Project Procurement Management.txt

Card Set Information

Author:
lazarwolfe
ID:
84079
Filename:
Project Procurement Management.txt
Updated:
2011-05-05 21:36:32
Tags:
PMP Exam Procurement Management
Folders:

Description:
PMP Exam Procurement Management
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user lazarwolfe on FreezingBlue Flashcards. What would you like to do?


  1. What are the processes and their corresponding knowledge areas for Procurement Mgmt?
    • Plan Procurements - Planning
    • Conduct Procurements - Executing
    • Administer Procurements - Monitoring and Controlling
    • Close Procurements - Closing
  2. In procurement management, what are the two primary roles? Which does the PM play?
    Buyer and Seller. The PM may play either or both.
  3. What are the two PRIMARY outputs from Plan Procurements?
    • Procurement Management Plan
    • Procurement SOW
  4. What are the two PRIMARY outputs from Conduct Procurements?
    • Selected Sellers
    • Procurement Contract Award
  5. What are the two PRIMARY outputs from Administer Procurements?
    • Procurement Documentation
    • Change Requests
  6. What is the PRIMARY output from Close Procurements?
    Closed Procurements
  7. What is the primary focus of Plan Procurements?
    Buy vs Build for the various components of the project
  8. Does PMP generally favor "buy" or "build", all things being equal?
    Buy
  9. What are the 4 key inputs to Plan Procurements?
    • Scope baseline
    • Requirements Documentation
    • Teaming Agreements
    • Risk-Related Contract Decisions
  10. What are the 3 tools used by Plan Procurements?
    • Make-or-Buy Analysis
    • Expert Judgment
    • Contract Types
  11. What are the 3 main types of contracts?
    • Fixed Price Contracts
    • Cost Reimburseable Contracts
    • Time and Materials Contracts
  12. What are the 3 types of fixed price contracts?
    • Firm Fixed Price (FFP) - One price. Risk born entirely by seller.
    • Fixed Price Incentive Fee (PFIF) - Fixed price w/ incentive for hitting a target.
    • Fixed Price Economic Price Adjustment (FP-EPA) - FP + stipulation for exchange rate/interest rate, etc.
  13. What are the 2 types of cost reimburseable contracts?
    • Cost Plus Fixed Fee (CPFF) - cost passes to buyer; seller gets fixed fee on completion
    • Cost Plus Incentive Fee (CPIF) - cost passes to buyer; seller gets fee for meeting target
  14. Who bears the risk in a fixed price contract?
    Seller
  15. Who bears the risk in a cost plus fixed fee contract?
    Buyer
  16. Who bears the risk in a cost plus incentive fee contract?
    Buyer AND seller
  17. Who bears the risk in a time and materials contract?
    Buyer
  18. What is the definition of Point of Total Assumption?
    The point in a contract where the subcontract assumes responsibility for all additional costs.
  19. What is the formula for calculating Point of Total Assumption (PTA)?
    PTA = Target Cost + (Ceiling Price - target price) / Buyer's % share of cost overrun
  20. Why is Point of Total Assumption significant?
    It helps identify the point where the seller has the most motivation to bring things to completion
  21. What are the 6 outputs from Plan Procurements?
    • Procurement Management Plan
    • Procurement Statements of Work
    • Make-or-Buy Decisions
    • Procurement Documents
    • Source Selection Criteria
    • Change Requests
  22. Give two examples of Procurement Documents
    • Invitation For Bid (IFB)
    • Request For Proposal (RFP)
  23. What is the focus of Conduct Procurements?
    Carry out the procurement management plan to select one or more sellers and award the procurement
  24. What are the 3 key inputs to Conduct Procurements?
    • All the outputs from Plan Procurements
    • Qualified Seller List
    • Seller Proposals
  25. What is PMI's #1 most favored tool?
    Expert Judgement
  26. What 4 key tools are used by Conduct Procurements?
    • Bidder Conferences
    • Proposal Evaluation Techniques
    • Independent Estimates (aka "should-cost" estimates)
    • Expert Judgement
  27. What is the goal of vendor negotiations in Conduct Procurements?
    To reach a viable win-win scenario
  28. What are the 3 key outputs from Conduct Procurements?
    • Selected Sellers
    • Procurement Contract Award
    • Resource Calendars (for the seller's resources)
  29. What is the focus of Administer Procurements?
    Buyer and seller review the contract and work results to ensure the results match the contract.
  30. What specific reviews are conducted in Adminster Procurements?
    • Are the goods/services being delivered?
    • Are the goods/services being delivered on time?
    • The the right amounts being invoiced and paid?
    • Are additional contract conditions being met?
    • Is the buyer/seller relationship being properly managed and maintained?
  31. What are the 4 key inputs to Administer Procurements?
    • Project Management Plan
    • Approved Change Requests
    • Performance Reports
    • Work Performance Information
  32. Where should the process for handling claims/disagreements be spelled out?
    In the contract
  33. What are the 7 key tools used by Administer Procurements?
    • Contract Change Control System
    • Procurement Performance Reviews
    • Inspections and Audits (for the product)
    • Performance Reporting
    • Payment Systems
    • Claims administration
    • Records Management System
  34. What are the 3 key outputs from Administer Procurements?
    • Procurement Documentation
    • Change requests
    • Organizational Process Assets Updates
  35. Why are Organizational Process Assets Updates a key output from Administer Procurements?
    You are providing information to your organization on the seller's performance
  36. What is the focus of Close Procurements?
    Completing the contract by the buyer and seller
  37. What are the 3 key tools used by Close Procurements?
    • Procurement Audits
    • Negotiated Settlements
    • Records Management System
  38. When is a Negotiated Settlement necessary?
    When the two parties disagree on if a contract condition was satisfied
  39. What is the point of Procurement Audits?
    They capture contracting lessons learned
  40. What are the 2 key outputs from Close Procurements?
    • Closed Procurements
    • Organizational Process Assets Updates - lessons learned from Procurement Audits
  41. The "Point of Total Assumption" metric is relevant for why type of contracts?
    Cost plus incentive fee

What would you like to do?

Home > Flashcards > Print Preview