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PMP > Procurement Management > Flashcards

Procurement Management Flashcards

1
Q

project procurement management

A

includes processes to acquire products or services from outside of the performing organization needed to successfully complete the project. this can be addressed from both the buyer and seller perspectives

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2
Q

project procurement management

- processes

A
  • plan procurement management (planning)
  • conduct procurements (executing)
  • control procurements (monitoring and controlling)
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3
Q

plan procurement management

A

the process of deciding which project assets need to be purchased, the project team must decide whether or not to purchase, how much, and when.

in this process, the project team prepares for the other procurement management processes by documenting a structured approach and determining the purchasing requirements

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4
Q

plan procurement management

- key tools and techniques

A
  • data gathering
    • market research
  • data analysis
    • make or buy analysis
  • source selection analysis
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5
Q

plan procurement management

- key outputs

A
  • procurement management plan
  • procurement strategy
  • bid documents
  • procurement statement of work
  • source selection criteria
  • make or buy decisions
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6
Q

market research

A

may include industry trends and capabilities to better understand the options that may be available when purchasing equipment, materials, or a service. understanding the various options between simple or complex alternatives can help the team better understand their specific needs

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7
Q

make-or-buy analysis

A

a technique to determine if it is more beneficial to performing organization to produce a product or service in-house or to outsource

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8
Q

source selection analysis

A

may include methods such as least costs, qualifications only, highest technical proposal score, quality and budget, sole-source, or fixed budget

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9
Q

procurement management plan

A

a subsidiary plan to the project management plan, defines how the other procurement processes will be managed

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10
Q

procurement strategy

A

defines the delivery methods, contract payment types, and procurement phases which will be used in each of the procurements for the project

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11
Q

bid documents

A

the formalized documentation necessary to solicit for seller proposals. this can include Request for Proposals (RFP) or any other documents that help to describe the product or service that is required for purchase.

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12
Q

procurement statement of work

A

documentation of which components of the project scope will be addressed in the purchase or acquisition of each product or service. this can be used by the seller as an input for their project scope statement

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13
Q

source selection criteria

A

documentation created by the buyer that defines how potential sellers are to be selected. this can be in the form of absolute requirements or desired qualities

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14
Q

make-or-buy decisions

A

the documentation of what decision was made and how that decision was reached

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15
Q

independent cost estimates

A

cost or time estimate prepared by the performing organization or a third party to serve as a baseline for comparing seller quotes. a large deviation from this baseline may be regarded as a warning sign that the seller is not a good match

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16
Q

firm fixed price (FFP)

contract type

A

buyer pays seller an agreed upon flat rate for a product or service

risk: seller is responsible for changes in the project environment

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17
Q

fixed price incentive fee (FPIF)

contract type

A

buyer pays seller a fixed fee plus incentives tied to performance

risk: seller is still responsible for costs above the price ceiling

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18
Q

fixed price with economic price adjustment (FP-EPA)

contract type

A

a fixed proce agreement where certain commodities are estimated and reconciled upon contract end

risk: minimizes seller risk when changes in the project environment are related to material costs

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19
Q

cost plus fixed fee (CPFF)

contract type

A

seller is reimbursed for all the costs of work. seller profit is tied to a fixed amount rather than performance

risk: minimizes risk to the seller; however, they receive the same profit regardless of level of effort (LOE)

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20
Q

cost plus incentive fee (CPIF)

contract type

A

seller is reimbursed for all the costs of work. seller profit is tied to performance objectives.

risk: a cost sharing formula is used to reward or penalize seller performance

21
Q

cost plus award fee (CPAF)

contract type

A

seller is reimbursed for all the costs of work. seller profit is tied to buyer satisfaction

risk: difficult to create objective performance criteria

22
Q

time and materials (T&M)

contract type

A

seller is reimbursed for all the costs and time of work. seller profit is tied to labor rates

risk: buyer can be at risk unless “not-to-exceed” limits are established

23
Q

conduct procurements

A

the process of finding potential sellers through solicitation, evaluating the qualifications of those sellers, and then selecting sellers and formalizing the terms and conditions of the agreement.

24
Q

conduct procurements

- key inputs

A
  • seller proposals
25
Q

conduct procurements

- key tools and techniques

A
  • bidder conferences
  • data analysis
    • proposal evaluation
  • interpersonal team skills
    • negotiation
26
Q

conduct procurements

- key outputs

A
  • selected sellers

- agreements

27
Q

organizational process assets

A

may include a qualified sellers list, a list of sellers with a reputation of being strong candidates for the need

28
Q

seller proposals

A

documents or a collection of documents prepared by the seller and given to the buyer, providing detailed information on how the seller can meet the requirements set forth by the buyer

29
Q

advertising

A

can be performed to attract sellers the buyer has not worked with before or is not aware of

30
Q

bidder conferences

A

allow the buyer to formally solicit sellers, provide information about the requirements, expectations, and the procurement process.

31
Q

proposal evaluation techniques

A

any methods that the performing organization may use to evaluate potential sellers

  • weighting system
  • screening system
  • seller rating systems
32
Q

weighting system

A

data driven approach to evaluating selection criteria. by giving each criterion a weight to score each prospective seller, the influence of personal opinion can be reduced

33
Q

screening system

A

documents mandatory criteria sellers must meet to continue to be evaluated. a proposal that does not meet all requirements can be disregarded

34
Q

seller rating system

A

a method for evaluating sellers based on past performance. typically this information is obtained from the performing organization’s lessons learned from relationships with the seller

35
Q

procurement negotiation

A

the technique of creating terms and conditions that are mutually beneficial to both the buyer and the seller. this should provide a clear understanding of the requirements and expectations of both the buyer and the seller.

36
Q

selected sellers

A

simply a list of sellers chosen to provide products or services to the project

37
Q

agreements

A

a legal contract between buyer and seller stating what product or service will be provided, at what cost, and any other terms and conditions that may apply

may be an input to “develop project charter” if the project is being done for an external customer. this may be a contract service level agreement, memorandum on understanding, or less formal documentation.

are a procurement contract between the project organization (buyer) and vendors/contractors (seller) describing the product or service provided, the cost, and other terms and conditions that apply.

can be used to identify vendors. service providers or other contractors are utilized to complete project work and therefore become stakeholders in the project

38
Q

control procurements

A

the process of assuring that both the buyer and seller meet the terms and conditions documented in the agreement between them. this process overlaps may other executing and monitoring and controlling processes

in this process, both the buyer and seller are responsible for upholding the terms and conditions of the agreement and each must hold the other accountable. the process will be performed from the moment the agreement is signed, until all terms and conditions have been fulfilled and the agreement can be closed

39
Q

control procurements

- key inputs

A
  • agreements

- work performance data

40
Q

control procurements

- key tools and techniques

A
  • claims administration
  • data analysis
    • performance reviews
    • earned value analysis
    • trend analysis
  • inspection
  • audits
41
Q

control procurements

- key outputs

A
  • closed procurements
  • work performance information
  • change requests
42
Q

claims administration

A

a process to resolve disputes or conflicts between the buyer and seller. this process should be defined in the contract, potentially including negotiation, arbitration, or litigation

43
Q

performance reviews

A

can be used to measure seller schedule, cost, quality, or other performance metrics

44
Q

earned value analysis

A

uses specific formulas to determine schedule and cost performance variances from target

45
Q

trend analysis

A

can use earned value techniques to develop forecasts

46
Q

inspection

A

a review of work or tangible products released by the seller ie. the product

  • inspection is always for deliverables, audits are always for processes
47
Q

audits

A

a structured review of the procurement process. if discrepancies from the agreements are identified they should be brought back to the attention of the buyer and seller’s project managers

  • inspection is always for deliverables, audits are always for processes

reviews of project activities to determine if organizational and project policies, processes, and procedures are being followed.

a technique to document how well risk response has addressed identified risks

48
Q

closed procurement

A

represents the buyer’s formal written acceptance of the product or service delivered by the seller. the project management team should accept all deliverables before closure

49
Q

procurement documentation updates

A

may include the existing contract itself and any additional supporting documents that exist

PMP (11 decks)

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