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Contract Management Principles and Practices

Course Exercises

1).-2652_01 (.ppt) Contract Management principles and Practices

1-1).-Slide #11: Exercise 1-1 Estimating Procurement Schedules
Slides 12-18 are for support and include detailed information for the exercise.
Material Case Study: Section 1: Main manuals page 1-4.
Participants will write below each activity-figure the two values for activity duration, i.e. the
Shortest ( Optimistic) and the Longest (Pesimistic) values; durations: 10 min. for completing and
5 min. for free discussions.

1-2).-Slide #39: Exercise 1-2 Analyzing Procurement Strategy

Slides 38, 40-47 are for support
Material Case Study: Section 1: Main manuals pages CS1-2, CS1-3, CS1-4, CS1-5 (Instructor
Case Study) plus pages 1-24, 1-25, 1-26 which includes worksheets with empty tables to be filled
a).- Participants will read the scenario on pages CS1-2 and CS1-3 (15 min.), they will check the
tables content of the SWOT Outline CS1-4 (10 min. ) and they will try to fill up a similar line for
the Strategy entry in the empty SWOT Outline on page 1-25 (10 min.). Hint: use the Procurement
Strategy text of the Case Study.
b).- Participants will check the SWOT Worksheets CS1-4 and CS1-5 (10 min.) and will proceed
to find one or two risks (O and/or, T) from the Case Study and to fill up the empty SWOT
Worksheet on page 26 (15 min.).

2).-2652_02 (.ppt) Project Analysis

2-1).-Slide #19: Exercise 2-1 Analyzing Proposals
Material Case Study: Section 2: Main manuals pages CS2-2, CS2-3, CS2-4.
a).- Participants will read the page CS1-3 which includes the RFP (from former exercise 1-2) and will
answer to the raised question with observations to the RFP text What is wrong in the RFP? (15 min. +
10 min.) from the CS2-4 page.


b).- Participants will read pages CS2-2 and first half of CS2-3 and will rank the three proposals in a table
with four columns: Proposal #, Name of the offerer, Cost, Schedule (page CS2-3). One of the proposals
will be the top-selected according to one (or two criteria): cost, (or cost+schedule); (15 min. + 10 min.).

3).-2652_03 (.ppt) Plan Procurements

3-1).-Slide #18: Exercise 3-1 Completing a RFQ
Material Case Study: Section 3: Main manuals pages CS3-2, 3-15, 3-16, 3-17 as follows:

Page 3-15 Source Selection Criteria ande Weighting, with the table already completed with the
two entries for IDs, the related Names and Weight%.
Page 3-16 Performance and Quality Standards, with the table already completed with the three IDs
and the column with related performance names (from page CS3-3), as well as the first line fully
completed with Milestone and Quality Standard values (for reference).
Page 3-17 Negotiation Priorities, with the table already completed with Rank and Issue columns as
well as the first line fully completed (from page CS3-3) with respective values for Worst Case,
Target and Best Case (for reference).

Participants will:
a).-fill up the Name and Weight% columns to finally obtain 100% on page 3-15 (5 min.),
b).-fill up the Milestones and Quality Standard columns for the entries 2-3 on page 3-16 (5 min.),
c).-fill up the Worst Case, Target and Best Case columns for the entries 2-5 on page 3-17 (5 min.).

4).-2652_04 (.ppt) - Conduct Procurements

4-1).-Slide #24: Exercise 4-1 Updating the Project Plan
Material Case Study: Section 4: Main manuals page CS4-2, CS4-3, CS4-5 Risk Register table (one

Participants will:
a).-Write down the activities schedule day-by-day, starting on Monday, September 1, based on the Scenario
text (10 min. + 10 min.) and using as support information the CS4-3 page (The Lead time interval is 2 days
not 3 days as drawn on page CS4-3, thus the execution work covers the remaining 6 days of the month).
b).-Write inside the CS4-5 Risk Register page, a new entry with a new risk including its characteristics (10
min. + 10 min.).

5).-2652_05 (.ppt) Administer Procurements

5-1).-Slide #16: Exercise 5-1 Negotiating Change Request


Material Case Study: Section 5: Main manuals pages: CS5-2 (Example Planning of the worksheet
without Rank column and the three Objectives columns), 5-16 Interests and Objective Criteria Worksheet.
Participants will be shared in two parts: buyer team and seller team, then they will self-assign the roles to
team members. Only one person should speak for the team during negotiations. The strategy is developed
by the team and carried out by the players with assigned roles.
The two participants teams will separately fill up the table from page 5-16 with the content of page CS5-2
and additional information, then will start to negotiate: a new price (instead of the former one from above
point 2.1.b) and a new colour based on the table content (as mentioned on page CS5-2); the starting point
of negotiations will be based on the former price, schedule and colour selection issues. New issues for
discussions may be filled up in the worksheet from page 5-16 (10 min.).

6).-2652_06 (.ppt) Close Procurements

6-1).-Slide #17: Exercise 6-1
Material Case Study: Section 6: Main manuals pages: CS6-2, 6-17 Key Lessons Learned, 6-18
After reading the page CS6-2 and the pages 6-17, 6-18, with some arbitrary indications from trainer about
project deployment, the participants will fill up the table with indicators for Key Lessons Learned on page
6-17 and will answer to the questions from page 6-18 to assess the project (10 min. + 10 min.).


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