Deck 12: Project Quality Planning and Project Kick-Off

Question 1

Do small businesses often outsource project work? Why or why not?

Answer 1

Generally, it is said that the supply chain management is only preferred by the large corporations but the small businesses also prefers the outsource project work. It is so because they mainly believe in the resources from outside suppliers due to the belief that they are not capable enough to perform in-house execution of some specific project activities. Therefore, the small business does not have the capacity to do everything "in house." and the small businesses prefers the outsource project work.

Question 2

Why does the project team require a project scope statement prior to planning procurements?

Answer 2

A project scope statement is a part of first process of project procurement management which is Plan Procure management. In this process it is determined that what the firm will acquire or purchase from outside and the time and the method to do so. The project team always first needs a project scope statement before planning procurements because the statement provides a complete description of scope of the project, its major deliverables, related assumptions and possible constraints.
The team needs to fully understand the project and product requirements in order to make decisions about procurement such as whether to make or buy.

Question 3

Find a story in your local newspaper about a project that is about to start. For that project, answer each of the following questions and justify your answers:
Using the ideas in Exhibit, speculate on what activities, supplies, or services could be contracted out.
Exhibit 1

Answer 3

A non-critical activity should be outsourced with focus on lowering the cost and getting the fastest delivery.
For all projects, accounting work, logistics, legal function and information technology requirements should be contracted out, as this will indicate the job specification growth and project tasks.
Services that need to be contracted out should be those that are required during the purchase planning phase. It is decided by acquiring or purchasing products from an outside provider.

Question 4

The Project Procurement Knowledge Area includes all of the following processes except:

A) plan procurement management
B) conduct procurements
C) schedule procurements
D) control procurements

Question 5

Which is the first of the four processes that make up project procurement management?

Question 6

List three reasons an organization might choose to make a product or service in house and three reasons why an organization might choose to buy or outsource the work.

Question 7

Find a story in your local newspaper about a project that is about to start. For that project, answer each of the following questions and justify your answers:
Create a request for information for one portion of the project work that could be contracted out.

Question 8

In order to plan for procurements, the project team uses a project document that includes a list of deliverables, acceptance criteria, project assumptions and constraints, and a description of the product, service or result. This document is called the_______

A) work breakdown structure (WBS)
B) project charter
C) project contract
D) project scope statement

Question 9

In supply chain management, what are some other names for the seller? What are some other names for the buyer?

Question 10

Should activities on the critical path be outsourced? Why or why not?

Question 11

Find a story in your local newspaper about a project that is about to start. For that project, answer each of the following questions and justify your answers:
Using ideas from Exhibits 2 and Exhibit 3, determine criteria you would use to select sellers for the portion of contract work under consideration.
Exhibit 2

Exhibit 3

Question 12

One output of the Plan Procurement Management process is the________, a document that describes the item to be procured "in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services or results."

A) request for proposal
B) procurement statement of work
C) scope statement
D) procurement management plan

Question 13

List three functional areas that are frequently outsourced by business organizations.

Question 14

Which of the three competitive advantages do you think companies are most willing to outsource for? List any examples you can think of.

Question 15

Find a story in your local newspaper about a project that is about to start. For that project, answer each of the following questions and justify your answers:
Determine what type of contract you would use for this work and tell why.

Question 16

Source selection criteria from the Plan Procurement Management process might include all of these outputs except:

A) technical approach
B) financial capacity
C) expert judgment
D) risk

Question 17

What are some potential issues related to outsourcing?

Question 18

Your company is hoping to outsource some of its work constructing a new development of condominiums. What would you use as selection criteria to narrow down your list of potential sellers?

Question 19

Find a story in your local newspaper about a project that is about to start. For that project, answer each of the following questions and justify your answers:
Describe the extent to which any partnering makes sense for this project. What are the challenges and benefits to this partnering? What would prevent any further partnering?

Question 20

A_______ analysis is a technique that results in a decision about whether particular work can best be accomplished by the project team, or should be purchased from external sources.

A) make-or-buy
B) SWOT
C) sensitivity
D) vendor

Question 21

What is the difference between a request for quotation (RFQ) and a request for proposal (RFP)?

Question 22

You decide to board your dog at the vet's office while you are on vacation and sign papers saying you will pay $25 per day plus $15 for a bath every third day. What type of contract have you entered into?

Question 23

Which contract type requires the buyer to precisely specify the product or services being procured?
a. Time and material
b. Cost reimbursable
c. Fixed price
d. Incentive fee

Question 24

After an organization has developed a list of potential suppliers, how should the organization evaluate each supplier individually?

Question 25

What type of contract is good to use if it is necessary for both parties to share the risk?

Question 26

What is a hybrid type of arrangement that is often used for staff augmentation or any outside support where a precise statement of work cannot be prescribed, and often includes a not-to-exceed value and time limit to prevent unlimited cost growth?

A) Time and material
B) Cost reimbursable
C) Fixed price
D) Incentive fee

Question 27

What are four potential information sources that organizations can use to identify potential sellers?

Question 28

What would be your top five considerations when selecting a type of contract to enter into?

Question 29

The type of procurement document that might be used to request prices for standard products or services is called a__

A) request for proposal (RFP)
B) request for information (RFI)
C) invitation for negotiation (IFN)
D) request for quotation (RFQ)

Question 30

Describe two methods that can be used to evaluate potential suppliers.

Question 31

Describe three differences between a partnering relationship and a traditional practice.

Question 32

Which of these is a proposal evaluation technique used for complex procurements, where source selection will be made based on seller responses to previously defined criteria?

A) Bidder conference
B) Weighting system
C) Independent estimates
D) Advertising

Question 33

What items are generally included in a request for proposal?

Question 34

What is logistics? How does it relate to supply chain management?

Question 35

Procurement performance reviews, contract change control system, payment systems, and performance reporting are all tools and techniques for which procurement process?

A) Plan procurement management
B) Conduct procurements
C) Close procurements
D) Control procurements

Question 36

In a fixed-price contract, who assumes the greatest level of risk?

Question 37

In what type of contract does the buyer assume the greatest level of risk?

Question 38

What is the name of a single insurance policy that is used to provide coverage for all project participants?

Question 39

________ is a method for transforming contractual arrangements into a cohesive, collaborative project team with a single set of goals and established procedures for resolving disputes.