Planning and
Procuring Resources
Management is the process of
managing procurement during
the project.
•In smaller companies without
purchasing department, project
manager can have the authority to
negotiate and sign directly
(decentralized purchasing)
Plan Procurement Management
Conduct Procurement & Manage
suppliers/contracts
Control Procurement
A contract is a compulsory agreement between
two or more parties and is
used to acquire products or services from
outside the organization.
Typically, money is exchanged for the goods
or services. Contracts are
enforceable by law and require an offer and
an acceptance.
The PMBOK® Guide divides
contracts into three
categories:
Fixed price
Cost reimbursable
Time and materials (T&M)
Superior force : contract provision that
relieves the parties from performing
their contractual obligations when
certain circumstances beyond their
control arise, making performance
inadvisable, commercially impracticable,
illegal, or impossible
The Plan Procurement Management
process consists of five tools and
techniques: expert judgment, data
analysis (make-or-buy analysis),
data gathering (market research),
source selection analysis, and
meetings
The main decision you're trying to get to in
make-or-buy analysis is
whether it's more cost effective to buy the
products and services or more
cost effective for the organization to produce
the goods and services needed
for the project.
You're probably familiar with some of the titles of
procurement documents. They might be called
request for proposal (RFP)
request for information (RFI)
request for quotation (RFQ)
invitation for bid (IFB)
A procurement statement of work
(SOW)
contains the details of the
procurement item in clear,
concise terms
Your procurement department might
conduct independent estimates (also
known as should cost estimates) of
the costs of the proposal and
compare these to the vendor prices.
Seller rating systems use
information about the sellers—
such as past performance,
delivery, contract compliance,
and quality ratings—to
determine seller performance.
Planning and
Assuring Quality
Quality Planning
Quality is an important element of all
projects. You can work hard, produce
results, meet timelines, and stay on
budget, but your stakeholders will
immediately notice if quality is not up to
expectations
Shewhart = Plan-Do-Check-Act cycle.
Crosby = Zero defects and prevention of
rework results.
Juran = Fitness for use, conformance.
Quality by design.
Deming = Quality is a management
problem.
Feigenbaum = Founder of TQM.
The project manager should consider any
standards, regulations, guidelines,
or rules that exist concerning the work of the
project when writing the
quality plan. A standard is something that's
approved by a recognized body and that
employs rules, guidelines, or characteristics
that should be followed
Benchmarking is a process of comparing
previous similar activities to the
current project activities to provide a
standard to measure performance
against. This comparison will also help
you derive ideas for quality
improvements on the current project.
The cost of quality (COQ) is the total cost to
produce the product or service
of the project according to the quality
standards and/or the cost to make a
product or service that does not meet the
quality requirements.
Prevention costs
Appraisal costs
Internal Failure Costs
External Failure Costs
A. Cause-and-effect diagrams
B. Flowcharts
C. Checksheets
D. Histograms
E. Pareto diagrams
F. Control charts
G. Scatter diagrams
Seven basic quality tools will be described in Control
Quality
Check sheets (Tally sheets):simple way to accumulate data
about the frequencyof occurrence of events. It is a simple,
flexible, and effectiveabout a potential quality problem. They
are especially useful for gathering attributes data while
performing inspections to identify defects
•
Histograms: graphical representation of numerical
data. show the number of defects per deliverable,
a ranking of the cause of defects, the number of
times each process is noncompliant or other
representations of project or product defects
Scatter diagrams: graphthat shows the
relationshipbetween two variables. Scatter
diagrams can demonstrate a relationship between
any element of a process, environment, or activity
on one axis and a quality defect on the other axis.
If the data set is "normally distributed," as it is in the
preceding chart, the following statistics will be true:
• 68.25% of the data points (or values) will fall within
1σ from the mean.
• 95.46% of the values will fall within 2σ from the
mean.
• 99.73% of the values will fall within 3σ from the
mean.
• 99.99966% of the values will fall within 6σ from the
mean.
• Sigma is also known as standard deviation.
• The formula for standard deviation is (P-0)/6.
• P is Pessimistic, 0 is Optimistic.
•Six Sigma is a set of techniques and tools for
process improvement. It was introduced by
American engineer Bill Smith while working at
Motorola in 1986. A six sigma process is one in
which 99.99966% of all opportunities to
produce some feature of a part are statistically
expected to be free of defects
The Kaizen approach is a lean quality technique
from Japan. You'll recall
that Kaizen means continuous improvement in
Japanese. With this
technique, all project team members and managers
should be constantly
watching for quality improvement opportunities.
