PMP Procurement, Rent vs Buy Decisions
Instructor Steven Fullmer
As students prepare for the Project Management Professional (PMP) Certification, one of the areas upon, which there is an intense focus, perhaps we’ll call it a volume of questions is Procurement. In the classroom, I teach the Procurement as a great way to think about project management, by simply taking your ball cap and turning it slightly to the side.
Before we start projects, we have a cost/benefit analysis done by the Business Analyst. That cost/benefit analysis helps us justify why we’re going to take on a project, why the business is going to issue a charter to assign a project manager, the charter or the responsibility to do the project. That’ the starting point.
After we work through all of the knowledge areas, as provided by the Project Management Body of Knowledge (PMBOK), we realize sometimes, as we look at our triple-constraint, that we can’t handle aspects of the Scope, the Time, or the Cost.
We potentially choose to outsource either the entire project or a subcomponent of the project. Acquiring a widget that goes into a larger assembly that we don’t have the skill sets to do in the most effective time or cost for our project.
Steven M. Fullmer, PMP, MBA, MCT/CTT+, CDP Steven has a global reputation as a project manager, chief technology officer, and computer systems innovator. He has authored more than 100 articles and a dozen courses in the fields of project management, productivity, business analysis, and computer technology. He has more than thirty years of professional design and project management experience in finance and high technology firms. He is founder and president of Blue Sphere Solutions, a technology project consultancy as well as a staff instructor for Interface Technical Training.