Skip to content

Regarding procurement doubt? Plz Respond

Shah. HBMember for 17 years 10 months
Created
22
5
0
In a programme ,under WBS of procurement ,we mention order,manufacturing and delivery of any materials ,
but recently i cross checked with PMI book in that under procurement topic it has covered only placing an order by going through series of vendor selection process nothing related to manufacturing and delivery.
Is it correct?

Regards
Shahul Badhusha
.

22 replies

Oldest first
  1. 0
    Vladimir Liberzon ·
    If the procurement item shall be manufactured then its delivery shall be considered as the subproject. You are right including these subprojects in your schedule.
    Materials that are always available don’t require this approach.
    Best Regards,
    Vladimir
  2. 0
    Shah. HB ·
    Many thanks Mr.Vladimir

    Assume generator which is to be placed order in USA followed by mfg and delivery
    My doubts is under procurement WBS do i have to mention order,mgf & delivery {or}
    do i have to create 2 WBS namely one as procurement for placing order purpose alone and another WBS named as mfg and delivery for manufacturing and delivery of materials (generator) at site purpose

    Plz Respond
  3. 0
    Vladimir Liberzon ·
    I would recommend to create the single WBS phase for placing order, manufacturing and delivery. Usually one person is responsible for all these activities and as the result for the timely delivery of the product.
    WBS items usually define some result, and activities under these items reflect the actions necessary to achieve the result.
    Your result is delivered generator. To achieve this result it is necessary to place order, to create, and to deliver.
    Best Regards,
    Vladimir
  4. 0
    Shah. HB ·
    Many thanks Mr.Vladimir for your quick response
  5. 0
    Rafael Davila ·
    Don,t forget to include an activity for submittal review, at times if review process is delayed by the designer this is an issue that might generate EOTs.

    It is convenient to place in your Baseline Submittal a time for submittal review, once accepted this has contractual relevance.

    Always try to schedule leaving some float for a resubmittal cycle not to be included as part of the original submittal review duration, just a buffer into your float as to avoid submittals becoming critical if you are required to resubmit.

    Use of expected finish constraint might be handy to update deliveries, especially when spanning multiple update periods.

    It is common practice to issue POs subject to the approval by the Designer. Then after approval manufacturing will proceed unless you write a waiver to the supplier assuming all risk. If the submittal is rejected then under the terms of the PO you can cancel it with no penalty.
  6. 0
    Samer Zawaydeh ·
    Dear Shahul,

    The PMI has a full chapter on the Project Procurement Management process which include as per PMBOK, 3e the following:

    12.1 Plan Purchases and Aquisitions
    12.2 Plan Contracting
    12.3 Request Seller Responses
    12.4 Select Sellers
    12.5 Contract Administration
    12.6 Contract Closure

    Depending on the size of your organization and the size of the project that you are handling, this process can be done by 1 or many people.

    For your construction activities at site, you need the approval of the material, date of arrival, and any inspection required before the start of use of the material.

    From experience, it is recommended that you have a special section in your schedule for "Long Lead Items". Like the Generator that you mentioned or Chillers, Lifts, etc.

    With kind regards,

    Samer
  7. 0
    Rafael Davila ·
    Samer

    Regarding PMI keep them as a Christmas present, seems like non-project managers playing project managers. I wonder if they ever managed relevant at risk jobs with their ba…s in the basket. I got not much appreciation for not at risk Project Managers who play in a very convenient way with the money of others. I suspect they were never at the level of true Project Managers, those who really take the risk with their own money.

    If this is what PMI Booooo-Book on Body of knowledge is all about then BS.

    Sorry for my comments but I don’t see the practical experience required of a true Project Manager in these books and this got to be questioned.

    Best regards,
    Rafael
  8. 0
    Samer Zawaydeh ·
    Dear Rafael,

    It is said that the PMBOK was written by the experienced in their fields. Those are the people who used their senses in completion challenging and difficult tasks. This experienced was transferred into theory and a book for others to learn from.

    The book does not substitute experience. They required 3500 hours of work experience in your field of practice to sit for the exam. Of course, with the great marketing efforts that they are making, they are enabling more and more people to be certified. Hence, you might see young certified people with little experience.

    In order to before a Project Manager, you must complete several projects. Reading a book will not make you a project manager. It will only give you the overall components that you need to look at in order to complete your project successfully.

    With kind regards,

    Samer
  9. 0
    Rafael Davila ·
    Samer

    No hard feelings, it is just I have my reserves about PMI.

    Regarding the hours requirement you might have 100,000 doing the same irrelevant thing, this equals 1 single hour of irrelevant experience.

    I dont believe in mail order certifications.

    Best regards,
    Rafael
  10. 0
    Vladimir Liberzon ·
    Rafael,
    there is a need to use common professional language to understand each other. PMBOK is a Glossary. And certification means that you know the meaning of common terms. It does not mean that you are a good project manager. In any case it is good that that professional Glossary exists and people can learn it using the same book as others in this profession.
    Best Regards,
    Vladimir
  11. 0
    Rafael Davila ·
    Vladimir,

    A glossary that accepts whatever you want to put into it. Microsoft Glossary is quite different to Primavera and everyone else and PMI very conveniently embraces both, although I believe it is a glossary biased in favor of Primavera as some of its definitions use terms like Fragnets, functionality you only find in nearly extinct P3.

    Sorry I prefer Webster as a glossary or dictionary. For a Summary on theory definitely Monarch or Cliff notes would be better.

    I agree we need a standard as this is getting into chaos. Yesterday I learned a new definition for Slack, different from old definitions and new Microsoft’s, also different and who knows.

    Best regards,
    Rafael
  12. 0
    Samer Zawaydeh ·
    Dear Rafael,

    Did you come across the following dictionary:

    Wideman Comparative Glossary of Project Management Terms
    www.maxwideman.com/pmglossary

    It is a good source of information.

    With kind regards,

    Samer
  13. 0
    Rafael Davila ·
    Thanks Samer

    I included it into My Favorites for further reading and reference.

    This is the kind of glossary I would adopt in CPM specifications by reference or as an introduction to the terms. I like the idea.

    You have always been a good source and good to debate with.

    Best regards,
    Rafael
  14. 0
    Samer Zawaydeh ·
    Thank you Rafael,

    Likewise, you are adding a wealth of information to PP.

    By the way, the person responsible for that dictionary is also a prime contributor to PMBOK.

    With kind regards,

    Samer
  15. 0
    Vladimir Liberzon ·
    Samer is right - Max Wideman did very good job.
    But PMBOK not only defines but also explains terms.
    We need some standard and though I agree that PMBOK Guide is not perfect it is better to have some standard than none at all.

    Usually we use multiple WBS for one project, PMBOK Guide defines only one. And I know which one of many that we use people mean when talk about WBS because it was described in PMBOK Guide. I am sure that our approach to project work structuring is superior but I am glad that can easily understand others that use different tools and live in different cultures. Thanks to PMBOK Guide.

    Best Regards,
    Vladimir
  16. 0
    Rafael Davila ·
    I agree with regard to the value as a reference but still question the idea of a by mail certification.

    Vladimir we organize our jobs without the need of WBS using Activity Codes as per Primavera P3 and Suretrak, a more flexible approach, embraced by Primavera but abandoned when they bought P6.

    I still believe the option to organize using multiple WBS is a very good one, better than a single WBS for those who use it and need it. I also like a lot the idea of Linear Schedule Reports as per Spider Project it adds versatility to the software in a way a company doing linear and non linear jobs can use the same software, and even better when you have a combination in a single job.

    Best regard,
    Rafael
  17. 0
    Vladimir Liberzon ·
    I don’t know what do you mean by by mail certification.
    Today it is computer based multiple-choice exam that checks your knowledge of standard terms and techniques. And you may be sure that you can speak the same language with the person who passed this exam.
    But don’t make a mistake thinking that this certification means anything else.

    By the way when I passed this exam it was paper and pencil and was suggested at the same dates everywhere in the world. If I remember correctly once in a quarter.

    Best Regards,
    Vladimir
  18. 0
    Samer Zawaydeh ·
    Dear Rafael,

    The certification is done online not by mail. You have to answer 175 questions out of 200 within 4 hours and get a passing grade on average above 70%. You will get the results on the spot.

    The email part is to submit the application and get it approved to submit the exam.

    The major part of it is theory related to the PMBOK way of delivering the knowledge of managing projects.

    With kind regards,

    Samer
  19. 0
    Rafael Davila ·
    Vladimir my reference to by mail means by e-mail is just a way to express it in a sarcastic way.

    Talk to you tomorrow the wine and food are ready. Lan for today, for sept 23, a special occasion an anniversary, will have the Muga as I have a taste for Spanish wines.

    Don’t worry for Christmas Mike will send us all a bottle of Blue Label King George V, for a few it will be The Macallan Fine and Rare Collection, 1926, 60 Years Old.

    Best regards,
    Rafael
  20. 0
    Shah. HB ·
    I never expected this question will create a big thread.


    Many thanks
    Shahul
  21. 0
    Rafael Davila ·
    Shahul

    Procurement is a big issue you can never overlook. Just don’t overdo it as Vladimir wisely suggested when he mentioned that this does not need to be applied to readily available materials, this to keep you focused on the relevant items.

    My excuses for moving a little away from the theme.

    I just read at another thread a very good comment on your part, seems like debating with you will also be a good learning exercise.

    Best regards,
    Rafael
  22. 0
    Shah. HB ·
    I didnt overlooked it .I knew it has more importance in project planning

    Thanks Rafel

Log in or join to reply

ProjectControls.com is free to join. Members can post questions, reply, vote and follow discussions.

Existing members: your original username and password still work. Forgot password?