Deck 13: Project Supply Chain Management

Question 1

The evaluation criteria that were developed during procurement planning to define how the team will evaluate and rank proposals should guide them in the vendor evaluation and selection process.

Answer 1

True

Question 2

Supply chain management focuses exclusively upon the parties directly involved in providing supplies to the project team.

Answer 2

False

Question 3

In many cases,the proposal prepared by the vendor becomes a part of the final contract.

Answer 3

True

Question 4

Among the disadvantages associated with outsourcing is the gradual loss of special skills for doing some specific activities that have been outsourced.

Question 5

During procurement planning,the project team determines which needs can best be met by acquiring products and services from an outside provider,and which can be accomplished by the team.

Question 6

Contract incentives are often used when the buyer wants the seller to meet some defined project metrics,such as finishing the project early,providing a higher level of quality or more features,or anything else that the buyer wants to maximize and is willing to pay for.

Question 7

Logistics is the work required to move and position inventory throughout a supply chain.

Question 8

Outputs of Plan Procurement Management include the procurement management plan and procurement statement of work.

Question 9

Traditional project procurement was characterized by win / lose adversarial relations between owner and contractor,whereas contemporary project partnering fosters a relationship of trust and collaboration.

Question 10

Buying from an outside supplier to meet project needs is a practice that is rarely used,because it invariably proves to be more expensive than doing the work with resources internal to the organization.

Question 11

On complex projects,despite the importance of factors such as technical capability,managerial capability and previous experience; the selection decision is made mostly or entirely on price.

Question 12

One of the important factors that should influence the selection of contract type is how the risk is distributed between the buyer and the seller,and how the project is performed.

Question 13

A traditional buyer-seller relationship is defined as "a long-term relationship between an owner and a contractor in which the contractor acts as a part of the owner's organization for certain functions." 

Question 14

A contract is a unilateral,binding document that obligates the seller to furnish supplies or services to the buyer.

Question 15

The project organization can be a seller in dealing with the project owner or customer and a buyer in a more prevalent procurement setting.

Question 16

Time & Materials refers to a manufacturing context where just-in-time (JIT)tools are used to ensure that every step in the supply process adds value,while costs are kept to a minimum.

Question 17

Extensive supplier evaluation approaches such as surveys,facility visits and financial analysis should be applied to first-tier suppliers only.

Question 18

Project partnerships can be advantageous to both the client and the vendor,in terms of improved project execution,flexibility,and reduced bid administration.

Question 19

Supply chain operations require managerial processes that span across functional areas within individual organizations,and link trading partners and customers across organizational boundaries.

Question 20

Fixed price contracts provide low risk for the seller,since the buyer will pay a fixed price,regardless of how much the project actually costs the seller.

Question 21

All of the following accurately describe the features and characteristics of a contract EXCEPT: 

A) A contract binds both the seller and the buyer. 
B) A contract obligates the seller to provide a specified product or service. 
C) A contract obligates the buyer to pay for a specified product or service. 
D) The project organization is always a buyer in a contract arrangement

Question 22

_______ is the PMBOK process that identifies those project needs that can be met by acquiring products and services from outside suppliers,determines what to purchase or acquire,and finalizes when and how to do so.

A) Define supply chain. 
B) Plan procurement management. 
C) Schedule procurements. 
D) Negotiate contracts

Question 23

Evaluation criteria used to rate proposals and other supplier characteristics might include all of these EXCEPT:​ 

A) supply quality 
B) personal relationships with senior management 
C) inbound transportation cost 
D) replenishment lead time

Question 24

Evaluations of prospective suppliers by project teams often involve all of the following approaches EXCEPT: 

A) financial condition analysis 
B) facility visits 
C) supplier surveys 
D) prototyping

Question 25

Under normal conditions,which of these contract types poses the greatest risk to the buyer?​ 

A) Firm-Fixed-Price (FFP) 
B) Fixed-Price-Incentive-Firm (FPIF) 
C) Cost-Plus-Fixed-Fee (CPFF) 
D) Time and Material (T&M)

Question 26

All of the following statements accurately describe supply chain management EXCEPT:​ 

A) It is a closed-loop system solely within the project organization's boundaries. 
B) It spans across suppliers and producers, resellers, project organizations and consumers. 
C) It addresses the flow of material, service, monetary and information across supply chain partners. 
D) It is a system's approach to managing the entire flow of physical products.

Question 27

All of the following entities are typically included in the supply chain EXCEPT: 

A) suppliers 
B) public relations 
C) consumers 
D) project team

Question 28

Supply chains use a combination of modes of transportation including: air,rail,water,pipeline and truck.

Question 29

The procurement management plan: 

A) describes how the procurement division will be managed. 
B) describes how supply chain partners will be managed. 
C) describes how a project team will acquire goods and services from outside the performing organization. 
D) describes how sellers will be audited by the procurement team.

Question 30

The ________ documents the portion of work to be purchased,in enough detail so potential suppliers can decide if they feel they are capable of and interested in providing it.​ 

A) request for information 
B) procurement statement of work 
C) request for quotation 
D) purchase order

Question 31

Which party to a contract absorbs the majority of cost risk when a Firm-Fixed-Price (FFP)contract is used?​ 

A) the seller 
B) the buyer 
C) the cost risk is equally shared. 
D) the insurer

Question 32

All of these are factors that could lead to a decision to buy or outsource rather than make or perform in-house,EXCEPT:​ 

A) Flexibility in procurement 
B) Ability to utilize specialized suppliers 
C) Inadequate capacity 
D) More control over quality and time

Question 33

All of the following items are generally considered when selecting the right type of contract EXCEPT:​ 

A) extent of price competition 
B) overall degree of cost and schedule risk 
C) urgency of requirements 
D) project organization's accounting system

Question 34

Which of the following factors should be considered in a make-or-buy decision?​ 

A) prevailing public opinion regarding the economic impact of outsourcing 
B) only the direct costs associated with the decision, excluding consideration of indirect costs 
C) advantages and disadvantages of outsourcing in terms of time, cost and performance control 
D) project manager's or sponsor's preference

Question 35

Which of the following terms describes a method for transforming contractual arrangements into a cohesive,collaborative project team with a single set of goals and established procedures for resolving disputes in a timely and cost-efficient manner?​ 

A) a contract unification plan 
B) partnering 
C) arbitration 
D) conflict resolution

Question 36

Often a project team will start the selection process by establishing a list of potential suppliers.All of the following information sources are frequently used to identify these potential suppliers EXCEPT: 

A) supplier catalogs or websites 
B) sales personnel 
C) stakeholder register 
D) trade shows

Question 37

Which of the following types of contracts involves payment to the seller for the seller's actual approved costs of completed work,plus a fee typically representing the seller's profit?​ 

A) fixed-price contract 
B) cost-reimbursable contract 
C) equitable adjustment contract 
D) direct cost contract

Question 38

Project partnerships offer all of the following advantages to vendors EXCEPT:​ 

A) More dependable stream of work 
B) Clearly stated expected outcome  
C) Buyer gains at the vendor's expense 
D) Greater potential profit

Question 39

Which of the following is one of the PMBOK Guide's three project procurement management processes?​ 

A) Conduct procurements 
B) Plan supply chain management 
C) Manage logistics  
D) Conduct Make-or-Buy Analysis

Question 40

Information is a key ingredient at each stage of the project supply chain,as well as within each phase of supply chain decision making.

Question 41

Contract types are often associated with two broad categories: fixed-price contracts and cost-reimbursable contracts.Briefly identify the factors to consider when determining which type is most appropriate for a planned contract.

Question 42

According to the PMBOK Guide,the Project Procurement Management knowledge area includes three processes.Identify and briefly describe each of these processes.

Question 43

Compare and contrast traditional project procurement management with the more contemporary approach - project partnering.What are the conditions or sharing requirements for effective project partnerships?

Question 44

Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources.This decision is often referred to as the make-or-buy decision.Briefly identify and explain at least three reasons that support the decision to "make" the products and at least three reasons that support the decision to "buy" the products.

Question 45

Project partnerships offer which of the following advantages to both clients and vendors?​ 

A) Ability to explore new technologies 
B) Potential of lower cost for client 
C) More effectively managed risks 
D) Opportunity for vendor to prove themselves