Project Management, Procurement, and Strategic Procurement Roles

Vocabulary flashcards covering project definitions, project lifecycles, procurement concepts, and strategic procurement roles based on the lecture material.

Project

A temporary endeavor undertaken to create a unique product, service, or result (PMI, 2008).

Triple Constraint

The three direct project objectives consisting of Scope (specified deliverables), Time (schedule or deadline), and Cost (budget), also known as the Iron Triangle.

Scope

All the specified deliverables—products, services, and results—provided as a project, as well as the processes used to create them.

Uniqueness

A major characteristic shared by all projects where each endeavor differs in deliverables, team, or execution from previous endeavors.

Quasi-projects

Endeavors that share some characteristics with traditional projects (such as specific objectives and organized efforts) but lack strict conventional elements like a defined endpoint.

Nonprojects

Continuous, repetitive, and routine activities that keep a business running day-to-day and maintain existing business functions and services.

MAKE vs BUY Content

A project framework separating work into internal employee tasks authorized through work authorizations/budgets (MAKE) and externally performed work procured under legal contracts (BUY).

Project Lifecycle

The series of phases—initiation, planning, execution, monitoring/evaluation, and closure—that a project passes through from start to completion.

Initiation Phase

The project lifecycle phase where the project is defined at a high level, feasibility is assessed, and purpose, stakeholders, and deliverables are identified.

Planning Phase

The project lifecycle phase involving developing a detailed roadmap, refining goals, establishing tasks and timelines, allocating resources, and creating risk mitigation strategies.

Execution Phase

The project lifecycle phase where team members complete tasks and resources are actively managed to produce project deliverables.

Monitoring and Evaluation Phase

The ongoing project lifecycle phase where progress is tracked against the plan to ensure adherence to schedule, budget, and quality standards.

Closure Phase

The final project lifecycle phase involving delivering the final product, obtaining stakeholder acceptance, releasing resources, and documenting lessons learned.

Procurement

The business management function that ensures identification, sourcing, access, and management of external resources an organization needs to fulfill its strategic objectives.

Project Procurement Management

The processes required to acquire goods and services, to attain project scope, from outside the performing organization (PMBOK Guide).

Procurement Function

Activities assessing make or buy decisions, determining specifications, selecting suppliers, negotiating legal contracts, issuing orders, monitoring supply, and evaluating disputes.

Linear Procurement Process Model

A model illustrating how activities within the procurement function are closely interrelated across tactical purchasing and order functions.

Ordering

Placing purchase orders directly with a supplier without questioning conditions and without sufficient supplier market testing.

Purchase Order

A formal document detailing specific goods or services a buyer wants to acquire, including quantity, price, payment terms, and delivery timelines.

Buying

A process common in trading/retail sectors that excludes specification determination, focusing on soliciting competitive bids from limited suppliers and negotiating with the lowest bidder.

Purchasing

A subset of procurement focusing specifically on the transaction and act of buying goods and services.

Sourcing

Finding, selecting, contracting, and managing the best possible source of supply or supplier for an organization on a global basis.

Supplier (Partner)

A firm with whom a company has an ongoing buyer–seller relationship involving long-term commitment, mutual information sharing, and sharing of risks and rewards.

Outsourcing

Hiring external third-party providers to manage or perform procurement activities to reduce costs, increase efficiency, and focus internal staff on core competencies.

Due Diligence in Procurement

A structured approach evaluating a supplier's financial strength, key personnel availability, sub-contracting reliance, legal history, business plan, and IT systems before contracting.