Controlling Procurement Projects

Objective

After completing this lesson, you will be able to use Project Control for Procurement Projects.

Project Control: Procurement

A successful project execution requires that the right resources, services, and materials are available. Project demands can be used to manage that, beginning from the early planning stages, when some details aren't yet known. You can then assign people to project demands to fill their timesheet, or trigger and monitor the procurement of services and materials.

Applicable Process Steps

To sum up the steps you saw, here are the general process steps listed:

  • Project Controller: Defines demand for an existing Project
  • Project Controller: Requests demand and assigns resources
  • Purchaser: Converts Purchase Requisitions into Purchase Orders
  • Warehouse Clerk: Post Goods Receipts and Goods Issues for Purchase Order
  • Production Planner: Performs a Make to Stock Production depending on Demand
  • Warehouse Clerk: Post Goods Receipts and Goods Issues for Production Order
  • Project Controller: Closes Project Demand

Benefits

The benefits of working with project control for sales are:

  • Use a single application to define project requirement for resources, services, and materials
  • Perform early project demand planning without needing to keep all details immediately
  • Trigger and monitor procurement out of projects
  • Prefill the timesheet of involved resources
  • Support the alignment of dates and other attributes between projects and procurement

Note

This process flow is covered in Scope Item: 4RF - Project Control Resourcing and Procurement.

How to Control Procurement Projects

Introduction: Controlling Procurement Projects

A successful project execution requires that the right resources, services, and materials are available. The following process explains the necessary steps.

Task 1: Define a Demand for Non Stock Materials

In this task Anna, Project Controller for Resourcing and Procurement, defines a demand for a non stock material.

This demand represents a certain need of a WBS element at a certain time and a certain location.

When Anna saves the demand, a purchase requisition number is automatically created.

This number is then used by Purchaser Kathy to create a purchase order.

A post of goods movement follows, done by Warehouse Clerk Susan.

At the end, Anna closes the demand.

Task 2: Define a Demand for Direct Procurement

Anna defines a demand for a material in project stock.

The demand is used for direct procurement.

When the demand is saved, a purchase requisition number is automatically created.

This number is now used to create a purchase order.

When the purchase order is saved, the purchase order number is then used to post goods movement.

It starts with a goods receipt for the purchase order, then continues with the posting of goods issues.

This post is directly connected to the WBS element. All these steps are executed by Warehouse Clerk Susan.

At the end, the material demand is closed by Anna.

Task 3: Define Demand for Preliminary Procurement

In this task Anna, Project Controller for Resourcing and Procurement, defines the demand for material in project stock.

This helps with planning, triggering, and monitoring preliminary procurement of long-lead stock materials for enterprise projects.

It results in the creation of Planned Independent Requirements.

In the previous task, the Project Controller created a material demand for direct procurement.

A planned independent requirement was created inside material demand.

The Project Controller sends this information to the Production Planner.

When the Production Order is released, the operations are confirmed by Production Supervisor Jim.

At the end, the goods movements are posted by Warehouse Clerk Susan.

Finally, the material demand is closed by Anna.

Task 4: Define Demand for Project Stock with Reservation

In this task, Anna simplifies and accelerates the goods issue process by requesting the warehouse to reserve materials for the project, to be withdrawn later by the project's requirements.

These reservations are considered and used for the post goods movement scenario. The goods movements are posted by Warehouse Clerk Susan.

At the end Anna closes the demand.

Task 5: Define a Service Demand

Now, Anna defines a demand which helps to plan, trigger, and monitor procurement of services for enterprise projects.

The process starts with the creation of the service demand with a service material. When the demand is saved, a purchase requisition number is created.

This number is then used to create a purchase order, done by Kathy.

At the end, the service demand is closed by Anna.

Task 6: Define a Resource Demand

In the last task, Anna defines a demand which helps to plan, staff, and monitor resources for enterprise projects.

The process starts with the creation of the resource demand. Inside the demand a user assignment happens together with the staffed effort.

A timesheet is then used for the recording of employees work.

At the end Anna closes the demand.

Summary

After completing this lesson, you're able to:

  • name the benefits of using a Project Control for Procurement
  • set up a new Project for Procurement
  • define different Demands for Materials
  • define Service and Resource Demand

Learning

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