The Basic and Major Components of a Procurement Management Plan

Procurement Management Plan
Student Name
Institution Affiliation
Procurement Management Plan
Overview of Procurement Plans
Purpose
The process of managing projects requires managers to implement an effective plan to manage the different aspects of procurement throughout the lifecycle of a project. Such a plan is called a procurement management plan, which helps make decisions regarding what items will be procured and outsourced externally (Sarode & Bhangale, 2020). The main purpose of a procurement management plan is to help outline what is to be procured, types of contracts used, risks involved in procurement and tracking performance metrics for procurement efforts.
Basic Components
There are nine basic components of a procurement management plan. The first component is the roles and responsibilities, which outlines the duties and tasks accomplished by all stakeholders. At Project scheduling is a component that develops timelines and schedules for all tasks. The third component is vendor control, which focuses on monitoring the work of the vendors contracted. Estimating is the fourth component, which entails developing estimates for budgets and cost elements (Hartney, 2019). The fifth component is prequalified vendors, where a list of trusted vendors is developed.
The risk management component helps in developing the procurement process of the project. Such aspects as risk tolerance, severity, and probability are highlighted as they apply to the statement of work, policies and procedures, and types of contracts. Legal jurisdiction is a component that seeks to address all legal issues upfront before procurement takes place. Payment is a component that outlines the methods and currencies used in making payments. Lastly, the constraints and assumptions component highlights expected uncertainties within the project environment.
Major Components at Harley Davidson’s Project
The basic components that apply to Harley Davidson's project include vendor control, estimating, risk management, and payment. Vendor control is critical since the company has decided to change its procurement processes and systems, which means new approaches are expected. Estimatin...