Hello All;
I have felt that in my new company there are many issues related to coordination between planning section & Procurement section.Although they come up with a plan togather and agree in the start but after that it seems that no one get stick to the plan.Are there any procedures/methodology that we can utilize to enhance the coorporation of bith sections.I need some stategic plans and experts opinions on this matter
Hi,
Assuming your project is an EPC, even project controls & procurement section meet and planned together, but has disregard engineering section in your planning, your procurement activities will surely derailed against the plans.
Take note that the procurement activities has predecessor, which is engineering activities, as same as construction. Meaning procurement activities relies on the completion of material requisitions, specification of materials, technical evaluations and approval of vendor prints from your engineering.
My suspicion is, your procurement section proceeds with whatever material requisitions they received from engineering team causing deviation to the original plan.
So I suggest, the cooperation should be between the relevant sections in your organization. Hope this helps….
Larry R
A common problem I have found is that during procurement phase, tenders are assesed on the basis of technical compliance and cost, but not on the basis of delivery lead-times. This is more of an issue on EPC process projects, where key equipment is often long-lead and hence can appear on the critical path.
I have had limited sucess convincing project teams that planners should be part of, or at least consulted by, the tender review / negotiation team.
One approach I have taken in the past is to issue a regular report comparing subcontract contractual completion dates vs baseline dates for the same, and noting whether any delay is due to a) late design b) late procurement c) extended subcontractor lead-times or d) other. This helps to focus the procurement team on the impact they have on the project schedule.
A second but related topic is whether having LDs in key subcontracts helps or hinders timely completion. -I have seen it do both.
Hi SM
AS the planner you need to monitor progress on the whole plan - including procurement.
Also procurement need to know if their deadlines are slipping or if they have more time before a section starts.
Have a regular progress meeting to bring everybody into the scheme.
Best regards
Mike Testro