Clap Control Home Automation Procurement Management Paper – Please follow the instructions carefullyRead PPT, Previous Paper and instructions before start

Clap Control Home Automation Procurement Management Paper – Please follow the instructions carefullyRead PPT, Previous Paper and instructions before start to work on this paperthis paper must be relate with Product and Project, please do not introduce the topic3 pages， APA Procurement Management
Importance of Project
Procurement Management

2
Procurement means acquiring goods and/or services from an
outside source

Other terms include purchasing and outsourcing
Debates on Outsourcing
3

Some companies, such as Wal-Mart, prefer to do no
outsourcing at all, while others do a lot of outsourcing.

GM recently announced plans to switch from outsourcing
90% of IT service to only 10%

Most organizations do some form of outsourcing to meet their
IT needs and spend most money within their own country
Why Outsource?

To access skills and technologies

To reduce both fixed and recurrent costs

To allow the client organization to focus on its
core business

To provide flexibility

To increase accountability
4
PM Network – Risks of
Outsourcing

Boeing’s Dreamliner

Following suit and not minding risks

Vendor Issues

Misunderstanding

Information Exchange

Schedule Overruns
5
PM Network – The More the 6
Merrier

More providers, more problems

Differing methodologies and tools

Service and Operating Level Agreements

Find a balance that works for the organization
Contracts

7
A contract is a mutually binding agreement that obligates the
seller to provide the specified products or services and
obligates the buyer to pay for them

Contracts can clarify responsibilities and sharpen focus on key
deliverables of a project

Because contracts are legally binding, there is more
accountability for delivering the work as stated in the contract
Project Procurement
Management Processes
8

Project procurement management: Acquiring goods and
services for a project from outside the performing
organization

Processes include:

Planning procurement management

Conducting procurements

Controlling procurements

Closing procurements
Planning Procurement
Management
9

Identifying which project needs can best be met by using
products or services outside the organization

Types of Contracts:

Fixed Price (or lump sum)

Cost Reimbursable

Time and Material

Unit Price
Point of Total Assumption

The Point of Total Assumption (PTA) is the cost at which the
contractor assumes total responsibility for each additional dollar
of contract cost


10
Contractors do not want to reach the point of total assumption,
because it hurts them financially, so they have an incentive to
prevent cost overruns
The PTA is calculated with the following formula:
PTA = (ceiling price – target price)/government share + target
cost
Cost Reimbursable
Contracts

Cost plus incentive fee (CPIF

Cost plus fixed fee (CPFF)

Cost plus percentage of costs (CPPC)
11
Contract Clauses

Contracts should include specific clauses
to take into account issues unique to the
project

Can require various educational or work
experience for different pay rights

Often includes:

Termination clause

Limitation of liability clause
12
Tools and Techniques for
Planning Purchases and
Acquisitions
13

Expert judgment

Market research

Make-or-buy analysis: General management
technique used to determine whether an
organization should make or perform a
particular product or service inside the
organization or buy from someone else
Exercise: Make-or-Buy
Example

Assume you can lease an item you need for a
project for $800/day. To purchase the item, the
cost is $12,000 plus a daily operational cost of
$400/day
How long will it take for the purchase cost to be the
same as the lease cost?
14
Contract Statement of
Work (SOW)

15
A statement of work is a description of the work required for the
procurement

If a SOW is used as part of a contract to describe only the work
required for
that particular contract, it
is called a contract stmt
of work
Procurement Documents

Request for Proposals


Proposal
Requests for Quotes

Bid
16
Source Selection Criteria

It’s important to prepare some form
of evaluation criteria, preferably
before issuing a formal RFP or RFQ

Beware of proposals that look good
on paper; be sure to evaluate
factors, such as past performance
and management approach
17
Conducting Procurements

Deciding whom to ask to do the work

Sending appropriate documentation to potential

sellers

Obtaining proposals or bids

Selecting a seller

Awarding a contract
18
Approaches for
Procurement

19
Organizations can advertise to procure goods
and services in several ways:

Approaching the preferred vendor

Approaching several potential vendors

Advertising to anyone interested
Seller Selection

Organizations often do an initial evaluation of all
proposals and bids and then develop a short list
of potential sellers for further evaluation
20
Controlling Procurements
21

Ensures that the seller’s performance meets contractual
requirements

Contracts are legal relationships, so it is important that legal
and contracting professionals be involved in writing and
administering contracts

It is critical that project managers and team members watch
for constructive change orders
Suggestions for Change Control
22 in
Contracts

Evaluation of any change should include an impact analysis.
How will the change affect the scope, time, cost, and quality
of the goods or services being provided?

Changes must be documented in writing. Project team
members should also document all important meetings and
telephone phone calls
Best Practice

Accenture developed a list of best practices from
experienced outsourcers throughout the world:
1.
2.
3.
4.
5.
6.
7.
Build in Broad Business Outcomes Early and
Often
Hire a Partner, Not Just a Provider
It’s More Than a Contract, It’s a Business
Relationship
Leverage Gain-Sharing
Use Active Governance
Assign a Dedicated Executive
Focus Relentlessly on Primary Objectives
23
Closing Procurements

The project team should:




24
Determine if all work was completed correctly
and satisfactorily
Update records to reflect final results
Archive information for future use
The contract itself should include requirements for formal
acceptance and closure
Tools to Assist in Contract
Closure

Procurement audits identify lessons learned in the
procurement process

Negotiated settlements help close contracts more
smoothly

A records management system provides the
ability to easily organize, find, and archive
procurement-related documents
25
Chapter Summary

Project procurement management involves
acquiring goods and services for a project from
outside the performing organization

Processes include:

Plan procurement management

Conduct procurements

Control procurements

Close procurements
26
Running Head: Project Clap Control Home Automation
1
Scope
Project Justification
Projects developed to save power and time combine smart devices to
provide a new, easier home appliance experience.
Project Objective
Improve the standard of living, provide more convenient and efficient
way of life.
Project Scope Description
Project clap control home automation (Clap switch) is providing an
automatic and simple household electronic device used in daily life to
improve the quality of life and energy saving.
Product Acceptance Criteria
-The user only needs to install the device easily
– Start the device switch by clapping
– It is convenient and fast, saving time and electricity
Project Constraint
– It is currently limited to domestic lighting
– There may be a glitch in the equipment
– The market already has many competitors
Technical Requirements
Breadboard, microcontroller 4017 IC, Relay(9 Volts), variable resistor
(1k), MIC,Resistors(10k),resistors(1k) ,transistor BC 547, LED’s, Battery,
connecting wires, and a bulb
Review with Consumers
Feedback Loops, Survey form consumers, and summarize
Project Assumption
– The first half year is the trial period
– Higher than the estimated turnover of 8%, increase sales inventory
– Less than 8% of the estimated turnover, reducing production
– The observation period is 3 months (a quarter), the turnover shows a
negative trend of gradual decrease, withdraw the product & suspend
this project
Product: Clap control home automation (clap switch)
Product Mission:
Provide a more convenient and fast way for daily life
Necessary requirement conditions for the product:
-Necessary conditions to build up Clap control home automation
– Required Materials:
Breadboard,
microcontroller
4017
IC,
Relay(9
Volts),
variable
resistor
MIC,Resistors(10k),resistors(1k) ,transistor BC 547, LED’s, Battery, connecting wires, and a bulb
(1k),
Project Clap Control Home Automation
2
– Parts supplier/wholesaler
– Labor
– Factory
– Promotion Partners( could be hospital, restaurant, school, or any social community can be
considered.)
Any social community who purchased or relate with the product could be a part of the stakeholder,
also include individual consumer.
– Company itself
– Employees
– Social Communities
– Stockholders
Advantage of the product:
– It’s a low risk and low cost product, do not need to invest too much money at the beginning
– Simple way to use
– Provide a more convenient and fast way for daily life
– Products are more attractive than other products and can be adapted to local market demands, no
limit
Risk：
– Similar company product
– Intellectual property rights
– High inventory
Budget for the product：
– Low cost
– Specific Budget
Project Clap Control Home Automation
⚫
Breadboard- $10
⚫
Microcontroller 4017 IC- $5
⚫
Relay -$7
⚫
Variable resistor (1k) -$8
⚫
MIC -7$
⚫
Resistor (10k)-$5
⚫
Resistor(1k)-6$
⚫
Transistor BC 547-5$
⚫
LED’s -$7
⚫
Battery- $10
⚫
Connecting wires- $13
⚫
Bulb- 7$
⚫
Total = $100( maximum budget )
– Could be develop within 3 months or less
3
Running Head: RISK MANAGEMENT
1
10/28/2019
RISK MANAGEMENT
2
Risk Management Process
List and Description Components of Risk Management Process
Risk can be defined as events of uncertainty that bear positive or negative impacts on the
schedule, cost as well as the performance of a project (Hillson, 2017). The negative impacts are
usually threats, while the positive impacts normally present themselves as opportunities. Just like
other important business activities, the risk management process needs to be a process that is
easy to understand, follow-through, and above all, clear in purpose. Similarly, the process must
consist of reliable inputs, properly-designed activities, and outputs of value-adding nature. The
risk management process has some major components which include:
✓ Risk identification
✓ Risk assessment
✓ Risk response development
✓ Risk response control
Description of the Components
Risk Identification
Risk identification involves analyzing project activities to single out factors that may
result in risks. As initially indicated, risks are not only negative impacts but also positive ones.
Therefore, the process of risk identification must target both opportunities and threats that can
influence the project process either positively or negatively. The process of analyzing project
activities with the aim of identifying risks is carried following four distinct steps. The first step
involves creating a list of threats and opportunities with the ability to positively or negatively
impacting on the project. The second step involves a consideration of risks already maintained as
RISK MANAGEMENT
3
well as managed in the risk register. Every risk, when described, forms two parts, risk statement,
and the consequence. For instance, in our clap switch project, there can be a risk that we may not
finish on assembling the motherboard as per the scheduled date, which will automatically lead to
failure to deliver the product on the cost-bound date.
Risk Assessment
Once the risks have been identified, they are traced to where they emanated from. This
helps in informing the drivers that triggered their occurrence. Dealing with a risk whose source is
known can be faster than dealing with one that is not known yet. A risk assessment also involves
attempting to know the extent to which the identified risks have gone (Kivilä, Martinsuo, &
Vuorinen, 2017). With our project of clap switch, we can assess the risks by measuring their
extent of affliction on various important project functions. For instance, on technical
requirements, we will look at issues such as whether all the requirements as listed at the
beginning of the project still have requisite stability and whether we can resolve technical
uncertainties discovered.
Risk Response Development
In this component, risks have already been identified as well as their driving factors and
the extent to which the impacts of these risks have gone. Armed with the right information
concerning the type of risk and their sources, the project team decides on the best response
approaches. The response approaches are categorized into four categories, which include
avoiding, accepting, reducing, and sharing. Each response is usually relevant to the type of risks
identified.
Risk Response Control
RISK MANAGEMENT
4
Response control comes as the last component of the risk management process and involves
mitigation of the risks identified. Going by the risks response selected, the project team identifies
existing gaps from the risks management capability of the team and enhances those capabilities
so as the risk response approach picked can fully be implemented.
Tools and Techniques Used in Risk Identification
The conventional practice of identifying risks is through the review of project documents
such as plans, files belonging to previous projects, documentations, lessons books, articles, and
many others. The project team can create a list of threats and opportunities with the ability to
positively or negatively impacting on the project (Iqbal et al., 2015). Also, a consideration of
risks already maintained as well as managed in the risk register. Every risk, when described,
forms two parts, risk statement, and the consequence.
Information Gathering Techniques
Some of the information gathering techniques include brainstorming, which is carried out by a
group of individuals focused on identifying project risks. Another obvious technique that turns
out to be very informative and effective is root cause analysis. It involves classifying the
identified risks, then tracing them to their sources with the aim of knowing their causes (Hillson,
2017). Lastly is the interviews, which are also another traditional but still effective method of
gathering information related to risks identified.
Qualitative Risk Analysis
The qualitative risk analysis involves categorization of risks that are highly specific with
the project being undertaken with consideration of the apparent impact the risks bear on the
budget and schedule of the project. For instance, in our project of design and development of the
RISK MANAGEMENT
5
clap switch, we realized the initial design depended so much on unrealistic assumptions that
were only found with the prototype we used. During implementation, we had to make
adjustments that caused had a significant effect on our project budget and schedule, as shown
below.
Project Schedule and Budget Table
10 days
10 days
10 days
10 days
Requirements
$180
elicitation
Design
Implementation
Testing
Project Closure
$200
$80
$100
$80
$00
From the schedule and budget table, as shown above, all activities were allocated ten days except
testing and project closure, which were all combined into a 10 day period split into five days for
each. However, due to the risk that took place under the design activity as explained above, there
was a need for four extra days at the cost of $80. At the end of it, the project cost shot-up from
$560 to $640.
RISK MANAGEMENT
6
Risk event
R1
Likelihood
Impact
When
3
3
Executive
4
5
Monitoring
R2
Business
(competitor
supplier)
Technical
R3
Organizational
3
5
Planning
R4
Project
Management
2
4
Executive
+
Project
Management
R4
Technical
R2
Organizational
R3
Business
R1
Quantitative Risks Analysis
The quantitative risk analysis, on the other hand, involves categorization of risks that are
highly specific with the project being undertaken with consideration of the apparent impact the
risks bear on their high probability of occurrence and impact on the project Clap control home
automation .
RISK MANAGEMENT
7
Contents of a Risk Response and develop a Risk Response
Going by the risks response selected, the project team identifies existing gaps from the
risks management capability of the team and enhances those capabilities so as the risk response
approach picked can fully be implemented. As initially stated, we accepted the risk as per the
assessment outcome and redesigned the product. This was on the backdrop of the development
of the clap switch when we realized that the initial design depended so much on unrealistic
assumptions that were only found with the prototype we used.
Tools and techniques used to Control Risks
To fully put the mitigated risk under full control, the Risk Response Plan Report was
implemented fully. This was carried out in full realization that there were no new risks recorded
until the project was brought to a closure. The project team identified existing gaps from the
RISK MANAGEMENT
8
risks management capability of the team and enhanced those capabilities so as the risk response
approach applied to correct the risk could fully be implemented.
RISK MANAGEMENT
9
References
Hillson, D. (2017). Managing risk in projects. Routledge.
Iqbal, S., Choudhry, R. M., Holschemacher, K., Ali, A., & Tamošaitienė, J. (2015). Risk
management in construction projects. Technological and Economic Development of
Economy, 21(1), 65-78.
Kivilä, J., Martinsuo, M., & Vuorinen, L. (2017). Sustainable project management through
project control in infrastructure projects. International Journal of Project Management,
35(6), 1167-1183.
RISK MANAGEMENT
10
11/11/2019
Effective communication program
A product manager (PM) should be able to interpret, translate, and disintegrate complex
concepts into something that the audience can easily understand (they should be multilingual).
That is a primary skill that all PMs should have at the core of their daily operations because this is
the kind of communication that enables them to work through the organization and influence the
facilitation of a product (Gwynn, 2019). In any effective communication program, the key people
to interact with are these four categories: top management, colleagues, diverse stakeholders, and
consumers. Therefore for the development of an effective program of communication that is
cooperative as well (for the clap switch), PM will have to find a way to communicate with these
relevant stakeholders.
Communicating with the top management
At this level of communication, the message is a very serious and high profile, and
therefore, PM for the clap switch should find the best way to confidently and affirmatively break
down his message to the top managers. In doing this, PM will have some Dos and Dons.
The Dos; in the category, the first thing to do is to ensure the presentation and other
documents reach them before the actual meeting, also important is making some pre-printed
materials for them to go through in the course of the meeting quickly. Secondly, PM should be
well conversant with the information about the product and be sure to support your facts with data
and videos (Harrison, 2019). This will show that PM had thought through the entire process and
is aware of the possible outcomes. Thirdly, PM should be categorical abo…
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