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procurement/subcontracting schedule

7 replies [Last post]
Frans Lasut
User offline. Last seen 13 years 16 weeks ago. Offline
Joined: 13 Jun 2006
Posts: 26
what is the best approach to create procurement/subcontracting schedule?

Is there any standards mentioning about RFQ, TBA, PO, manufacturing time, etc..etc.....

Is there any "production rate" like in Construction.

Until now I only use template.

Thanks in advance

Frans

Replies

Armando Moriles
User offline. Last seen 14 years 12 weeks ago. Offline
Joined: 9 Dec 2005
Posts: 104
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Frans,

I’m not really sure what you need but I do would like to contribute something:

Activity Sample - Materials supply & installation subcontract package of stone wall finish

Process:

1. Working Drawing = 12 days (could be shorter or longer)
2. Approval of Working Drawing = 6 days (sometimes stipulated in the contract docs.)
3. Issue & return of RFQ = 6 days (your internal company policy. You try to establish if none exist and have it approved by your boss)
4. Technical and Commercial Evaluation = 6 days (your internal company policy. You try to establish if none exist and have it approved by your boss)
5. Final Adjudication = 6 days (could be less. (your internal company policy. You try to establish if none exist and have it approved by your boss) )
6. Provide/Agree Sample with Client = 3 days (could be greater)
7. Issue Purchase Order = 1 day
8. Manufacture & Delivery = 12 days (could be provided by the supplier or dectitated by the programme, etc.)

notes:

1. The durations are highly variable and are conditional in nature. Your judgement forms a greater part in establishing total duration of each path/package.

2. Total duration for the above sample is 52 days. For sure you could do better than 52 days???



Hope it helps,


Arman
Carmen Arape
User offline. Last seen 4 years 23 weeks ago. Offline
Joined: 26 Jun 2004
Posts: 292
Nar,

You got the answer on following post:

- Planning&Scheduling.... - Weight factor

there you have the answer,

Cheers
Nar Thap
User offline. Last seen 13 years 39 weeks ago. Offline
Joined: 12 Sep 2007
Posts: 73
somewhat related to proc.... can somebody give me feedback about the progress tracking milestones and appropriate respective percentages? How can I do it if proc has to weighted in terms of money other than durations.
cheers
Carmen Arape
User offline. Last seen 4 years 23 weeks ago. Offline
Joined: 26 Jun 2004
Posts: 292
Frans,

The procurement activities in any schedule is the easiest part for the following reasons:

1.- Activities are standard. I go to Procurement department, get a report and I am able to identify the process. I identify two main processes;
a.- From Requisition to Purchase Order award
b. From Purchase order to delivery to SITE

2.- Linking activities is normally a FS link. They do the work in sequence.

3.- Linking Procurement with Engineering has normally four input points: Issue of requisition, technical Evaluation of quotations, review/approval of vendor data, some assistance to final test (if needed).

4.- Activities after Purchase award are responsibility of expeditors.

5.- Activities of delivery to Site: they can be one or split in pieces according the information available for transport, custom clearance and internal transport to site.

Activity duration: better to talk with buyers and expeditors. The most important duration for fabrication is always on the Purchase Order.

The easiest Procurement link at the end is the arrival of Equipment to construction activity SET-UP.

For major Equipment, a set of standard activities is defined . Different thing is for any BULK material (piping, electrical, instrumentation).

Cheers,

R. Catalan
User offline. Last seen 9 years 48 weeks ago. Offline
Joined: 15 Aug 2005
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Frans,

There’s no such production rate for procurement and contracts schedule.

Check the availability of all project documents and list them according to disciplines and identify the miising ones. Convert your BOQ to works packages and in accordance with CSI coding system. One you have all on the system, follow the advise of Datta (using historical records of projects undertaken from your previous company).

Of course all of the above should be aligned with the latest construction program.

Cheers,
Frans Lasut
User offline. Last seen 13 years 16 weeks ago. Offline
Joined: 13 Jun 2006
Posts: 26
Thanks Datta

But the problem is: I will work for a company that is New in the business.

I think there must be some standards / best practices that have been written and published by somebody.


Thx

Frans
DATTATREYA PADHARTHI
User offline. Last seen 3 years 8 weeks ago. Offline
Joined: 18 Apr 2003
Posts: 90
Dear Frans,
There is no ready made solution for all situations.
Check the historical data from your company database/Compile the steps/stages of the work flow processes. Organise them by their broad types, like Equipments, Bulks etc (sub divide them as per the types). Do a statistical analysis & you will get a fair standard of durations/lead times for all your queries.

Cheers

Datta