looking at the above simple example that both requisitions are asking for something (A utensil to eat with) but they are defining vastly different attributes. Drawings, samples, branded, technical; Conformance specifications; Output or outcome, statement of work based specifications; Standards A detailed list should be made, which will help in establishing a budget. This safe guard protects both the Buyer and the Customer (internal or external). Deciding on the type of specifications to be used 19 Eco-labels in specifications 20 Product specific criteria and supplier criteria 20 Specifications for a service 21 ... procurement and whether the ‘need’ can be met by a more sustainable alternative. Once the item is delivered the specification can be used to compare the delivered item to what was ordered. Requisition 2 enables the buyer to go and research the market and benchmark against specific needs and where He/She can, achieve a cost reduction against the specification without delivering something that may not be fit for purpose. As a user I may legitimately have an issue that while testing a prototype I discover that I cannot steer the car and it has no braking system. Developing and using generic specifications is as import in the sustainable procurement process as it is in the traditional procurement process. Procurement Chapter 4 - Specifications 4.1 Generally.. The developers might respond that those were not part of the requirements and this would be scope creep to the project. Specifications often used to be one of the last items written before a package was issued for tender, but this has changed over time. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements Performance specification - Designing Buildings Wiki - Share your construction industry knowledge. technical specifications for procurement of bulk materials, packages, modules and potentially, even projects: Phase 3 – Scale up: JIP33 Phase 1 equipment specifications for procurement: IOGP S-562 is based on API 6D 24: th: edition Specification for pipeline and piping valves. Descriptions should be drafted to address the City's needs, and the costs of procuring, operating and maintaining the supplies and services. Descriptions should be drafted to address the City's needs, and the costs of procuring, operating and maintaining the supplies and services. Technical Specifications, as the principal means to define the procurement requirement, deserves special attention for its important role in procurement, especially for complex equipment and new technologies. Specification and planning — Before anything, companies must put together a cohesive procurement plan and specify what services and goods will be needed, whether internally and externally. Specification : A specification is a specific description of a particular subject. Title: Writing procurement specifications guideline Author: Department for Education Subject: This guideline describes the process for developing a specification for … The procurement plan should cover all the different steps in the process with the expected date of initiation of each milestone. Specifications describe in detail the supplies and services the City seeks. Specification : A specification is a specific description of a particular subject. Hoo boy. Procurement is an enabler to service delivery across various stakeholder groups. a blast furnace complex, a steel melting shop, or a rolling mill etc.) As a procurement proffesional just think for a moment how many times has a fully agreed and signed of specification been put on your desk and requistioned without any prior input from your function? Requirement specification in Government IT Procurement Björn Johanssona,*, Markus Lahtinena aLund University, School of Economics and Management, Department of Informatics, Ole Römers väg 6, Lund SE-223 63, Sweden Abstract IT procurement represents a business process of importance, including the ability to articulate requirements that the Pro’s and Con’s of Dual Sourcing in Procurement, Managing risk within the sourcing process. Figure 3.1 The procurement specification . Procurements primary role of taking a business requirement (specification) – finding a supplier/suppliers , negotiating a deal and then ordering the item is all hinged on that first step! Identify the key differences between product and service specifications… It describes what the customer wants to buy and consequently, what the successful supplier is required to supply. The objectives of a world-class procurement organization move far beyond the traditional belief that procurement’s primary role is to obtain goods and services in response to internal needs. When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. It is important that each specification is drafted by appropriately skilled personnel with knowledge of … The procurement team decides everything related to buying. 2) The car shall have a really kickin’ stereo system. A specification is often a type of technical standard.. Georghiou et al. Specifications define precise requirements of commodities (e.g., goods and services) sought through a solicitation process. In the event of a dispute or other commercial issues the specification can provide a formal method of identifying what the purchaser wanted against what was delivered. This could include descriptions of: Price format Report this post; Lewis Hutson Follow They may include such details as required power, strength of material, test methods, and standards of acceptability and recommended practices. A specification is often a type of technical standard.. Specification and planning — Before anything, companies must put together a cohesive procurement plan and specify what services and goods will be needed, whether internally and externally. Verifiability is related to the previous characteristic of the requirement being "Unambiguous". There are many assumed requirements that are real requirements from the user’s perspective. Integrating sustainability into the procurement process There are different types of technical or engineering specifications (specs), and the term is … Procurement function should be INVOLVED as one of the function in the preparation of the specification of the items to be ordered, and not to leave marketing or engineering people to decide on the specification and procurement to proceed on other steps like sourcing. The following principles should be observed by all specification writers: 1. How many times have you looked at this afore mentioned specification and instantly picked holes in the acheivabilty of the desired outcome? Procurement serves as the primary activity involved in developing specifications for items purchased under indefinite quantity term contracts and definite quantity scheduled purchases. Requisition 1 provides the buyer with much more scope however there is the chance that the person who raised the requisition may well change their mind / refine the specification as quotes begin to arrive. The duty of Procurement to promote both product and price competition requires that specifications be as non-restrictive as practicable, consistent with satisfying legitimate needs. It describes what the customer wants to buy and consequently, what the successful supplier is required to supply. When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. They may include such details as required power, strength of material, test methods, and standards of acceptability and recommended practices. Speaking from a manufacturing perspective, the importance of procurement cannot be understated. The Importance of Specifications in Procurement Functions Published on March 20, 2019 March 20, 2019 • 9 Likes • 0 Comments. The purchasing function typically acts as the interface between the customer (internal or external) and suppliers. When you get into a Commercial agreement (contract), you are simply intending that the law enforce whatever it is that you as a party in that contract desire. Practicing procurement directors, procurement managers, procurement officers, buyers and procurement assistants must be educated on the benefits and proper use of procurement specifications, testing methods and the acceptance criteria that will be used to verify and enforce the requirements in the request for quotations (RFQ), request for proposals (RFP), invitation to tender … Written by Lewis Hutson - Thank you for taking the time to read my first of hopefully (dependant on the first ones reception) many articles. And, ideally, it should […] In the event of a dispute or other commercial issues the specification can provide a formal method of identifying what the purchaser wanted against what was delivered. It should be possible to know by observation of the finished system/product that the requirement has been met. Specifications can … In case of the procurement of a complete production unit (e.g. Procurement plans can be prepared in many different formats. 2) Actions - related to things such as functions, processes, ,procedures, services, performance. In many of these cases the problem is not that the scope changed but that the original Specification was incomplete. My First attempt at writing an article #specifications #Procurement #Purchasing #Supplychain, Build Your Best Packaging Category Strategy, Start Implementing Category Management Today. 3.0 Understand the use of specifications in procurement and supply. What you will learn on this course is how your procurement exercises SHOULD be done. Introduction. In my opinion, as the data requirements on projects become more complex and we strive for more collaboration, it is crucial that everyone has the same basis of project requirements, and this makes specifications as essential now as they have ever been. Although a general idea would already exists as a […] Drawings, samples, branded, technical; Conformance specifications; Output or outcome, statement of work based specifications; Standards What is the Impact of Specifications Setting on Quality Control? 3) The car shall have a red custom paint job with chrome accents. Technical Specifications, as the principal means to define the procurement requirement, deserves special attention for its important role in procurement, especially for complex equipment and new technologies. Specifications must comply with the broad legal obligations for public procurement, ethical sourcing and contracting under UK and EU law. Consider supply chain transformation to add real value. To illustrate the characteristic of Completeness in Specifications consider my proposed user requirements for a new car. Why procurement Savings need the right fuel if they are to deliver business benefit. In a procurement context, a Specification can be defined as a ‘statement of needs’. Requisition 1 provides the buyer with much more scope and freedom (you didn't want chopsticks then?). This early stage work also provides an understanding of the performance requirements of the project, so that when discussions develop on complexes, entities, space, locations, elements, systems and products, these form part of the build-up of a specification. The procurement department, then incorporates these specifications in the bid document to be issued to the prospective supplier. Public procurement is generally divided into the following three main phases: pre-tender, tender, and post-tender. Once the procurement plan is prepared and approved, the requesting entities should begin submitting their requirements accordingly to the procuring entity for processing. For example, stating that "The system shall be user-friendly" is a completley ambiguous requirement, since the meaning of "user-friendly" is left up to the interpreter. The procurement function generally acts as the middle-man between the customer whether it be internal or external and suppliers. 2. What is the Impact of Specifications Setting on Quality Control? Specification can be attributed in two ways, attributes related to things – (i.e. Developing and using generic specifications is as import in the sustainable procurement process as it is in the traditional procurement process. 3.0 Understand the use of specifications in procurement and supply. This makes the purchasing process inefficient. Specification Development It is important to spend time developing the specification detail to ensure consistency on pricing, product quality, operational functionality and products are fit for purpose in order to reduce the financial impact of the wrong specification further down the line. This guide is supported with supplementary environmental product services specifications designed to assist the procurement practitioner when drafting specifications and TORs. Integrating sustainability into the procurement … Procurement Chapter 4 - Specifications 4.1 Generally.. Specifications are written documents that describe the materials and workmanship required for a development. Specifications can … Deciding on the type of specifications to be used 19 Eco-labels in specifications 20 Product specific criteria and supplier criteria 20 Specifications for a service 21 ... procurement and whether the ‘need’ can be met by a more sustainable alternative. For further information on writing a specification or requesting quotes from suppliers, please see information on obtaining quoteson Scottish Government’s Procurement Journeywebsite. Think you want cost savings? Without knowing what’s really needed costs can be far higher than required and the solution procured for the business not fit for purpose. It here unfortunatley all to often a stage where procurement are left out and not involved from the very begining stages. TYPES OF SPECIFICATIONS WHEN CONTRACTING . Starting a career in Supply Chain – Intern or entry level job? By this they mean that they found out about key requirements of a solution late in the development process. In addition, it is estimated that better procurement can lower the costs of rectifying design errors How important is demand planning in Supply Chain, The importance of Specification within the procurement places, George Awuor on be integrated into the various stages of procurement process. Is it a marketing or business requirement? To understand how this role is changing, we must understand what purchasing is all about, starting with the primary objectives of a world-class purchasing organization. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements the tender technical specification need to be very comprehensive since it generally include all type of activities. During this stage, human/labour rights and environmental performance criteria should be translated into specifications that meet specific requirements of the specified outcome, desired by the procurement action. The important thing to remember is the content. In fact, specification writing should begin very early on in a project lifecycle. Overview of procurement need specification and the organisation of supply chain processes to fulfil customers' needs in South Africa July 2013 Corporate Board: Role 9(2):12-21 It must therefore be clear and accurately define what is expected from a supplier regarding the outputs or the functional and performance requirements. These will be updated and expanded on a I will be discussing topics covering all aspects of the Supply chain (particularly Procurement) fuctions, Change Managment ideas and theories and IT software solutions (General focus being ERP Systems such as INFOR M3) For business needs. (2013) describe how some OECD countries have introduced measures to reduce uncertainty or offset the perceived risks of purchasing innovations, for instance through the provision of financial incentives, insurance guarantees and the use of quality … Georghiou et al. A specification is a description of your requirement for the purpose of obtaining a quote from a supplier, and should be submitted as part of your Invitation to Quote (see “3 Quotes” guidancefor procedures and ITQ template). The ‘procurement specification’ is made up of different elements as illustrated in Figure 3.1. 3.1 Analyse different types of specifications used inprocurement and supply and sources of informationthat can be used to create specifications.
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