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Pages:
1 page/β‰ˆ275 words
Sources:
3 Sources
Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.32
Topic:

Project Procurements: Make or Buy Analysis and EVM

Essay Instructions:

Fleming and Koppelman (p. 111) describe six key events that accompany procurements on projects. They are the following:
The project manager must define the items to be procured. This is usually done by conducting a "make or buy" analysis, typically under the direction of the project manager, or staff.
They must define the technical requirements of the purchases. This is done by the engineering or design organizations and results in a procurement specification.
They must request that a procurement be made by issuing a formal purchase requisition, which is normally done by the project manager, or staff.
A formal order to buy must be given by the buyer, who issues a contract or purchase order.
The purchased items must be received, inspected, accepted, or the purchased services verified. This consists of taking physical possession of the commodities and/or of verifying their satisfactory completion. Various functions perform this work.
Payment must be made for the purchased goods. The accounts payable organization must issue a check to the seller, and the costs recorded on the accounting ledger.
Considering ONE of these events, describe the implications for EVM. How can the work described in this event be separated into distinct tasks? How can task completion be estimated in terms of costs? In terms of earned value?

Essay Sample Content Preview:

Make or Buy Analysis and EVM
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Make or Buy Analysis and EVM
Project planning and management are essential skills used by many professionals to assist their organizations in achieving their objectives. However, even the best-laid plans may go awry, and occasionally the performance of a project does not meet the budget or timetable that was established. Using an earned value management (EVM) system as part of the overall project management strategy can measure the continuous performance, its actual expenses, and the performance of each task (Netto et al., 2020). When effectively implemented, earned value management provides real-time project visibility and insight. A cost analysis may provide early warning when things are about to get expensive, allowing the procurement team to take corrective action before the entire project fails or incurs high costs, waste, or delays.
A make vs. buy cost study entails comparing all expenses involved with fulfilling a supply requirement for a good or service in-house to the costs of using an external supply partne...
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