ACME Development Corporation (ADC), a developer of custom homes and apartment complexes, has decided to standardize its project management practices and processes across its national organization.
The goal is to standardize with one single project-scheduling tool and to have the tool installed and be operational within 90 days. To this end, the company is forming a central project management office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the United States) have been able to use whatever scheduling tool they liked, within their budget constraints.
They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Because the PMs are located across the United States, a Web-based solution seems likely to be the most successful tool.
As the project manager, you have been charged with implementing the procurement process, and you decide that your first project will be purchasing the scheduling tool for ACME Development Corporation.
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Assignment:
As you expected, many of the older project managers at ADC are not happy that you are going to coordinate the procurement process for the scheduling tool. These project managers believe that their years of experience make them exempt from following proper project management guidelines. Therefore, you need to present the benefits of using a procurement process and the negative consequences of not using a procurement process.
Start by reviewing the Project Management Institute's A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition Knowledge Area on Project Procurement Management. Use the course materials, textbooks, and Web resources to develop your understanding of how procurement and contract management fit in to the project management life cycle.
Within the Discussion Board area, write 600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas:
Use the library to select a case study with regard to procurement and project management.
The selected case study should address how a lack of control over procurement adversely affected the project.
Address the following questions using your selected case study as support:
In your opinion, why was the lack of procurement detrimental to the project in your case study?
What steps could have been taken to prevent the problems from the beginning of the project?
What would you have done to correct the project once problems had already arisen? Why?
Provide 1 example of a time when you feel that you successfully performed procurement activities. Explain why you think it was successful.