question

All of the following entities are typically included in the supply chain EXCEPT

answer

public relations

question

All of the following statements accurately describe supply chain management EXCEPT:

answer

It is a closed-loop system solely within the project organization's boundaries

question

Which of the following is one of the PMBOK's four project procurement management processes?

answer

Administer procurements

question

The procurement management plan:

answer

describes how procurement processes will be managed.

question

Which of the following factors should be considered when a project team evaluates a "make or buy" decision to procure services?

answer

advantages and disadvantages of outsourcing in terms of performance control

question

Evaluations of prospective suppliers by project teams often involve which of the following approaches?

answer

all of these

question

All of the following factors are commonly used to assess potential suppliers pursuant to a source selection decision EXCEPT:

answer

personal relationships with senior management

question

Which of the following contract types is most appropriate when costs are NOT well known and the buyer absorbs the cost risk?

answer

Cost-Plus-Fixed-Fee (CPFF)

question

Which of the following terms describes a method for transforming contractual arrangements into a cohesive project team with a single set of goals and established dispute resolution procedures?

answer

partnering

question

Project partnerships offer all of the following advantages to vendors EXCEPT:

answer

the buyer gains at the vendor's expense

question

What is the project supply chain management?

answer

It is a system approach to managing flows of physical products, information, and funds from suppliers and producers, through resellers.

question

The importance of SCM to general project management depends on a number of factors:

answer

1. Value of outsourced product/services relative to value of the project. 2.The timing of the work being purchased. 3. Capability of the project team 4.Role of the outsourced work in the entire project 5.Number of suppliers required 6. Structure of the procurement supply chain.

question

Make or Buy Decisions

answer

-"The Seller" may be called a supplier, supplier's supplier, or contractor. -"The Buyer" may be called a customer, service requestor, or purchaser.

question

Make or Buy decisions contd.

answer

-Reasons to make or buy begin with a strategic outsourcing analysis identifying strengths.

question

What are the three options when making make or buy decisions?

answer

Option 1 - "Make(Using internal resources)" Option 2 - "Buy" Option 3 - "Make(using external resources)"

question

What are the reasons to make?

answer

1. Lower production cost. 2. More control over quality and time. 3. Lack of suitable suppliers. 4. Obtain a customized item. 5. Utilize project team's expertise and time. 6. Protect proprietary design or knowledge.

question

What are the reasons to Buy?

answer

1. Frees project team to deal with other important activities. 2. Ability to utilize specialized suppliers. 3. Flexibility in procurement. 4. Inadequate managerial or technical resources. 5. Inadequate capacity. 6. Small volume requirements

question

What is the downside to outsourcing?

answer

1. Loss of time control for completing project activities. 2. Lack of cost control for outsourced activities. 3. Gradual loss of special skills etc.

question

Plan Procurement is:

answer

the process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers

question

Plan Procurement contd.

answer

A minimum requirement is to complete the project scope statement when conducting planned procurements.

question

The procurement management plan:

answer

guides client company efforts through all activities dealing with the acquisition of materials and services to complete the project.

question

The procurement statements of work:

answer

ensures that the contractor and client companies understand the work that is being requested.

question

Plan contracting is:

answer

The client company creates a situation in which prospective contractor companies have capability and motivation to provide useful and complete proposals. - "Plan contracting include procurement documents and evaluation criteria."

question

Procurement Documents:

answer

those documents utilized in bid and proposal activities to solicit proposals from prospective sellers, which include buyer's invitation for bid (IFB), request for information(RFI), request for quotation (RFQ), request for proposal (RFP).

question

Conduct procurements is:

answer

the process of obtaining seller responses, selecting a seller, and awarding a contract. -"Includes identifaction, evaluation, and advertising to contractors interest."

question

What is an RFP?

answer

Legal, proprietary document prepared to identify and attract the right vendors to supply the software, hardware, operating system and interoperability required for a successful implementation.

question

What is RFP's purpose?

answer

its to provide the information to the decision maker's required to select the vendor finalist(s).

question

whats the difference between RFP and RFI?

answer

RFP -Small number of final vendors, 4 or less. -Comprehensive Information gathering tool on specific vendors. -Asks for pricing. vs RFI -Large number of potential vendors >5 -Limited in scope. -Information gathering tool on the industry. -May not ask for pricing.

question

What are the sources for potential suppliers?

answer

1. Supplier Web sites. 2. Supplier information files. 3. Supplier catalogs. 4. Trade journals. 5. Phone directories. 6. Sales personnel. 7. Trade shows. 8. Professional organizations and conferences.

question

The approaches used when evaluating prospective suppliers

answer

1. Supplier surveys. 2. Financial conditions analysis. 3. Third-party evaluators. 4. Facility visits. 5. Quality ability analysis. 6. Delivery ability analysis.

question

Supplier Surveys:

answer

Provide sufficient knowledge of the supplier.

question

Financial condition analysis:

answer

Reveals whether a supplier is incapable of performing satisfactorily.

question

Third-party evaluators:

answer

Can be hired for obtaining relevant information.

question

Facility visits:

answer

allow first-hand information of the firm's technological capabilities, manufacturing or distribution capabilities, and its managerial orientation.

question

Quality ability analysis:

answer

examines the potential supplier's quality capability.

question

Delivery ability analysis:

answer

estimates the supplier's capability to deliver the required product or services on time.

question

What is supplier selection?

answer

Supplier selection decision is a classical tree problem. "its also a choice between alternatives under uncertainty."

question

Replenishment lead time:

answer

This is the lead time between placing an order and receiving the order, which can be translated into the required responsiveness for purchasing.

question

On-Time performance:

answer

This affects the variability of the lead time.

question

Supply Flexibility:

answer

The amount of variation in order quantity that a suppler can tolerate without letting other performance factors deteriorate

question

Delivery frequency and minimum lot size:

answer

This affects the size of each replenishment lot ordered by a firm

question

Supply Quality:

answer

A worsening of supply quality increases the variability of the supply of components available to the firm

question

The contract is:

answer

A legal relationship between parties subject to remedy in the court system.

question

Major contract components include:

answer

1. Statement of work of deliverables 2. Schedule baseline 3. Period of performance 4. Roles and responsibility 5. Pricing 6. Payment terms 7. Place of delivery 8. Limitation of liability 9. Incentives 10. Penalties

question

Fixed-price contracts

answer

a category of contracts with a fixed total price for a defined product or service to be provided ... may also incorporate financial incentives. -"They provide low risk for the buyer."

question

Firm-Fixed-Price contracts:

answer

a type of fixed-price contract where the buyer pays the seller a set amount as defined in the contract, regardless of the seller's cost.

question

Firm-fixed-incentive-fee contracts:

answer

a type of contract where the buyer pays the seller a set amount as defined by the contract, and the seller can earn an additional amount if the seller meets defined performance criteria.

question

Cost-reimbursable contracts:

answer

a category of contracts involving payment to the seller for all legitimate costs incurred for completed work, plus a fee typically representing the seller's profit

question

Cost-Plus-Fixed-Fee (CPFF) Contract:

answer

a type of cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).

question

Cost-Plus-Incentive-Fee(CPIF) Contract:

answer

Performance criteria may be schedule, cost, and/or performance.

question

Time and Material contracts:

answer

a type of contract that is a hybrid ... containing aspects of both cost-reimbursement and fixed-price contracts

question

Time and Material(T&M) contracts contd.

answer

-The unit rate for each hour of labor or pound of material is set in the contract as in a fixed-price contract.

question

When choosing the right type of contract:

answer

- The nature of the outsourced project activity plays an important role. -Consider requirements that a buyer imposes on a seller. -The degree of market competition plays a role. - Consider the degree of risk for the buyer and the seller. - Consider using a wrap-up to insure large projects.

question

A wrap-up, or owner-controlled insurance program (OCIP):

answer

is a single insurance policy providing coverage for all project participants, including the owner and all contractors and subcontractors.

question

Administer procurements:

answer

process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

question

Administer procurements contd.

answer

- Buyers and sellers administer contracts to make sure that the obligations set forth in the contract are met and to make sure neither has any legal liability. - Sellers create performance reports. - Buyer reviews performance reports to ensure contract obligations are satisfied.

question

What does a signed contract mean?

answer

A signed contract means that the buyer and seller have entered into a relationship where both parties must fulfill their contractual obligations.

question

What does the contract administration ensure?

answer

that both parties are performing in accordance to the terms of the contract

question

Required management Items

answer

- Establish a Vendor Relationship Policy - Establish a formal process for annual vendor reviews - Assign and train vendor relationship managers - Establish a mechanism for tracking vendor management activities

question

What is the vendor questionnaire/request list?

answer

Its the standard list of items to be provided by your vendor on an annual basis.

question

What are some of the critical statistics?

answer

- Contact Information of account personnel - Contact Information of support personnel - Any support ID's, account processes - Who is authorized to request changes - Key Contract Dates - Payment Details

question

The Vendor contract and SLA:

answer

- Outlines the services provided and expectations of each entity. - Outlines recourse for resolving issues.

question

What is vendor management records?

answer

- Records and reports of previous vendor management activities for this vendor. "its also used to identify trends."

question

Other Red Flags:

answer

1. Bankruptcy filings -US bankruptcy court filings available online. 2. Employee Turnover -Your account team or your favorite support engineers. 3. Client Turnover -User groups -Build relationships with other clients.

question

What are some ways to deal with shortfalls?

answer

1. Document in detail the expectations that are missed. 2. Establish recurring meeting to review and track progress.

question

Sharing requirements for effective project partnerships:

answer

1. "Shared responsibilities" -Suppliers and customers share responsibility for outcomes and quality. 2."Shared resources" - Suppliers and customers jointly make resource decisions. 3. "Shared information" - Suppliers and customers openly share information with each other, recognizing that appropriate information power occurs when all parties can utilize all important information. 4. "Shared rights" - Everyone holds the right to disagree, and project managers use dialog to influence others instead of coercion. 5. "Shared risks" - Everyone shares the project rewards and risks.

question

Securing commitment to partnering:

answer

- Consider contractors with a mutual interest and expertise in partnership - Get the commitment of top management of all involved firms - Describe in detail all benefits and how the partnership will work

question

Problem resolution:

answer

Solving problems at the lowest level of organizations and having an agreed-upon escalation procedure.

question

Continuous improvement:

answer

Endless waste elimination and cost reduction.

question

Joint Assessment:

answer

Reviewing the partnering process jointly.

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