15-Procurement Schedule

15-Procurement Schedule - Procurement Schedule Dr. Hesham...

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Procurement Schedule 1 D.Hesham A. Aziz Dr. Hesham A. Aziz
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Key Points :- Subdivide the bill of materials (BOM) into buy or make . Identify long lead items. Order early to meet the schedule, or reschedule to accommodate any delays . Expedite all important orders to ensure they happen as planned . 2 D.Hesham A. Aziz
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Procurement Schedule Project procurement management deals with the acquiring of goods and services required to perform the project’s scope of work. This could be drawings, materials, equipment or professional services from a number of vendors and suppliers, or company departments outside of the project team . The procurement schedule should be consider after the network diagram and schedule barchart have been established, but before the resource histograms and cash-flow statements . The trade-off here is between buying the materials early or just-in- time (JIT). Using the JIT approach will reduce the pressure on the cash- flow and storage, but will increase the risk of schedule delays . 3 D.Hesham A. Aziz
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1. Procurement Cycle The procurement process can be effectively presented as a cycle outlining a series of discrete steps . Procurement Cycle ( giving an overview and suggested sequence of the discrete steps ) 4 D.Hesham A. Aziz
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● Procurement Planning This is the buy or make decision which is a key components of the execution strategy : - What to procure ? How much to procure ? When it is required ? When to procure ? How to procure ( contract ) ? 5 D.Hesham A. Aziz
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The procurement list is developed from the project’s scope of work. Bill of materials (BOM) . From this material list the project manager must decide his execution strategy to but- or-make . Buy : When your company resources lack the expertise and machinery, or when your resources are overloaded, or when an outside sub-contractor makes you an offer you cannot refuse . Make : When your company resources, expertise and machinery are available and under utilized, and the costs are less than using outside sub-contractors . 6
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This note was uploaded on 03/17/2012 for the course CEM 661 taught by Professor Dr.heshama.aziz during the Spring '10 term at American University in Cairo.

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15-Procurement Schedule - Procurement Schedule Dr. Hesham...

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