Procurement Management Plan Example

Procurement Management Plan Example

Procurement Management Plan is one of the main documents in project management plans.

Procurement Management affects all activities related to the proper and logical development and completion of the project. The plan is created in the initial phases and is followed until the closure of the project. Reference: “Procurement Management Plan Example (in project management practices)” (STC Montreal 2020), https://stc-montreal.org/procurement-management-plan-in-project-management-practices/ Changes to the plan can be made at a later stage if necessary

Example of Procurement Management Plan

The following Procurement Management Plan is an example and was created by a student enrolled in a project management major. You can also use this document for reference and if you need help with your academic and professional needs.

Contracts

The procurement contracts are concluded in writing and the signatures of the parties must be notarized.

Additional clauses:

Failure to comply with the delivery deadline – regardless of the reason, the supplier owes a penalty in the amount agreed on the contract.

Damaged delivery – the supplier is obliged to organize the repair work at his own expense or to deliver a new product within 10 working days.

The supplier is obliged to notify the contracting authority in writing in case of an unexpected delay or technical problem with the order.

If the supplier is unable to fulfill the order within a reasonable time, including a maximum delay of 10 working days, the contracting authority has the right to terminate the contract unilaterally.

The Contracting Authority will not accept partial delivery unless otherwise agreed between the two parties with an annex to the contract.

Payments are made after providing the requested services with the required quality.

The specifications and/or technical configurations provided to the contractor constitute confidential information which remains the exclusive property of the contracting authority.

Risks

The construction of the machine body is assigned to only one trusted subcontractor. Any delay in production or defect would delay delivery of the product by 10 working days.

The mechanical parts are ordered according to a catalog at preferential prices. It is possible to run out of stock of the specific supplier, which would lead to a delay of delivery by 2 weeks.

The order of individual mechanical parts from other suppliers will be at a higher final price. This would increase the planned costs by 5 percent.

Defect removal at the expense of the supplier may take more than 10 working days.

App Tenant will be installed on a single server. In the event of a server outage, the App Store will be temporarily unavailable.

Providing Internet visibility on the App Store requires additional investment to issue and subsequently renew a Wildcard SSL certificate.

The conditions for concluding a short-term contract of up to 6 months for a Cloud hosting account are unfavorable.

The upload of the Easy Ironing software module in the App Store may be delayed by up to 2 weeks due to the expected reduced composition of the project team during the summer holidays.

The prototype of the innovative washing machine can be partially assembled in case of delayed delivery of a mechanical part or a technical problem.

Plan for failed or damaged delivery

Impossibility to deliver

The planned payment amounts remain available for a new order.
Discussion with the project sponsor of other confirmed offers for delivery/production depending on the acceptable cost and/or delay of the project work. Reference: “Procurement Process in Project Management practices”, 2019, https://wikipedia-lab.org/procurement-process-in-project-management-practices/

Termination of the contract with the current supplier.
Awarding a contract to a new approved supplier.

Damaged delivery

Elimination of the established defects during delivery at the expense of the supplier within the agreed term.

Check for a conflict in the contractual relationship with another subcontractor, which could eliminate the defect more quickly.

Discussion with the project sponsor of the possibilities for acceptable delay or increase in price in case of elimination of a defect.

Filing a complaint / creating an order to eliminate a defect.

Deliveries for the project

Machine body
05/10/2021
Best Partner EOOD
Transportation from the supplier’s production base.
Compliance with the description of the required quality.
Technical Manager
Quality manager

Mechanical parts
05/15/2021
Royal Electronics
Delivery of standard parts by catalog.
Production of
non-standard custom parts.
Check the delivered mechanical parts according to a list.
Technical Manager
Quality manager

App Store
06/01/2021
IT Department
Installation of a secure internal server (32-core, 256GB) with 2TB storage and backup.
Activation of the App Store tenant for the innovative washing machine.
Check the available resources in the control panel of the respective tenant. Reference: “Program Resources Management”, (BVOP.org) https://bvop.org/learn/program-resources-management/
Technical Manager
Quality manager

App Store – Internet visibility
06/10/2021
IT Department
Add a public IP address and DNS record.
Access to App Store endpoint by name and IP.
Technical Manager
Quality manager

Cloud hosting account
06/15/2021
IT Department
Concluding a fixed-term contract.
Login in the control panel.
Technical Manager
Quality manager

Deliveries to the customer

Reference: “The Project Management Procurement Plan”, https://agileprojectmanagement.home.blog/2020/09/22/the-project-management-procurement-plan/

Software module One
07/10/2021
DevOps engineer
Upload the OSGi bundle to the App Store download environment.
Checking the checksum.
Scan for viruses.
Technical Manager
Quality manager
Software module
“Easy ironing”.
07/15/2021
DevOps engineer
Upload the OSGi bundle to the App Store download environment.
Checking the checksum.
Scan for viruses.
Technical Manager
Quality manager
Software module Two
07/20/2021
DevOps engineer
Upload the OSGi bundle to the App Store download environment.
Checking the checksum.
Scan for viruses.
Technical Manager
Quality manager
Web application for configuring delayed start and monitoring of the active washing program.
08/01/2021
DevOps engineer
Deployment of version 1.0 in external Cloud hosting.
Launch two instances of the application through the control panel.
Technical Manager
Quality manager
A prototype of the product.
08/10/2021
Project team
Assembly of mechanical parts in the machine body together with technicians.
Software integration by the project team.
Execution of a procedure for self-diagnosis.
Technical Manager
Quality manager
Presentation of the prototype
08/15/2021
Project Manager / Project Team
A detailed presentation and technical demonstration.
Internal demo.
Project sponsor
Project Director

Author: Anton Radev

Front-End Web Developer

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