Procurement Management of HD Woodson Senior High School Project - Case Study Example

Procurement Management: Case Study By student’s Name Institution Prof Course Date Part A HD Woodson Senior High School Project involves construction of a post-modern learning facility to accommodate about 900 students between grades 9 and 12. The facility will be constructed in a 230, 130 gross square foot and is based on a growing trend in high schools that are focused on Mathematics, Technology, Engineering and Science. The emphasis is on construction of technological classes that integrate design of classroom and laboratory spaces. The construction of the facility also includes a natatorium, cafeteria, gymnasium, auxiliary gymnasium, triple jump and high jump areas, throwing area and eight-lane all-weather track. The project is estimated to cost $ 103 million and its completion will provide a modern and technological institution for local students in the Washington DC City. The materials required for the project include bricks, steel, cement and glass planes. Procurement is the process in which an organization obtains materials which they require to complete a project. Procurement is meant to achieve a number of goals. First, the process ensures uninterrupted flow of raw materials and other required materials at the lowest total cost. Procurement allows a project manager to make timely purchases of the raw materials to ensure that the project is not interrupted or delayed. The process also allows the project manager to identify the cheapest sources of raw materials and hence procure them at the lowest cost. The second goal of the procurement is to enhance the quality of the finished product. The process ensures that the raw materials used in the project are of high quality hence the final product is of the right standard. Therefore, the goals of the procurement in the HD Woodson Senior High School Project is to identify the cheapest source of raw material, ensure an interrupted flow of the raw materials during construction and enhance the quality of the construction project. There are a considerable number of steel suppliers in Washington DC with the capacity to deliver the steel required in the HD Woodson Senior High School Project. Southern Blue Company is the major supplier of the cement in the city. The company has been in the business for the past four decades and their record of delivering quality and timey steel has earned them a name in the provision of the steel for construction. The company has been the main provider of steel in major projects in the city and beyond. However, the company provides this material at a significantly high cost. Another steel vendor in the region is Washington D.C Steel Supplier Limited. This supplier has a record of providing quality materials at the lowest cost. However, the company reliability in delivery of steel is questionable. Another major supplier is Classic Construction Limited. This supplier has been in the steel market for more than three decades. The supplier delivers timely and quality construction materials at a reasonable price. In order to get the best deal from the Southern Blue Company, the best way is to reduce the procurement period since this supplier can deliver product at fast rate. Therefore, reducing the procurement process will save some procurement cost. In the case of the Washington D.C Steel Supplier Limited, the best deal can be obtained by ensuring that the materials are requested in advance so that any delay in the delivery does not affect the construction process. Classic Construction Limited supplier have a reasonable prices for their material and deliver the material on time and the best deal can be obtain by making the procurement process take an average time. Part B: Procurement Management Plan Material The materials required for the project include bricks for construction of the basement of the building, cement, steel metal for reinforcing cement and sand, cement and glass panes. The base of the building will be built using bricks and a large amount of the bricks will be required. Cement will be used throughout the construction period hence is a vital raw material that will be purchased in large quantity. Steel will be used to reinforce the cement and construction of the supporting pillars. The walls of the building will be made of glasses hence will be required in bulk form. Sourcing of the materials Sourcing of the raw material is at the heart of project management and involves the proactive management of project requirement and the supply market. Sourcing involves a process of balancing between what a project require and what is found in the market. In this case, the sourcing of the material will include identifying the construction materials required and analyzing the supply market to determine the capability and capacity for the available suppliers. This process will be followed by tendering process where the specifications of the raw materials will be stated and suppliers invited to apply for the tender. The procurement of these materials will be done using firm fixed price to ensure there is not increase in the costs of the materials during the project period (United States 2010). Tendering An open tender will be adopted for the procurement of the construction materials. A public advertisement will be used to invite tenders from the public. An open tender does not restrict on whom to submit the tender application. This tendering process allows a large number of suppliers to apply hence making the process competitive. Competition is essential as it allows the manager to select the best quality product at the lowest cost. Therefore, the public will be invited to send the tender request which will be evaluated, analyzed and the suppler with the best materials at fair price will offered the tender. Tendering is a process in which the project management identify materials required in a project and invite suppliers to apply for the tender. Different suppliers send their request giving the terms of their services and the cost. The suppliers are required to provide detailed information about their product or service and give the required specification as stated by the project management. The project management will collects these tenders and evaluates and analyzes the terms of every supplier. The supplier who offers the best value for the money is selected to supply the raw materials. The process is competitive and the selection is based on the best services hence ensuring the best supplier is selected (United States 2010). Stakeholders The project stakeholders are the owners of the project and bear all the losses in event of the failure of the project. Therefore, there involvement in the procurement of the raw materials is the vital to ensure that their objectives are met. The project stakeholders will be involved in the procurement process in two ways. First, they will be involved in the selection of the supplier in the tendering process. In the process, the shareholders will analyze the terms of the selected suppliers and approve them. Second, the stakeholders will be involved in other major decisions regarding the procurement of the construction materials. Risk management There are numerous risks associated with the procurement process. The risks range from wrong selection of supplier, delayed delivery of the required raw materials to selection of poor quality raw materials. These risks can have detrimental effects on health status of a project leading to loss of finance. In order to minimize the effects of these risks, the project management needs to have comprehensive information about the procurement of the construction materials. The project manager will consult the help of the professionals in the procurement as well as other stakeholders. This consultation will reduce the chance of selection of the wrong supplier. The procurement of the material will be made on fixed price to eliminate possibility of increasing the cost of the material at later date. The procurement management will control the procurement of the raw materials to ensure that the supply is done as planned. The control will also ensure that any diversion from the initial plan is corrected before it causes some detrimental effects. Lastly, the manager will repeatedly evaluate the process to identify potential risks and take the necessary measures to reduce the risks (United States 2010). Procurement panel Procurement in project management can be done more effectively using the procurement penal. The panel will be charged with the responsibility of managing all the procurement activities and will consist of a procurement manager, procurement professional, risk management personnel, construction personal and secretary. The procurement manager role will include supervision and coordination of the all procurement activities to ensure that they are implemented as initially planned. The manager will also maintain communication with the vendors and other stakeholders involved. The procurement professional will be responsible for ensuring that all the legal requirements are met and no bleach of the contract. The risk management will repeatedly carry out the risk assessment to ensure that necessary measures are taken to prevent detrimental effect on the procurement and the entire project. The construction personal will ensure that the procured raw materials meet the expected standard. They will also ensure that the materials are delivered in time to avoid delay. The secretary will keep the right procurement record for future reference. Procurement metrics Procurement metrics are essential for effective control and risk management of the project. The metrics act as a milestone towards the completion of the project and enable the project manager to identify various aspects of the project that divert from the initial procurement plan. In addition, the metrics are used to compile data on the performance of various venders for farther procurement activities (United States 2010). The metrics in this project include quality of the delivered product, on time delivery, cost per product, quantity of the raw material delivered, development time, development costs and transactional efficiency. The evaluation of this metrics gives three values namely, unsatisfactory, acceptable and exceptional. References United States, 2010, Procurement. Washington, DC: U.S. G.P.O., Supt. of Docs. Read More