Acquisition management

ACQUISITION MANAGEMENT STEP BY STEP IN CONSTRUCTION SECTOR

PROJECTS

IBEN ENGENHARIA LTDA.


THE ACQUISITION MANAGEMENT FOR A PROJECT INCLUDES THE PROCESSES NECESSARY TO

ACQUIRE PRODUCTS AND SERVICES FROM OUTSIDE THE ORGANIZATION. IT INCLUDES PLANNING,

REQUEST, QUOTATIONS, AND PROPOSALS, PERFORMANCE, ADMNISTRATION AND CLOSING OF

PURCHASES.

THE PLANNING PROCESS CREATED THE REFERENCES NECESSARY FOR THE PURCHASE TO

PERFORM ALL OTHER ACQUISITIONS PROCESS. THE PURCHASE REQUEST, ON THE OTHER HAND, IS

THE CONSUMPATION OF THE NEED TO PURCHASE SOMETHING THAT HAS BEEN PREDICTED OR NOT

DURING PLANNING. IT COMPLEMENTS PLANNING INFORMATION, INDICATING WHO REQUESTED IT, IN

WHAT QUANTITY, IN WHICH URGENCY, AND WITH WHAT IMPORTANCE. PROVIDING FURTHER

FUNDAMENTS FOR THE SUBSEQUENT PROCESSES.

PURCHASES REPRESENT ON AVERAGE 66% OF THE COSTS OF A CONSTRUCTION PROJECT. IN

HIGHLY OUTSOURCED PROJECTS, SUCH FIGURES CAN GO HIGHER THAN 90%, AND THE

PERFORMANCE OF SUCH PROCESS IS RELATED WITH OTHER SUCCESS PARAMETERS IN ADDITION

TO THE COST, SUCH AS TIME, QUALITY, RISKS, COMMUNICATION, SCOPE, INTEGRATION, AND HUMAN

RESOURCES, WHICH SHALL BE INCORPORATED TO THE ACQUISTION REQUIREMENTS.

HOW TO MANAGE ACQUISITIONS AND ESTABLISH METRICS TO MEASURE PERFORMANCE?

WE WILL ANSWER THIS QUESTION BY DESCRIBING STEP BY STEP THE MAJOR ROUTINES IN

ACQUISITION MANAGEMENT FOR CIVIL CONSTRUCTION SECTOR PROJECTS.


ACQUISITION PLANNING MUST SPECIFY THE DESCRIPTION OF WHAT MUST BE PURCHASED AND ITS

TARGETS. THE TOTAL SUM OF THE PURCHASES IS EQUAL TO THE VALUE CONSIDERED AS COST IN

THE BUDGET, WHEN THEIR PERFORMANCE IS EQUAL TO 100%.

LIST OF SERVICES OF THE PROJECT

WORK PACKAGES TARGET THE WORK PACKAGES DESCRIBED BELOW CORRESPOND TO THE ACTIVITIES, SERVICES OR DELIVERIES THAT SHALL BE PERFORMED FOR THE PROJECT TO INCLUDE ALL WORK NECESSARY FOR A SUCCESSFUL CONCLUSION. EAP’S DICTIONARY MAY BE REQUESTED TO PROVIDE FURTHER DETAILS ON EACH WORK PACKAGE

THESE COLUMNS CORRESPOND TO THE QUANTITIES AND VALUES SPECIFIED IN THE BUDGET SPREADSHEET THAT WERE USED AS THE BASIS FOR THE COMPOSTION OF THE OBJECTIVE COST OF THE PROJECT. ALL ACQUISITION THAR EXCEEDS SUCH LIMITS SHALL BE AUTHORIZED BY THEIR MANAGER.

ITEM CATEGORY DESCRIPTION OF THE SERVICE START CONCLUSION UNIT QTY $ UNIT. MATERIAL

$ UNIT. SALARIES

$ UNIT. CHARGES

$ UNIT. TOTAL

$ TOTAL

24,135,882.58

.001 A OPENING and preparation of a box with up to 40cm for paving 09/22/11 09/28/11 m² 3,215.98 2.88 4.34 0.35 7.56 24,323.68

.002 A COVER for trestle in brickwork, sizes 0.65x 0.85x0.30 m 09/15/11 09/16/11 un 1.00 404.29 56.67 66.44 527.40 527.40

.003 ACOVER for fire extinguisher in carbon steel plate, with hose with Ø 65 mm (2 1/2'') x 30 m 04/17/12 12/31/12 un 1.00 762.79 41.15 48.26 852.21 852.21

.004 APROVISORY COVER in woodwork performed at the work site for storage of materials and tools (including 4 times re-use) 06/03/09 04/27/12 m² 240.00 59.81 112.28 127.88 299.98 71,994.27

.005 A FINISHING of concrete surface with electrics mechanic trowel 08/14/12 12/31/12 m² 420.00 0.18 2.55 2,01 4.74 1,989.92

.006 A FINISHING of concrete surface “Burned”, 01/24/11 06/13/14 m² 534.48 1.21 2.35 2.76 6.32 3,378.08

.007 AWIRE FENCE for sport court , with galvanized or PVC wire, fixed in galvanized steel tube frames, height: 1m 08/14/12 12/31/12 m 32,00 118.54 6.29 7.38 132.21 4,230.72

.008 AWIRE FENCE for sport court , with galvanized or PVC wire, fixed in galvanized steel tube frames, height: 4m 08/14/12 12/31/12 m 70.00 211.08 15.10 17.70 243.88 17,071.50


ANOTHER IMPORTANT INFORMATION FOR THE PURCHASER IN THE PLANNING IS TO RANK PURCHASE

ITEMS IN ABC ORDER, ACCORDING WITH THE ECONOMICAL RELEVANCE, AND DETERMINE THE

QUANTITIES THAT SHALL BE CONSUMED IN THE TIMELINE, ACCORDING WITH PLANNING.

MATERIAL CHRONOLOGICAL ABC CURVE

MATERIALS TARGET THIS COLUMNS CORRESPOND TO THE QUANTITIES AND VALUES SPECIFIED IN THE BUDGET SPREADSHEET THAT WERE USED AS THE BASIS FOR THE COMPOSITION OF THE OBJECTIVE COST OF THE PROJECT. ALL ACQUISITION THAT EXCEEDS SUCH LIMITES SHALL BE AUTHORIZED BY ITS MANAGER.. jul/12 ago/12 set/12

ITEMCATEGORY

DESCRIPTION OF THE SERVICE UN. QTY $ UNIT. TOTAL

$ TOTAL 1st FORTNIGHT

2NDFORTNIGHT

1st FORTNIGHT

2nd FORTNIGHT

1st FORTNIGHT

2nd FORTNIGHT

.001 ACover for external fire extinguisher in carbon steel plate (width: 0.60 m / height: 0.90 m / depth: 0.17 m) un 1.00 157.48 157.48 0.058 0.062 0.058 0.062 0.058 0.058

.002 A Muriatic acid l 2.68 1.35 3,.1 0 0 0.038 0.306 0.287 0.287

.003 A Carbon steem-50 cmd thick gauge 12.5 to 25mm (1/2 to 1'' ) kg 5,065.75 2.58 13,069.64 0 0 0 0 0 0

.004 AAdapter for fire hose made of brass (storz side diameter: 2 1/2 '' / female side diameter: 2 1/2 '') un 58.00 33.47 1,941.26 0.116 0.124 0.116 0.124 1,116 0.116

.005 A Adhesive for PVC tubing kg 58.88 26.69 1,571.44 0.079 0.048 0.054 0.081 0.634 0.719

.006 A Hydrofuge additive l 502.39 2.48 1,245.93 6.75 7.2 17,904 8,174 6.86 6.86

.007 A Waterproofing and laminating additive in dust for mortars kg 1,754.05 6.56 11,506.54 2,314 2,468 32,815 53,897 27,642 71,982

.008 A Mineral fertilizer 10-10-10 NPK kg 359.50 1.44 517.68 0 0 5,054 40.43 37,903 37,903


THE PMO ROLE IS TO DETERMINE THE PLAN, ESTABLISH THE POLICIES OF PROCESSES FOR THE

PERFORMANCE OF PURCHASES, ESTABLISH METRICS FOR THE MONITORING AND CONTROL OF

ACQUISITIONS. WITH THAT PURPOSE, THE IDA (ACQUISITION PERFORMANCE INDEX) IS

FUNDAMENTAL, SINCE IT SHOWS THE DEVIATION IN THE PURCHASES PERFORMED, COMPARING THE

WAY THEY WERE PERFORMED WITH THE WAY THEY WERE PROGRAMMED.

IDA = SUCCESS PARAMETERS FOR THE PERFORMED PURCHASES / SUCCESS PARAMETERS FOR THE

PROGRAMMED PURCHASES.

WHERE IDA > 100% =POSITIVE PERFORMANCE, AND IDA < 100% =NEGATIVE PERFORMANCE

PERFORMANCE INDICATORS

CURRENT INDICATORS

INDICATES THE PERFORMANCE OF THE ACQUISITIONS FOR THE PROJECT; IDA = 100% CORRESPONDS TO 100% OF

COMPLIANCE WITH THE GOALS AND OBJECTIVES ESTABLSISHED BY THE ORGANIZATION; DESIRED IDA > THAN100%

CATEGORY GOALBETTER

MEASUREMENT

CURRENT

MEASUREMENT

SERVICES 100.00% 103.00% 99.00%

MATERIALS 100.00% 112.00% 108.00%

GLOBAL IDA FOR THE PROJECT 100.00% 107.50% 103.50%


HOWEVER, THE PURCHASES ARE NOT RESTRICTED TO THE PLANNING AND THE INDEXES. THE

GOVERNANCE OF A PMO MUST BE CAPABLE NOT ONLY OF MEASURING PERFORMANCE, BUT ALSO

DISCIPLINE THE PROCESS BEHIND THE SUCCESS OF THE ACQUISTIONS.

PURCHASE MANAGEMENT MUST BE FOLLOWED UP DURING ITS ENTIRE LIFE CYCLE AND PRIORITIZED

IN ORDER TO PROVIDE GUIDANCE TO THE PURCHASER

THE 05 PROCESSES THAT DEFINE THE START AND THE CLOSING OF EACH PURCHASE ARE

SEQUENTIAL AND SHALL OBLIGATORILY GO THROUGH ALL THE FOLLOWING STAGES


PURCHASE REQUEST

BY DEFINITION, IT IS THE PROCEDURE FOR THE REQUEST OF A PURCHASE OF PRODUCTS AND SERVICES NECESSARY FORTHE PERFORMANCE OF THE WORK

THE MAIN EXIT FOR THIS PROCESS IS THE DETAILED SPECIFICATION OF EACH PURCHASE ITEM, INDICATING BRANDS ANDSUPPLIERS, IN ADDITION TO DETERMINING THE TECHNICAL RELEVANCE OF THE PRODUCT FOR THE “XYZ” CRITERIA, WHERE“Z” CORRESPONDS TO ITEMS OF HIGHER TECHNICAL RELEVANCE, CONSIDERED AS INDISPENSABLE FOR THE PERFORMANCEOF THE PROJECT, “Y” IS THE MEDIUM RELEVANCE, “X” LOWER RELEANCE, AND “ABC” ANALYSIS, WHERE “A”CORRESPONDSTO ITEM OF HIGHER ECONOMIC VALUE, “B” IS THE MEDIUM VALUE”, AND “C” IS THE LOWER VALUE,INDICATING THE IMPORTANCE OF A GIVEN PURCHASE.

THE DEADLINE FOR THE PURCHASE TO BE PERFORMED IN WEEKS SHALL INDICATE THE ACQUISITION. THE PRIORITIZING OFACQUISITIONS SHALL BE DONE WITH A URGENCY AND IMPORTANCE GRAPHIC.


PURCHASE REQUEST

TEMPLATE FOR URGENCY AND IMPORTANCE GRAPHIC.


PROPOSALS AND QUOTATIONS

BY DEFINITION IT IS THE PROCESS OF IDENTIFYING SUPPLIERS, REQUESTING AND COLLECTING PROPOSALS ANDQUOTATIONS FOR THE SUPPLYING OF PRODUCTS AND SERVICES SPECIFIED IN THE PURCHASE REQUEST.

THE MAIN EXIT FOR THIS PROCESS IS THE QUOTATION AND EQUALIZATION MAP FOR THE PROPOSALS OF SUPPLIERS.

PURCHASE PERFORMANCE

BY DEFINITION IT IS THE PROCESS OF ANALYZING QUOTATIONS AND PROPOSALS, NEGOTIATING REQUIREMENTS(DEADLINE, PRICE, QUALITY), TRANSFER OF RISKS TO THE SUPPLIERS AND ADJUDICATION OF DOCUMENT THATFORMALIZES THE COMMERCIAL AGREEMENT WITH THE SUPPLIER.

THIS PROCESS INVOLVES SPECIAL ATTENTION AND IS DIVIDED IN STEPS TO ILLUSTRATE SUB-PROCESSES NECESSARY FOR ITSPERFORMANCE.


PURCHASE PERFORMANCE

THE AUTHORIZATION MUST BE APPLIED ON A POLICY OF MAXIMAL VALUES FOR DIRECT PURCHASES AND WITHOUT NEEDOF AUTHORIZATION.

IT IS NECESSARY TO DEVELOP AN EXCLUSIVE PRESENTATION TO DISCUSS IN DEPTH THE THEME “NEGOTIATION”. LET’S LIMITOURSELVES TO REMEMBER THAT, IN ADDITION TO THE COSTS, THE TRANSFER OF RISKS, DEADLINES, QUALITYREQUIREMENTS, AND ACCEPTANCE CRITERIA ARE SOME OF THE MAJOR POINTS TO BE NEGOTIATED.

LASTLY, THE CONTRACT DOCUMENT IS A SUMMARY OF THE PREVIOUSPROCESSES, THEIR CLAUSES DESCRIBE ALL NEGOTIATED REQUIREMENTS AND THESPECIFICATION FOR THE PURCHASE.

THIS DOCUMENT SHALL ACCOMPANY THE PURCHASE UNTIL ITS CLOSING(CONCLUSION), SERVING AS COMPLIANCE PARAMETER FOR ALL OTHERPROCESSES.

FOR CONFLICT RESOLUTION, THE CONSTRACT IS THE MAJOR REFERENCE, EITHERFOR AMICALBE RESOLUTIONS OR LEGAL ACTIONS.


PURCHASE ADMINISTRATION

BY DEFINITION IT IS THE PROCESS THAT ACCOMPANIES THE PURCHASE FROM THE RECEIPT TO THE ACCEPTANCE OF THESERVICES OR PRODUCTS.

THE MAJOR TOOL FOR THIS PROCESS IS THE ANALYSIS OF COMPLIANCE BETWEEN: TAX RECEIPT X PURCHASE ORDERS XACTUAL DELIVERY. ALL THREE MUST BE IN COMPLIANCE FOR THE RECEIPT TO BE CONCLUDED.

PURCHASE CLOSING

IT IS THE CONCLUSION OF THE SUPPLIER COMMITMENT IN DELIVERING THE PRODUCT OR SERVICE CONTRACTED, AND CONCLUSION OF COMPANY COMMITMENT IN PAYING ACCORDING TO THE CONTRACT.


PMBOK®

PMBOK® 4th EDITION WAS UDED AS REFERENCE FOR THE CREATION OF THESE PROCESSES, THE

PURCHASE REQUEST PROCESSES, AND THE COLLECTING OF PROPOSALS AND QUOTATIONS WAS

INCLUDED TO CONTEXTUALIZE THE VITAL IMPORTANCE OF SUCH STEPS FOR THE PERFORMANCE OF

AN ACQUISITION.

IN PRACTICAL TERMS, WE KNOW THAT THE PURCHASES GET “STUCK” BASICALLY IN THESE

PROCESSES FOR SIMILAR REASONS, DURING THE REQUEST, DUE TO THE LACK OF DETAILED

SPECIFICATION, DOES NOT ALLOW THE PROCESS OF COLLECTING PROPOSALS OR QUOTATIONS TO

CONITNUE.

IN THE SAME WAY THAT THE QUOTATIONS THAT ARE NOT EQUALIZED DO NOT ENABLE THE

COMPARISON OF PROPOSALS AND THE PERFORMANCE OF THE PURCHASE.

IT IS NECESSARY TO ESTABLISH THE GOVERNANCE OVER SUCH PROCESSES, AND A PLANNING LIKE

THE ONE INITIALLY SHOWN IN THIS PRESENTATION TO ALLOW THE PURCHASE TO FLOW IN THE PACE

OF THE BUSINESS NEEDS.

THE LESSONS LEARNED ARE RELATED WITH THE ONGOING IMPROVEMENT OF THE TEMPLATE FOR

PURCHASE REQUESTS, CONTRACT MINUTES THAT PREVENT THE ORGANIZATION, THE SCORING OF

SUPPLIERS, AND THE INCREASE OF THE RELATIONSHIP NETWORK.

THE TENDENCY WILL BE FOR US TO OBSERVE PURCHASE PERFORMANCE INDEXES THAT GETBETTER AS THE ORGANIZATION GROWS MORE MATURE.


WRITTEN BY

EDUARDO MILITÃO ELIAS, MBA / PMP®

ID 1396759

SPONSORED BY

CONSTRUTORA IBEN LTDA., RCP PMI®

ID 1463462

Acquisition management

Business

iben engenharia ltda

galvanized steel tube

pvc wire

work site

work necessary

work packagethese columns

carbon steel plate width

sport court