Contract type versus Risk - Coursework Example

Lecturer Contract v. Risk Procurement is a very important exercise for any organization. It helps in making organized and plannedacquisition of resources and services required to be used in the production process. Regardless of the level of the procurements, there are risks which are involved. Meaning, both the project and corporate procurements have risks (Weele 183). Therefore, the best thing to do is to apply the necessary strategies in order to deal with them. First, there should be a risk assessment.

Secondly, risk planning should be done not to interfere with any process. Since procurement helps in accomplishing the organization’s goals, it should be taken so seriously. In my illustrations, I would like to use the example of United Nations Development Program (UNDP). In its procurement activities, UNDP does not procure in isolation. Instead, it considers procurement as a process of accomplishing the set development outcomes. 2. Contract is a binding agreement between two people or parties.

When entering into a contract, several considerations should be made. One of the most important factors to consider is the cost of the contract. Meaning, the project manager should focus on monetary issues before negotiating the contract. The following cost objectives should be considered during the negotiation process of a contract: i. Price competition. The price of the contract should be considered. Before settling on the most preferred bid, it should be associated with lower rates as compared to those of the competitors.

Meaning, it will be cost friendly. ii. Price analysis. The prices offered should be realistic and reasonable. In this case, the client will not be overcharged by the price provider. iii. The costs of the offerer should be considered. After its careful evaluation, it will be easier to predict any uncertainty which might be faced. Thus, the project will be easier to sponsor. iv. Contractor’s financial responsibility. The person or entity seeking the contract should be able to take care of the financial obligations.

For instance, for the government of Britain to award a contract, the contractor should be in a position of meeting all the financial requirements of the contract. The Quality Movement 1. I would like to argue in favor of Malcolm Baldrige Award and ISO 9000:2000. They are very important institutions because they help in promoting quality standards in the corporate organizations and institutions of higher learning such as the universities. As a result of the regular audits and inspections, several managers have become accountable and responsible in their service delivery.

Since they advocate for international standards, these organizations have strived to comply with their standards. This has led to the manufacture and provision of high quality products and services to the satisfaction of the clients and the general public. For example, the Malcolm Award given by the US president has promoted a healthy competition amongst businesses across the country. 2. First, I would like to point out that Demings, Juran, Crosby and Taguchis perspectives of quality management are similar in that they both base their premises on the same basic principles as they discuss about quality management.

However, the difference between them is that they have different perspectives in their philosophies. Deming is more customer-driven and heavily relies on the contributions of market research on knowing the clients’ understanding of quality. Meanwhile, although Juan is dependent on the market, his approach is engineering driven. According to him, the customers’ satisfaction is determined by the design of the commodity. Works Cited Weele, Arjan J. van. Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice (5th ed. Ed.).

Andover: Cengage Learning, 2010. Print.