Plan Procurements Inputs

The Plan Procurements process has eleven inputs:

■ Scope baseline

■ Requirements documentation

■ Teaming agreements

■ Risk register

■ Risk-related contract decisions

■ Activity resource requirements

■ Project schedule

■ Activity cost estimates

■ Cost performance baseline

■ Enterprise environmental factors

■ Organizational process assets

The scope baseline includes the project scope statement that describes the need for the project and lists the deliverables and the acceptance criteria for the product or service of the project. Obviously, you'll want to consider these when thinking about procuring goods and services. You'll also want to consider the constraints (issues such as availability and timing of funds, availability of resources, delivery dates, and vendor availability) and assumptions (issues such as reliability of the vendor, assuming availability of key resources, and adequate stakeholder involvement). The product scope description is included in the project scope statement as well and might alert you to special considerations (services, technical requirements, and skills) needed to produce the product of the project.

As part of the scope baseline, the WBS and WBS dictionary identify the deliverables and describe the work required for each element of the WBS.

Teaming agreements are contractual agreements between multiple parties that are forming a partnership or joint venture to work on the project. Teaming agreements are often used when two or more vendors form a partnership to work together on a particular project. If teaming agreements are used on the project, typically the scope of work, requirements for competition, buyer and seller roles, and other important project concerns should be predefined.

Exam Spotlight

According to the PMBOK® Guide, when teaming agreements are in force on a project, the planning processes are significantly impacted. For example, the teaming agreement predefines the scope of work, and that means that elements like the requirements and the deliverables may change the completion dates, thus impacting the project schedule, or they may impact the project budget, quality, human resources availability, procurement decisions, and so on.

The risk register and risk-related contract decisions will guide you in determining the types of services or goods needed for risk management. For example, the transference strategy might require the purchase of insurance. You should review each of these elements when determining which goods and services will be performed within the project and which will be purchased.

Marketplace conditions are the key element of enterprise environmental factors you should consider for this process. The organization's guidelines and organizational policies (including any procurement policies) are the elements of the organizational process assets you should pay attention to here.

Many organizations have procurement departments that are responsible for procuring goods and services and writing and managing contracts. Some organizations also require that all contracts be reviewed by their legal department prior to signing. These are organizational process assets that you should consider when you need to procure goods and services.

It's important for the project manager to understand organizational policies because they might impact many of the Planning processes, including the Procurement Planning processes. For example, the organization might have purchasing approval processes that must be followed. Perhaps orders for goods or services that exceed certain dollar amounts need different levels of approval. As the project manager, you need to be aware of policies like this so you're certain you can execute the project smoothly. It's frustrating to find out later that you should have followed a certain process or policy and now, because you didn't, you've got schedule delays or worse. You could consider using the "Sin now, ask forgiveness later" technique in extreme emergencies, but you didn't hear that from me. (By the way, that's not a technique that's authorized by the PMBOK® Guide.)

The project manager and the project team will be responsible for coordinating all the organizational interfaces for the project, including technical, human resources, purchasing, and finance. It will serve you well to understand the policies and politics involved in each of these areas in your organization.

My organization is steeped in policy. (A government organization steeped in policy? Go figure!) It's so steeped in policy that we have to request the funds for large projects at least two years in advance. There are mounds and mounds of request forms, justification forms, approval forms, routing forms—you get the idea. But my point is if you miss one of the forms or don't fill out the information correctly, you can set your project back by a minimum of a year, if not two. Then once the money is awarded, there are more forms to fill out and policies to follow. Again, if you don't follow the policies correctly, you can jeopardize future project funds. Many organizations have a practice of not giving you all the project money up front in one lump sum. In other words, you must meet major milestones or complete a project phase before they'll fund your next phase. Know what your organizational policies are well ahead of time. Talk to the people who can walk you through the process and ask them to check your work to avoid surprises.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook

Post a comment