PJM 400 Module 6 Enterprise Environmental Factors Discussion Paper

PJM400 MOD6 Peer Discussion Responses

Please respond to both POST1: and POST2: in at least 250 words each.

I have included the original post as reference only:

Original post:

Review the PMBOK® Guide (PMI, 2017), Part 1, Section 12.3.1.7 regarding Control Procurement Process.

1. Discuss the Enterprise Environmental Factors (EEF) that can influence the Control Procurement process.
2. Provide an example of a marketplace condition scenario that might impact a procurement project.

Class, as you review the assigned reading for this Discussion Module,  consider the PMI’s (2017) suggestions that some EEF factors might  include such things as control change control systems, marketplace  conditions, financial management and accounts payable systems, and the  buying organization’s code of ethics.

These can have both positive and negative consequences so consider that as well.

Also, considering the current health crisis in our country (and  beyond), do you have any thoughts on marketplace EEFs that impact project procurement?

(please remember to use the PMBOK as one of your sources for research)

POST1:

The  Control Procurement process can have devastating effects on a project.  The top Enterprise Environmental Factors (EEF) that can impact any  project are the contract change control systems, marketplace conditions,  financial management and accounts payable system and the code of ethics  from the buying organization (PMI, 2017).  Enterprise environmental  factors are described as any or all environmental factors, either  internal or external, that can affect the project’s success. As we have  seen this week in the US, these factors can include government  regulations and politics but also include market forecasts and even the  weather.

An example of Enterprise Environmental factors affecting the Control  Procurement process around COVID -19 would be where organizations are  waiting for the COVID-19 test kits to be delivered.  The organizations  are working to effectively and efficiently test those that are showing  symptoms of the virus.  The test kits are delayed due to uncontrollable  factors like contract control systems, marketplace conditions and  government regulations.  The suppliers just cannot keep up with the  demand.  The overall demand could not have been predicted and now the  system is bogged down with requests.  New suppliers are working to get  governmental approval to produce the product to meet the demand but have  financial and workforce limitations. (HPN, 2020)  This has created an  ethical problem for the clinicians who are testing the patients by  making them create guidelines to prioritize who should receive the test.

References:

LabCorp launches tests for COViD-19. (March 6, 2020). Retrieved from  https://www.hpnonline.com/infection-  prevention/screening-surveillance/article/21128642/labcorp-launches-test-for-covid19

Project Management Institute. (2017). A guide to the project management body of knowledge (6th ed.). Project Management Institute Inc. Newtown Square, PA.

POST2:

Module 6:  Discussion 

Enterprise Environmental Factors (EEF) and Control Procurement

A company’s successes and failures are determined by how they manage  the Control Procurement process by how it integrates resources, makes  connections, and enhances competitiveness (Chen, 2015).  Therefore, it  is essential to determine how enterprise environmental factors can  influence Control Procurement.  According to the Project Management  Institute (2017), some factors that can influence this are:

• Buying organization’s code of ethics
• Financial management
• Accounts payable system
• Marketplace Conditions
• Contract change control system (Project Management Institute, 2017)

Marketplace Condition scenario

Due to the current Coronavirus situation, toilet paper is nowhere to  be found.  Let’s take, for example, Grocery store A usually buys all  their supplies from Vendor X in bulk and at a discount.  Vendor X also  provides to other stores.  Because of such high demand, Vendor X has run  out, and now Grocery store A must procure the toilet paper elsewhere at  a much larger price.  Therefore, due to the current environmental  issue, the prices are higher and off schedule for delivery times.

References:

Chen, F.-H. (2015). Application of a hybrid dynamic MCDM to explore  the key factors for the internal control of procurement circulation.  International Journal of Production Research, 53(10), 2951–2969.  https://doi.org/10.1080/00207543.2014.961210

Project Management Institute. (2017). A guide to the project management body of knowledge (6th ed.). Project Management Institute Inc. Newtown Square, PA.