Project Chpt. 12 – Flashcards

All of these are factors that could lead to a decision to buy or outsource rather than make or perform in-house, EXCEPT: a. flexibility in procurement b. ability to use specialized suppliers c. inadequate capacity d. more control over quality and time

2. All of the following entities are typically included in the supply chain EXCEPT: a. suppliers b. public relations c. consumers d. project team

All of the following statements accurately describe supply chain management EXCEPT: a. It is a closed-loop system solely within the project organization's boundaries b. It spans across suppliers, resellers, project organizations and consumers. c. It addresses the flow of products, information and funds. d. It is a system approach to managing the entire flow of physical products.

Which of the following is one of the PMBOK Guide's four project procurement management processes? a. Conduct procurements b. Perform configuration management c. Conduct contract reviews d. Perform value engineering

The PMBOK process of documenting project procurement decisions, specifying the approach and identifying potential sellers is known as: a. Define supply chain. b. Plan procurement management. c. Schedule procurements. d. Negotiate contracts

The procurement management plan: a. describes how the procurement division will be managed. b. describes how supply chain partners will be managed. c. describes how a project team will acquire goods and services from outside the performing organization. d. describes how sellers will be audited by the procurement team.

A description of the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services or results is known as: a. the contract clauses and special provisions b. the procurement statement of work c. the supply invoice d. the purchase order

Which of the following factors should be considered when a project team evaluates a "make or buy" decision to procure services? a. prevailing public opinion regarding the economic impact of outsourcing b. only the direct costs associated with the decision, excluding consideration of indirect costs c. advantages and disadvantages of outsourcing in terms of time, cost and performance control d. project manager's or sponsor's preference

Often a project team will start the selection process by establishing a list of potential suppliers. All of the following information sources are frequently used to identify these potential suppliers EXCEPT: a. supplier catalogs or websites b. sales personnel c. stakeholder register d. trade shows

Evaluations of prospective suppliers by project teams often involve all of the following approaches EXCEPT: a. financial condition analysis b. facility visits c. supplier surveys d. prototyping

All of the following factors are commonly used to assess potential suppliers pursuant to a source selection decision EXCEPT: a. supply quality b. personal relationships with senior management c. inbound transportation cost d. replenishment lead time

All of the following accurately describe the features and characteristics of a contract EXCEPT: a. A contract binds both the seller and the buyer. b. A contract obligates the seller to provide a specified product or service. c. A contract obligates the buyer to pay for a specified product or service. d. The project organization is always a buyer in a contract arrangement

Which of the following contract types is most appropriate when costs are NOT well known and the buyer absorbs all of the cost risk? a. Firm-Fixed-Price (FFP) b. Fixed-Price-Incentive-Firm (FPIF) c. Cost-Plus-Fixed-Fee (CPFF) d. Time and Material (T&M)

Which party to a contract absorbs the preponderance of cost risk when a Firm-Fixed-Price (FFP) contract is used? a. the seller b. the buyer c. the cost risk is equally shared. d. the insurer

Which of the following types of contracts involves payment to the seller for the seller's actual costs plus a fee typically representing the seller's profit? a. fixed-price contract b. cost-reimbursable contract c. equitable adjustment contract d. direct cost contract

All of the following items are generally considered when selecting the right type of contract EXCEPT: a. extent of price competition b. overall degree of cost and schedule risk c. urgency of requirements d. project organization's accounting system

Which of the following terms describes a method for transforming contractual arrangements into a cohesive, collaborative project team with a single set of goals and established dispute resolution procedures? a. a contract unification plan b. partnering c. arbitration d. conflict resolution

Project partnerships offer all of the following advantages to vendors EXCEPT: a. there is a more dependable stream of work b. the expected outcome is clearly stated c. the buyer gains at the vendor's expense d. greater potential profit

Project partnerships offer which of the following advantages to both clients and vendors? a. shared motivation b. potential of lower cost for client c. potential of greater profit for vendor d. opportunity for vendor to prove oneself