Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 1 00:00:01,261 --> 00:00:02,459 Now, let's look at the 2 2 00:00:02,459 --> 00:00:05,412 practical essentials of procurement planning, 3 3 00:00:05,412 --> 00:00:07,829 including building or buying, 4 4 00:00:08,746 --> 00:00:11,288 kinds of procurement documents, 5 5 00:00:11,288 --> 00:00:15,455 types of contracts, and selecting winning bidders. 6 6 00:00:16,783 --> 00:00:18,287 While some of these items will be 7 7 00:00:18,287 --> 00:00:20,250 managed during execution, you 8 8 00:00:20,250 --> 00:00:22,038 often need to decide how you are going to 9 9 00:00:22,038 --> 00:00:24,991 organize much of it during planning. 10 10 00:00:24,991 --> 00:00:26,031 And if you need a firm cost and 11 11 00:00:26,031 --> 00:00:27,643 schedule for your whole project by 12 12 00:00:27,643 --> 00:00:30,176 the end of planning, including procurements, 13 13 00:00:30,176 --> 00:00:31,337 for example when you were bidding a 14 14 00:00:31,337 --> 00:00:33,552 contract for which you have subcontracts, 15 15 00:00:33,552 --> 00:00:34,992 you usually need to publish the 16 16 00:00:34,992 --> 00:00:37,584 procurement information, obtain bids, 17 17 00:00:37,584 --> 00:00:39,931 select winners, and sometimes put in place 18 18 00:00:39,931 --> 00:00:42,477 contracts or at least binding quotations 19 19 00:00:42,477 --> 00:00:44,352 valid for a certain period of time, 20 20 00:00:44,352 --> 00:00:46,852 all during the planning stage. 21 21 00:00:48,123 --> 00:00:53,052 Let's start by talking about the decision to build or buy. 22 22 00:00:53,052 --> 00:00:54,944 On many projects, not all the 23 23 00:00:54,944 --> 00:00:58,044 work will be done by your own team. 24 24 00:00:58,044 --> 00:01:00,575 During planning you need to decide which 25 25 00:01:00,575 --> 00:01:02,334 deliverables will be done in-house 26 26 00:01:02,334 --> 00:01:06,811 and which should be procured from external contractors. 27 27 00:01:06,811 --> 00:01:08,429 Here are the decision criteria for 28 28 00:01:08,429 --> 00:01:12,540 building deliverables internal to your organization. 29 29 00:01:12,540 --> 00:01:14,080 When you have the people, skills, and 30 30 00:01:14,080 --> 00:01:18,419 tools to do it faster, better, and cheaper. 31 31 00:01:18,419 --> 00:01:20,361 When you need to retain the expertise 32 32 00:01:20,361 --> 00:01:24,440 to maintain the deliverable or build more. 33 33 00:01:24,440 --> 00:01:26,631 Ensure you include the total cost of 34 34 00:01:26,631 --> 00:01:30,630 ownership, with long-term support costs. 35 35 00:01:30,630 --> 00:01:33,011 And keep in mind that customizing an 36 36 00:01:33,011 --> 00:01:37,155 existing solution can easily become a complete rebuild. 37 37 00:01:37,155 --> 00:01:38,362 It's really hard to change just a 38 38 00:01:38,362 --> 00:01:43,362 small amount of something, the changes tend to spread. 39 39 00:01:43,635 --> 00:01:46,439 On the other hand, here are the decision criteria for 40 40 00:01:46,439 --> 00:01:50,381 buying deliverables from an external source. 41 41 00:01:50,381 --> 00:01:52,047 The decision is easy when you 42 42 00:01:52,047 --> 00:01:56,376 simply don't have the people, skills, and tools internally. 43 43 00:01:56,376 --> 00:01:59,406 Or, even if you could build it internally, 44 44 00:01:59,406 --> 00:02:02,389 perhaps a contractor is a specialist in the kind of work, 45 45 00:02:02,389 --> 00:02:06,335 and can do it faster, better, and cheaper. 46 46 00:02:06,335 --> 00:02:07,795 Some products are great, because 47 47 00:02:07,795 --> 00:02:10,475 they've been evolved a long time. 48 48 00:02:10,475 --> 00:02:12,136 You should ask yourself, would a 49 49 00:02:12,136 --> 00:02:13,834 bought product include value from 50 50 00:02:13,834 --> 00:02:15,775 long customer feedback that you 51 51 00:02:15,775 --> 00:02:18,537 could not duplicate internally? 52 52 00:02:18,537 --> 00:02:20,357 Customers actually sometime change their 53 53 00:02:20,357 --> 00:02:22,436 processes because products they are 54 54 00:02:22,436 --> 00:02:24,877 buying include best practices they 55 55 00:02:24,877 --> 00:02:28,067 realize they can benefit from. 56 56 00:02:28,067 --> 00:02:31,422 Even if exactly what you need is not available commercially, 57 57 00:02:31,422 --> 00:02:33,445 often they are adaptable, and a 58 58 00:02:33,445 --> 00:02:38,043 bought product can be configured to match your needs. 59 59 00:02:38,043 --> 00:02:40,213 If you are going to buy, never do so 60 60 00:02:40,213 --> 00:02:42,782 based on a presentation or demo, 61 61 00:02:42,782 --> 00:02:47,273 and trial the solution first whenever possible. 62 62 00:02:47,273 --> 00:02:49,171 And get some user input. Talk to a 63 63 00:02:49,171 --> 00:02:51,350 minimum of three references to get 64 64 00:02:51,350 --> 00:02:52,940 feedback from others that have used 65 65 00:02:52,940 --> 00:02:56,184 any product you are seriously considering. 66 66 00:02:56,184 --> 00:03:00,877 You always learn invaluable information by doing this. 67 67 00:03:00,877 --> 00:03:02,553 And remember that if you are the 68 68 00:03:02,553 --> 00:03:05,012 only customer for a product, it is not 69 69 00:03:05,012 --> 00:03:06,984 really off the shelf, and you 70 70 00:03:06,984 --> 00:03:10,356 will have to pay the contractor for any later support. 71 71 00:03:10,356 --> 00:03:15,229 So factor this into your cost analysis and decision making. 6126