Guide to Procurement Management Plan According to PMBOK Guide Seventh Edition

Importance: Procurement Management Plan is vital because it defines how the procurement processes will be managed from start to finish. Efficient procurement management ensures that an organization gets the best value for its expenditure. It helps in managing risks associated with procurement and supports better decision making.

What It is: The procurement management plan is a component of the project management plan that describes how a team will acquire goods and services from outside the organization. It outlines the procurement strategy, including contract type, risk management, and the roles and responsibilities of all involved parties.

How It Works: The procurement management plan specifies the processes, tools, and techniques to be used in procurement management. These include procurement documentation, supplier selection, and contract administration. It also outlines how procurement risks will be identified and mitigated.

Exam Tips: Answering Questions on Procurement Management Plan:
1. Understand Procurement Documents: Know the different types of procurement documents and their uses.
2. Know Contract Types: All the different types of contracts have their advantages and disadvantages. Understand these variations and reasons why one might be chosen over another.
3. Procurement Risks: Understand how procurement risks are handled in different contract types.
4. Ethical Considerations: Be aware of the ethical considerations and potential conflicts of interest in procurement management.
5. Practice Questions: The more you practice answering questions, the more familiar you'll become with the types of questions you'll face in the exam.