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This presentation was done on 17th May 2014 in National Seminar on Public Procurement conducted by IIMM.
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Prof. Harsha Kestur Director, Rangnekar Institute of Management Studies & Research
[email protected] 9845030683 www.rimsr.in Preparing Managers for Success in A Changing World
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Discussion Flow
• Public Procurement- Definition
• Public Procurement- Objectives
• Methods
• Regulating bodies
• Impact of public procurement on project management
• Success Rate of projects in India
• Interconnect of Supply chain and project management
• Learning opportunities
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Definition
Purchase of goods and services with requisite parameters and conditions
includes concession agreements
Public Procurement- Definition
Procurement means acquisition by purchase, rental, lease, hire purchase,
license, tenancy, franchise, or any type of works, services or supplies or
any combination’ up to the time a user consumes or utilizes a service as
per his requirement and in line with the procurement Act and regulations
of the country
Elaborated
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Objectives
Value for money- fair and transparent.
Promoting domestic capacity of supplier
Equality of opportunity- level playing
Widen supplier base
Higher quality and technology
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Methods
Calling for quotations -limited quantity & financial sanctions
Direct purchase –Regd. Vendors
Limited tender
Open tender on nomination
Competitive bidding or tendering process
e-auction
e-reverse auction –
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Regulating Bodies
3Cs • Central Vigilance Commission (CVC) • Comptroller and Auditor General (CAG) • Competition Commission of India (CCI) CVC Issues guidelines and instructions to curb corruption in PPS SOP
issued by all Govt. Departments and PSUs
Monitors the deficiency and violations in the procedures and
mechanism of PPS
Regulates competition in PPS - prevents and punishes anti
competitive conduct or practices by Govt. Departments and
enterprises
CVC
CAG
CCI
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Impact of pubic procurement on project management
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Impact of pubic procurement on project management
93% of the respondents agree and strongly agree that ineffective
procurement affects the project
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Impact of pubic procurement on project management
There are also successful stories in our country. These projects were
successful as all the factors including Procurement was efficient.
• Terminal 2 at the International Airport, Mumbai, Delhi
• Dehli Metro Service
• Yamuna Express way
• Solar Project at Gujarat
• As so on….
Success Rate of Projects In India
The following statistics highlight the success rate of project execution in
the Indian context
• India has targeted to invest US Dollar 500 billion+ in infrastructure by
the end of the 12th plan period
• However, the country has consistently fallen short of meeting such
targets
• It is estimated that the average rate of awarding projects has been
around 70% of the planned rate
• Further, as per the data it is estimated that a majority of projects,
close to 60%, suffer from time and cost overruns
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Project Management and SCM -The Interconnect
Large projects involve significant amount of activity and use of materials &
Services
• Construction
• Infrastructure
• Ship-building
• Aerospace and Defense
• Engineering & Telecom
• Research & Development
Several of these project are of long duration and involve large investment
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• In many industries, materials & Services costs vary from 50 - 80% of
total costs
• Logistics costs vary between 10-30% in projects
• SCM costs are therefore a significant part of project cost
• Price Estimation of A & B class items services for complete period of the
project is major challenge
• Strategic sourcing • Supplier Relationships & long term contracts • Category and Spend Management • 3PL and 4 PL • E-procurement & Reverse Auctions • Green Purchasing • JIT, Asset & Inventory Management tools
Project Management and SCM -The Interconnect
Cost
SCM Techniques
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Project Management and SCM -The Interconnect
• Project management techniques for SCM planning
• SCM techniques for project cost management
• Regular Reviews and Dashboards
• Deployment of Trained & Certified Project and
Procurement Managers.
• Deployment of IT tool to give end to end visibility for
stakeholders
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Learning opportunities
• Non-profit organization, National Headquarters at Navi
Mumbai, about 50 branches & 20 Chapters across India
• The only professional organization in the Country in the
field of Materials Management / Supply Management
Core area of operation
Education
Professional Development
Technical and Industry Events
Training & Member Certification
E-Learning Courses
Industrial Consultancy
Visit www.iimm.org
IIMM - Indian Institute of Materials Management
• Rangnekar Institute of Management Studies and Research (RIMSR),
is a dedicated center for quality management education. Visit
www.rimsr.in
• It is an affiliate of Brenau University, Gainesville, Georgia, USA. Visit
www.brenau.edu
Rangnekar Institute of Management Studies and Research
BRENAU UNIVERSITY USA
• Founded in 1878
• Approved by UGC, ACBSP,SARC
• Ranked in TOP 5 University in Project Management Program
• 5 international Locations
• Ranked in TOP 10 in Online Education
Learning opportunities
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Diploma in Project Management
Learning opportunities
Post Graduate Diploma in Project Management
Learning opportunities
Workshop on Project Management
Prof. Harsha Kestur, CMM.
Director, RIMSR
[email protected] or [email protected]
www.rimsr.in
Preparing Managers for Success in A Changing World
For more information
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Thank You
Let us Continue Our Knowledge Journey Together.
