Archive

Archive for June, 2009

Influence & Cost of Changes

June 7th, 2009 No comments

As you are aware one of the major challenges of the project manager is managing changes. With projects, change is inevitable, you have to be prepared to handle change, and to manage changes. Changes take place throughout the project and during the different phases of the project life cycle, change will have different effects on the project. In this article I will talk about how the range of influence changes as the project moves along the life cycle. I will also talk about project spending and the cost of change.
Figure 1 shows how the range of influence on a project decreases as the project develops. By range of influence I am talking about the ability to alter the project quality, schedule, cost, and return on investment (ROI). Early on in the project we are just dealing with engineering design so any changes to the scope and schedule does not cost……………..  click here

Project Procurement II

June 7th, 2009 No comments

This is a continuation of the procurement article from March. Part of the project process is developing TIC estimates. In the early stages you usually use budgetary quotes. These you will get from suppliers and condition them based on your experience. Depending on your company policy, you may get the budgetary quotes or procurement can get them. They are based on  preliminary information known at the time. In the later stages you will have to get firm quotes which is a procurement function. Typically the owner will procure the engineered equipment and the contractors will procure the  bulks.

The procurement cycle starts when you prepare the Request For Proposal (RFP) and the procurement group issues it to suppliers. Once the RFP is issued, all communication with the supplier should then go through procurement. The procurement groups function is to ensure the Purchase Order (PO) covers all the items asked for and tracks any changes. If o t h e r s a r e  h a v i n g  i n d e p e n d e n t conversations with the suppliers and changing items and quantities, you will have no control over the cost. In fact your procurement agent should advise the……………… click here

Project Procurement I

June 7th, 2009 No comments

 

 

In my early days I learned that if you want to get a project done on time, you have to get the equipment / material to the contractor. Now, I’m sure most have you have been involved in a project that has gone off track because the equipment was late, holding up the contractor. Some of the causes are lack of planning for purchase of long lead items, the procurement cycle, expediting, drawing approvals and in some cases lack of vendor response. In this article, I want to talk about some of these procurement issues to help you improve on your project execution and get the material there on time.

There always seems to be confusion as to whether we are working with a Request For Proposal(RFP) or Request For Quotation (RFQ)……………….. click here