Project Procurement Management, 2015 Fall A procurement management plan based on the assumption of the Taipei101 case Planned and Presented in UCI PM class

1. Project Procurement Management
HungYu Lai (Tina)
Shinichi Akai (Shin)
Izwan Haziq (Izwan)
Chen, Menglu (Cici)
Daogeng Wu (Daogeng)
11/20/2015
Team 1: JAPA TEAM

2. JAPA TEAM
Daogeng Tina Shin Cici Izwan

3. Taipei 101

4. Introduction
• Location
In Typhoon and Earthquake-Prone Area
• Time, HR, Capital, Tech
‘World’s Toughest’ Building by Popular Mechanics
• High Technology
Smart, Energy management and Control system
• Multiple Function
Shopping mall/Office building/Entertainment
center

5. Overview
 Introduction of the Project
 Project Charter
 Scope of Work
 Stakeholder Register
 Work Breakdown Structure (WBS)
 Project Schedule
 Project Cost Baseline
 Risk Register
 Procurement Management Plan
 Conclusion

6. Project Charter
Project Purpose
To build the tallest skyscraper in the world incorporating the state-of-
the-art technology as an iconic prestige for Taiwan Civilization.
Deliverables Constraints
 Property
 Permit
 Design and Engineering
 Material Procurement
 Construction
 Human Resource
 Natural Disaster
 Geography Environment
 Government Permits
 Technology Innovation
 High Altitude Work Hazard
 Time
 Budget
 Quality

7. IN SCOPE
 Property Acquisition
 Permit and License
 Design and Engineering
 Material Procurement
 Construction
 Human Resource
 Inspection
 Utility
 Facilities
 Research
 Simulation and Analysis
 Geological Survey
 Landscape
Marketing
Office Management
Building Maintenance
Tourism Advertisement
Mass Media Publicity
OUT OF SCOPE
Scope of Work

8. Stakeholder Register

9. Work Breakdown Structure(WBS)

10. Work Breakdown Structure(WBS)

11. Contract Types
WBS
Code
Deliverable
Contract
Type
Selecting Reason
1.1 Property FFP
The area and the price of
property is certain
1.2 Permits FFP
Variation and amounts of permit
is certain
1.3
Design and
Engineering
CPIF,
CPAF
New design and technology are
unknown-unknown
1.4
Material
Procurement
FP-EPA Long term supply, index change
1.5 Construction FP-EPA Long term supply, index change
1.6 Human Resource
CPIF,
CPAF
Experts judgment, long term
requirement

12. Project Schedule

13. Budget

14. Project Cost Baseline

15. Risk Register

16. PROCUREMENT MANAGEMENT
PLAN

17. Outline of Procurement Management Plan
 Procurement Management Approach
 Procurement Constraints
 Scope & Contract Types
 Responsibilities and Authorities
 Decision Criteria
 Procurement Documentation
 Procurement Risk
 Supplier Performance Measurement

18. Procurement Management Approach
Procurement
Purchase Flow

19. Procurement Constraints
Characteristic Describe Influence
Scope What should we procurement High
Procedure Direct purchase/indirect purchase Medium
Potential suppliers Alternative suppliers Low
Selection criteria The quality evaluation High
Duration of
Agreement
The time of the contract lasting High
Management tools
The technical use to procure goods and
service
High
Purchaser expert Competence required of purchaser High
Time Deliver schedule High
Transaction costs Deliver cost Medium
Prices Cost of service and goods High
Risks Risks during procurement High

20. Scope of Procurement
SN Item or service Description Constraints (Time) Constraints (Requirements)
Contract
type
01 Construction company Responsible for construction 36 months
Complete within budget and
schedule
FP-EPA
02
Cement manufacturing
company
Supply the cement for
construction
Period supply as request
(36months)
With cement mixer .Strong, dry
quickly and good shape
FP-EPA
03
Pipeline manufacturing
company
Supply the pipeline for
construction
Period supply as request
(18months)
Strong, not easy get rust and
related technical
CPFP
04 Steel Manufacture Supply the steel for construction
Period supply as
request(36months)
Strong, different types as demand. CPFP
05 Taipower
Supply the electric power and
monitor the electric net
After electric net
completion(36months)
Continuing supplying electric
without frequent break down
CPFP &
FPIP
06 Taipei Glass
Supply the glass as different
requirement for construction
After glass facilitate
completion(9months)
Meet the requirement of national
file GB/T 2680-94
CPFP
07 Water supply
Supply the water and water
pipeline net building
After water net
completion(3months)
Continuing supply and pure water CPFP
08 Light
Responsible for the lights supply
and testing
When need light installment
The service life of light should be
followed to relevant standards
FFP
09 Room design company
Supply the service of room
structure designing
At first phase of designing
2month
Meet the requirement of different
functions
FPIP
10 Painting company
Supply the service for walls
painting
After constitution of frame Odorless and healthy for people T&M
11 Clean company
Supply the service for total
cleaning after completion
After everything completion
half month
No besmirch on walls, floor and
glass, Fresh air
T&M

21. Responsibilities and Authorities
SN Name & role Responsibilities Limitation
01
Izwan Haziq Bin Yaacob
(Project Manager)
 Authorization of entire project
 Sign purchase orders up to limit
 Co-sign purchase orders
Above $10 million
02
MengLu Chen
(Cost Manager)
 Audit Compliance
 Sign purchase orders up to limit
 Co-sign purchase orders
Above $1 million
03
Shinichi Akai
(Procurement Manager)
 Procurement Contract Reporting
 Sign purchase orders up to limit
 Supply Chain Management
Above $500 K
04
Daogeng Wu
(Account Manager)
 Provide purchasing performance
 Sign purchase orders up to limit
 Source and expedite orders
Above $100 K
05
HungYu Lai
(Marketing Manager)
 Provide purchasing performance
 Provide product and market research
Below $100 K

22. Decision Criteria
Our needs Description
Speed
Speedy procurement process, e.g. a desire to have the project completed as soon as
possible.
Cost Certainty
Price and the stipulated time and knowledge of how much the client has to pay at each
period during the construction phase. A reduction in unanticipated extra cost over-run
Time Certainty
Degree of certainty that the project will be completed on the date, which is agreed by
client and contractor when signing the contract. A reduction in unanticipated extra
time over-run.
Flexibility Ability to accommodate design changes during both design and construction periods
Responsibility
An involvement in, and a need to be kept informed about, the project throughout its
life
Complexity
Client may specify innovative design/ high technology building and require particular
subcontractor, or constructability analysis
Quality level
Contractor’s reputation, aesthetics and confidence in design. A building which reflects
the clients activities and image
Risk Allocation /
Avoidance
A wish to identify risks and uncertainties during the procuring process
Price
Competition
Covering such issues as value for money, maintenance, costs and competitive
tendering.

23. Procurement Documentation
 Site requisition order form
 Request for quotation
 Purchase order/contract
 Procurement evaluation form
 Information of sellers
 Contract statement of work
 Proposed terms and conditions of the contract

24. Procurement Risk

25. Supplier Performance Measurement
Input Definition
Work Performance
Reports
 Seller-developed technical documentation
 Other deliverable information according to
the terms of the contract
Work Performance
Information
 Seller performance reports
 Indicate deliverables completed or not
Work Performance
Data
 Extent quality standards satisfied
 Costs incurred or committed
 Seller invoices paid

26. Conclusion
• Project is more complex, procurement is more
important area. We can avoid a lot of risk by
procurement management as selection contract
type and suppliers and so on.
• Procurement Management is the key of success in
the project. Sometimes, it may change everything.
• Different types of procurement documentation are
used to serve the important aspect of the
organizational element in the project process.

27. Conclusion
• Procurement management control most resources
we use in one project. We do procurement to
transfer risks and achieve the goal of our project.
• As a project manager, procurement are like
steering wheel towards desired CPI and SPI.

28. THANK YOU