Procurement Management: PMBOK vs Organization's Procurement Process

This article discusses the similarities and contrasts between PMBOK project procurement process and procurement process used in the organization. It also explains the alignment of procurement process of the organization with the conventional procurement process in the PMBOK.

Running head: PROCUREMENT MANAGEMENT
PROCUREMENT MANAGEMENT
Name of the Student:
Name of the University:
Author Note:

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Statement of Work:
 Background: The project is concerned about the development of the software. The
software is an online ticket booking system software which will help the users to book te
tickets online. The ticket booking system can be used by different organizations like the
railway system, bus service.
 Objective: The main objective of developing this software is to make the ticket booking
system easy for the users. Apart from that, the organizations using this software will
manage the accountability of the selling of the tickets.
 Scope of the work: The development is estimated to be completed within one year. The
project development will include all the stages of the project life cycle. Apart from that
the procurement management is also included as the developed software is going to be
used commercially. In this case, the agreement between the supplier and the vendor is
need to be managed in right order.
Similarity between key elements of PMBOK project procurement process and the
procurement process used in the organization:
PMBOK project procurement Procurement process used in the organization
Planning: Planning phase consists of making the
blue print of the project procurement management
plan. In this phase the deliverables for the
procurement process are initiated. The choosing of
The planning phase is presented in the management
of the procurement in the organization.

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the procurement method such as request for price,
payments along with the decisions about the
selection of the suppliers and vendors are made in
this stage.
Monitoring and control: Monitoring and the control
phase is concerned about the navigation and the
observation of the executed plan in the
procurement management. The monitoring phase
observes the executing states of the project. The
monitoring is done by the team leader or the project
managers.
Monitoring and control of the project procurement
planning has been done in this project through the
managing of the procurement plan. The monitoring
is concerned about the observing the functionality
of the project. The monitoring is done by the team
leader. Team leader reports the findings to the
project manager.
Closing: Closing of the procurement plan has been
done through the ending of the procurement plan.
The decision about the closing of the project is
taken by the project manager.
The planning adopted by the organization for the
procurement management has no formal closing
mentioned (Ferri et al.,2016). However, the process
becomes stable after selection of the bidder.
Contrast between key elements of PMBOK project procurement process and the
procurement process used in the organization:
PMBOK project procurement Procurement process used in the organization
The decision over the type of the contract has not
been treated as the separate stage in the
procurement management planning (Larson and
Gray 2015). It has been included in the planning
phase. Initially there are five steps in the PMBOK
Decision over the type of the contract has been
included as a part of the procurement management
in the organization. The procurement management
process in the organization has the following steps-
planning, selection of the vendor, procure,

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project procurement- Planning, Alignment ,
procure, manage and closing of the procurement
process.
management, closing of the process.
Execution phase is presented in the conventional
procurement management plan where the blueprint
created in the planning phase is executed.
The procurement management process
implemented in this organization does not have any
conventional execution plan (Larson and Gray
2015). Rather it emphasizes on the managing of the
processes present in the procurement planning.
Monitoring and control phase is concerned about
the observation of the executing processes.
The monitoring and the control phase are not
presented in this procurement management
planning of the organization (Ferri et al.2016).
However, this step has been replaced by the
management of the procurement planning.
Closing stage of the procurement management
planning is present in the conventional procurement
management plan.
There is no conventional closing phase in the
procurement management planning adopted by the
organization (Ferri et al.2016). However, the last
stage of the procurement management plan is the
selection of the bidder.
Alignment of the procurement process of the organization with the conventional
procurement process in the PMBOK:
There are certain steps similar to the steps mentioned in the PMBOK. Some of these steps
are the planning and the management and control of the procurement management planning.
However, there are certain steps like the bidding process, selection of the contract are not

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mentioned in the conventional PMBOK procurement management planning (Lindstrom,2013).
The change in the procurement management planning in the organization supports the
requirement of the project (Larson and Gray 2015). The project procurement of the organization
needs the right selection of the bidder and the vendors. The modification of the procurement
planning in the organization works well for the section of the bidder (Larson and Gray 2015).
The modification merges the advantages of the project procurement planning in the PMBOK as
well as fulfills the requirements of the organization.
However, there are something that does not go well with the modification of the planning
(Naoum &Egbu, 2015). There are certain stages like the execution and closing of the
procurement planning are missing the modified version used by the organization. This brings the
lack of definition in the planning.

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References
Ferri, L. M., Oelze, N., Habisch, A., & Molteni, M. (2016). Implementation of responsible
procurement management: an institutional perspective. Business Strategy and the
Environment, 25(4), 261-276.
Journals. Procedia Economics and Finance, ISSN: 2212-5671, Vol: 21, Page: 6-13
Larson, E.W. and Gray, C.F., 2015. A Guide to the Project Management Body of Knowledge:
PMBOK (®) Guide. Project Management Institute.
Lindstrom, D. (2013). Procurement project management success : achieving a higher level of
Naoum, M., &Egbu, C. (2015). Critical Review of Procurement Method Research in
Construction