Critiquing Course Content (Procurement Management)
How well a company manages other companies providing services, reflects on the overall project of company. Procurement management directly affects the performance of the company. The essence of procurement management is the relationship of project manager with the buyers. That is the lifeline to successful completion of a procured project. The project managers need to apply the right tactics and strategies to get things done satisfactorily. The need to highlight this relationship is the fact that it is the project manager who is ultimately responsible for all technical issues of procurement and he has to decide about the cost and result schedule.
Contracting, subcontracting and teaming are the tools available to a project manager. To make sure that the contract closes out appropriately, a neat close out of the contract is essential. The procurement manager is the one in charge of the contracting, while any subcontract manager is merely the extension of a procurement manager. Subcontracting is nothing more than the procurement itself. The aspect of this course that stands out is the introduction of the procurement expert. This individual is hired into the procurement team to make more efficient decisions. He is available from various organizations under the title of ‘Procurement’ or ‘Purchasing’ etc. These individuals support and improve the procurement process.
Project = Make (Content) + Buy (Content)
Various types of centralized and decentralized purchasing have been learnt in this course which has been useful to comprehend various technical as well as legal aspects of procurement management. Such types of decisions are made by CEOs or VPs whether to procure in a centralized or decentralized fashion depending upon the technicality of the project. Even though this course teaches fundamentals of contracting and law provisions, to be able to have full command on law governing procurements, more in-depth technical analysis is needed.
A firm comprehension has been offered in this course about the flow of procurement process, i-e; planning, solicitation, proposal planning, source selection, contract administration and contract close out. The course has strengthened the concepts on such matters and it has become very easy to picture the procurement process in various organized steps. Moreover an insight into the contract law was also offered which is more important than any law relating to procurement management. All the necessary negotiations and follow through were learnt and made the concepts and technical grip stronger on such processes. It was also learnt that understanding of the law is crucial as sometimes companies can enter into contracts without even confirming whether they qualify for a contract or not.
Moreover a significant aspect was also learnt about analyzing everything after closeout. Trying to figure out what went wrong what went fine is inevitable. Not learning from mistakes is even a bigger mistake. It was revealed that procurement managers tend to overlook the details at the end and are not much concerned about the claims from the buyers. It was learnt that such attitude is very dangerous for profitability of a company. All claims need to be taken care of in order to successfully complete a procurement project.
All in all the basics of procurement planning and solicitations have been learnt from this course. In the last chapter it was also learnt what are the vital steps that any procurement project manager can acquire to make sure that the project completes successfully. Analyzing procurements from other companies and putting them under three generic categories has been taught through this course. By following the guidelines learnt in this course, a seamless relationship can be developed between all tasks that fall under the title of procurement management.
Fleming, U. W. (2003). Project procurement management, contracting, subcontracting, teaming. (p. 168). FMC Press. Retrieved from http://www.scribd.com/doc/51344936/Proj-Proc-Mgmt-Contracting-Subcontracting-Teaming-C