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Harley Davidson Procurement Plan

4447 words (18 pages) Business Assignment

21st Oct 2020 Business Assignment Reference this

Tags: Business AssignmentsBusiness Strategy

Overview

The Project Approval Plan is the roadmap for the effective implementation of the project.  This article aims to discuss the company software upgrade procurement plan. The document identifies different kinds of agreements and identifies the best contract type for the upgrade. In order to ensure that compliance is met for all places, the federal and international regulations are reviewed.  Each prospective supplier will be examined with a thorough assessment in order to guarantee the integrity of the business is not compromised.  In practice, the procurement principles are finally examined, and contracting choices are reflected.

Procurement Plan

The Knowledge Project Management Body (PMBOK) "is the world's leading project management standard. The Project Management Institute (PMBOK ® Guide— 5th Edition, n.d.) publishes a Project Management Institute, which offers the professional project with basic procedures necessary to accomplish organization’s outcomes and excellence in the practice of project management The PMBOK procurement plan is "a method in which the decision on projects is documented, the strategy defined and potential sellers identified. The main advantage of this method is that it determines whether external assistance is to be obtained and what it is to be acquired and what is to be acquired and how much is required and when it is to be acquired. "(Fifth Edition, 2013). The work statements, the work breakdown structure (WBS), the task list (work list), the tariff budget, a communication plan and a risk plan are all generated during the project design phase. This is a process of project planning. The Work Statement defines in detail the project, with several parts, such as "Success Stakeholder List, Command Chain, Assumptions and Constraints" (Lindstrom 2014), the "Solicitude Statement, Scope Statement, Procurement Deliverables, Goals and Obligations, Cost and Schedule Estimates." The goal is to create a broad-based Supply Management Strategy (SMM) during software procurement. The primary stakeholders are recognized, and meetings are held to guarantee that every vision is heard and considered.  An executive budget is established, and a clear schedule and list of milestones is obviously defined.  The WBS is developed from the recognized milestone together with the completion of the activities when the milestone list is finished.  "Your acquisition plan is based upon the Task List, the Work Breakdown Structure (WBS). The list of tasks is an essential element of the WBS and identifies the tasks required for the procurement to succeed–the executed agreement.  The schedule is the timeline required to complete the procurement in the case study these dates are listed along with the milestone listing.  In the communication plan regular meetings are identified to speak on progress during the duration of the project.  During the cases study a risk analysis is completed on each finalist identified. These criteria were set to evaluate the providers understanding of current and future requirements of Harley Davidson. 

Contract Types

For project planners to pick, there are several kinds of agreements. "Contract kinds with fixed prices provide for a firm cost or an adjustable price in suitable instances" (Staff, part 16—Contract types. Retrieved, n.d.). Different categories include fixed price agreements, like Firm Fixed Price, which "places the highest danger and total accountability of the contractor for all expenses and subsequent profit or loss" (Staff, Part 16—Contract types. Retrieved, n.d.). They are appropriate for the purchase of business goods and other goods / services when fair and sensible prices are initially set. There is also a Fixed Price Incentive Fee, which enables for flexibility if the final price is adapted to the full cost when the project is completed.  When it is feasible to negotiate a fair and reasonable fixed price over a first period and not extra time periods, set prices with potential price restructuring agreements are used. (Staff, 16 — Ty) "A retroactive price fixing contract is suitable for research and development contracts estimate at or below $150,000 when it is established that a fair and sensible fixed price is not negotiable and any other sort of fixed price is impracticable in the quantity concerned and for a brief period of time" Fixed Pricing with Economic Pricing Adjustment is the final fixed price agreement that enables upwards and downwards revisions based on accepted variables. . "A fixed-price agreement with an economic adjustment of price may also be used if I serious doubt is raised as to whether or not the market or working conditions are stable and/or contingencies that would otherwise be included in the contract price are identifiable and covered separately in the contract" (Staff, Part 16 — Types of Contracts, n.d.)

 A different kind of contact is cost-refundable which, to the extent specified in the agreement, "subject to payment of the permissible costs incurred. These agreements estimate the overall cost of the contracting funds and fix a ceiling that the contractors cannot exceed without their consent from a contracting officer (except at their own risk) "(Staff, Part 16— Contract Types. Retired, n.d.). There are three categories of Cost-repayable contracts, like fixed-priced contacts, including Cost Plus Fixed fee, where the contractor is reimbursed for all costs by doing work and receives a fixed charge at the beginning of the period and payment at the end of the project.  Next contact shall be the Cost-Plus Incentive Agreement where the contractor will be reimbursed for all expenses and obtain an incentive for certain contractual goals earlier agreed upon.  Actual costs which are below the goal will lead in an upward adjustment of objective profit or fees (Staff, Part 16—Types of Ctrusts, n.d.). The actual expenditure which meets the target will be based on target profit or fee; Actual expense that exceeds the target will lead in an upward adjustment of target profit or fee. The final agreement for reimbursing costs is Cost Plus Award Fees: "Cost plus-award fees are a cost-reimbursement treaty which, based on a judgmental assessment made by the Government, gives for an fee comprising (a) a basic amount (that may be zero) fixed at contract startup and (b) an award amount adequate to encourage excellence in contract performance".

Time & Material Contracts, which are both a combination of fixed and refundable contracts, are another type of contact.  "A time and material agreement can only be applied where the accurate estimation or anticipation of expenses with a fair level of confidence is not feasible at the moment the contract is placed" (Staff, Parts 16 — Contracts type, n.d.). The only distinction is that the materials are not provided by the contractor is a labor-hour agreement comparable to a time-and-matter agreement.  "While (1) Government interests require a binding commitment from the contractor to start work immediately, and (2) negotiations for a definitive contract are not possible in time to satisfy the requirement, a letter contract may be applied. But the letter agreement should, under the conditions, be so full and as definite as possible "(Staff, Part 16— Types of contracts, n.d.). Work credit will be allocated to the level of the work package. The contact form best suited to this project is the cost-plus fixed fee where work has begun on job packages, whereas 50% of the remaining 50% is credited when all work specified in this job packaging has been completed. It is because the contractor needs a discountable price compared to Harley-Davidson when it purchases the equipment, which means that it needs to buy the materials needed for the projects to be completed. This is because fresh business software needs to be updated to replace current devices before the ancient equipment can be decommissioned.

Regulations

The biggest Harley-Davidson roadblock in the United States is the Green House Gas Emission Standard for supply chain activities, part of the emissions monitoring software upgrade.  "Nonetheless, in the U.S. (Sustainability Report 2015) there has been no federal legislation restricting greenhouse emissions in the bike sector" Current discussion is underway about emission standards as in vehicle production. This talk has been taken from the crops of Wisconsin and Pennsylvania, where "these installations have been improved in countless ways to decrease energy utilization and the corresponding operating costs. The Intergovernmental Panel on Climate Change and other specialist bodies (Sustainability report, 2015) identify the physical danger to our activities "to demonstrate obligations in decreasing greenhouse gas emissions in the following graphical details.

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Greenhouse gas emissions have not been so rapidly dealt with by the International Community and only lately have they been regulating vehicle emissions.  "In 2012, agreement was reached between the European Parliament and the Council of the European Union on the approval of GHG labeling rules" (Sustainability Report 2015).  Other nations like India, China and other Asian nations have noticed and intend to follow the guidelines of the EU.

The U.S. regulations and global laws differ considerably. The United States has attacked vehicles but not motorcycles with the EU and Asian nations adopting rigid legislation.  "The United States, for instance. The Sustainability Report of EPA published a reporting rule which requires that certain sources initiate emissions tracking for six GHG pollutants including carbon dioxide, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) starting on January 1, 2011 These requirements were not complied with by Harley-Davidson equipment, but there were no measures made as the laws do not apply to motorcycles. However, Harley-Davidson recently decided to pay US$ 15 million to sell unlawful tuning equipment that can be linked to the exhaust scheme that creates more pollution that the Environmental Protection Agency and Harley-Davidson have agreed on.   To prove the purchase in the EU and in Asian nations not only by Harley-Davidson but also by the US Government.

This does not affect the choice of Enterprise Software as software meets all the requirements laid down by Harley-Davidson and the local administrations in which the factories are situated and operate.  Recent manufacturing has, however, become slower in China as "many local governments in China have introduced bicycle riding legislation to stop motorcycle riders’ traffic and drive theft. Also quoted for restricting motorcycles in some towns are low security performance "(Trefis team, 2014).

Source Selection

The next step is to assess the prospective suppliers based on the stakeholders ' inputs. "A formal or informal source selection method can occur. Formal choice of source is used for high-dollar or complicated procurements, where the source selection authority (SSA) is a person other than the procurement contracting officer. The method starts with the implementation of an assessment scheme for a suggested purchase and finishes when a contract contractor is selected by the SSA, which debriefs the contracting parties "(Defense Acquisition University, 2017). The qualitative approach is to self-evaluate every prospective supplier based on data given to evaluate Harley-Davidson's functional specifications. Once again, the input of stakeholders will be assessed based on the next qualitative variables and the knowledge of present and future needs of prospective suppliers assessed.  The qualitative as well as the quantitative outcomes are then rankings according to which each supplier has been classified as one of the prospective suppliers. The reduced the score the better once each supplier has been classified. The findings are mentioned below.

Enterprise Software Selection Self-Assessment Results

 

Provider1

Provider2

Provider3

Criteria

Rating

Rating

Rating

Long Term Relationship Potential

1

2

3

Research and Development

2

1

2

Training Approach

1

2

3

Implementation / Education / Change Management

1

2

3

Requirement Understanding

1

2

3

Enabling SMS

2

1

2

Out of the box Fit

2

1

2

Financial Viability

2

1

2

Cost

1

3

2

Technical Support Offerings

1

1

2

Overall Functionality

1

1

3

Number of Partner Providers in Proposal

2

1

2

Architecture Compatibility

1

3

1

Platform Portability

1

1

1

Web Functionality "to go"

2

1

3

Manufacturing Experience

1

2

3

Design/Foundation

2

1

3

Request Definition

3

2

1

Documentation

3

1

1

Receiving

2

1

2

Supply Management

3

1

2

Project Tracking

1

1

1

Miscellaneous

3

1

1

Interfaces

2

1

3

Training

1

1

1

Other

1

1

1

Overall Score

43

35

53

Based on the above outcomes, Provider 2 is the clear leader, as the top three candidates have reached the highest score.  There is also an interview part, where Provider 2, based on the assessment remarks, was similarly impressive.  "Provider 2 was just as I expected.  They were very formal and timely.  They did a good job on the show— we saw "Oh, it flows wondrously.”. Their software products have a significant power. It comes in close contact with the details line by line, which we have described in many fields in our requirements" (Eileen Jarosz). It is suggested that services be acquired from the provider 2 based on the rating and interview method.

Procurement in Practice

The main principles of effective procurement must first be understood to master the art of procurement management.  This chapter aims to dissect every principle, define each principle's significance and analyze each principle's impact on the method of selecting enterprise software.  Value of cash, morality, transparency, responsibility and competition are main principles under review.

The Value of Money

A detailed plan can be created as a main element of any procurement plan.  A road map will help to integrate the required procurement services.  "Procuring controls enormous quantities of cash in an organization and thus ongoing procurement staff development is necessary to further improve the growth of expertise" (Kuira, 2014) This allows the business to boost the value of cash for procurement and to return the value of the cash. "Value can be realized in view of a lifetime purchase that includes original expense, maintenance of this asset, guarantees, facilities of assistance, obsolescence and costs for disposal of this asset when the time arrives" (Kuira, 2014). The entire procurement method was an instance of value for cash in the Enterprise Software Selection process since Harley-Davidson did not identify a standard software, and the choice was taken to introduce the standard software across the company to increase the amount of cash produced.

Ethics

"Purchasing and procurement ethics is one of the many best practices in procurement used by world class organizations. The problem with procurement morality is that if such procurement ethics are not obviously defined, easy and customary donations can inadvertently lead to bribery and fraud. A possible ethical issue could be the relationship established in the past between Harley-Davidson and Provider 3, and even if they failed to make the appropriate proposal, additional time was provided to state their case in which no additional time was allocation for the other finalists.

Transparency

"Public procurement openness implies that, unless valid and legal grounds exist for keeping certain data confidential, public procurement data must be made accessible to all: contractors, distributors, services providers and the general public."  To guarantee that the best possible applicant for procurement is chosen, transparency is needed, given that a competitive environment is created, and the best possible supplier is chosen. Transparency is apparent in the whole procurement process of enterprise software selection by sending the RFQ to prospective providers for bidding, all bid proposals were asked to be returned by 25 October.  The Provider Conference, which addresses the Suppliers in one space, identifies a clear function once a Bidder is selected. This enables the team to show the intention to all suppliers as well as to provide the team with questioning and enables all salespeople to hear the same information.

Accountability

"Accountability in government procurements implies fundamentally being accountable and obliged to reply and/or report the effects of these actions and choices to the appointed supervisory body (and the public)" (Lynch, Accountability, n.d.).  As a big business, Harley-Davidson is in public immediately and the reputation of a whole firm can be tarnished by a red worker.  It is therefore important that people not only take responsibility for their own behavior, but also accept private responsibility. Accountability was demonstrated by prospective suppliers conducting self-evaluation in accordance with an established list of Harley-Davidson norms through the procurement process.  This permitted the original functionality to be measured but could also be used during the process presentation stage, when the evaluation team could evaluate the same values to see how the suppliers matched.

Competition

"The main method used to reduce expenses is competition. Competition. As an acquisition profession, you are going to get the most value to your business at the lowest price "(Lindstrom, Successful Acquisition Project Management, 2014). Businesses can guarantee that they get the best product at the highest cost by establishing a competitive atmosphere.  This is because prospective sellers want to secure the agreement and it drives them to do their utmost by establishing a competitive field. The selection of company software was essentially a contest, as mentioned in the study.  By identifying the value of money in company software and being transparent throughout the process so that every seller could see the competition, an ethical environment was created, all of which could be viewed and heard by anyone.

Contract Decisions

As mentioned in the entire Harley-Davidson report, it has set values and these principles must be applied to the contracting decision.  Certain of the company values considered during the selection phase have been true, honest, maintain your commitments, honor the person and promote intellectual curiosity.  These examples were shown by the participants to include prospective suppliers during the selection phase. "Be honest," for instance, was obvious when questions about self-assessment were sent to all prospective suppliers, thus providing a fair and transparent atmosphere for all. Those providers who responded showed "be reasonable value" by honestly answering the evaluations that enable interviewers to learn from each business to make sure that Harley-Davidson has value for cash in advance.  However, when they appeared late, did not meet with their partner beforehand and overtook the allowable time, the person could not respect and maintain commitments.  This has been an instance of an absence of ethics and accountability in the decision-making process.  It was obvious to stimulate intellectual curiosity, to give suppliers a fundamental concept and to let them create ideas for their own ideas and ideas. After each concept had been drawn up, it was time for managerial creators to present the proposed idea and to guarantee Harley-Davidson the best value of the money. In the self-evaluation stage, the set of criteria were based on the values shown daily at Harley-Davidson, so these values directly impact the decision-making process for which software upgrading provider to pick.

Conclusion

The Project Awards Plan is the roadmap for the effective implementation of the project.  It was intended to discuss the Enterprise Software Selection Procurement Plan. The article recognized the different contract kinds while identifying the best procurement contract type. Furthermore, federal and international rules to guarantee that compliance is complied with at all sites were assessed.  Each prospective seller is scrutinized by a strict assessment to guarantee that the integrity of the business is not jeopardized.  Finally, in the field of procurement, the review of procurement values and reflection on contracting choices were demonstrated.

Resources

  • Defense Acquisition University (Ed.). (2017, February 6). Source Selection. Retrieved June 20, 2019, from ACQuipedia: https://dap.dau.mil/acquipedia/Pages/ArticleDetails.aspx?aid=cfee213e-8fc8-441b-9cba-313bc5c97750
  • Kuira, B. (2014, June 23). Value For Money in Procurement. Retrieved June 20, 2019, from LinkedIn: https://www.linkedin.com/pulse/20140623065259-126552187-value-for-money-in-procurement
  • Lindstrom, D. (2014). Procurement Project Management Success (1st Edition ed.). MBS Direct. Retrieved June 20, 2019, from https://mbsdirect.vitalsource.com/#/books/9781604277470/
  • Lindstrom, D. (2014). Procurement Project Management Success (1st Edition ed.). MBS Direct. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781604277470/
  • Lynch, J. (n.d.). Accountability. Retrieved June 20, 2019, from The Procurement ClassRoom: https://procurementclassroom.com/accountability/
  • Lynch, J. (n.d.). Transparency. Retrieved June 20, 2019, from The Procurement ClassRoom: https://procurementclassroom.com/transparency/
  • Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition. Newtown Square, PA: Project Management Institute. Retrieved June 20, 2019, from A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition: http://library.books24x7.com.ezproxy.snhu.edu/assetviewer.aspx?bkid=51356&destid=376#376
  • Project Management Institute. (n.d.). PMBOK® Guide - Fifth Edition. Retrieved June 20, 2019, from Project Management Institute: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

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