Project procurement and risk management

PROJECT PROCUREMENT AND RİSK

INTRODUCTION

The management of the processes of buying or acquiring the services, products or results needed from beyond your project team to execute the work is defined as task procurement management or the techniques to purchase/acquire products, services and results from outside the project.

The main stars are"The Buyer" and the"OWNER" and central is the contractual responsibilities and polices. Central is also the way the purchasing process within the task is organized, with formal approvals and routines[16]. In procurement process we must consider the Business aspect, financial aspect, routines, instructions, investment aspect, subcontracting and every part of procurement will need its tools Risk analysis, Investment calculus, vendor evaluation, quality guarantee, specification determination, contract varieties.

1. SPECIFICATION OF PLACE AND SIZE OF THE Job.

1. 1 NEW Job OF GW

For the first and second assignment, our company hasn't possessed any specific task. We only made the opportunity analysis, management plan, insurance policy, stakeholder examination, organizational chart within the subjects of Job Management, Quality, Human Resources, and Communication Management. (1, 2)

For the 3rd assignment, The Company GW has a present project, which is now on going. We've been ordered to produce a solar thermal power plant to the area of desert of Arizona, USA. The ordered is manufactured by the United State Government. There must be installed a solar thermal ability seed to be built in 5 years. The target of this seed is to create 275MW energy per time. The energy gained from the solar powered energy, will be utilized to be able to meet the electricity need of the cities that are the closest ones to the solar powered energy. According to the assumption, if 1 average roof covering is capable to be built 20 solar power panels on it, it is expected that this amount of solar technology will meet up with the electricity needs of around 40000 building such as home, university, businesses, and open public buildings. The consumption of alternative energy will definitely supply the United STATE to produce a reasonable profit. Since it doesn't cause any pollution, there will be generated a fresh point of view for environmental aspects, and it will repay its installation cost in a short period of time.

2. MAKE A STAKEHOLDER ANALYSİS AND ALSO THE PROJECT

2. 1 STAKEHOLDER ANALYSIS

When we were making the opportunity examination of GW, in Project I, we mentioned previously that, stakeholders are any group, party, organization or people, that somehow takes on a job within the complete project. They impact or are damaged by the actions that the organization performs. Stakeholder examination recognizes the stakeholders and their passions, defines their functions and related responsibilities and specifies whether, and to what level, their expectations are cured as necessity in the task [3, 4, 5].

3. AN INVESTIGATION OF THE AREA OF DESERT OF Az IN MIND DUE TO RESOURCES (MAPS AND GEOGRAPHICAL INFORMATION)

As we've discussed in our scope examination, as The Company of GW, our main purpose is to set up high quality and productive solar power crops with an acceptable cost. Since we could also aware of keeping the harmonious balance of energy, one of our own aims is also to compensate the energy need by giving the environmental safeguard to keep carefully the earth green. To be able to have a higher efficient plant with a superior quality, it is quite essential to pay attention of which the assembly will be achieved. As the available resources play the most important role, after establishing a vegetable, in conditions of efficiency.

Efficiency for a herb are available by the formula; desired end result / required suggestions. This formula may also be explained verbally; the best efficiency we can get from a plan is 100% that is equal to 1 because of this formulation, which is impossible to obtain for the real life since we can not have the ideal conditions. However in order to increase the efficiency to method of zero, by a simple mathematics, we can say that, we need to keep the productivity higher approximately we can, while lessening the type value. How we can reduce the required type value to almost zero is by utilizing the natural resources as well even as we can, which is the solar technology for our circumstance. Therefore, it is vital to build up new crops to the parts, where there can be found temperature and more sunny times available. Therefore, deserts take the first place in the rank, when it requires to make a prioritizing. Addititionally there is one benefits that deserts can be utilized as a land for solar powered energy systems, since there is no need any environmental impact such as lake (as it is needed for hydroelectric dams), or coal vegetation.

There are also many advantages to install the plants in america as the land;

* USA is the first choice for the power research and development.

* It is one of only two countries on earth that has the largest scale of solar power.

* Since Az is found in the southwest of US, the feature of warm and sunny climate makes the desert of Az more advantageous location for solar power.

* This solar powered energy herb not only reserved by folks live around it, but also impacts various other people by rebates and duty credits. Since it is also discussed in the web site of Office of Energy of USA ; "Specific federal government and state tax laws allow private companies and homeowners to credit the purchase price of their solar powered energy systems against their annual income tax payment. "[6, 7]

4. SET OF ITEMS NEEDED

GW needs to identify the needed goods and services. This should be identified regarding to GW's corporation graph and procurement plan. After determining the needed goods and services, the suppliers that may successfully match the contracts and offer good and services, should be found. The suppliers should be chosen regarding to their specialized ability, experience and human being resource capability. This is a list of needed items and services for GW:

Materials

Services

Office Equipment

Rental Cars

Interacting with Rooms

Restaurant/Cafeteria

Security Stuff

Computer Services

Cleaning Supplies

Tax Services

Insurance Services

Electric Services

Home heating Services

Air Condition Services

Building Repair Services

Telecommunication Services

Move Services

Treatment of Office Materials Service

Education Services (for employees trainings)

Scientific and Technological Services (for industrial analysis, studies)

Drink and food Provider Service

Security Service

Table 2: Set of item needed

As we see in the desk, most of the assistance and materials are the basic needs of company. These are not changeable based on the projects. Based on the project, the utilization of these items may change. Also the needed items list should be renewable on a regular basis. The departments might need new items through the projects. Then these things should be put into the list. It means that list can change in every period of the project but as it is mentioned before, most of these things will be placed as basic needs. If new items would be recognized in later phases of tasks, the list can be complete. [8, 9]

5. MAKE OR BUY DECISION

The act of making choice between producing an item (in -house ) Internallay or buying it from external source (Distributor) is make-or-buy decision. Make-or-buy decisions comes up usually when a company is rolling out something or modified a product or having trouble with current supplier or changing demand of the merchandise.

Make-or-buy decisions also take place at the functional level. Analysis suggest the next factors that are and only making a component in-house (1)

* The considerations of cost

* To integrate the plant operations

* The Productive utalisation of surplus the flower capacity

* The Need of direct control over production and/or quality

* The Better quality control system

* To protect Proprietary technology design.

* Unreliable suppliers, No competent suppliers

* Desire to keep a stable labor force (in times of declining sales)

* The too small Quality to interest a supplier

* lead time Controle, warehousing and travelling, costs

* Greater confidence of continious resource.

* Provision of a second source

* The Political, environmental or cultural reasons.

Some of the factors which impact may be on the businesses to buy a component externally include:

* Lacklessness of expertise, Suppliers' research and special know-how exceeds that of the buyer

* Factor of cost.

* Low-volume requirements.

* Facilities of limited creation or inadequate capacity

* Strong desire of retaining a multiple-source policy

* The Indirect managerial control things to consider.

* Concerns of Procurement and inventory.

* Desire Brand

* Those Item that are not necessary to the firm's strategy

There are two most important facts to consider in a make-or-buy decision are and the option of production capacity the cost. Obviously, the firm who buy will compare creation and buy costs. It supply the major elements included in this comparison. Components of the "make" evaluation include:

* Transporting costs.

* The direct labor costs.

* Factory over head costs

* Purchased material costs which is delivered

* Managerial costs.

* Other costs stemming from the product quality and related problems.

* Increasing purchasing costs, Increasing capital costs.

Cost concerns for the "buy" analysis include:

* Purchasing price, and travelling costs of the things.

* İnspection and reception costs.

* The Incremental purchasing costs.

* The costs which relates to quality or service.

6. RISK ANALYSİS (RA) FOR SOLAR THERMAL POWER Seed TO THE REGION OF DESERT OF ARIZONA

6. 1 SOCIAL AND ECONOMIC THREAT OF SOLAR THERMAL

The Desert of Az solar increase will impact social and economic proportions of the region. Near by residents and guests will face the burden of more traffic, pollution, sound, and infrastructure that will reduce the aesthetic features of the desert. A fringe impact of solar parks is increased land prices triggered by growing demand from private industry. Economically, solar thermal parks will produce creation and construction jobs. These careers could provide more revenue for the surrounding community, increased investment in the local economy, and a larger tax bottom. [11, 12]

6. 2 THREAT OF SOLAR THERMAL ON VEGETATION, WILDLIFE, AND WATER

The Desert of Az is home diverse varieties and ecosystems, and large solar parks could be physical stressors on these desert systems. Taking into consideration the fragility, diversity, and complexity of the Desert of Az, large solar thermal parks could disrupt healthy ecosystems and augment pressures on already pressured species. Limited normal water supplies also complicate the advantages of solar thermal.

6. 3 RISK OF SOLAR THERMAL ON DESERT Land ECOSYSTEMS: Evaluation ENDPOINT

The Desert of Arizona has recently found the attention of scientists because of its ancient origins and carbon sequestration capabilities. Consisting of sedimentary, igneous, and metamorphic stones. The recent methodical books regarding carbon sequestration in deserts is both new and solar power is perceived as a 'clean' power source, reducing carbon creation while providing much-needed energy. The creation features in Desert of Az could supply with the majority of its energy needs.

Therefore, the goal of this project is to determine whether the unit installation and operation of solar thermal plant life will impact carbon sequestration capacities of the Desert of Arizona ecosystem and ecosystem services to the degree that more carbon is released or inhibited from being stored than saved while utilizing solar technology. [13]

6. 4 QUALITATIVE RISK ANALYSIS: POSSIBLE EFFECTS OF SOLAR THERMAL Vegetation OVER THE DESERT OF ARIZONA

It is clear that the desert ecosystem will be disturbed and demolished during the installing the Concentrating SOLAR POWERED ENERGY (CSP) plant life in the Desert of Az. However, it is unclear, and for that reason our most important question for this analysis, if the amount gain of carbon kept because they build and operating new solar thermal vegetation rather than working fossil fuel ability plants is greater than the sum lack of carbon that occurs when the desert habitat is disturbed and destroyed, thus changing the carbon sequestration skills of the ecosystem. We approached this analysis in both a qualitative and quantitative manner. We will first describe the descriptive research of the potential risks associated with unit installation and operation of the CSP plant life, accompanied by the quantitative procedure of making use of a cost-benefit evaluation to compare net carbon benefits by using CSP plant life rather than a Gasification Combined Cycle (ICGG) plant, which uses "clean coal" technology. [14]

7. RA WHAT TO DO IF THE RISK OCCURS ?

7. 1 CARBON Damage DUE TO INSTALLATİON OF SOLAR THERMAL Ability PLANTS

Carbon sequestration is considered to occur on a number of levels within desert and semi-arid ecosystems. The primary stressor in this evaluation is the physical devastation of the habitat that will arise with the installation of the solar collecting facilities, roads, and transmission lines or towers. While CSP vegetation are large, some estimation they use less land area than hydroelectric dams or coal plant life. Nonetheless, existing vegetation, including the aboveground biomass and belowground vegetable tissue and origins will be cleared prior to installation of CSP plants. Additionally, the assumption is that biological garden soil crusts will be destroyed and alkaline soils will be removed through the CSP unit installation process, particularly if land leveling, contouring, and construction of stabilizing features for high desert winds are needed. While the earth may only be displaced and later deposited in other desert areas, we assumed the stored carbon premiered into the atmosphere. This may be an overstatement of the potential result; however, we made a decision to assume the situation causing the greatest impact given the limited available information.

7. 2 LOSS OF FUTURE CARBON SEQUESTRATION WITH ALL THE Procedure OF SOLAR THERMAL Ability PLANTS

In addition to the increased loss of stored carbon, the CSP center and assisting infrastructure will likely inhibit the future sequestration of carbon across the inhabited area. Some researchers such as Schlesinger are skeptical of the high flux rates especially given having less information to aid where the carbon is stored and whether carbon sequestration within desert biomes has increased because the Industrial Revolution. However, if these desert ecosystems do sequester large carbon private pools, then large modifications of the ecosystem will likely result in the loss of future sequestration functions for the global carbon budget.

7. 3 OTHER POTENTIAL IMPACTS AS A RESULT OF INSTALLATİON AND OPERATİON OF SOLAR THERMAL Electric power PLANTS

Although nearly all this examination has characterized solar thermal as a physical stressor, CSP vegetation also pose chemical substance risks. CSP vegetation may use molten salts to store the thermal energy and these oxidizing salts may cause both health insurance and ecological risks.

Furthermore, impacts will occur on water materials and resources, as normal water is piped from limited aquatic systems; Desert of Az, some of which may have declining populations; and close by human communities. These impacts were not examined in this risk examination but is highly recommended in a far more comprehensive evaluation.

7. 4 QUANTITATIVE RA/ COST Profit ANALYSIS

The objective of the cost benefit research is to weigh the possible costs of creating a solar thermal plant in the Desert of Az. The scope of the cost benefit analysis will be limited by solar thermal vegetation situated in Desert of Arizona, and the money used will be carbon. It is important to note these values are quotes and the quantitative analysis is bound to carbon. In a thorough risk assessment, a full ecological cost gain analysis would be conducted to be able to measure the true costs of any solar thermal vegetable. Other parameters that would be considered include impacts on the Desert of Az of the spot, water resources, interpersonal and economical implications and land costs.

Carbon costs of building and operation of the solar thermal place were calculated predicated on a review of the primary literature. Carbon released from disruption of Desert of Az soil, building of the solar thermal plant, and disruption of carbon sequestration capabilities were considered in the analysis. [15]

8. RISK MANAGEMENT PROCESS FLOWCHART

CONCLUSION

In this paper we define and put into action the project procurement and risk management for our inexperienced show project, we designate the area and size of our task and also evaluation of stackholders were made. We also check out the area credited to resources and physical information. A list of stuff like systems, services and materials etc was made and finally we also perform make or buy decisions for the things. Both types of qualatative and quantitative risk examination was also made. We present a risk management planes by means of flow chart with tasks and resposibilities. We come to a spot that task procrutment and risk management is the main area of task management.

REFERENCES

[1] http://www. jasolar. com/

[2] http://michaelbluejay. com/sri/solar. html

[3] http://maps. google. com/

[4] http://news. mongabay. com/2006/0209-solar. html

[5] http://news. mongabay. com/2006/0113-energy. html

[6] http://news. discovery. com/tech/ten-places-harness-solar. html

[7] http://en. wikipedia. org/wiki/Solar_power_plants_in_the_Mojave_Desert

[8] http://xeno. ipaustralia. gov. au/tmgoods. htm

[9] http://www. treasury. gov. lk/FPPFM/pfd/circulars/NPACircular11. pdf

10) http://www. enotes. com/management-encyclopedia/make-buy-decision

[11] SOLAR Heat INSIDE THE MOJAVE DESERT, 13 March 2009.

[12] http://en. wikipedia. org/wiki/Solar_power_plants_in_the_Mojave_Desert

[13] http://www. aps. com/

[14] http://en. wikipedia. org/wiki/Solar_Energy_Generating_Systems

[15] Financing Solar Thermal Vitality Plant life, Rainer Kistner and Henry W. Price, April 1999.

[16] Erika Lecture notes

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