Topic: Project Management, Referece: PMBOK 5, PMI. Degree: MBA, Syllabus: Alliance University. Date : Jan 2015. Please note: This was prepared as a teaching aid. Not for commercial purposes. Sharing to spread the knowledge of Project Management. Note : Copyright belongs to respective owners. List of top references used to prepare these slides given. If you have any questions, comments, improvement suggestions, Email to: niranjanakoodavalli@gmail.com

1. Project Management
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Prepared by - Niranjana K R for Alliance
University
Chapter 12: Project Procurement Management
Faculty: Niranjana K R
B.E., QA Professional, Six Sigma Black Belt, LA for ISO 9001 and AS 9100 Rev C, Member of PMI & QCFI

2. Chapter 12: Topics
Introduction to Project Procurement Management
12.1 Plan Procurement Management – Inputs, Tools and Techniques, Outputs
12.2 Conduct Procurements – Inputs, Tools and Techniques, Outputs
12.3 Control Procurements – Inputs, Tools and Techniques, Outputs
12.4 Close Procurements – Inputs, Tools and Techniques, Outputs
Refer : Annex A1 – The Standard for Project Management of a Project – P 417 – 461 to understand
interactions between these processes and other knowledge areas.
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3. 12 Project Procurement Management (1 of 2)
• Project Procurement Management includes the processes
necessary to purchase or acquire products, services, or results
needed from outside the project team. The organization can be
either the buyer or seller of the products, services, or results of
a project.
• Project Procurement Management includes the contract
management and change control processes required to develop
and administer contracts or purchase orders issued by
authorized project team members.
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4. 12 Project Procurement Management (2 of 2)
• This also includes controlling any contract issued by an outside
organization (the buyer) that is acquiring deliverables from the
project as well as the performing organization (the seller), and
administering contractual obligations placed on the project
team by the contract.
• Figure 12-1 provides an overview of the Project Procurement
Management Processes.
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5. 12.1 Plan Procurement Management (1 of 3)
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6. 12.1 Plan Procurement Management (2 of 3)
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• This is the process (Figure 12-3) of documenting project
procurement decisions, specifying the approach, and
identifying potential sellers.
• Key benefit – of this process is, that it determines whether to
acquire outside support, and if so,
– What to acquire,
– How to acquire it,
– How much is needed, and
– When to acquire it.

7. 12.1 Plan Procurement Management (3 of 3)
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• Project needs are identified.
• Decision on how those needs can best be met - Make or buy.
• This process is performed for each item to be acquired.
• Potential sellers have to be evaluated before bringing on board.
• Plan for procurement is done in accordance with the project
schedule.
• Procurement schedules can affect project schedule as well.
• Risks must be analyzed before making each make or buy decision.
• Identification of type of contract and managing them is also
important.

8. 12.2 Conduct Procurements (1 of 2)
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9. 12.2 Conduct Procurements (2 of 2)
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• This is the process (Figure 12-5) of obtaining seller response,
selecting a seller, and awarding a contract.
• Key benefit – of this process is, that it provides alignment of
internal and external stakeholder expectations through
established agreements.

10. 12.3 Control Procurements (1 of 2)
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11. 12.3 Control Procurements (2 of 2)
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• This is the process (Figure 12-7) of managing procurement
relationships, monitoring contract performance, and making
changes and corrections to contracts as appropriate.
• Key benefit – of this process is, that it ensures that both the
seller’s and buyer’s performance meets procurement
requirements according to the terms of the legal agreement.

12. 12.4 Close Procurements (1 of 2)
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13. 12.4 Close Procurements (2 of 2)
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• This is the process (Figure 12-7) of completing each
procurement.
• Key benefit – of this process is, that it documents agreements
and related documentation for future reference.

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