In: Operations Management
Assume you have just been appointed a project manager for building a female hostel at the University Campus area. Prepare the procurement plan to be submitted to the management
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As per question you appointment as project manager for building a female hostel at the university campus area procurement plan needed to define the requirements for making management and designing in front of management where they decide how much budget their to build this building.
A procurement plan is a complete process of defining the right goods and services required in specific conditions to satisfy requirements of construction or project. In the building and designing process to define what require to buy, how to buy, where to buy, who buy etc.
To make a procurement plan
First, make a procurement team where list everyone who is to be assigned at their work and participate in the procurement planning and decision-making process.
Second, List item to required here several levels of information about every item that needs to purchase such as cement, Bricks, steel rod, tiles, etc. Include all information about the material which is required such as size, quantity, quality standard,
The third is supplier selection, selection of supplier based on relationships between manager and supplier where the manager decides whose supplier best for material providing for building a hostel building and provide cheaper cost and better quality material on time and schedule.
Fourth is bids and acceptance where the project manager demands material from the supplier and the supplier provides information to him about transportation cost, quality of products, delivery time, scheduling, cost of the material.
The fifth is Contracts a project require a tangible good like manufactured parts with a fixed cost and also contract works, contracts are used in each category of work.
Sixth identify risk associated with building construction such as worker accidents, weather conditions, late material arriving, resource failure, design problems, etc.
Seventh is the purchase order process where purchasing departments send purchasing orders to suppliers through project manager approval, an invoice provided by a supplier that helps to count money.
And final is project constraint whereby estimating all of cost and process decides the budget, time period, risks and timeline of the project and make a file and submitted to the higher department.