NEED DEFINITION 1
Need Definition
INF 336: Project Procurement Management
Every company has needs that need met. The first thing that this paper will cover
are the Questions for Review and Discussion from Chapter six. Next it will describe the
differences between needs identification and defining commercial equivalents and
discuss why it is preferable to separate into two stages. Third it will interpret the value to
the organization when early supplier involvement (ESI) is implemented effectively, while
, NEED DEFINITION 2
also examining the advantages and disadvantages of specifying by performance.Finally, it
will describe how a supply professional understands strategic requirements.
Why is it preferable to separate need identification and specification or defining
commercial equivalents into two separate stages?"Specifying the need first based on the
functionality required and then identifying the variety of options to meet the need create
the opportunity for lower cost and better, or more innovative, solutions (Johnson,
Leenders, Flynn, 2015, p.144, para. 3)". This ensures that value opportunities are not
overlooked. Onto the question, why is early supply/supplier involvement (ESI)
important?"Early supply involvement and early supplier involvement (ESI) help assure
that what is specified is also procurable and represents good value (Johnson, Leenders,
Flynn, 2015, p.144, para. 4)".
Why is capital goods acquisition different from the purchase of raw materials?
Capital goods would be buildings, equipment, machinery, and tools used to produce a
product from raw materials. The reason the acquisition is different is pricing tends to
fluctuate more in the raw materials acquisition side than the capital goods side. Now for
the last question. What are some major challenges in the acquisition of services? One
example that comes to mind is skillset. IF you take building a nuclear power plant this is
most likely going to need highly skilled individuals for most if not all the build. A
company that specializes in this would be what the government looks for while also the
company that is doing the building is ensuring the materials they get are up to a certain
standard or code in the case of metal, concrete, etc.
Need Definition
INF 336: Project Procurement Management
Every company has needs that need met. The first thing that this paper will cover
are the Questions for Review and Discussion from Chapter six. Next it will describe the
differences between needs identification and defining commercial equivalents and
discuss why it is preferable to separate into two stages. Third it will interpret the value to
the organization when early supplier involvement (ESI) is implemented effectively, while
, NEED DEFINITION 2
also examining the advantages and disadvantages of specifying by performance.Finally, it
will describe how a supply professional understands strategic requirements.
Why is it preferable to separate need identification and specification or defining
commercial equivalents into two separate stages?"Specifying the need first based on the
functionality required and then identifying the variety of options to meet the need create
the opportunity for lower cost and better, or more innovative, solutions (Johnson,
Leenders, Flynn, 2015, p.144, para. 3)". This ensures that value opportunities are not
overlooked. Onto the question, why is early supply/supplier involvement (ESI)
important?"Early supply involvement and early supplier involvement (ESI) help assure
that what is specified is also procurable and represents good value (Johnson, Leenders,
Flynn, 2015, p.144, para. 4)".
Why is capital goods acquisition different from the purchase of raw materials?
Capital goods would be buildings, equipment, machinery, and tools used to produce a
product from raw materials. The reason the acquisition is different is pricing tends to
fluctuate more in the raw materials acquisition side than the capital goods side. Now for
the last question. What are some major challenges in the acquisition of services? One
example that comes to mind is skillset. IF you take building a nuclear power plant this is
most likely going to need highly skilled individuals for most if not all the build. A
company that specializes in this would be what the government looks for while also the
company that is doing the building is ensuring the materials they get are up to a certain
standard or code in the case of metal, concrete, etc.
