Specification Writing 2 What is a Specification? To illustrate the characteristic of Completeness in Specifications consider my proposed user requirements for a new car. The important thing to remember is the content. Procurement is an important part of business transactions for organisations around the world. 3. Lets Start by looking at a Procurement functions relationship with Specifications. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements Specifications describe in detail the supplies and services the City seeks. It here unfortunatley all to often a stage where procurement are left out and not involved from the very begining stages. Ensuring your specification is as accurate as it can be and aligned to the outcomes you require is the desired outcome but so often specifications are copied from previous contracts, not updated for changes in technology or service levels and authorities end up with just the “same old, same old”. 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. 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 often refers to a set of documented requirements to be satisfied by a material, design, product, or service. Performance Specification—A type of specification in which the goods and/or services are described in terms of required performance. 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. What you will learn on this course is how your procurement exercises SHOULD be done. Specifications are one of the most important elements of the procurement process. 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. TYPES OF SPECIFICATIONS WHEN CONTRACTING . Figure 3.1 The procurement specification . Describe the importance of specification requirements from a procurement perspective. Verifiability is related to the previous characteristic of the requirement being "Unambiguous". Specifications describe in detail the supplies and services the City seeks. 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. Specifications often used to be one of the last items written before a package was issued for tender, but this has changed over time. 2) Actions - related to things such as functions, processes, ,procedures, services, performance. 3.0 Understand the use of specifications in procurement and supply. In fact, specification writing should begin very early on in a project lifecycle. Specifications define precise requirements of commodities (e.g., goods and services) sought through a solicitation process. Types of Specifications Purpose of giving Specifications. This makes the purchasing process inefficient. 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. Purpose of specification is to highlight the necessary information which cannot be obtained from drawing. It should be possible to know where the Specification originated. Specifications can be done in a number of ways: By use of product description, performance, design, durability, samples, and brand names, among others. When this is the case, the procurement plan merges with the procurement schedule. 1. Australian Standards), patent, copyright, design, type, specific origin, producer or supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement requirements. a blast furnace complex, a steel melting shop, or a rolling mill etc.) 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. 1. A specification often refers to a set of documented requirements to be satisfied by a material, design, product, or service. Title: Writing procurement specifications guideline Author: Department for Education Subject: This guideline describes the process for developing a specification for … Specification Development It is important to spend time developing the specification detail to ensure consistency on pricing, product quality, operational functionality and products are fit for purpose in order to reduce the financial impact of the wrong specification further down the line. It is the basis of all offers and therefore the foundation for a contract. Speaking from a manufacturing perspective, the importance of procurement cannot be understated. Specification Writing 2 What is a Specification? The importance of risk management increases when the R&D itself is part of the procurement (Tsipouri et al., 2010). Starting a career in Supply Chain – Intern or entry level job? Hoo boy. 3.0 Understand the use of specifications in procurement and supply. Considering . When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. 2) The car shall have a really kickin’ stereo system. Integrating sustainability into the procurement process References to national or international standards or other internal company specifications. Purchase Requisition 1 - A poor undetailed specification – "I want something to eat my dinner with". A clear and appropriate definition and description of the need is of utmost importance. Although a general idea would already exists as a […] There are different types of technical or engineering specifications (specs), and the term is … Written by Lewis Hutson - Thank you for taking the time to read my first of  hopefully (dependant on the first ones reception) many articles. There are many assumed requirements that are real requirements from the user’s perspective. Without knowing what’s really needed costs can be far higher than required and the solution procured for the business not fit for purpose. Business units may provide high level requirements such as user stories.These are refined with a process of business analysis to be detailed enough to be considered specifications. When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. Why procurement Savings need the right fuel if they are to deliver business benefit. 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. Procurement plans can be prepared in many different formats. Integrating sustainability into the procurement … 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. Consider supply chain transformation to add real value. Specification : A specification is a specific description of a particular subject. Drawings, samples, branded, technical; Conformance specifications; Output or outcome, statement of work based specifications; Standards There are different types of technical or engineering specifications (specs), and the term is … the part, component or raw material) and actions (functions, processes, ,procedures, services, performance), Requisition 1) A loose specification – “I want something to drink my coffee out of”, Requisition 2) A tight specification – “I want a red cup to drink my coffee from – it must be no more than 15 inches high – and it must have a white handle – it must be microwave safe.”. Overview of procurement need specification and the organisation of supply chain processes to fulfil customers' needs in South Africa July 2013 Corporate Board: Role 9(2):12-21 As a procurement proffesional just think for a moment how many times has a fully agreed and signed of specification been put on your desk and requistioned without any prior input from your function? Once the item is delivered the specification can be used to compare the delivered item to what was ordered. 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. Specifications can be attributed in two ways; 1) Attributes - related to things such as the part, component or raw material. Introduction. The procurement plan should cover all the different steps in the process with the expected date of initiation of each milestone. Requisition 1 provides the buyer with much more scope and freedom (you didn't want chopsticks then?). Procurement plans can be prepared in many different formats. Consider in the above simple example that both orders want things (a cup) but they want different attributes. Georghiou et al. Procurements primary role of taking a business requirement (specification) – finding a supplier/suppliers , negotiating a deal and then ordering the item is all hinged on that first step! A specification is often a type of technical standard.. 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). Think you want cost savings? It describes what the customer wants to buy and consequently, what the successful supplier is required to supply. April 7th, 2017 1:51 pm. Figure 3.1 The procurement specification . 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. Further main purposes of writing specifications are; To show the strength of construction material or construction work. a blast furnace complex, a steel melting shop, or a rolling mill etc.) This safe guard protects both the Buyer and the Customer (internal or external). 5 key steps towards continuous improvement. These are certainly all legitimate requirements but they are far from complete. Speaking from a manufacturing perspective, the importance of procurement cannot be understated. Please contact the Procurement Office before writing a specification for a requirement £50,000 or above; What should be included in a specification? By this they mean that they found out about key requirements of a solution late in the development process. The importance of risk management increases when the R&D itself is part of the procurement (Tsipouri et al., 2010). Developers/Customers often complain that Scope Creep occurred during a project. Pro’s and Con’s of Dual Sourcing in Procurement, Managing risk within the sourcing process. What is the Impact of Specifications Setting on Quality Control? 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. How important is demand planning in Supply Chain, The importance of Specification within the procurement places, George Awuor on In case of the procurement of a complete production unit (e.g. Considering . Specification can be attributed in two ways, attributes related to things – (i.e. In a procurement context, a Specification can be defined as a ‘statement of needs’. 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). Identify the different methods of descriptions and the general presentation for a specification to capture the organisation’s expectations. A detailed list should be made, which will help in establishing a budget. It describes what the customer wants to buy and consequently, what the successful supplier is required to supply. be integrated into the various stages of procurement process. • The total price impacts borne by government as a result of poor procurement practices are estimated at around $239 million per annum. (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 … In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements Developing and using generic specifications is as import in the sustainable procurement process as it is in the traditional procurement process. Specifications can … And, ideally, it should […] In case of the procurement of a complete production unit (e.g. 3.1 Analyse different types of specifications used inprocurement and supply and sources of informationthat can be used to create specifications. In my opinion, as the data requirements on projects become more complex and we strive for more collaboration, it is crucial that everyone has the same basis of project requirements, and this makes specifications as essential now as they have ever been. This guide is supported with supplementary environmental product services specifications designed to assist the procurement practitioner when drafting specifications and TORs. 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. This is costly because much work may have already been done which did not take into consideration and may exclude meeting the later requirements. the tender technical specification need to be very comprehensive since it generally include all type of activities. Hoo boy. Does it come from a particularly influential stake-holder? The procurement department, then incorporates these specifications in the bid document to be issued to the prospective supplier. In addition, it is estimated that better procurement can lower the costs of rectifying design errors Specifications must comply with the broad legal obligations for public procurement, ethical sourcing and contracting under UK and EU law. Drawings, samples, branded, technical; Conformance specifications; Output or outcome, statement of work based specifications; Standards The procurement plan should cover all the different steps in the process with the expected date of initiation of each milestone. Procurement Chapter 4 - Specifications 4.1 Generally.. Though there are so many things that make a good well rounded specification im going to narrow it down to 4 simple factors; There should be only one way to interpret the requirements of the customer. They may include such details as required power, strength of material, test methods, and standards of acceptability and recommended practices. Developing and using generic specifications is as import in the sustainable procurement process as it is in the traditional procurement process. When this is the case, the procurement plan merges with the procurement schedule. Further main purposes of writing specifications are; To show the strength of construction material or construction work. The important thing to remember is the content. Is it a marketing or business requirement? Once the item is delivered the specification can be used to compare the delivered item to what was ordered. The following principles should be observed by all specification writers: 1. Georghiou et al. 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. When you get into a Commercial agreement (contract), you are simply intending that the law enforce whatever it is … 4) The car shall travel at speeds between 0 and 100 mph. A detailed list should be made, which will help in establishing a budget. A specification becomes an essential contract management document which is used to ensure that the chosen supplier provides what is specified. 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. The Importance of Specifications in Procurement Functions Published on March 20, 2019 March 20, 2019 • 9 Likes • 0 Comments. It is important that each specification is drafted by appropriately skilled personnel with knowledge of … In essence, specifications are about communication and the exchange of information between the Customer, the designer, the contractor and all stakeholders in the project. 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 … procurement, they could reduce delays to projects and improve project quality by 7%, respectively. 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. 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. Procurement serves as the primary activity involved in developing specifications for items purchased under indefinite quantity term contracts and definite quantity scheduled purchases. Is this a requirement that comes from a particular type of user? Specifications are written documents that describe the materials and workmanship required for a development. The ‘procurement specification’ is made up of different elements as illustrated in Figure 3.1. For further information on writing a specification or requesting quotes from suppliers, please see information on obtaining quoteson Scottish Government’s Procurement Journeywebsite. The ‘procurement specification’ is made up of different elements as illustrated in Figure 3.1. Specifications can be done in a number of ways: By use of product description, performance, design, durability, samples, and brand names, among others. Understanding the importance of the specification. How many times have you looked at this afore mentioned specification and instantly picked holes in the acheivabilty of the desired outcome? Specification : A specification is a specific description of a particular subject. My First attempt at writing an article #specifications #Procurement #Purchasing #Supplychain, Build Your Best Packaging Category Strategy, Start Implementing Category Management Today. 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. 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. Purchasing’s primary role of taking a business requirement – finding a supplier, negotiating a deal and then ordering the item is hinged on that first step – without knowing what’s really needed – costs can be far higher than required and the purchasing process inefficient. The following principles should be observed by all specification writers: 1. Specifications must comply with the broad legal obligations for public procurement, ethical sourcing and contracting under UK and EU law. Developing well-written specifications is one of the hardest tasks in Procurement as well as one of the hardest to learn. 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” +91-9654729857 , +91-9811104040 atul.masih@ascgroup.in , ravi.ahuja@ascgroup.in Specifications can … Report this post; Lewis Hutson Follow It is important that each specification is drafted by appropriately skilled personnel with knowledge of … These will be updated and expanded on a In a procurement context, a Specification can be defined as a ‘statement of needs’. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements Requisition 1 provides the buyer with much more scope however there is the chance that the person who raised the requisition may well change their mind / refine the specification as quotes begin to arrive. The duty of Procurement to promote both product and price competition requires that specifications be as non-restrictive as practicable, consistent with satisfying legitimate needs. Does your supply chain learn from its mistakes? They do not include cost, quantity or drawn information but need to be read alongside other contract documentation such as quantities, schedules and drawings. The procurement team decides everything related to buying. 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. Once the procurement plan is prepared and approved, the requesting entities should begin submitting their requirements accordingly to the procuring entity for processing. In order to get an accurate quote, make sure your specifications include all the relevant information. Although a general idea would already exists as a […] Specification can be attributed in two ways, attributes related to things – (i.e. I will be discussing topics covering all aspects of the Supply chain (particularly Procurement) fuctions, Change Managment ideas and theories and IT software solutions (General focus being ERP Systems such as INFOR M3) For business needs. The procurement department, then incorporates these specifications in the bid document to be issued to the prospective supplier. 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. The duty of Procurement to promote both product and price competition requires that specifications be as non-restrictive as practicable, consistent with satisfying legitimate needs. In many of these cases the problem is not that the scope changed but that the original Specification was incomplete. Identify the key differences between product and service specifications… 2. Specification and planning — Before anything, companies must put together a cohesive procurement plan and specify what services and goods will be needed, whether internally and externally. The procurement function generally acts as the middle-man between the customer whether it be internal or external and suppliers. They have an effect on the procurement that lasts its entire lifetime—from planning, through bid evaluation, award and contract performance up to completion and post-contract evaluations. technical specifications for procurement of bulk materials, packages, modules and potentially, even projects: Phase 3 – Scale up: JIP33 Phase 1 equipment specifications for procurement: IOGP S-562 is based on API 6D 24: th: edition Specification for pipeline and piping valves. Public procurement is generally divided into the following three main phases: pre-tender, tender, and post-tender. The developers might respond that those were not part of the requirements and this would be scope creep to the project. Requirement SpecificationsDocumentation of a business need. Procurement is an enabler to service delivery across various stakeholder groups. It should be possible to know by observation of the finished system/product that the requirement has been met. The procurement team decides everything related to buying. Understanding the importance of the specification. 3.1 Analyse different types of specifications used inprocurement and supply and sources of informationthat can be used to create specifications. technical specifications for procurement of bulk materials, packages, modules and potentially, even projects: Phase 3 – Scale up: JIP33 Phase 1 equipment specifications for procurement: IOGP S-562 is based on API 6D 24: th: edition Specification for pipeline and piping valves. 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. Performance Specification—A type of specification in which the goods and/or services are described in terms of required performance. Well starting off in the sequence of procurement process the documents required will be: 1. Specification of a work is required to describe the quality and quantity of different materials required for a construction work and is … A specification details the requirements of the procurement. The cost of an unit quantity of work is governed by its specifications.

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