BSBPMG518 Manage project procurement v2.

0-2020 281020

PROJECT COMPENDIUM

BSBPMG518 MANAGE PROJECT

PROCUREMENT

PROJECT NAME …………………..

PROJECT TEAM …………………….

Student Name Student Number

Student name:

Student number

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BSBPMG518 Manage project procurement v2.0-2020 281020

TABLE OF CONTENTS

PROJECT COMPENDIUM.........................................................................................................................1
BSBPMG518 manage PROJECT PROCUREMENT......................................................................................1
TABLE OF CONTENTS..............................................................................................................................2
PART 2 MANAGE PROJECT PROCUREMENT - PLANNING........................................................................1
2.1 definition............................................................................................................................................2
2.2 INTRODUCTION..................................................................................................................................2
2.3 determining procurement requirements............................................................................................2
2.4 DEVELOP THE PROJECT PROCUREMENT PLAN...................................................................................2
PART 3 MANAGE PROJECT PROCUREMENT - IMPLEMENTATION............................................................4
3.1 PROCUREMENT IMPLEMENTATION...................................................................................................5
MANAGE PROJECT PROCUREMENT PART 4 – CLOSURE/REVIEW/REPORTING........................................1
4.1 DISBAND THE TEAM...........................................................................................................................2
4.2 REVIEW OF PROJECT PROCUREMENT...............................................................................................2
4.3 Distribute the PROJECT PROCUREMENT review report to stakeholders.............................................3
saving all the unit records........................................................................................................................3
PART 5 PMG518 PROJECT PROCUREMENT-KNOWLEDGE QUESTIONS....................................................4
Q1:...........................................................................................................................................................4
Q2:...........................................................................................................................................................4
Q3:...........................................................................................................................................................4
Q4:
Q5:...........................................................................................................................................................4
PART 5 MANAGE PROJECT PROCUREMENT – FOUNDATION SKILLS OBSERVATIONS..............................1
part 5 - TRAINING PACKAGE/UNIT FOUNDATION SKILLS - OBSERVATIONS..........................................1
PART 5 -AQF DIPLOMA FOUNDATION SKILLS - OBSERVATIONS............................................................2

DELETE BLUE TEXT SECTIONS BEFORE SUBMITTING THIS DOCUMENT

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PART 2 MANAGE PROJECT PROCUREMENT - PLANNING

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2.1 DEFINITION

Procurement is the process by which an organisation or project buys the products or services it needs
from other organisations

2.2 INTRODUCTION
Procurement, in terms of project management, is when you need to purchase, rent or contract with
some external resource to meet your project goal. These relationships, like any process in the project,
need management.
Managing these relationships means getting the best quality from the outside vendors employed by the
company to assist in its doing business. There are constraints in a relationship with vendors that revolve
around cost and time. Procurement management is a way to more efficiently and productively handle
the process of sourcing, requisitioning, ordering, expediting, inspecting and reconciliating of
procurement.
However, before making partnerships or purchases, the question of whether the goods and services are
required from outside vendors must be answered. Therefore, weigh the pros and cons of producing the
goods or services in-house and contracting the work out. Is the relationship with outsider companies
necessary and cost-effective in the long-term? Once an informed decision has been made, only then can
you move forward with confidence that the steps you’re taking are financially sound and fit within your
timeframe. (https://www.projectmanager.com/blog/project-procurement-management-quick-guide)

Procurement management is broken into 4 processes

1. Plan procurement management
2. Conduct procurements
3. Control procurement
4. Close and review procurements

IMPORTANT NOTE: For this project all of these processes are recorded in Template T66

2.3 DETERMINING PROCUREMENT REQUIREMENTS.

The first step in the procurement process is to identify requirements. All procurement requirements
begin with the perception of a need. The study should include if the need can be satisfied in-house or
contracted out, quantification of the initial budgetary estimate, and an idea of the procurement lead-
time. The role of procurement practitioners at this stage is primarily to estimate the procurement lead
time given the most appropriate procurement method that would be suitable for such a requirement. At
the end of the requirements definition stage, a clear determination of the terms of reference, technical
specifications or statement of work (depending on the procurement category) should be possible,
including an estimate of the budget, and, most importantly, the procurement lead-time.

2.4 DEVELOP THE PROJECT PROCUREMENT PLAN

Instructions:
Template T65 ‘Procurement Management Plan’ consists of three sections –
 PART 2 – PLANNING
 PART 3 - IMPLEMENTATION
 PART 4 – CLOSE AND REVIEW

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Access and complete Template T65 Project procurement management plan template and complete Part
2 – Project Procurement Plan
Complete PART 2 – PLANNING

Template T66 ‘Procurement forms’

Access Template T66 ‘Procurement forms’ and complete sheets:
 Sheet 4 Vendor comparison
 Sheet 5 Vendor contact list
 Sheet 6 Vendor contact
 Sheet 7 Vendor Price List
 Sheet 8 Vendor Registration form

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PART 3 MANAGE PROJECT PROCUREMENT - IMPLEMENTATION

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3.1 PROCUREMENT IMPLEMENTATION

Implementation of the Procurement Plan includes the following processes

3.1.1 APPROACH
 Identify and act according to probity and project governance constraints
 Develop all necessary policies, procedures and forms to facilitate procurement

3.1.2 COMMUNICATION AND NEGOTIATION

 Communicate agreed proposals and/or specifications to prospective vendors to ensure clarity of
understanding of project objectives
 Solicit vendor responses according to proposal requirements
 Evaluate responses and select preferred vendors according to current legal requirements and
agreed selection criteria
 Negotiate with preferred contractor or supplier, to agree on terms and conditions of supply
 Implement established procurement management plan and make modifications in line with
agreed delegations

3.1.3 MANAGE CHANGE AND ISSUES

 Review progress and manage agreed variations to ensure timely completion of tasks and
resolution of conflict within the legal framework of the supply agreement
 Identify and report procurement management issues and implement agreed remedial actions to
ensure project objectives are met

Instructions:
Access, complete and save Template T65 Project procurement management plan template and
complete Part 3 – Project Procurement Implementation
Complete PART 3- IMPLEMENTATION

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MANAGE PROJECT PROCUREMENT PART 4 –

CLOSURE/REVIEW/REPORTING

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4.1 DISBAND THE TEAM

“People are the most important aspect of any project, and a formal disbandment process helps them
prepare for transitioning to new projects.”

The following checklist has been utilised by the Project Team to close the project

A full Project procurement review has also been conducted.

4.2 REVIEW OF PROJECT PROCUREMENT

Instructions:
Using Template T56F Project procurement review checklist conduct a review of the effectiveness of the
Project procurement strategy

< insert the link to the completed T56F Project procurement review checklist template here>
☐ T56F Project procurement review checklist template completed and saved with appropriate
version control
< insert the link to the completed and saved T35 Project template utilisation template here>
☐ T35 Project template utilisation log updated and saved with appropriate version control

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4.3 DISTRIBUTE THE PROJECT PROCUREMENT REVIEW REPORT TO STAKEHOLDERS

Instructions:
Now that the Project procurement review has been completed it needs to be communicated to the
Project Sponsor and key stakeholders.
Develop a draft email to the Sponsor and key stakeholders drawing their attention to key aspects of
the report (which will be attached).
Ensure you draw attention to –
 What worked well and deserves recognition
 Lessons learnt – jus the standout ones
 recommendations
The email content should grab the attention of the recipients and motivate them to read the full report.
You might thank contributors to the report and/or seek a response or opinion on something if you want
to particularly engage a key stakeholder on one item

< insert DRAFT EMAIL here>

SAVING ALL THE UNIT RECORDS

Refer to THE LAST 3 slides in the PowerPoint for details of how to correctly save and store all the records
for this unit

< insert the link to the saved Project library “BSBPMG518- Project procurement” folder

☐ All records developed in this unit have been saved and stored into the Project library
“BSBPMG518 - Project procurement older

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PART 5 PMG518 PROJECT PROCUREMENT-KNOWLEDGE QUESTIONS

Q1: Detail the 7 stage of the Procurement process.

Q2: Describe 5 selecti on criteria that could be used to choose a supplier.

Q3: Defi ne ‘Project procurement’- the strategic functi on.

Q4: Defi ne ‘Project procurement’- the operati onal functi on.

Q5: Defi ne ‘Procurement Approach’.

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PART 5 MANAGE PROJECT PROCUREMENT – FOUNDATION SKILLS OBSERVATIONS

IMPORTANT NOTE: This section records the Trainer observations of the skills of the student over the period of the delivery and assessment of the unit.
The observations are based on the engagement and participation of the student in the facilitated workshops and in individual Team projects.

PART 5 - TRAINING PACKAGE/UNIT FOUNDATION SKILLS - OBSERVATIONS

SKILL Performance Criteria Description OBSERVATION

Analyses and interprets textual information

Reading 1.1, 4.4 ☐ Demonstrated ☐ not demonstrated in
from the organisation’s policies, goals and objectives to
this unit
establish team goals or to determine corrective action

Writing 1.2, 2.1, 2.2, 2.4, 4.2, Prepares written reports and workplace
documentation that communicate complex information ☐ Demonstrated ☐ not demonstrated in
4.3, 4.4 this unit
clearly and effectively

Oral 1.1, 2.3, 3.1, 4.1, 4.2, Engages in discussions or provides information
using appropriate vocabulary and non-verbal features ☐ Demonstrated ☐ not demonstrated in
Communication 4.3
Uses listening and questioning techniques to this unit
confirm understanding and to engage the audience

Navigate the 1.1, 2.1, 2.2, 3.3 Understands how own role contributes to
broader organisational goals ☐ Demonstrated ☐ not demonstrated in
world of work
Modifies or develops policies and procedures this unit
to achieve organisational goals

Interact with 1.1, 1.3, 2.2, 2.3, 3.1, Selects and uses appropriate conventions and ☐ Demonstrated ☒ not demonstrated in
protocols when communicating with diverse this unit
others 3.2, 4.2, 4.3
stakeholders
Uses interpersonal skills to gain trust and
confidence of team and provides feedback to others in
forms that they can understand and use
Adapts personal communication style to build

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positive working relationships and to show respect for

the opinions, values and particular needs of others
Plays a lead role in situations requiring effective
collaboration, demonstrating high level conflict
resolution skills and ability to engage and motivate
others
Develops, implements and monitors plans and
Get the work 1.2, 2.1, 2.2, 2.4,
processes to ensure Project procurement
done 3.2, 4.1, 4.3, 4.4 Monitors and actively supports processes and
☐ Demonstrated ☐ not demonstrated in
development activities to ensure the team is focused
on work outcomes this unit
Plans for unexpected outcomes and
implements creative responses to overcome challenges

PART 5 -AQF DIPLOMA FOUNDATION SKILLS - OBSERVATIONS

AQF qualification type learning outcomes descriptors - DIPLOMA
Purpose The Diploma qualifies individuals who apply integrated
technical and theoretical concepts in a broad range of
contexts to undertake advanced skilled or ☐ Demonstrated ☐ not demonstrated in this unit
paraprofessional work and as a pathway for further
learning
Knowledge Graduates of a Diploma will have technical and theoretical
knowledge and concepts, with depth in some areas within ☐ Demonstrated ☐ not demonstrated in this unit
a field of work and learning
Skills Graduates of a Diploma will have:
• cognitive and communication skills to identify, analyse, ☐ Demonstrated ☐ not demonstrated in this unit
synthesise, and act on information from a range of sources
• cognitive, technical and communication skills to analyse,
plan, design and evaluate approaches to unpredictable ☐ Demonstrated ☐ not demonstrated in this unit
problems and/or management requirements
• specialist technical and creative skills to express ideas
and perspectives ☐ Demonstrated ☐ not demonstrated in this unit
• communication skills to transfer knowledge and
☐ Demonstrated ☐ not demonstrated in this unit

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specialised skills to others and demonstrate understanding

of knowledge
Application of Graduates of a Diploma will demonstrate the application
knowledge and of knowledge and skills:
☐ Demonstrated ☐ not demonstrated in this unit
skills • with depth in some areas of specialisation, in known or
changing contexts
• to transfer and apply theoretical concepts and/or
technical and/or creative skills in a range of situations ☐ Demonstrated ☐ not demonstrated in this unit

• with personal responsibility and autonomy in performing

complex technical operations with responsibility for own
☐ Demonstrated ☐ not demonstrated in this unit
outputs in relation to broad parameters for quantity and
quality
• with initiative and judgement to organise the work of
self and others and plan, coordinate and evaluate the
☐ Demonstrated ☐ not demonstrated in this unit
work of teams within broad but generally well-defined
parameters

TRAINER NAME: TRAINER SIGNATURE DATE:

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