AAOM Handbook

RE.13 Can a New Supplier Meet Delivery? Context

The objective of the work management processes is to deliver the agreed performance targets of a business area by completing the Right Work, at the Right Time, in the Right Way. Every work package has a distinct window that defines the right time for completion. This window is bounded by the earliest date that the requirements for completion of the first elements of the work can be assembled, and by the date at which an unacceptable outcome is likely to result if all of the work has not been completed. The objective of the scheduling process is to allocate the resources necessary to complete each Task of the work package within this time window. The processes that deliver materials, special tools and contracted resources to the workplace for each Task must therefore ensure that all the specified items will be available for the Scheduled Date of each Task. If delivery cannot be expedited to meet the Schedule Date for the work, it may be possible to change supplier for all or some of the items in order to meet the Scheduled Date. Changing suppliers may incur additional expense. If additional expense would be incurred, the impact of this on the final cost of the work, compared to the approved Upper Cost Limit, must be considered. Where the total cost of the Work Order, after changing suppliers, may exceed the approved Upper Cost Limit the consent of the approver of the work must be obtained before suppliers can be changed. Purpose To check if a different supplier is able to deliver items to meet the Scheduled start Date for a Task. Quantity One decision whether a different supplier can deliver items to meet the Scheduled Start Date for the Task. One decision whether the cost of the change of supplier needs to be approved. Quality The decision criteria to be used are;  is there any contractual agreement to use only items from a particular supplier?  are there any potential alternate suppliers of the items?  does the item from the alternate supplier meet the Task specifications?  the Scheduled Date for the Task.

© McAlear Management Consultants 2006

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