Enterprise Project Management: Procurement Plan for Four Seasons

This document presents a detailed project procurement plan developed for Four Seasons Hotel. The plan outlines the introduction and purpose of procurement management, emphasizing the acquisition of technological augmentation devices for hotel rooms and facilities. It details procurement standards, vendor selection processes (including background checks and Tecma vendor management services), accounting requirements, and the utilization of lump-sum contracts. The plan addresses potential risks, performance metrics, and cost determination methods. It also covers the management of suppliers, decision-making criteria, and the procurement of items such as iPads, sensors, and software services, with a timeline of approximately 20 days. Standardized documents like the Statement of Work (SOW) are to be used. The document includes details on contract approval processes, constraints, and directions to sellers, as well as establishing agreements related to deliverables and deadlines, including penalties for non-compliance. The plan ensures the best quality of resources are purchased at reasonable prices. The procurement manager will undertake the procurement and vendor selection process, ensuring materials meet Four Seasons' quality standards.

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
The Project Procurement Management Plan
The Project Title
The Organization Name or Business Unit Name or Department Name
The Project Solution
Authors Name:
Date:
Student Name:
Course Name:
Course ID Number:
Team Name and Number:
Date:
1

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Introduction and Purpose
Procurement management plan is defined as the process by which the resources required for a
project are procured from a chosen vendor. Once the list of resources is developed for the
project, it is handed over to the procurement department who then places the order to suitable
vendors.
The purpose of procurement is to purchase the resources required for the project at the lowest
possible price but also not compromising with the quality of the resources. In this project,
technological augmentation devices need to be purchased that will installed within the hotel
rooms and other facilities. The procurement will be based on a contract-based agreement and
the vendors will need to deliver the resources within time and in good condition.
Four Seasons will utilize contract based process for procurement of specific materials and
resources required for the project. The procurement standard specifications for the project are
as follows.
Procurement Standards – Four Seasons will utilize SAP platform for procuring software based
services from the vendors. The hardware and other technical devices will be purchased from
reputed vendors who sell the best quality branded products at best possible prices. In addition,
there is an organisation named Tecma who assists organizations in selection of appropriate
vendors and also reduce costs of sourcing supplies. This vendor management service will be
utilized for this project.
Vendor Selection Process – For the procurement of material resources (including new
technological devices), the vendors will be chosen through detailed background check including
reputation and customer reviews.
Accounting Requirements – The business analyst will be assigned to collect all vendor related
information in order to add the vendors to the accounts database.
Contract Type – Lump Sum.
Risks – Risks will be covered through the terms of contract.
Performance Metrics – These will be determined through standard benchmarks that have been
released. For the hardware, the performance metrics will include the latest updated versions
with best and uninterrupted performance compared to other similar products available.
Cost Determination – It will done through analysis of standard market prices.
Management of Suppliers – It will be done by the procurement manager.
Decision Making Criteria – Decisions will be taken considering its impacts on scope, time and
cost.
Items to be procured with justification statements and timelines – Items to be procured include
iPads, sensors and software based services in order to enhance the experience and convenience
of the customers. The procurement process is expected to take around 20 days.
Standardized procurement templates or documents to be used, such as the SOW – Statement
of work will be used to determine the total number of devices and sensors required for the
project and place order to the vendor for the same.
2

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Contract approval process – Contract will be approved once the terms are agreed between
both parties with both getting beneficial conditions. Furthermore, the background of the
vendor will also be verified before approving the contract.
Any constraints pertaining to procurement – Constraints may include insufficient stock of
resources at the vendor’s warehouse or sudden rise in market price of the devices.
Direction to sellers on requirements such as schedules – Sellers must deliver the ordered
products within time allotted. In case of additional time required due to unavoidable
circumstances, the sellers must inform the management at least a week early.
Vendor Management – Vendor management will be done with the assistance of Tecma,
Mexico.
Identification of any prequalified sellers if applicable – Not applicable, since it is a new project.
Establishing agreements related to deliverables and deadlines – Failure to meet deliverables
and deadlines will incur penalties.
Procurement Management
Procurement management is defined as a process by which the procurement of resources is
controlled such that the best quality of resources is purchased at reasonable prices such that it
does not affect the project budget negatively. For this project, technological devices will need
to be procured from reliable vendors and the entire procurement process must be done
through lump sum contract based. Before handing out contract, the vendor should be selected
with specific focus on the background, reputation and customers’ review. The products chosen
for procurement must be of suitable benchmark quality and the prices also should not exceed
the current standard market prices. The procurement manager has been assigned to undertake
the procurement and vendor selection process who will also ensure the procured materials
meet the quality standards for Four Seasons.
Procurement Definition
Procurement is defined as the process by which the resources required for a project are
purchased from a suitable vendor. For small quantities of resources, the orders are directly
placed to the selected vendors. However, for bulk quantities, the process is much more
complex and time consuming. Vendors are generally chosen through tendering process and the
budget for the order is finalized based on contract that both parties need to sign. For this
project, the orders should be placed to the vendors on lump sum contracts. The technological
devices to be installed must be of standard benchmark quality and they also must fulfil the
requirements of scope and budget for the project.
Once the required resources are determined, the procurement deadlines and conditions need
to be set. These conditions and deadlines will have to be agreed with the vendor and duly
signed in the contract once the listing of resources is completed. When all the terms and
conditions are agreed and signed, the order will be placed for procurement.
3

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Contract Types
Procurement Risks
Procurement Risk Management
Cost Determination
Procurement Constraints
Contract Approval Process
Vendor Management
Performance Metrics
Approvals
Prepared by__________________________________
Project Manager
Approved by__________________________________
Project Sponsor
4

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
___________________________________
Executive Sponsor
5