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American Property Development Corporation

This presentation analyzes the failures in procurement and contract strategy within the American Property Development Corporation (APDC). It highlights critical reasons for past project failures, including the absence of cohesive procurement plans, inadequate contract strategies, and poor integration of procurement processes. The aim is to propose effective steps for enhancing procurement strategies and project management collaboration. By focusing on streamlined procedures and collaborative practices, APDC can reduce costs, increase revenues, and ultimately achieve higher project success rates.

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American Property Development Corporation

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Presentation Transcript

  1. Project Management Procurement Procedures American PropertyDevelopment Corporation

  2. Strategy for Failure Reasons for Previous Failures • No procurement or contract strategy plan has in place. • When procurement or contract strategies was used, the plans was substandard making the project a failure. • Inferior procurement and contract strategy plans used. Projects were finished after completion date, costing the company millions. • Failures were commonplace due to the lack of a proper procurement procedures, as each division ran the projects how it wanted. The following presentation will highlight what the company needs to do to follow a path to success and streamline the procurement and contract strategy processes for APDC to increase revenues and decrease failures.

  3. Overview Role of theProject Manager in relation to Procurement • The value of the procurement professional to an organization is enhanced by: • Understanding the project management process. • Utilization of specific procurement tools at specific steps during the project life cycle. • These steps include Negotiation, Solicitation Methods, Cost/Price Analysis and Total Cost of Ownership • An understanding of the benefit of integrating the procurement tools, as opposed to having the procurement process occur in isolation, i.e., the project manager and the procurement professional working in “silos”. (Hairston 2005)

  4. The Five Steps of the Procurement Process Procurement Chart

  5. Project Management Process

  6. Desktop Scheduling Tool

  7. Lean Solutions

  8. Roles and Responsibilities

  9. Discussion Points • There is commonality between the processes and there is a need for both processes. (Parker 1998) • In the execution of a project, procurement value comes from understanding.

  10. References • Hairston, Robert J. (2005) Integrating Procurement & Project Management, retrieved from the worldwide web on January 19, 2009 from www.ism.ws/files/pubs/proceedings/behairston.pdf Project Management Handbook, Project Management Institute/Jossey-Bass Publishers, 1998 • Glenn M. Parker, Cross-Functional Teams, Jossey-Bass Publishers, 1994 • J. Davidson Frame, Managing Projects in Organizations, Jossey-Bass Publishers, 1995 • Jack R. Meredith/Samuel J. Mantel, Jr, Project Management: A Managerial Approach, John Wiley & Sons, Inc., 2000 • A Guide to the Project Management Body of Knowledge (PMBOK Guide), Project • Management Institute, 2000 • Joseph L. Cavinato, Ralph G. Kauffman, The Purchasing Handbook 6th Edition, 1999 • Guiding Successful Six Sigma Projects, Oriel Incorporated, 2002

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