CMMI for Services Blog Special Series: 3rd Part: This blog series on the cmmiconsultantblog.com is a systematic and structured coverage of CMMI Process Areas starting from Maturity Level 2 to Maturity Level 3: using CMMI–SVC, Version 1.3, as the Reference CMMI Model: As CMMI Consultant, during CMMI Consulting assignment if you are asked about the inputs and outputs of Supplier Agreement Management (SAM) Process Area, what would be your response:

CMMI FAQ 0

9th May, 2016

For the above-mentioned question, CMMI Consultants may take inputs from the following suggestions.

The purpose of CMMI Process Area – Supplier Agreement Management (SAM) is to manage the acquisition of service and services components from suppliers/vendors.

An agreement is established between organization and supplier to manage the relationship. This agreement can be a contract, license, service level agreement, or memorandum of agreement.

SAM is not only applied to the commercial off-the-shelf COTS) components but shall also be applied in cases where there are modifications to components with significant value or risk including COTS components, government off-the-shelf components, or freeware.

Following are the Inputs to the Supplier Agreement Management process area:

• Services or Services Component Requirement
• Resource Requirement
• Budget Approval
• Justification for the requirement
• General requirements of the organization
• Purchase Requisition Form (PRF’s) for general requirements
• Introduction letters or Company profiles from vendors
• Offers/Quotations received from Vendors
• Approved PRF (Purchase Requisition Form)

Activities

Following are some of the generic activities that could be performed in the Supplier Agreement Management:

• Determining the type of acquisition required for Product, Product Components, Service, Service Components
• Short listing suppliers
• Agreement(s) with suppliers
• Executing the engagement as per the agreement
• Accepting delivery of acquired Product, Product Components, Service, Service Components
• Transitioning of the acquired Product, Product Components, Service, Service Components into the Services/Project

Outputs

Following Outputs are created during the implementation of the Supplier Agreement Management activities:

• Approved Purchase Requisition Form
• Comparison of different available option for the intended service or service components
• Approved Vendor List
• Vendor Evaluation Report through Comparative Analysis
• Recommendation of Procurement Department
• Approved Purchase Order/contract
• Status Report
• Review Records
• Inspection reports, verified bills, which give details of all items, received and rejected items with remarks and Cheques to supplier.
• Copy of the approved inspection report will be maintained.
• Copy of Payment Request shall be maintained

The above is not an exhaustive coverage of the CMMI Process Area – Supplier Agreement Management (SAM).

Reference Model: CMMI-SVC, Version 1.3