AAOM Handbook

RE.14 Change Supplier 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 change the supplier of items so that the Scheduled Date for a Task can be met. Quantity One set of delivery arrangements made with a new supplier. Quality For each instance of a change of supplier;  the specification of items from the new supplier  new Delivery Date,  delivery method,  any extra cost in changing suppliers,  cancelling commitments with the originally proposed supplier,  establishing commitments with the new supplier. Note: If suppliers for items for a Task must be changed at additional cost, and the Planned Cost plus additional cost is less than the approved Upper Cost

© McAlear Management Consultants 2006

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