Chapter 3 - Definitions

Question 1

A document that presents prospective suppliers with a clear, accurate and full description of the organisations needs and enables them to propose a solution to meet those needs.

Answer 1

Procurement Specification

Question 2

The definition of a business problem or opportunity together with the criteria that define it.

Answer 2

Statement of needs

Question 3

Teams that involve individuals from different departments who work together towards a common goal. This could be a group of people working on a defined project who come from different functions or departments of the company. It can also include members who are from outside the company, such as suppliers.

Answer 3

Cross functional team

Question 4

Sets out what the product or service needs to achieve if all stakeholders are to be satisfied.

Answer 4

Business requirements definition

Question 5

The involvement of a supplier in the product development process from a very early stage in order to use the suppliers experience and expertise.

Answer 5

Early supplier involvement

Question 6

A detailed document that sets out the precise way that a product must be built or a service delivered and includes any technical drawings, standards that must be met and dimensions.

Answer 6

Design specification

Question 7

Describe what a product or service should do.

Answer 7

Functional requirements

Question 8

Describes how a product or service should operate.

Answer 8

Non-functional requirements

Question 9

The consideration of peoples efficiency in the work environment.

Answer 9

Ergonomics

Question 10

A detailed technical description together with acceptance criteria that forms the basis of a product design.

Answer 10

Technical (conformance) specification

Question 11

The permissible limit of a variable used to define a product - for example, it’s physical dimensions

Answer 11

Tolerances

Question 12

A description of the outputs or outcomes that are expected with the detailed design of the product or service left to the supplier to decide.

Answer 12

Performance specification

Question 13

Type of performance specification that describes the functions or performance that a product must fulfil. An example of this is the concept of payment by results.

Answer 13

Outcome focused specification

Question 14

Defined specific deliverables that can be measured in terms of time to deliver, their quality and their cost.

Answer 14

Output specification

Question 15

Detailed description of the specific tasks or services a contractor must perform under the terms of a contract.

Answer 15

Statement of Work (SoW)

Question 16

A contract that gives a contractor sole accountability for the design, acquisition, operation, maintenance and disposal of an asset.

Answer 16

Through-Life contracts

Question 17

Withdraw an item from active use or service.

Answer 17

Decommissioned

Question 18

A limit placed on the financial obligations of a party within a contract.

Answer 18

Limitation of liability

Question 19

Lesser terms in a contract which can result in damages but not contractual termination in the event of a breach.

Answer 19

Warranties

Question 20

A form of testing used to determine of the requirements of a specification or contract are met.

Answer 20

Acceptance testing

Question 21

A form of testing whether the functions of a product as set out in the specification are achieving their objective.

Answer 21

Functional testing

Question 22

A person who assumes accountability for a project.

Answer 22

Sponsor

Question 23

The network of relationships between people who work in a particular environment.

Answer 23

Social capital

Question 24

Actions taken to lessen the impact of a risk to people or organisations.

Answer 24

Mitigating actions

Question 25

Document that outlines the key elements of the project.

Answer 25

Project initiation document

Question 26

Document that authorises the project manager to commence with the project preparation.

Answer 26

Project mandate

Question 27

The potential benefits foregone as a result of choosing one alternative over another.

Answer 27

Opportunity cost

Question 28

A graphical representation of how unit costs reduce the greater the number of those items produced.

Answer 28

Learning curve

Question 29

A tool for facilitating a team based approach that converts customer expectations into a number of potential solutions and then evaluates them to choose the best one.

Answer 29

Pugh analysis