IT rojsek management Procurement Planning Procurement planning involves identifying which project needs can be best met by using products or services outside the organization. It includes deciding whether to procure how to procure what to procure how much to procure when to procure Project Procurement Management
Project Procurement Management 11 Procurement Planning ◼ Procurement planning involves identifying which project needs can be best met by using products or services outside the organization. It includes deciding ◼ whether to procure ◼ how to procure ◼ what to procure ◼ how much to procure ◼ when to procure IT Project Management
IT Project management Procurement Planning Tools and Techniques Make-or-buy analysis determining whether a particular product or service should be made or performed inside the organization or purchased from someone else. Often involves financial analysIs E xperts both internal and external, can provide valuable inputs in procurement decisions Project Procurement Management 12
Project Procurement Management 12 Procurement Planning Tools and Techniques ◼ Make-or-buy analysis ◼ determining whether a particular product or service should be made or performed inside the organization or purchased from someone else. Often involves financial analysis ◼ Experts ◼ both internal and external, can provide valuable inputs in procurement decisions IT Project Management
IT Project management Make-or Buy Example Assume you can lease an item you need for a project for $150/day. To purchase the item, the investment cost is $1,000, and the daily cost would be another $50/day How long will it take for the lease cost to be the same as the purchase cost? If you need the item for 12 days, should you lease it or purchase it? Project Procurement Management 13
Project Procurement Management 13 Make-or Buy Example ◼ Assume you can lease an item you need for a project for $150/day. To purchase the item, the investment cost is $1,000, and the daily cost would be another $50/day. ◼ How long will it take for the lease cost to be the same as the purchase cost? ◼ If you need the item for 12 days, should you lease it or purchase it? IT Project Management
IT Project management Make-or Buy solution Set up an equation so the make is equal to the buy a In this example, use the following equation. Let d be the number of days to use the item $150d=$1.000+$50d Solve for d as follows Subtract $50d from the right side of the equation to get $100d=$1,000 Divide both sides of the equation by $100 d=10 days The lease cost is the same as the purchase cost at 10 days If you need the item for 12 days, it would be more economical to purchase it Project Procurement Management
Project Procurement Management 14 Make-or Buy Solution ◼ Set up an equation so the “make” is equal to the “buy” ◼ In this example, use the following equation. Let d be the number of days to use the item. $150d = $1,000 + $50d ◼ Solve for d as follows: ◼ Subtract $50d from the right side of the equation to get $100d = $1,000 ◼ Divide both sides of the equation by $100 d = 10 days ◼ The lease cost is the same as the purchase cost at 10 days ◼ If you need the item for 12 days, it would be more economical to purchase it IT Project Management
IT rojsek management What is a contract A mutually(相互地) binding agreement that obligates(使负义务) the supplier to provide the le specified proaucts or services and obligates the buyer to pay for them Project Procurement Management 15
Project Procurement Management 15 What is a Contract ◼ A mutually(相互地) binding agreement that obligates (使负义务) the supplier to provide the specified products or services and obligates the buyer to pay for them IT Project Management