RMC Hot Topics 9th Edition Flashcards - Procurement Management: 1-10
What is the process of procurement management?
Plan Procurement Management
Conduct Procurements
Control Procurements
What are the inputs to the Plan Procurement Management process?
Project charter
Business documents
Project management plan
Project documents:
- Project team assignments
- Requirements documentation
- Resource requirements
- Risk register
- Stakeholder register
Enterprise environmental factors
Organizational process assets
What are the key outputs of the Plan Procurement Management process?
Procurement management plan
Procurement strategy
Procurement statement of work
Source selection criteria
Make-or-buy decisions
Bid documents
Independent cost estimates
Change requests
Project document updates
Organizational process assets updates
What are the key outputs of the Conduct Procurements process
Selected sellers
Agreements
Change requests
Project management plan updates
Project documents updates
Organizational process assets updates
What are the key outputs of the Control Procurement process?
Closed procurements
Procurement documentation updates
Work performance information
Change requests
Project management plan updates
Project document updates
Organizational process assets updates
What is in an agreement?
What is a contract?
Agreement: A document or communication that outlines the internal or external relationships and their intentions.
Contract: A type of written or verbal agreement, typically created with an external entity, where there is some exchange of goods or services for some type of compensation (usually monetary); a contract forms the legal relationship between the entities.
What is the difference between centralized and decentralized contracting?
Centralized: There is one procurement department, and the procurement manager handles procurements for many projects.
Decentralized: There is no procurement department or procurement manager assigned, and the project manager may be responsible for the plan, as well as conducting and monitoring work on all procurements.
What are the advantages and disadvantages of centralized contracting?
Advantages:
- Higher level of procurement expert expertise
- Standardized practices provide eficiency
- Clear career path in procurement management
- Continuous improvement, trading, and shared lessons learned
Disadvantages:
- Procurement manager’s attention is divided among many projects
- More difficult for the project manager to obtain contracting help when needed
Described the project manager’s role in procurement.
Make sure the contract contains all the scope of work and project management requirements
Incorporate mitigation and allocation of risks into contract
Being involved during contract negotiations to protect the relationship with seller
Protect the integrity of the project and the ability to get the work done
Understand what contract terms and conditions means so you can read and understand contracts
Work with procurement department to manage changes to the contract
What is a qualified seller list?
What is a seller proposal for price quote?
Qualified seller list: A list of sellers that have been preapproved
Seller proposal: A seller’s response to the bid document that represents an official offer from the seller; a proposal is usually the response to a request for proposal (RFP); a quote is usually the response to a request for quote (RFQ)
