Performance Specification—A type of specification in which the goods and/or services are described in terms of required performance. Requisition 2 enables the buyer to measure the market against specific needs and where he can achieve cost reduction it’s done directly against the specification without detriment to the fit form and function. Procurement plans can be prepared in many different formats. Performance specification - Designing Buildings Wiki - Share your construction industry knowledge. Figure 3.1 The procurement specification . A specification is often a type of technical standard.. In a procurement context, a Specification can be defined as a ‘statement of needs’. 2) The car shall have a really kickin’ stereo system. Hoo boy. 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. 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. It is important that each specification is drafted by appropriately skilled personnel with knowledge of … the part, component or raw material) and actions (functions, processes, ,procedures, services, performance) Let’s consider this practically: Requisition 1) A loose specification – “I want something to drink my coffee out of” Developers/Customers often complain that Scope Creep occurred during a project. 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 makes the purchasing process inefficient. Drawings, samples, branded, technical; Conformance specifications; Output or outcome, statement of work based specifications; Standards • The total price impacts borne by government as a result of poor procurement practices are estimated at around $239 million per annum. Once the procurement plan is prepared and approved, the requesting entities should begin submitting their requirements accordingly to the procuring entity for processing. 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). 3.1 Analyse different types of specifications used inprocurement and supply and sources of informationthat can be used to create specifications. Well starting off in the sequence of procurement process the documents required will be: 1. Considering . When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. A specification details the requirements of the procurement. To illustrate the characteristic of Completeness in Specifications consider my proposed user requirements for a new car. They may include such details as required power, strength of material, test methods, and standards of acceptability and recommended practices. Georghiou et al. Hoo boy. A clear and appropriate definition and description of the need is of utmost importance. The procurement department, then incorporates these specifications in the bid document to be issued to the prospective supplier. Please contact the Procurement Office before writing a specification for a requirement £50,000 or above; What should be included in a specification? Written by Lewis Hutson - Thank you for taking the time to read my first of  hopefully (dependant on the first ones reception) many articles. 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. 2. The following principles should be observed by all specification writers: 1. procurement, they could reduce delays to projects and improve project quality by 7%, respectively. Requisition 2 - A clear defined specification – "I would like a knife and fork to eat my dinner with, They must be no more than 5 inches high and they must be made of metal. When this is the case, the procurement plan merges with the procurement schedule. If the procurement is covered by an International Agreement, a specification should not prescribe or refer to a particular trademark or trade name (e.g. How important is demand planning in Supply Chain, The importance of Specification within the procurement places, George Awuor on Descriptions should be drafted to address the City's needs, and the costs of procuring, operating and maintaining the supplies and services. References to national or international standards or other internal company specifications. It describes what the customer wants to buy and consequently, what the successful supplier is required to supply. a blast furnace complex, a steel melting shop, or a rolling mill etc.) (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 … The pre-tender phase, which is the focus of the current study, includes all activities involved in the planning and preparation for procurement, such as a needs assessment, defining user requirements, and market engagement (McKevitt and Davis, 2015). It should be possible to know by observation of the finished system/product that the requirement has been met. 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 this reason it is a good practice to write a test of the Spec at the same time the Spec is being written. Specifications define precise requirements of commodities (e.g., goods and services) sought through a solicitation process. Specification can be attributed in two ways, attributes related to things – (i.e. There are different types of technical or engineering specifications (specs), and the term is … Performance Specification—A type of specification in which the goods and/or services are described in terms of required performance. Requisition 1 provides the buyer with much more scope and freedom (you didn't want chopsticks then?). Why procurement Savings need the right fuel if they are to deliver business benefit. Then the quotations form the vendors 3. 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. the tender technical specification need to be very comprehensive since it generally include all type of activities. Identify the different methods of descriptions and the general presentation for a specification to capture the organisation’s expectations. In addition, it is estimated that better procurement can lower the costs of rectifying design errors 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. 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. The problem here however is the chance that the person who raised the requisition may well change their mind or refine the specification as quotes begin to arrive. 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 can … For further information on writing a specification or requesting quotes from suppliers, please see information on obtaining quoteson Scottish Government’s Procurement Journeywebsite. 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. It must therefore be clear and accurately define what is expected from a supplier regarding the outputs or the functional and performance requirements. Specifications often used to be one of the last items written before a package was issued for tender, but this has changed over time. 3.0 Understand the use of specifications in procurement and supply. Introduction. Specification can be attributed in two ways, attributes related to things – (i.e. TYPES OF SPECIFICATIONS WHEN CONTRACTING . The ‘procurement specification’ is made up of different elements as illustrated in Figure 3.1. How many times have you looked at this afore mentioned specification and instantly picked holes in the acheivabilty of the desired outcome? Specifications can … In a procurement context, a Specification can be defined as a ‘statement of needs’. Procurement plans can be prepared in many different formats. Procurement Chapter 4 - Specifications 4.1 Generally.. 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 … Is it a marketing or business requirement? Descriptions should be drafted to address the City's needs, and the costs of procuring, operating and maintaining the supplies and services. One Response to “The importance of Specification within the procurement places”, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), 6 reasons your delivery schedule adherence measure may not be working for you. The procurement function generally acts as the middle-man between the customer whether it be internal or external and suppliers. 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. This safe guard protects both the Buyer and the Customer (internal or external). It should be possible to know where the Specification originated. Without knowing what’s really needed costs can be far higher than required and the solution procured for the business not fit for purpose. 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. It is the basis of all offers and therefore the foundation for a contract. 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. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements 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. When you get into a Commercial agreement (contract), you are simply intending that the law enforce whatever it is … Early stage specifications can be seen as part of the review with the customer (internal or external) about what they are looking to achieve on the project. A detailed list should be made, which will help in establishing a budget. 1. 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. ) attributes - related to things – ( i.e specifications include all different... 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