Duration

5 days

OVERVIEW

This course is designed for project managers who will have procurement responsibilities and for those who will interact with designated procurement professionals. The objective of Project Procurement Management is to prepare the project manager and project management team to effectively manage the procurement and contracting aspects of a project. The course begins with introductory sections explaining legal concepts of contracts and contract pricing. Then the Project Procurement Management Knowledge Area processes are presented: Plan Procurements, Conduct Procurements, Administer Procurements, and Close Procurements. The processes in Project Procurement Management are initiated early in the project - with a procurement management plan - and are ongoing throughout the life of the project. You will learn the skills needed to effectively manage vendors. Through hands-on exercises, you'll develop an integrated understanding of how vendors are chosen, motivated and managed.

BENEFITS

Procurement life cycle and its relationship to vendor management
Three pillars of vendor management success
Importance of carefully exchanging commitments
Elements of contracts, statements of work (SOWs), and service level agreements (SLAs)
Variety, function, and components of vendor agreements
Change control procedures and governance practices
Negotiating techniques that support productive working relationships
Role and function of performance metrics, key performance indicators (KPIs), and vendor performance scorecards
Managing vendor relationships as the key to success
The vocabulary, and fundamental concepts of procurement and contracting
Project procurement and contract management methods, tools, and techniques
The various types of contracts and pricing models, their strengths and weaknesses, and when to use them
Procurement and contract management issues from the unique perspectives of the buyer and seller
An Operational Model for Procurement and Contract Management — Understand operational definitions, terms, concepts, and techniques

WHO SHOULD ATTEND

The course is appropriate for mid-level system engineers and project managers, as well as senior project managers, senior technical specialists, and lower-level engineers. Although some examples provided are from the aerospace industry, the principals covered apply equally to the project risk management challenges for both aerospace and non-aerospace organizations.

BASIC OF PROCUREMENT MANAGEMENT

COURSE OUTLINE

DAY 1Module 1 – Overview of IT Procurement & Vendor Management

Introduction to Procurement & Vendor Management
The Procurement & Vendor Terminologies
The major areas of Procurement & Vendor Management
Types of Procurement Methods
Procurement & Vendor Management Success
Procurement Life Cycle vs. Vendor Management
Three Pillars of Procurement & Vendor Management Success
Commitments, Relationships, Metrics
Strategic fundamentals of a buyer
Critical issues for consideration in developing procurement strategy
Exposure and coverage on IT product and service providers
Common Hybrid Offerings
Flexible bundle
Peace-of-mind bundle
Multi-benefit bundle
One-stop bundle

Module 2 – IT Procurement & Vendor Cycle

Implementing procurement management plan
Procurement & Acquisition planning
IT Contract Structuring
Bi-lateral Contracts
String Contracts
Parallel Contracts
Tri-lateral Contracts
Project Consortium Contracts
Requirement to purchase
Plan the process
Prepare the documentation
Identify possible suppliers
Issue/Receive back the tender/quotation documentation
Evaluate the submissions
Negotiation - High Value Negotiation planning
Procurement & Vendor Business Process Management
Procurement & Vendor Management Planning
Strategic Alignment for the Procurement & Vendor Manager

Module 3 – Major Skills for IT Procurement & Vendor Management

Skills for Procurement & Vendor Management & Executives
Capital Investment Appraisal

Module 4 – Risk Management of IT Procurement & Vendor

Guidelines for procurement & vendor audit manual
Procurement & Vendor Risk Auditing
Procurement & Vendor Risk Prioritization and Categorization
Effective Negotiation in procurement
Procurement & Vendor Performance Management
Supplier Development Programming
Procurement & Vendor Administration
Strategic Supplier workshop development
International Sourcing and E-Procurement
Procurement Management technological development
Introduction to Electronic Procurements
Supplier Management Integration System

Module 5 – Stakeholders of IT Procurement & Vendor Management

Stakeholders Analysis, Planning, Prioritization techniques
The Role of the Buyer in the Supply Chain
What exactly is the Supply Chain Management?
How the Supply Chain works
The logistics of procurement in the Chain
The buyer’s influence on the Supply Chain
Common mistakes in Procurement & Vendor Management and solutions
Legal Issues
Terms-of-reference for contract of service
Effective Contract Management

Module 6 – IT Contract Administration

Business opportunity, Return on investment, Competitive advantage
Comprehensive contract information forms
Electronic scanning & storage of contract documents
Automatic notification of contract expiry dates
Incurring penalties when contracts expire
Higher costs as current processes prevent effective supplier comparison
Reduced supplier negotiating power due to lack of information

Module 7 – Key Performance Indicators of IT Procurement & Vendor Management

Optimize existing Procurement & Vendor Models
Costing models - the Total Cost of Ownership
Contracting with reduced supplier base
Financial Skills for Procurement & Vendor Executives
Formulas for Winning Highly Competitive Bids
Project Management & Procurement – Vendor Analysis

Module 8 – Framework & Methodologies of IT Procurement & Vendor Management

Deployment Processes - Requirements determination, Acquisition, Contract fulfillment
Management Processes - Supplier management, Asset management, Quality management
Key IT Procurement Management Issues
Process Management, Design, and Efficiency
Measurement, Assessment, Evaluation
External Relationships [ER] and Internal Relationships

Module 9 – Metrics and Continuous Improvement Processes for IT Procurement & Vendor Management

Organizational Procurement & Vendor Metrics
Focusing on the Best Metrics not the Easy Ones to Collect
Application of KPIs
Role of the Responsibility Assignment Matrix (RASCI)
Score Cards and Vendor Performance Reporting
Balanced Score Cards
Continuous Improvement Processes
Various Sources of Vendor Related Risk
Manage Discrete Vendor Risks
Apply Risk Minimization Guidelines

Module 10 – Closure, Reporting & Retrospective on IT Procurement & Vendor Management

Tracking the performance of procurement & vendor’s organization over time
Tracking their performance in comparison to their peers
Efficiency - did we buy “right” in terms of the processes we used?
Effectiveness - did we buy the right thing to meet end users’ needs and are they using the goods and services appropriately?
Developing these performance indicators
Implementing procurement strategies in swapping different vendors

NOTE

Activities on case study, brainstorming, high team interaction and role-plays will be incorporated during training session with all participants to further facilitate and strengthen candidates understanding on IT Procurement & Vendor Management concepts and methodology in an overall manner.

Programme scope, delivery arrangements and suitability are confirmed during enquiry.

IT PROCUREMENT & VENDOR MANAGEMENT