[ Pobierz całość w formacie PDF ]
.A source selection committee must understand its role.The com-mittee's role is to evaluate the formal seller responses, rank the acceptableresponses, eliminate the unqualified responses, and make a final selectionfor management's consideration and approval.Management makes thefinal choice, not the evaluation committee.Special issue: how long will it take to gain management's approval?Most master schedules typically show one day for managements approvalon major awards.Rarely does approval ever come in a single day.Rather,approval will come the next time management meets to consider suchissues.Sometimes management meets each week, sometimes each month,but rarely does management meet daily.Sometimes management does notlike the evaluation committee's choice, and sends the procurement back tothe committee for further evaluation.Sometimes a source selection committee will select two or three topacceptable candidates, for management's final selection.Contract Award and Go-aheadFinal management approval and even contract award does not alwaysallow a seller to begin work.Sometimes contract go-ahead is delayed untila "kick-off meeting" is held.This practice allows the buyer to emphasizelast minute key points to the seller.Often such meetings will emphasizecritical matters in the new procurement like safety issues, regulatorymatters, quality, prior approvals, etc., anything of particular importance tosuccess of the new procurement. The Management ofProject Procurements: a.k.aContract Administrationome people are of the belief that procurement management begins with the awardSof a contract.Nothing could be further from the truth.Project procurementmanagement begins at the point when the new project is initiated anddetailed decisions are starting to be made as to what portion of the projectwill be performed with one's own staff, and what portion will be sent toanother company for performance.At the time the make or buy decisions aremade to purchase work or project critical components from anothercompany, project procurement management must begin.The most critical part of project procurement management is theplanning that should take place before any contract is solicited, evaluated,and awarded.If not planned well, procurement management can be a bumpyroad.If planned well, procurement management can add immensely to thesuccessful implementation of any project.In this process of procurement management, sometimes also calledcontract administration, there are essentially two key missions for the projectteam: the continuous monitoring of seller performance, and the managementof all changes to the seller's authorized baseline.Use a simple form of Earned Value to manage MajorComplexity Procurements 'It is likely that most corporate financial executives today measure1.Major complexity procurements were defined earlier in Chapter 2, see Figure 2.1.207 208 Project Procurement Managementthe cost performance of their projects using only two cost dimensions:the planned costs and the actual costs.Thus, if one spends all the allot-ted money one is considered to be right on target.If you spend lessthan the allocation, it is considered an "under-run" of costs.If youspend more than the allocated costs this is an overrun of costs.Whatcould be more ludicrous.This comparison is not cost performance,but rather expenditure performance.It measures nothing more thanwhether or not we spent the budget.What is missing in the picture is the "value of the work performed"for the monies spent.Example: If your project budget was $100 million,and you spent $90 million, but had only accomplished $80 million ofwork, respectfully, this should be called what it is: an overrun of costs.The missing third dimension of most corporate project assessments is ameasure of the value of the work accomplished.We call this earned valuemanagement, or EVM for short.Over a century ago, the industrial engineers lead by the father ofscientific management Frederick W.Taylor were correct in their under-standing of what represented "true" cost performance in the factories
[ Pobierz całość w formacie PDF ]