control procurement

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KaurP
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control procurement

Postby KaurP Mon Aug 13, 2018 11:59 am

With PMBOK6 Close procurement has been moved from close project or phase to control procurement and that to from a process to an output this time.
I assume that activities of close procurement still remains the same. The only difference seem to be is that those activities have been moved under Control procurement process now.-

--Product validation: Validating or confirming successful completion of contract work by PM & project team before closing procurement.
--Procurement negotiation
--Financial closure & Administrative Closure
--Procurement Audit
--Updates to Records
--Final contract performance reporting
--Lessons Learned
--Procurement file: is stored for use as historical records.
--Others-
Arranging for storage of procurement records and drawings
Creating and delivering legal documents, such has release of lien documents and formal acceptance letters.
Returning property used for the procurement to its owner.


PMBOK 6 mentions the Procurement activities while Closing a Project or Phase as -

1. Confirming the formal acceptance of the seller’s work: I think its PM who closes the procurement after confirming that his team has formally accepted the seller's work. In closing process he only cross checks.
[b]Can we say 'Confirming/ensuring/validating/checking if the seller has performed all the work as per the contract is a part of which Control procurement, if close phase option is also given?


2. Finalize open Claims (Financial activity): In a sense, Claims are settled and finalized before closing the procurement. In close phase, update procurement documents ONLY if there is any open claim and is settled after procurement closure otherwise not. Information for the one which is not settled or cannot be settled at this time, must already be there in the documents.
So, generally, if no scenario given, will it be okay to say we finalise or settle claims in control procurement not close phase?

3. Updating records to reflect final results : Update procurement documents ONLY if any update happens otherwise not.

Final contract performance reporting is created in Control Procurement in any which case. Right?

4. Archiving such information for future use (Administrative activity): Does this mean collect, index ,file, archive procurement documents in Close Project or phase?
If yes, doesn't creating Procurement file (at the time in closing procurement) mean the same?


(Procurement file involves putting all emails, letters, conversation, payment receipts, , reports etc. related to procurement into an organised file. This will be stored for use as historical record...)

Administrative and financial closure for the Project are done in the Close Project or phase process.
Looking at the close procurement activities in control procurement and close phase, what should we conclude- Administrative (project doc record keeping or updating, day to day activities)and Financial Closure (like payment of invoices, settling claims etc) for Procurement are done at the time of Closing Procurement in Control procurement process or Close Project or phase process?


Thanks!
manishpn
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Re: control procurement

Postby manishpn Mon Aug 13, 2018 7:31 pm

KaurP wrote:With PMBOK6 Close procurement has been moved from close project or phase to control procurement and that to from a process to an output this time.
I assume that activities of close procurement still remains the same. The only difference seem to be is that those activities have been moved under Control procurement process now.-

--Product validation: Validating or confirming successful completion of contract work by PM & project team before closing procurement.
--Procurement negotiation
--Financial closure & Administrative Closure
--Procurement Audit
--Updates to Records
--Final contract performance reporting
--Lessons Learned
--Procurement file: is stored for use as historical records.
--Others-
Arranging for storage of procurement records and drawings
Creating and delivering legal documents, such has release of lien documents and formal acceptance letters.
Returning property used for the procurement to its owner.


PMBOK 6 mentions the Procurement activities while Closing a Project or Phase as -

1. Confirming the formal acceptance of the seller’s work: I think its PM who closes the procurement after confirming that his team has formally accepted the seller's work. In closing process he only cross checks.
[b]Can we say 'Confirming/ensuring/validating/checking if the seller has performed all the work as per the contract is a part of which Control procurement, if close phase option is also given?

control procurement, refer to X1.20 SECTION 12 of PMBOK

2. Finalize open Claims (Financial activity): In a sense, Claims are settled and finalized before closing the procurement. In close phase, update procurement documents ONLY if there is any open claim and is settled after procurement closure otherwise not. Information for the one which is not settled or cannot be settled at this time, must already be there in the documents.
So, generally, if no scenario given, will it be okay to say we finalise or settle claims in control procurement not close phase?
Control procurement should take care of ensuring all claims are setlled

3. Updating records to reflect final results : Update procurement documents ONLY if any update happens otherwise not.

Final contract performance reporting is created in Control Procurement in any which case. Right? YES

4. Archiving such information for future use (Administrative activity): Does this mean collect, index ,file, archive procurement documents in Close Project or phase?
If yes, doesn't creating Procurement file (at the time in closing procurement) mean the same?

in control procurement, the lessons learnt wrt to sellers performance, procurement etc are updates, procurement file is also update, this is different then what PM does in close project, in close project the focus is not just on procurement but entire project there can be some duplication of effort in these processes but you need to keep in mind tif questions focus is only on procurement related scenario or project in whole

(Procurement file involves putting all emails, letters, conversation, payment receipts, , reports etc. related to procurement into an organised file. This will be stored for use as historical record...)

Administrative and financial closure for the Project are done in the Close Project or phase process.
Looking at the close procurement activities in control procurement and close phase, what should we conclude- Administrative (project doc record keeping or updating, day to day activities)and Financial Closure (like payment of invoices, settling claims etc) for Procurement are done at the time of Closing Procurement in Control procurement process or Close Project or phase process?


Thanks!
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/
KaurP
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Re: control procurement

Postby KaurP Tue Aug 14, 2018 8:44 am

I am trying to figure out what all Procurement related actives PMBOK6 is referring to which fall under Close Project or Phase process.

X1.20 SECTION 12—PROJECT PROCUREMENT MANAGEMENT CHANGES
Market research shows that very few project managers actually close out procurements. Someone in contracts, procurement or legal departments usually has that authority. Therefore, information from Close Procurements about evaluating all completed deliverables and comparing them to the contract was absorbed into Control Procurements. Information about administrative, communications, and records was moved to Close Project or Phase.

PMBOK 6 (P-123) mentions the Procurement activities while Closing (completion of contractual agreements) a Project or Phase as -

*Confirming the formal acceptance of the seller’s work: Procurement Documentation is an input for close project process which confirms that Contract is closed and which only happens after PM or procurement Mgr confirms that project team has formally accepted the deliverable.

*Finalizing open claims: Claims get settled in Control procurement as without it Procurement cannot be closed. in some cases, claims may go on even after closing the procurement however that should not affect overall Project or phase closure.

*Updating records to reflect final results: Project documents already get updated as an output of Control Procurement regarding procurement closure as it is an output of the same process. Is there anything else which should be updated regarding procurement specifically in Close project process?

*Archiving such information for future use: PMBOK says we are doing this in Control Procurement Process-
This is what 'OPA's Updates' an output of Control Procurement says (PMBOK 6) -
Lessons learned repository: Lessons learned should be archived in the lessons learned repository to improve procurements on future projects. At the end of a contract, the actual results of the procurement are compared with the projected results in the original procurement management plan. These lessons learned state whether the project objectives were achieved and, if not, provides the reasons they were not.
Procurement file: A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion with the final project files.
This means Procurement related info already get archived for future use in Control Procurement Process so last point also doesn't seem valid for procurement activities under Close Project or Phase Process.

And, as per X1.20 SECTION 12 -Procurement Mgmt. of PMBOK6, Information about administrative, communications, and records was moved to Close Project or Phase. . And may be, that's when above mentioned 4 activities got added under Close Project process. Looking at the points mentioned above, it seems these activities happen in Control Procurement process not in Closing process group.

Please share your views and correct me if I misunderstood anything.

Thanks!
manishpn
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Posts: 2509
Joined: Sat Jan 04, 2014 3:55 pm

Re: control procurement

Postby manishpn Tue Aug 14, 2018 7:18 pm

hi its difficult to keep in exchanging and read long notes, i would recommend you watch Sakets videos to clear your generic doubts, and come up with precise queries on the forum , alternatively you can attend the clarification session and we can discuss
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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