Contract And Procurement

Contract And Procurement
Contribute to the discussion from the two respondents below.

The Topic is Procurement Issues and Conduction Project Review.

Discussion 1
Thank you identifying and documenting the different types of reviews and audits discussed in PMBOK (2008). That was great! From your documentation, it is clear that all process groups and knowledge areas of project management can be reviewed and audited, and that performing organizations, suppliers, subcontractors, and all other project stakeholders are bound to reap beneficially from such reviews/audits. While I accept that all project reviews/ audits are intended to accomplish the same fundamental objective of examination, identification and offering solutions to problems encountered by of various stakeholders during project implementation (Costin, 2008, p.261), I am of the considered view that intent and context of project reviews may differ from industry to industry.

McCrary, et al (2006), having identified similarities in both construction and manufacturing industries, posited that while manufacturing is process based, construction is project based. New product development (NPD) processes, which most manufacturing organizations depend on to develop and sustain their competitive edge, consist of activities and review points. The activities are geared towards problem solving, and determination of the viability of the project, while review points (project reviews) are decision making points, where the project can be approved for further processing, terminated or suspended, until further information is available for continuation (Schmidt, et al, 2009). The scenario within the construction industry is that reviews are used mostly for identification of problems, and organizational knowledge, so that going forward, mistakes are not repeated.

References:
1. Costin, A.A. (2008) Managing difficult projects. Burlington, MA: Elsevier Butterworth Heinemann.
2. McCrary, S.W. et al (2006) "Comparative Analysis Between Manufacturing and Construction Enterprises on the Use of Formalized Quality Management Systems" Journal of Industrial Technology, 22(3), pp.1-8
3. Project Management Institute, (2008), A Guide to The Project Management Body of Knowledge , 4th Edition, USA

Discussion 2
The difference of a process or project approach resulted for me in the question who is responsible for the review and who can guarantee that the reviews will be conducted in the right way?
I guess you will agree with me when saying the project manager is responsible and hence in charge for project reviews. But who is responsible for process reviews and who will conduct them? The question is obviously of the project procurement. I would assume that when the manufacturing industry is more process driven that project driven, all the efforts have to be centralized within the line organization.

 

 

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