Work-streams
46 GS 10 DIR/PRO
1. Procurement Servicing Process
Streamlining and Cost Savings Processes Main Objective Focus Solutions
A. Re-engineer Asset and Inventory Management for RP
B. Move the Asset Management for projects (extra-budgetary) to the SSC
C. Re-engineer the Physical Asset Management and consider the opportunity to move the
process from AFSP to AFSI.
D. Merge the insurance portfolio of IFAD, WFP and FAO into a joint risk management function
C
A B
D
1. Procurement Servicing Process
Streamlining and Cost Savings Processes Main Objective Focus Solutions
A. Re-engineer Asset and Inventory Management for RP
B. Move the Asset Management for projects (extra-budgetary) to the SSC
C. Re-engineer the Physical Asset Management and consider the opportunity to move the
process from AFSP to AFSI.
D. Merge the insurance portfolio of IFAD, WFP and FAO into a joint risk management function
C A B D C A B D
Figure 2-14: Proposed operational model for procurement servicing processes
The analysis of Stage 1 led to the identification of a list of recommendations, from which the initiatives in scope for Stage 2 were selected14, as indicated in the list below:
§ Initiative 1: New procurement model for managing the initial phases of purchasing actions.
§ Initiative 2 and 3: Operational model for the implementation of procurement actions in
partnerships with other UN agencies. (These initiatives consisted in identifying and implementing synergies with other Rome based agencies to jointly procure common goods and manage a joint insurance portfolio).
§ Initiative 4: Empowerment of regional and local officers in managing local procurement.
§ Initiative 5: Transfer of transactional activities to the SSC.
2.6.1.1. New procurement model for managing the initial phases of purchasing actions
Initiative 1 aimed at enabling AFSP (the Procurement and Asset Management Service) to improve its focus on core activities, particularly for Projects, in order to optimize the timing, timeline, planning and subsequent execution of procurement actions within projects/programs.
The analysis focused on procurement for Projects, redefining the activities of the initial phases of procurement actions, in order to achieve a higher involvement of AFSP, thus improving the current processes.
The involvement of AFSP in the initial phases of purchasing action is considered a fundamental stage for a more efficient implementation of programs and projects. A more structured planning stage, that involves the different actors related to the formulation and execution of projects, will enable a stronger impact of the project itself, as well as a more efficient use of FAO resources.
In analyzing the current activities carried out in managing procurement for projects, the RBR decided to involve stakeholders (mainly Technical Departments and FAORs) from the very begging of Stage 2. Two workshops were organized in order to collect feedback and views from stakeholders on the opportunity to review project formulation activities, counting on a greater support and involvement of AFSP.
14The initiatives In Scope for Stage 2 were discussed and modified in agreement with the FAO’s management, and included also
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During the two workshops the RBR provided evidence of both the variety and depth of information sets available in AFSP and of the benefits achievable in sharing these sets of information with internal customers (both at HQ and in the Decentralized Offices) at project formulation stage.
The RBR referred to the current project cycle highlighting that the activities and the information it contemplates do not provide for an effective and formalized involvement of AFSP.
The objective of the initiative was then emphasized as a concrete opportunity to improve the quality of projects formulation (and subsequent implementation and management), providing the best possible advice and information to AFSP’s customers by:
§ Faster retrieving of vital information, gaining access to AFSP archives and tools, having all the available information on procurement accessible in one place.
§ Improving the planning of procurement for projects by the addition of the type of breadth and depth of information provided by AFSP.
§ Being realistic in identifying prerequisites, timelines, funding requirements and risks for project success.
§ Getting a clearer definition and logical sequencing of inputs, activities, outputs and objectives. § Minimizing duplication of information sources.
§ Sharing knowledge across organizational boundaries.
The detailed information available in AFSP refers to about 650 tenders conducted in a timeframe of one year and a half, which AFSP collected and stored in a dedicated database. AFSP is intent on updating data as generated.
On the basis of this data AFSP developed a business intelligence (BI) tool in order to provide the division AFSP and its customers upon request with up-to-date/real-time procurement information.
Further detail on the BI tool and its functionalities are available in Annex D.
In order to enable the involvement of AFSP in the project management activities, the RBR suggested that AFSP and its stakeholders shared the functionalities and the set of information available through the BI tool. In the context of managing and implementing the project cycle, a solution of knowledge sharing is feasible by creating a new advisory function within AFSP. This new function would be responsible for supporting Technical Divisions and Decentralized Offices in the identification of data and information that could be valuable for an appropriate planning of procurement activities within field projects.
The new advisory function of AFSP
An Advisory Function as a "one-stop shop" to cater to information needs key quantitative and qualitative information sets required at project formulation stage and which constitute the basis for implementing and measuring the project output.
The new Advisory Function of AFSP will provide just enough and just in time updated cross-functional information, and will serve internal customers. The Advisory Function should allow to efficiently addressing, if not remove, the following shortcomings:
§ The lack of focal point to foster knowledge and disseminate key information. § The multiplicity of disorganized and disparate information sources.
§ The lack or excess or inaccurate of information. § The lack of fit-for-use or easily accessible information.
§ The length of time spent by staff members to seek information. § The lack of accuracy in project costing with regard to procurement.
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§ A timely provision of the latest and most accurate available piece of information. § The provision of consistent information throughout the organization.
§ The self-service access of standard information available across the Organization in a single repository.
§ The capture and dissemination of learning. The Advisory function will be equipped with: Information Technology
A web-based platform will store a duplicate of all databases as well as useful information pieces available in the various functions involved at project formulation stage.
A user interface which will allow the users to search sets of information using various criteria, i.e. a project task force wishing to formulate a rice project for Ghana will be able to retrieve in one click a list of relevant information for Ghana sets such as:
§ planting seasons; § rice varieties;
§ average price per ton;
§ fertilizer applicable and their average price; § applicable procurement methods;
§ local vendor availability; § time to procure;
§ PBE standard applicable costs; § etc.
The output will always be user specific as opposed to subject specific (i.e. rice in general or previous rice projects etc).
The repository will be monitored, updated with new databases and data on a regular basis.
The information requested by the customer and provided by the system will be recorded by the database and retrieved at project implementation stage.
Ideally, the system would provide for the possibility of feeding back at least procurement information sets at project implementation stage both to update the database and to measure the accuracy of the initial information sets provided.
The system will also have the capacity to hold meeting minutes at project formulation stage for meetings held with AFSP regarding particular projects.
Human resources
In addition, an Advisory Function acting as a focal point will be performed by AFSP to answer new and specific requests, to provide estimations, critical path and detailed process information. The role of the focal point will be to update and monitor the database, to liaise within or outside AFSP, to secure the requested information and deliver it to the customer.
The focal point will also organize or participate in meetings at project formulation stage to help customers identify and understand the appropriate and most efficient procurement process and resources. It will also secure upfront clearances in principle at project formulation stage. The focal point will develop additional databases along the needs of the customer or add databases when/as they become available.
Performance management
The measurement of the efficiency and effectiveness of the Advisory functions will be assessed considering the following indicators:
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§ Timeline for responding vs. procurement type (routine, leveraged, complex, specialized, emergency).
§ The accuracy of the information provided by comparison of estimate vs. implemented. § A regular survey with customers focusing on the customer service provided.
New flow of information for project formulation activities
The implementation of a new Advisory Function within AFSP would allow to identify a new flow of information and communication at a project formulation stage.
The Figure below describes the current flow of information needed to manage the project formulation stage (according to the description of the project cycle provided in the FPC 2003/04), together with the foreseen AFSP involvement and the information that would be provided by AFSP.
Headquarters Technical Departments Decentralized Offices Subregional offices
§Technical content and performance of the Field Programme
§Technical support and leadership during project formulation
§Operate projects Regional offices
§Identify, report on regional priorities
§Budget holder, when operating projects
§review quarterly project implementation
§provide operational clearance for technical assistance (projects in the region) §Policy, administrative, operational support to country offices Technical Cooperation Department §Operational and/or administrative support to all FAO activities in the country
§Budget holder for country projects §Identification of resources and partnerships FAO Representatives §Resource mobilization
§Management, coordination and monitoring of the Field Programme
§Oversee and manage the project cycle
PROJECT