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CHAPTER 8
PURCHASING ANALYSIS TOOLS AND TECHNIQUES
• Changing business processes once mapping management initiatives are
complete and helping teams to reach agreement on what constitutes new
and improved business processes [1].
Modelling the process helps the team tasked with carrying out this exercise to
understand the process dynamics. They understand the tasks carried out in
the process and through the process mapping exercise can begin to see how
the tasks relate to each other. The team can also provide input into how they
believe the process will behave in different situations.
8.5 PROJECT MANAGEMENT IN PROCUREMENT
8.5.1 DEFINITION OF A PROJECT
A project is carried out only once, whereas most jobs are ongoing. Other
differences are that project team members often do not report directly to the
project manager.
8.5.2 PROJECT MANAGEMENT
Project management is the planning, scheduling and controlling of project
activities to meet project objectives, which include performance, cost and time
goals, while at the same time controlling or maintaining the scope (magnitude)
of the project at the correct level. The scope of the project should ideally remain
the same throughout, although in practice this is seldom the case. In many
instances, the magnitude of the work increases due to, for example, overlooked
details, unforeseen problems, or an inadequately defined scope of work. The
most common reason for scope changes is that something is forgotten.
Project management is an especially valuable skill for a procurement manager as
the sourcing process often mirrors that of a project. A project is a series of tasks
that requires the completion of set objectives within a specified time frame and
consumes the resources of time, personnel and budget. Examples of projects
involving procurement personnel include new product or service introduction and
procurement, value analysis, developing and implementing a sourcing strategy
and developing and implementing supplier improvement plans [2].
8.5.3 STEPS IN MANAGING A PROJECT
The actual steps in managing a project are straightforward although
accomplishing themmay not be. The following is a brief description of the actions
involved in project management:
1. Define the project and develop work options: Identify the work to be carried
out during the project and the end objectives of the project.
2. Plan the project: Determine what must be done, by whom, for how much,
how, when and so on.