
selection criteria, and communicate to vendors to ensure transparency?..................................25
(d) How did you obtain relevant approvals for procurement processes to be used?.................25
(e) Describe at least one problem that had to be solved during your project procurement
activities.....................................................................................................................................26
(f) Discuss how you identified and acted according to probity and project governance
constraints..................................................................................................................................26
(g) Discuss how you communicated agreed proposals and/or specifications to prospective
vendors.......................................................................................................................................26
(h) Discuss how you solicited vendor responses according to proposal requirements..............27
(i) Explain how you evaluated responses and selected preferred vendors................................27
(j) Negotiated with preferred contractors or suppliers...............................................................27
(k) Modifications to the procurement management plan...........................................................28
(L) Monitored and reviewed the procurement process..............................................................28
TASK 3..........................................................................................................................................29
PART A.........................................................................................................................................29
a. The key procurement requirements for this project...............................................................29
b. How information will be sourced from suppliers to determine the appropriate suppliers....29
c. The supplier selection process and criteria which will be established...................................30
d. The approval process for procurement activities...................................................................31
e. The tender process which will be followed if tendering is required......................................32
f. How procurement issues will be reported..............................................................................33
g. Using appropriate language and context for a procurement meeting with stakeholders.......34
h. Applying effective communication skills to confirm understanding of all parties as to the
procurement requirements.........................................................................................................35
PART B.........................................................................................................................................35
1. Create a request for proposal for the Knowledge..................................................................35

2. Research two suitable providers............................................................................................36
3. Procurement Management Plan.............................................................................................37
PART C.........................................................................................................................................39
1. email to the Procurement Director seeking approval for the procurement management plan
39
2. CEO has requested a report for all stakeholders addressing key project requirements
which need to be understood. Concise report outlining the following information:.................39
PART D.........................................................................................................................................40
2 Establish procurement process...............................................................................................40
a How did you identify project procurement requirements?.....................................................40
b How did you obtain information from suppliers capable of fulfilling procurement
requirements?.............................................................................................................................40
c What process did you use to determine or adopt established selection processes and selection
criteria, and communicate to vendors to ensure transparency?.................................................40
d How did you obtain relevant approvals for procurement processes to be used?....................40
e Describe at least one problem that had to be solved during your project procurement
activities.....................................................................................................................................41
f Discuss how you identified and acted according to probity and project governance
constraints..................................................................................................................................41
g Discuss how you communicated agreed proposals and/or specifications to prospective
vendors.......................................................................................................................................41
h Discuss how you solicited vendor responses according to proposal requirements................41
i Explain how you evaluated responses and selected preferred vendors...................................42
j Negotiated with preferred contractors or suppliers.................................................................42
k Modifications to the procurement management plan.............................................................42
l Monitored and reviewed the procurement process..................................................................43
REFERENCES..............................................................................................................................44

TASK 1
Identify criteria that could be used to select vendors or suppliers
A vendor or a supplier is a person who offers with the acquisition and distribution of
products from the producers to the consumer at the same time as a dealer is a person or entity
that makes items and offerings to be had to another entity. Vendor is responsible for selling
offerings to people, business establishments and stores. They also are responsible for maintaining
positive relationship with target audiences in order to strengthen client base. In a company,
vendor plays vital role that to drive new growth and ensure to attain revenue together with profit
goals. Some resources define a dealer as a commercial enterprise or character that make items to
be had to any other enterprise or carrier. By evaluation, a vendor is a business or character who
purchases merchandise from a employer, then sells them to a person else. Suppliers offer the
materials a employer makes use of to produce its personal goods and/or offerings. Suppliers offer
the transportation of those materials. For reducing suppliers’ risks, in terms of unforeseen cost
implications or operations or regulatory compliance, all organisation require increased visibility.
Management of vendor track suppliers and provide the data you need to identify supplier risks so
you can take the necessary steps to mitigate them, or choose an alternative vendor. They easily
track supplier’s information, that comprises of track performance, financials and others.
Without a strong courting with its providers, a corporation can't provide its personal customers
a always excessive nice service or product. A supplier is a company that contributes goods or
services. Generally, a supply chain vendor manufactures stock/inventory gadgets and sells them
to the following hyperlink inside the chain (Adeniyi and et.al, 2020). Today, these phrases confer
with a provider of any goods or service.The different criteria that the respective company, John
Readings could use to select vendors or suppliers are as follows –
Speed and flexibility -Being able to location common, small orders letsthe company
avoid tying up too much operating capital in stock. Flexible providers assist the company
respond quickly to converting consumer demands and unexpected emergencies. If the company
want to cut down the time it takes the company to serve the company customers, providers that
offer the company a quick delivery provider will fee better than people who compete on other
elements - for instance, on charge by myself.

Clear communication and strong service -Communication is crucial in making sure an
awesome operating courting together with the company supplier. From the initial briefing,
through chronic remarks and habitual conferences, the company supplier have to speak openly
and often. The company need the company suppliers to deliver on time, or to be honest and
provide the company with masses of caution if they cannot. It is essential that supplier must
clearly and effectively communicate as it assists in support long-term goals by building a strong
and trusting relationship wherein both parties are comfortable in sharing information as well as
working collaboratively to support business goals. It boils down the fact that with proper
communication among organisational and external suppliers, there are possibilities of bringing
more number of creative ideas on the table that leads to improving whole process.
Value for money –The lowest rate isn't always usually the high-quality value for money.
If the company want reliability and high-quality out of the company providers, the company will
need to determine how much the company willing to pay to the company materials and the
stability the company want to strike among fee, reliability, first-rate and carrier.
Financial Security –It's usually well worth making sure the company dealer has
sufficiently strong coins flow to deliver what you want, when you want it. A credit score check
will assist reassure you that they won't go out of business when you need them maximum. For a
company, assessing financial stability of supplier is significant. Through collecting key supplier
financial information such as revenue, financial references, continuity plans, and third-party
ratings ensures that threats introduced to the business are minimized when partnering with a
third-party firm. With this, business managers determines vendor making money and/or do they
have sufficient capital to support their ongoing operations.
Quality -The first-rate of the company substances needs to be regular the company
customers companion terrible great with you, not the company providers (Alhola and Nissinen,
2018). Less variation in vital process inputs when working with fewer suppliers. Reduced need
for constant monitoring of suppliers and products if the suppliers have proven to be effective at
controlling their output. With effective supplier quality management process allows companies
to effectively audit the supply chain and identify each specific risk. This helps businesses to
reduce risks and avoid potential costly fallout.

Thus, on the basis of the above discussion an analysis can be made that the Price, Quality
of Product or Service along with supporting the appropriate level of the Flexibility & Delivery
Time are tending to be vital while making selection of a vendor. Further, Check References as
well as the Customer Service and implication of the Professional Employees and Professional
Leader are also tend to be vital while the selection of suitable vendor.
2. Explain the following in detail
Probity –Probity is defined as evidence of moral behaviour in organisational strategies
adhering to standards of integrity, transparency and honesty. Probity objectives to keep the
integrity of establishments by way of warding off flawed practises and minimising warfare.
Probity in Governance is a essential want for executing the governance device and socio-
economic development. It is defined as adherence to ethical and moral values like honesty.
Integrity, rectitude, uprightness and many others. It is the presence of procedural integrity with
high standards of ethical behaviour.
Project Governance –Project governance is the control framework inside which
assignment choices are made. Therefore, the position of mission governance is to offer a choice
making framework that is logical, strong and repeatable to govern an agency's capital
investments. Project governance offers path and defines choice-making strategies and metrics for
validating influences to the mission. In a company, it provides direction and defines decision-
making procedures and metrics for validating impacts to the project. It also enables the project
team to deliver on requirements and creates a forum for issue resolution to occur in a timely
manner. Good governance reflects that that procedures and institutions harvest results that meet
the requirements of participants while assembly the best use of resources at their disposal.
It additionally enables the project crew to supply on necessities and creates a forum for
difficulty decision to arise in a timely way. Project governance is a vital element, mainly for
complicated and risky tasks. It carries a framework for making choices about the venture, defines
roles, duties, and liabilities for the accomplishment of the project, and governs the effectiveness
of the mission manager.
Conflict resolution and management -Conflict decision is the process by using which
two or greater parties attain a peaceful decision to a dispute. Conflict might also occur between
co-people, or among supervisors and subordinates, or between service carriers and their