Control Procurements Process (PMBOK® 5th edition)
Introduction:
1. Control Procurements, part of Monitoring and Controlling process group, is concerned with managing the procurement relationship , measuring performance and doing corrective actions if performance is not upto the mark.
2. Controlling Procurement process is sensitive because it has legal implications so it is necessary to have a good understanding of the contractual obligations at both the buyer and seller ends. Due to this reason, Contract administration is usually a separate function in an organization and the Procurement Administrator reports to a manager in that department and plays a consulting role to the project team
3. Usually, Whenever the project team lacks the competency to deliver a particular function or busy with existing work , the function is procured externally. Due to this reason, procurement can get integrated with any of the project management processes. For instance, the deliverables or part of it, created as part of Direct and Manage Project Work, might be procured externally. Similarly, Control risks process of the performing organization should take main care of the procurement relationship.
4. Control Procurements has a financial component, mostly attached to the performance of the seller. So, constant checks in the procurement process are inevitable. The performance is recorded so that it is useful in future project procurements and any corrective actions in the ongoing procurement , if need be. The recording of procurement performance is also useful to facilitate smooth closure.
5. Changes to agreements are possible anytime until the contract is open.
Inputs:
1. Project Management Plan: The master plan with link to other subsidiary plans is very useful input for both planning as well as monitoring and controlling processes, in order to check if the work meets the baseline and then, to record and control performance, if need be.
2. Procurement documents: Any supporting documents, prepared by the buyer or seller during contract initiation, like SoW, which acts the guiding document for the contract work.
3. Agreements: Agreements contain the inclusions decided during project initiation. This acts as the guideline for both the buyer and the seller for smooth procurement process.
4. Approved Change Requests: Approved Change requests are generally an important input for monitoring and controlling processes because of the "control" aspect, in order to implement
the corrective action.
5. Work Performance reports: The summarized report of current project health to check if the procurement process is as such doing fine or if any corrective action will affect the current project health.
6. Work Performance Data: The raw data coming from the project team confirming the project health.
Tools and Techniques:
1. Contract Change Control System: Since procurement is done externally using a team outside the project team, a need for a separate change control system, in case of contract is needed. This will have different levels of escalations and project actions.
2. Procurement Performance reviews: These are review cycles specific to procurement involving probably senior management or the concerned legal department that handles procurement to ensure that everything is monitored and controlled according to the contract.
3. Inspections and audits: As with all monitoring and controlling processes, inspections and audits are random checks to ensure that the procurement results meet what was agreed upon and taking corrective actions, if need be.
4. Performance reporting: How is the procurement performing? - in the format that is agreed and assigning appropriate responsibilities to the right owners in case of escalations and corrective actions.
5. Payment Systems: What was agreed to be paid at what point and what are the implications of not meeting certain aspects of the contract?
6. Claims Administration: Workflow for processing payments.
7. Records management system: How records would be managed and what lifecycle they will follow until contract closure. They are also useful for smooth closure of the contract because they provide reasons for certain actions taken.
Outputs:
1. Work Performance Information: As part of project monitoring process, any information collected for further analysis.
2. Change Requests: As part of project monitoring process, any new changes identified become documented as change requests to be passed onto the change control board.
3. Project Management Plan Updates: Project Management Plan can get updated as part of controlling process in case of approved changes.
4. Project Document Updates: Risk register updates are classic example of project document updates.
5. Organizational Process Assets Updates: New records or documents as part of procurement management process get updated to organizational process assets for future reference.
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Introduction:
1. Control Procurements, part of Monitoring and Controlling process group, is concerned with managing the procurement relationship , measuring performance and doing corrective actions if performance is not upto the mark.
2. Controlling Procurement process is sensitive because it has legal implications so it is necessary to have a good understanding of the contractual obligations at both the buyer and seller ends. Due to this reason, Contract administration is usually a separate function in an organization and the Procurement Administrator reports to a manager in that department and plays a consulting role to the project team
3. Usually, Whenever the project team lacks the competency to deliver a particular function or busy with existing work , the function is procured externally. Due to this reason, procurement can get integrated with any of the project management processes. For instance, the deliverables or part of it, created as part of Direct and Manage Project Work, might be procured externally. Similarly, Control risks process of the performing organization should take main care of the procurement relationship.
4. Control Procurements has a financial component, mostly attached to the performance of the seller. So, constant checks in the procurement process are inevitable. The performance is recorded so that it is useful in future project procurements and any corrective actions in the ongoing procurement , if need be. The recording of procurement performance is also useful to facilitate smooth closure.
5. Changes to agreements are possible anytime until the contract is open.
Inputs:
1. Project Management Plan: The master plan with link to other subsidiary plans is very useful input for both planning as well as monitoring and controlling processes, in order to check if the work meets the baseline and then, to record and control performance, if need be.
2. Procurement documents: Any supporting documents, prepared by the buyer or seller during contract initiation, like SoW, which acts the guiding document for the contract work.
3. Agreements: Agreements contain the inclusions decided during project initiation. This acts as the guideline for both the buyer and the seller for smooth procurement process.
4. Approved Change Requests: Approved Change requests are generally an important input for monitoring and controlling processes because of the "control" aspect, in order to implement
the corrective action.
5. Work Performance reports: The summarized report of current project health to check if the procurement process is as such doing fine or if any corrective action will affect the current project health.
6. Work Performance Data: The raw data coming from the project team confirming the project health.
Tools and Techniques:
1. Contract Change Control System: Since procurement is done externally using a team outside the project team, a need for a separate change control system, in case of contract is needed. This will have different levels of escalations and project actions.
2. Procurement Performance reviews: These are review cycles specific to procurement involving probably senior management or the concerned legal department that handles procurement to ensure that everything is monitored and controlled according to the contract.
3. Inspections and audits: As with all monitoring and controlling processes, inspections and audits are random checks to ensure that the procurement results meet what was agreed upon and taking corrective actions, if need be.
4. Performance reporting: How is the procurement performing? - in the format that is agreed and assigning appropriate responsibilities to the right owners in case of escalations and corrective actions.
5. Payment Systems: What was agreed to be paid at what point and what are the implications of not meeting certain aspects of the contract?
6. Claims Administration: Workflow for processing payments.
7. Records management system: How records would be managed and what lifecycle they will follow until contract closure. They are also useful for smooth closure of the contract because they provide reasons for certain actions taken.
Outputs:
1. Work Performance Information: As part of project monitoring process, any information collected for further analysis.
2. Change Requests: As part of project monitoring process, any new changes identified become documented as change requests to be passed onto the change control board.
3. Project Management Plan Updates: Project Management Plan can get updated as part of controlling process in case of approved changes.
4. Project Document Updates: Risk register updates are classic example of project document updates.
5. Organizational Process Assets Updates: New records or documents as part of procurement management process get updated to organizational process assets for future reference.
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