Project procurement

On small projects, procurement could either be assigned to the contractor doing the detailed engineering or performed by the Owner. In-house execution will undoubtedly minimize out-of-pocket expenses and seems like the desired option. However, the approach will only be viable for very small projects or on locations where an experienced and well-staffed purchasing department is available. 

Sharing information in projects Collaborative forecasting and scheduling in projects Procurement in projects Community networking in projects Operational excellence in projects... 

Expediting-Visit Report/Abridged Report Project Procurement... 

The price of air-cooled exchangers should be obtained from vendors if possible. If not, then by coirelating in-house historical data on a basis of /ft of bare surface vs. total bare surface. Correction factors for materials of construction. pressure, numbers of tube rows, and tube length must be used. Literature data on air coolers is available (Reference 15). but it should be the last resort. In any event, at least one air-cooled heat exchanger in each project should be priced by a vendor to calibrate the historical data to reflect the supply and demand situation at the expected time of procurement. 

When analyzing the financial impact of projects, it is often useful to further categorize costs as either procurement costs or operations costs. This distinction better enables the projection of costs over time, because procurement costs are short-term, and refer to all costs required to bring a new piece of equipment or a new procedure on-line. Conversely, operations costs are long-term, and represent all costs of operating the equipment or performing the procedure in the postprocurement phase. 

Finally, let s consider cash flow. Although cash flow does not have a direct effect on a company s revenues or expenses, the concept must be considered. If the project involves procurement costs, they often must be paid upon delivery of the equipment - yet cash recovery could take many months or even years. Three things about any project can affect a firm s available cash. First, cash is used at the time of purchase. Second, it takes time to realize financial returns from the project, through either enhanced revenues or decreased expenses. Depreciation expense is calculated at a much slower rate than the cash was spent. As a result of the investment, a company could find itself cash-poor. Even though cash flow does not directly affect revenues and expenses, it may be necessary to consider. 

If your requirements vary from project to project, subcontractors approved for one project may not be approved for others. If your procurement requirements do not vary from product to product, you may well be able to maintain an AVL. Most will meet your minimum criteria for doing business with your company but may not be capable of meeting specific product/service requirements. Others you will include simply because they do supply the type of product/service you require but their credibility is too low at present to warrant preferred status. In the process you have eliminated the cowboys or rogues . There is no point in adding these to the list as you have established that they won t change in the foreseeable future. 

SCOR-project is to identify, evaluate and prioritize actions using shortcut methods. SCOR-projects are usually executed by teams made up of members of different departments including customer service, sales, controlling, operations, procurement and logistics. The teams are supported by internal consultants, who provide knowledge about the SCOR-model and preside over the team meetings. 

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