PMP: Procurement Management : Plan Procurement Management Tools n Technique
| Plan Procurement Management Tools n Technique |
| Make-or-buy analysis |
| Expert judgment |
| Market research |
| Meetings |
Plan Procurement Management Tools n Techniques
List of Plan Procurement Management Tools n Techniques
-
Make-or-buy analysis
-
Expert judgment
-
Market research
-
Meetings
What do you mean by Make-or-Buy Analysis
Make-or-Buy Analysis will determine whether the product or project will be developed by the project/product team or will be purchased from the outside vendor.
This will include all the direct and indirect cost.
To take a decisison on the Make-or-Buy Analysis, Budget might be a constraint.
Which is not a part of Plan Procurement Management Tools n Techniques?
Answer: Organizational process assets
| Question: From a buyer's standpoint, which of the following is true? |
| A. Procurement planning should include consideration of potential subcontracts |
| B. Procurement planning does not include consideration of potential subcontracts since this is the duty of the contractor. |
| C. Subcontractors are first considered during the Solicitation Process |
|
D. none of the above |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A cost-plus-incentive-fee (CPIF. contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual costs of the project is $130,000. How much profit does the seller make? |
| A. $31,000 |
| B. $19,000 |
| C. $15,000 |
|
D. none of the above |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Which of the following is NOT a method of government procurement? |
| A. Assistance |
| B. Sealed Bidding |
| C. competitive proposals |
|
D. acquisition |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A project team is meeting to determine what the evaluation criteria will be for the project procurement. What step of the procurement process are they in? |
| A. Solicitation planning |
| B. Solicitation |
| C. Source selection |
|
D. Contract administration |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A guarantee imposed by law in a sale even though the seller may not make any explicit promises is |
| A. Solicitation |
| B. Guarantee |
| C. Implied warranty |
|
D. Buyer's warranty |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A cost-plus-incentive-fee (CPIF. contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual costs of the project is $130,000. How much profit does the seller make? |
| A. $31,000 |
| B. $19,000 |
| C. $15,000 |
|
D. none of the above |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A cost-plus-percentage-cost (CPPC) contract has an estimated cost of $120,000 with an agreed profit of 10% of the costs. The actual cost of the project is $130,000. What is the total reimbursement to the seller? |
| A. $143,000 |
| B. $142,000 |
| C. $140,000 |
|
D. $132,000 |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A fixed-price-plus-incentive-fee (FPI) contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000, and a share ratio of 80/20. The actual cost of the project was $150,000. How much profit does the seller make? |
| A. $10,000 |
| B. $15,000 |
| C. $0 |
|
D. $5,000 |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Bidders' conferences can have a negative effect on the project if the project manager does not remember to make sure: |
| A. all questions are put in writing and sent to all sellers. |
| B. all sellers get answers to their questions only. |
| C. to hold separate meetings with each bidder to ensure you receive proprietary data. |
|
D. there is room in the meeting for all sellers. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: What is the BEST way to describe how the contract's terms and conditions are created? |
| A. They are based on a risk analysis. |
| B. They are created by the contracting officer assigned to the project. |
| C. They use only the company's existing standard terms and conditions. |
|
D. They are based on the needs of the seller |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: In what ways are Contract Close-out and Administrative Closure similar? |
| A. Both processes involve product verification as well as the updating and archiving of the project records. |
| B. Both processes are part of the overall Project Procurement Management process. |
| C. Audits are not part of either process. |
|
D. The updating and archiving of the project records is the only similarity between the two processes. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Contract closure and administrative closure both involve |
| A. product verification. |
| B. kick-off meetings. |
| C. creation of the scope verification plan. |
|
D. quality assurance activities. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Your seller on the project has not performed and you are terminating the contract. Which of the following is the BEST thing to do? |
| A. Follow the contract closure procedures |
| B. Meet with the seller, explain the problem, and obtain the seller's agreement on termination |
| C. Review change request |
|
D. Report the seller to the state agency in charge of inspection |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A project plan is: |
| A. A formal, approved document used to guide both project execution and project control. |
| B. A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities. |
| C. A narrative description of products or services to be supplied. |
|
D. A document describing the organizational breakdown structure of the company. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: A project team is meeting to determine what the evaluation criteria will be for the project procurement. What step of the procurement process are they in? |
| A. Solicitation planning |
| B. Solicitation |
| C. Source selection |
|
D. Contract administration |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Bidders' conferences can have a negative effect on the project if the project manager does not remember to make sure: |
| A. all questions are put in writing and sent to all sellers. |
| B. all sellers get answers to their questions only. |
| C. to hold separate meetings with each bidder to ensure you receive proprietary data. |
|
D. there is room in the meeting for all sellers. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Contract closure and administrative closure both involve |
| A. product verification. |
| B. kick-off meetings. |
| C. creation of the scope verification plan. |
|
D. quality assurance activities. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: From a buyer's standpoint, which of the following is true? |
| A. Procurement planning should include consideration of potential subcontracts |
| B. Procurement planning does not include consideration of potential subcontracts since this is the duty of the contractor. |
| C. Subcontractors are first considered during the Solicitation Process |
|
D. none of the above |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: In what ways are Contract Close-out and Administrative Closure similar? |
| A. Both processes involve product verification as well as the updating and archiving of the project records. |
| B. Both processes are part of the overall Project Procurement Management process. |
| C. Audits are not part of either process. |
|
D. The updating and archiving of the project records is the only similarity between the two processes. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Meeting with prospective sellers prior to preparation of a proposals is |
| A. Negotiations |
| B. Solicitation |
| C. Bidders' conference |
|
D. Illegal |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: The outputs of Contract Administration are correspondence, contract changes, and payment requests. |
| A. True |
| B. False |
| C. |
|
D. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Which is a process used in Procurement Management to document product requirements and identify potential sources? |
| A. Solicitation planning |
| B. Procurement planning |
| C. Source selection |
|
D. Contract administration |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: What is the BEST way to describe how the contract's terms and conditions are created? |
| A. They are based on a risk analysis. |
| B. They are created by the contracting officer assigned to the project. |
| C. They use only the company's existing standard terms and conditions. |
|
D. They are based on the needs of the seller |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Which of the following is NOT a method of government procurement? |
| A. Assistance |
| B. Sealed Bidding |
| C. competitive proposals |
|
D. acquisition |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: You find out that a fellow PMP lied about his years of experience on his application for PMP certification. You decide to overlook it because he is a friend of yours. You are in violation of the responsibility to: |
| A. Report possible violations of the code of conduct to PMI. |
| B. Cooperate with PMI concerning ethics violations. |
| C. Comply with ethical standards governing professional practice. |
|
D. Support and disseminate the PMP Code of Professional Conduct to other PMPs. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Your seller on the project has not performed and you are terminating the contract. Which of the following is the BEST thing to do? |
| A. Follow the contract closure procedures |
| B. Meet with the seller, explain the problem, and obtain the seller's agreement on termination |
| C. Review change request |
|
D. Report the seller to the state agency in charge of inspection |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Dina, the project manager of a hardware project, is performing a structured review of the procurement process. She would like to look into each document from the plan procurements process through the administer procurements process to identify failures. What tool should Dina use? |
| A. Procurement audits in the close procurements process |
| B. Performance reports in the conduct procurements process |
| C. Negotiated settlements in the administer procurements process |
|
D. Procurement audits in the manage procurements process |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: The RACI chart is an example for a responsibility assignment matrix (RAM). The letters R and C in RACI chart stand for |
| A. Responsible and consult |
| B. Resource and consultant |
| C. Responsible and categorize |
|
D. Resource and consult |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: Which of the following is incorrect regarding a bidders conference? |
| A. Questions from each seller should be handled confidentially and not shared with other sellers. |
| B. No bidders should receive preferential treatment, even if they are part of the company's existing list of approved suppliers. |
| C. Bidders conferences should not involve face-to-face meetings |
|
D. All prospective sellers should be allowed to have a common understanding of the procurement. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|
| Question: What similarity exists between a cost- reimbursable contract and a time and material contract? |
| A. They have no definitive end. |
| B. The closure date is part of the contract. |
| C. They have fixed bonus rates. |
|
D. They can never grow in value. |
|
Answer: 1
|
Answer explanation:
Procurement Management
|