procurement management

Question 1

procurement/outsourcing/purchasing all mean

Answer 1

acquiring goods and/or services from an outside source

Question 2

why do companies outsource (5)

Answer 2

• to access skills and technologies
• to reduce costs
• to allow the client organization to focus on its core business
• to provide flexibility
• to increase accountability

Question 3

a contract is

Answer 3

a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them

Question 4

why use contracts (3)

Answer 4

• to clarify responsibilities
• sharpen focus on key deliverables of a project
• increase accountability for delivering the work as stated in the contract

Question 5

processes of project procurement management (4)

Answer 5

1. planning procurement management
2. conducting procurements
3. controlling procurements
4. closing procurements

Question 6

what does planning procurement management involve (2)

Answer 6

• determining what to procure and when and how to do it

- identifying which project needs can best be met by using products or services outside the organization

Question 7

procurement management plan describes

Answer 7

how the procurement processes will be managed, from developing documentation for making outside purchases or acquisitions to contract closure

Question 8

a termination clause is

Answer 8

a contract clause that allows the buyer or supplier to end the contract

Question 9

tools and techniques for planning purchases and acquisitions (3)

Answer 9

• expert judgment
• market research
• make-or-buy analysis

Question 10

make-or-buy analysis is a

Answer 10

general management technique used to determine whether an organization should make or perform a particular product or service inside the organization or buy from someone else

Question 11

contract statement of work (SOW) is

Answer 11

a description of the work required for the procurement

Question 12

what does a good SOW give bidders

Answer 12

a better understanding of the buyer’s expectations

Question 13

procurement documents (2)

Answer 13

• a proposal

- a bid

Question 14

what is a proposal

Answer 14

a document prepared by a seller when there are different approaches for meeting buyer needs

Question 15

what is a bid

Answer 15

a document prepared by sellers providing pricing for standard items that have been clearly defined by the buyer

Question 16

how to be sure a proposal is actually good

Answer 16

evaluate factors, such as past performance and management approach

Question 17

conducing procurements involves (5)

Answer 17

• deciding whom to ask to do the work
• sending appropriate documentation to potential sellers
• obtaining proposals or bids
• selecting a seller
• awarding a contract

Question 18

approaches for procurement (3)

Answer 18

• approach the preferred vendor
• approach several potential vendors
• advertising to anyone interested

Question 19

steps to selecting the seller(s) (3)

Answer 19

1. develop a short list of potential sellers for further evaluation
2. sellers on the short list often prepare a best and final offer (BAFO)
3. final output is a contract signed by the buyer and the selected seller

Question 20

controlling procurements ensures

Answer 20

that the seller’s performance meets contractual requirements

Question 21

suggestions for change control in contracts (5)

Answer 21

1. changes to any part of the project need to be reviewed, approved, and documented
2. evaluation of any change should include an impact analysis
3. changes must be documented in writing
4. stay involved to make sure the new system will meet business needs and work in an operational environment
5. have backup plans

Question 22

closing procurements involves

Answer 22

completing and settling contracts and resolving any open items

Question 23

during the closing process of procurements, project team should (3)

Answer 23

• determine if all work was completed correctly and satisfactorily
• update records to reflect final results
• archive information for future use