Eskom Procurement Book 2015

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]. 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.

8.5.3 STEPS IN MANAGING A PROJECT

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