Procurement Management Plan for Laces Essay Example | Topics and Well Written Essays - 1000 words

Procurement Management Plan for Laces - Essay Example It also throws light on the procedure of endorsement of agreement and decision making strategy. Approach: The plan should define plainly the compulsory stages and duties thought the life of the company. The company manager work with the project team, contract, purchasing department and vendors to go through different stages of the plan, and make sure that the plan should be able to guide the company in the effective termination of the project. Definition: The procurement definition identifies clearly the articles to be acquired and states associated circumstances. Procurement deadlines are also clearly defined which is very necessary for the effective accomplishment of the assignment. Thus in the definition articles to be procured should be listed, justification given, conditions stated and any other specification required must also be described. The names of the persons must also be given who can approve the purchase etc. in the absence of the manager. Table I: Shows the articles/se rvices to be procured, rationalization and deadline. Article/Service Rationalization Deadline 1. Laces Required for the shoes and its preparation is very costly 1 October 2011 2. Studded soles Required for the completion of the shoes and its preparation is very time consuming 1 October 2011 3. ... The articles required in this case are usually procured by firm-fixed price contract. The project team specifies the articles, their amounts, services and deadlines. The purchasing department calls bids from different vendors according to the specifications and deadlines. It also bargains the price of the articles with the selected vendor according to the firm-fixed price. Contract accomplishment procedure: The contract execution procedure varies greatly among different companies but it is very important to specify all the rules for finalizing a contract relating to procurement with the company. The authorities which will be involved in decision making should also be mentioned. First of all it is decided that which articles are to be procured. It can be done through a survey of the cost analysis of the required articles provided internally compared with that procured from different vendors. After making decisions about the items to be procured based on the cost analysis, the purchasi ng department will call for bids from different vendors. Different vendors will send proposals which will be reviewed to see which proposal is according to the criteria set out by the project team and purchasing department and offers lowest price. It is also decided that up to what amount the project manager can approve the purchase and the purchases greater than that amount will require the approval of The Contract Review Board. This Contract Review Board usually consists of agents of the project team, purchasing department, finance and project manager office. Decision making criteria: The standard which is used by the contract review board/project manager for the selection and award of contracts differs from company to company. However, following criteria