What is Plan Procurement Management?

What is Plan Procurement Management?

• A. The process of determining what to procure, when, and how, including creating procurement statements of work and contracting approaches.
• B. The process of performing procurements by selecting a seller.
• C. The process of closing procurements.
• D. The process of managing procurement relationships.

Answer: (A)

Planning how to source outside the organization is what Plan Procurement Management is about. This step focuses on deciding what needs to be purchased, when it should be purchased, and how the procurement will be carried out. It produces the procurement management plan and related documents that guide all buying activities, such as the procurement strategy, make-or-buy decisions, and the procurement statements of work that define what work will be done and the contracting approaches to use. These elements set the rules and methods for subsequent procurement activities, including how sellers will be selected and contracts structured. The other procurement steps—performing procurements (selecting sellers and managing contracts), closing procurements (finalizing contracts), and managing procurement relationships—occur after this planning stage and deal with execution and administration rather than the initial planning.

Planning how to source outside the organization is what Plan Procurement Management is about. This step focuses on deciding what needs to be purchased, when it should be purchased, and how the procurement will be carried out. It produces the procurement management plan and related documents that guide all buying activities, such as the procurement strategy, make-or-buy decisions, and the procurement statements of work that define what work will be done and the contracting approaches to use. These elements set the rules and methods for subsequent procurement activities, including how sellers will be selected and contracts structured. The other procurement steps—performing procurements (selecting sellers and managing contracts), closing procurements (finalizing contracts), and managing procurement relationships—occur after this planning stage and deal with execution and administration rather than the initial planning.