Project procurement

Governance Manufacturing Procurement Management

KEYULKUMAR DAVE PMP, Six sigma Black belt| Thailand Banchang, Rayong Province, Thailand

On a large manufacturing project. Where all items are bought from outside. So there is a big list of items to buy.
There is a separate procurement department in a company but they don’t have enough people for project procurement so project manager says I will do the complete procurement of project.
Here this is functional organization and no one reports to project manager in a company. And project manager is neither user nor service provider in a company.
Most decisions made are by functional heads.
Note: project is already behind and forecasted to be above budget.

My question is project manager is doing right thing or wrong? What should be procurement strategy?

Posted: Mar 5, 2019 10:08 AM

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Ritwik Sunil Trivedi Head of Engineering| Quality International Sharjah, Sharjah, United Arab Emirates

Procurement is a specialized function and should follow very strict procedures. If the activity is performed by any other person, there is a risk that some procedural steps may be missed out. That's why it is handled by a separate department in most organizations. Procurement department must support procurement for this project. Hopefully, the project sponsor could help.

You may consider adding some procurement staff as project hires but it depends on how feasible it is in your organization. Also, this would be a change should follow change approval process. It can affect cost and schedule.

Posted: Mar 6, 2019 3:17 AM

Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina

Mar 05, 2019 2:50 PM

Replying to KEYULKUMAR DAVE

...

I am not the project manager for the project but I have been give responsibility to help PM if required. As I am looking for small projects within organization. I agree that PM might want some boost in career so he trying everything. But it doesn’t help project then it has very high risk.

It could be important to show that person the risk he is creating on the project. It could be the situation where after you and the PM meet the procurement area everybody agree on the procurement area will not perform procurement activities into the project but they will guide on all related to procurement. If that is the situation (I was in this type of situations) then my recommendation is put this on the table, inform to all the stakeholders, raise a risk/issue, and be sure that the procurement area will say "GO" to deliverable and activities.

Posted: Mar 6, 2019 4:34 AM

Abolfazl Yousefi Darestani Manager, Quality and Continuous Improvement| Hörmann-TNR Industrial Doors Newmarket, Ontario, Canada

If pm is unable to do the procurement, why did he/she accept to do so? PM should make a reasonable decision. However, the project manager should have the others do the job. This is the art of a typical manager.

Posted: Mar 6, 2019 8:20 AM

KEYULKUMAR DAVE PMP, Six sigma Black belt| Thailand Banchang, Rayong Province, Thailand

Thanks you all for your views. According to sponsor they do not want further delay so allowed project manager to take care of project Procurement but procurement department will support to PM needs. Contract negotiation will be handled by PM+ procurement manager together.

Posted: Mar 6, 2019 9:41 PM

Deepesh Rammoorthy ICT Project Manager ( PMP®AgilePM®Certified ScrumMaster® (CSM®))| Australian Red Cross Blood Service Tarneit, Vic, Australia

If this person wants a satisfactory career in project management , they must run as fast as possible out of this role/company.

You are better off working as a PM in a Strong Matrix or Projectized structure where the Procurement Manager is your trusted guide and consultant and you can focus your attention to actually managing the project.

Posted: Mar 6, 2019 11:22 PM

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