Project Management: Application of PMBOK's Procurement Processes

This project management assignment delves into the application of the PMBOK's three procurement processes: plan procurement management, conduct procurement, and control procurement. The assignment uses the example of tendering as an effective tool for vendor selection. It identifies the key steps in each process, including identifying procurement requirements, soliciting proposals, evaluating bids, and managing contracts. The project also analyzes the positive and negative aspects of procurement management, such as the benefits of centralized procurement and the importance of supplier relationships. The document highlights how procurement professionals handle purchasing details, establish procurement policies, and negotiate contracts. It discusses the role of procurement managers in evaluating suppliers, ensuring consistency, and utilizing data-driven decision-making. Finally, it considers the impact of these processes on project success, emphasizing the need for effective subcontractor management and the importance of maintaining a robust supply chain.

Running head: PROJECT MANAGEMENT
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Name of the Student
Name of the Organization
Author Note

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Application of the PMBOK's 3 processes of project procurement
The project which has been done is basically “Tendering as an effective tool for vendor
selection”. Tendering is considered to be as an effective method which is used for purchasing the
materials which are essential both in the private as well as in the public sectors. These
procedures mainly tends to protect both the bidder’s as well the purchaser’s interest and further
helps in reinforcing the openness concept when the involved parties are satisfied. The project
requires some form of purchasing which is external for meeting the goals. Execution of the
procurements for fulfilling the project needs falls under the area of knowledge of the
procurement management of the project. Contractors are seen to have better experience and
provide a better product quality (Snyder, 2013). Delivery of their part of work on time needs
active involvement of the manager of the project. Sub-contracting which are successful needs the
knowledge of the contract types which are available and how to write them.
The three main processes of the project procurement of PMBOK mainly includes the
management of plan procurement, procurement of conduct and lastly the procurement if control
(Ojeda & Reusch, 2013).
During the planning phase of the project the procurement requirements of the project are
at first identified. For each and every external requirement of vendor, a work statement is
composed which is seen to be known by a number of names but mostly serves as a statement in
written form of what type of work the contractor is going to do. The documents of procurement
mostly comprises of a proposal request, tender invitation and the work statement is involved like
an attachment (Karaman & Kurt, 2015). In this way, it forms the guiding document to the team
of the project. The more specific the guiding document is, better is the definition of the

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boundaries of the work of each organization. The processes which are used in soliciting the
proposals and the criteria of decision making are mainly determined at this particular stage. The
most potential sellers are identified and the vendors which are preferred are contacted. All of the
above data and information are included into the plan of procurement which forms the subset of
the entire management plan of project (Nasir et al., 2015).The inputs of management of the
procurement of plan includes the business documents, management planning of the project,
documents of the project, environment factors of the enterprise and all the process assets of the
organization. The tools and the techniques which are utilised are the judgements from the
experts, gathering of data, analysis of data, selection analysis of the source and meetings (Kim,
Jeon & Kim, 2015). On the other hand, the outputs include procurement plan of management,
strategy of the procurement, procurement of the work statement, criteria of source selection,
independent estimates of the cost, changing requests, updates of the project documents and assets
of the organizational procedure.
During the procurement of conduct, the procurement requirements of the project are
properly identified and all the procedures of the procurement are determined and finally the
procurements are executed (Crawford, 2014). Proposal requests or the tender invitations are sent
out and all the responses which are driven are an analysed properly. All the agreements which
are to be made are signed and the plan of project management is updated with a new budget and
information schedule which are got from the vendor. The inputs in this case include management
plan of scope, requirements, communications, risk, procurement, configuration and the baseline
of the cost. Others are the documents like register comprising of the learned lessons, schedule of
the project, documentation of the needs, register of the risk and of the stakeholders. The tools or
the techniques which are used include advertising, judgement from the expert, evaluation of the

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proposal and negotiations. The outputs are basically the sellers which are selected, agreements
which are done, requests which are changed, several updates of the project management and
process assets of the organization.
In the third process which is the control procurement, it is seen that in case of a poor
management of the subcontractor both the budgets as well as the schedules moves out of control
and can derail the project when others are executed flawlessly. During the regular interval of the
status of the project the manager of the project reviews the agreements of the subcontractor,
updates of the progress and information of the performance of the work for making sure that all
the subcontractors are on pace for meeting their budget and the commitments of the schedule. It
has been noticed that if the subcontractors cannot manage their part of work, everyone fails
including the organization (Rehacek, 2017). Therefore, the manager of the project remains aware
of the subcontractor’s status of the work and the proper changes in the request and the plan of
project management updates as fast as possible. The inputs of this process is similar to that of the
second process as per the management plan of the project is considered. The documents which
are required at this process include the log of assumption, reports of the quality, traceability
matrix of the requirements and register of both the risk and the stakeholder. Others inputs are
agreements, changed requests which are approved and process assets of the organization. The
tools and the techniques which are needed are the administration claim, analysis of data,
inspection and audit. Lastly the outputs are the procurements which are closed, information of
the performance of the work, updates of the procurement documentation and the updates of the
project documents.

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Analyze the positive and negative aspects of project procurement as
applied to your project
The professionals of the procurement mostly handles the purchase procuring details at the
most optimal prices. The establishment of the procurement policies as well as procedures which
are consistent enables the business in aligning the strategy of buying to the goals as well as
objectives which are long termed (Hwang, Zhao & Gay, 2013).The role of the managers of
procurement is the identification of what to purchase, complete the orders of purchase, negotiate
the times of delivery, services obtained from the suppliers and also accepts as well as reviewing
and approving the payments from the suppliers. Management of procurement which is
considered to be as the function which is centralized have both negative and positive impacts.
In case of obtaining the best price, the positive side is that the managers of procurement
consolidate the multiple department’s request of ensuring a single order of purchase as well as
the vendor meets all the requirements of the whole company. This mostly minimizes the time
taken for processing the requests (Bryde, Broquetas & Volm, 2013). The professionals of the
procurement which are successful are responsible for developing a good relationship of working
with the vendors and also have the ability in negotiating for obtaining the deal which is
considered to be the best. On the other hand, the negative side is that while working with the
limits of a single vendor always limits the ability of the company of shopping around for
different products as well as solutions which addresses a variant set of requirements.
The professional managers of purchasing as well as the buyers and the agents buy the
products for use or rather resell for the entire company which typically results in an overall
positive advantage (Khodakarami & Abdi, 2014). The managers of procurement develop an

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expertise which is specialized for evaluating the suppliers on the quality and the speed of
delivery. In case of developing exercise, the positive side is that the professionals of procurement
knows well about interviewing vendors and examining the quality at the centers of distribution as
well as at the factories (Yeheyis et al., 2013).The negative side is that if by chance the
requirement for purchasing of agents minimizes then these roles which are specialized becomes
totally unnecessary and thereby represents a burden in finance to the business.
In case of negotiating contracts, all the effective professionals of the procurement mainly
negotiates for the deal which will be best by directly identifying the needs of the company and
thereby establishing the position of contracts which will be most advantageous. These specific
managers are responsible for evaluating as well as monitoring both the products as well as the
services on a basis which is ongoing for ensuring all the results or the outcomes to comply with
all the terms as well as the conditions. On the other hand, the managers of procurement meets the
vendors for discussing about the products which are defective or the services which are
substandard. Thus, by maintaining as well as reviewing a record of purchases which will be
formal and the performance of the product, the managers of procurement are able to properly
monitor the performance. In this way an effective chain of supply is ensured.
In case of maintaining consistency, several robust policies of procurements as well as
procedures help the business a lot in maintaining both the consistency as well as quality. The
managers of procurements have been seen to have been working with some vendors which are
out of convenience as well as habit (Mesa, Molenaar & Alarcón, 2016). All the opportunities
which are new as well as the policies and the procedures of the company may be so inflexible
that no advantages can be taken. As there is an increase in the use of information technology, the

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managers of procurement focus on the utilisation of data for making plans as well as discussions.
The purchases which are complex requires both personal skills as well as experience.

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References
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Karaman, E., & Kurt, M. (2015). Comparison of project management methodologies: prince 2
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