Procurement Management Plan: Canberra Hospital Kiosk Project Analysis

This report presents a detailed procurement management plan designed for the Canberra Hospital Kiosk project. It begins by outlining the necessary processes, including the formation of a procurement team, item requirements, supplier selection, bidding, and contract selection, with a specific focus on a fixed-price incentive contract. The report then delves into risk identification and management, emphasizing the importance of addressing potential issues such as lack of security, misuse of data, and skill gaps within the team. Furthermore, it identifies potential conflicts and ethical issues, such as unprofessional leadership and communication gaps, and proposes mitigation strategies including open communication and the establishment of a steering committee. The report concludes with a bibliography of relevant sources.

Running head: PROCUREMENT MANAGEMENT PLAN
Procurement Management Plan
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1. Process can be used to change the project manager and outsourcing 50% of
the work to TECH2019
In order to improve overall performance of the system designed and implemented by
Canberra Hospitals in their reception desk, processing professional procurement management
plan is also mandatory. The procurement process designed for the project deals with change of
the existing project manager and an outsourcing of 50% work to TECH2019. Though, it will
save the rate of money expenditure but can cause challenges as well. It is mandatory for the
project associates to design a very effective and unique procurement management plan that has
to be followed by all the project team members. The details of the procurement planning
processes are elaborated in the below section:
Formation of procurement team: Before initiation the project head requires to assign a
project team. The authorized participants names should be enlisted, who will also take part in the
decision making processes. For this particular project, the resources who will be assigned in the
project team include project manager, human resources, project analyst, testers, quality assurance
specialist, programmer and project rollout worker etc. As 50% work is outsourcing from
TECH2019 therefore before assigning a project team individuals skills and knowledge must be
measures considering performance measurement matrix.
Item requirements: Several level of information needs to be gathered about each of
equipment required. Based on their type of the project a list should be prepared categorizing
tangible assets, hardware equipments software license etc. apart from that pertinent information
such as size, specs, quality and technical requirements should be considered before purchasing
any new item. The purposes for which the items will be bought and the items that are necessary

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to complete the project are required to be identified by the project team members at the initial
stage. A timeline must be set for completing the product purchase. Effective purchase plan will
also leverage bulk amount of purchase for different departments over the contract length.
Selection of supplier: Then based on the project aim, functional and non functional
requirements the project head should compare all the possible similar suppliers. Based o the
comparison result the most suitable supplier should be selected. The specifications for bidding
are also highlighted in this phase.
Bidding and acceptance: The procurements department of the project issue a request
rather proposal elaborating the project needs and clients requirements. The response from
suppliers will help the project team members outlining the cost, schedule and delivery time
details. As TECH2019 accepts the RFP a breakdown is done that include quality, cost, vendor
history, schedule and comparison of cost for outsourcing and in-sourcing.
Selection of contract: Different types of contract are there such as fixed price, fixed
price with incentives, Cost-reimbursable contract, Fixed-Price with Economic Price Adjustment
Contracts etc. Among these contracts for the Kiosk project of Canberra Hospital the best suited
contract type that should be chosen is fixed price plus incentives. This contract negotiates price
based on the contracted goods and services.
Risk identification and risk management: In order to evaluate this project, most
important knowledge area on which the project manager and the project team members needs to
put their focus is risk management. Before final initiation of the project proper risks are to be
identified. After that their impact, possibilities of occurrences are also needed to be identified.

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Based on the consequence most appropriate risk mitigation strategy should also be planned in
this phase.
2. Identification of consequences for the change
This system will increase the work efficiency by reducing the issues o additional time
consumptions. For offering urgent care to the patients and speed up both the functional and
operational processes the hospital authority has planned to newly set up the Kiosk. For
accomplishing this project a proper procurement plan is necessary. Procurement planning for any
project deals with questions like what, when how to purchase, which to purchase etc. This
process is conducted at the early project development period to make sure that all the needful
actions are being taken while implementing and initiating project. However, the consequences
that may occur are as follows:
Lack of security and privacy: If proper security and privacy measures are not
considered then the confidentiality of the information will be interrupted. In order to restrict the
use only among the authorized users proper privacy mechanism are needed to be adopted by the
project heads at the initial phase.
Misuse of data: If any information get hacked by unwanted and unauthorized users and
if they misuse those information then that will also case major issue for the company.
Lack of skills: Insufficient concern in team selection process can result weak project
team. Lack of skills and knowledge of the project team members will fail to meet the objective
and result higher cost and time consumptions.

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3. Major conflicts and ethical issues may arise
Unprofessional leadership behavior: If the leaders fail to engage all the project team
members then conflict will arise.
Communication and cultural gap: If the project associates come from different region
and cultural background then major communication gaps may arise.
Lack of employee rights: In order to keep the employees engaged to their duties some
empowerments should be given to them in term of reward and incentives. If these lacks then the
employees will not feel motivated while accomplishing their job roles.
4. Conflict and ethical issues mitigation strategies
Open communication: In order to resolve the issues of organizational conflict and
ethical issues the most suitable approach that has to be implemented by any project owner is
open communication. Open communication techniques provide a common platform to all the
project associates where they can share their ideas and innovative plan to rest of the project team
members.
Organize a steering committee: A steering committee should be developed who will
take all the project beneficial and effective decisions.
Collaborating and accommodating: It is the responsibility of the project manager and
project team members to accommodate and collaborates all the members so that they can keep
themselves engaged to the job roles and responsibilities during the outsourcing of TECH2019.

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Bibliography
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management: A structured literature review. International Journal of Project
Management, 35(3), 353-377.
Handfield, R. B., Primo, M., & Oliveira, M. P. V. D. (2015). The role of effective relationship
management in successful large oil and gas projects: Insights from procurement
executives. Journal of Strategic Contracting and Negotiation, 1(1), 15-41.
Heldman, K. (2018). PMP: project management professional exam study guide. John Wiley &
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Jo, S. H., Lee, E. B., & Pyo, K. Y. (2018). Integrating a Procurement Management Process into
Critical Chain Project Management (CCPM): A case-study on oil and gas projects, the piping
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Aligned with the Standard for Program Management, (2013) and Other Best Practices.
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to project management. International Journal of Project Management, 35(2), 169-179.
Sullivan, M., Houghton, J., Battey, R. L., & Gresham, S. (2017). Improving Federal Transit
Administration Vehicle Procurement in Mississippi (No. FHWA/MDOT-RD-17-274, 274).
Mississippi. Dept. of Transportation.

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