Deck 18: Contact and Relationship Management

Question 1

A delay in a critical path activity will probably not delay the expected project completion time,but the potential delay should be considered by the project manager in order to proactively think through alternatives.

Answer 1

False

Question 2

Only one critical path is possible in a project.

Answer 2

False

Question 3

Some of the common approaches that buying firms use to punish suppliers are: not awarding future business,downgrading a supplier and billing the supplier for failures.Litigation and assessing punitive damages are not common approaches due to the severity of the punishment.

Answer 3

False

Question 4

What usually does not need to be specified at the pre-award conference?

A) All terms and conditions
B) Delivery or operations schedule
C) Staffing and supervision
D) Site conditions, work rules, safety
E) Expected quality levels

Question 5

Critical path analysis lets us know which activities do not need to be managed as strictly.

Question 6

A typical cost ratio is calculated by dividing the total dollar purchase from that supplier by the sum of the cost and the total dollar purchase.

Question 7

Several changes in business have increased the need for better contract management.Which of the following is not one of those changes?

A) Collaboration is continuing to become more important
B) Large inventories are available
C) Quality is expected
D) Deliveries are expected to be on time, not early or late
E) Schedules must be integrated and maintained

Question 8

The critical path is the longest path through the network.

Question 9

Several changes in business have increased the need for better contract management.Which of the following is not one of those changes?

A) Collaboration is being reduced
B) Quality is expected
C) Processes must be balanced
D) Waste must be reduced or eliminated
E) Communication must be in real-time

Question 10

A delay in a critical path activity delays the expected project completion time.

Question 11

Which of the following is not a method or tool for monitoring and controlling project progress?

A) Linear Programming
B) Operations Progress Reports
C) Gantt Charts
D) CPM And PERT
E) Closed Loop MRP Systems

Question 12

What usually does not need to be specified at the pre-award conference?

A) Invoicing procedures and documentation
B) Materials purchase procedures
C) Background checks and security clearances
D) Price of the contract
E) Insurance certificates

Question 13

SM calls for contract and relationship management techniques,tools,and philosophies that enforce collaboration through penalties and punishment for nonconformance.

Question 14

The critical path is the shortest path through the network.

Question 15

What usually does not need to be specified at the pre-award conference?

A) Permits
B) Possible conflicts with other work
C) Submission of time sheets
D) Design specifications
E) Collaboration milestones

Question 16

Supply Management calls for contract and relationship management techniques,tools,and philosophies that enable collaboration,where appropriate.The key objectives are timely delivery,desired quality and performance; while simultaneously empowering supply professionals to foster synergistic opportunities.

Question 17

Some of the common approaches that buying firms use to punish suppliers are: litigation and punitive damages,not awarding future business,downgrading a supplier and billing the supplier for failures.

Question 18

A typical cost ratio expresses the cost as a percent of the total dollar purchase from that supplier.

Question 19

As a project manager,we need to know the critical path to identify the tasks we should focus our efforts on controlling.

Question 20

Critical path analysis lets us know the probability of completing a project within a specific time.

Question 21

Assume that for one supplier: quality cost ratio = 2%,delivery cost ratio = 2%,service cost ratio = -1%,and the price = $72.25.Using the cost ratio plan what is the adjusted price using the cost ration plan for evaluating the supplier?

A) $70.05
B) $68.75
C) $73.32
D) $72.25
E) $74.42

Question 22

Which of the following is not a cost ratio plan step?

A) Additional costs incurred when doing business with a given supplier are identified
B) Costs are separated by quality, service, and price elements of supplier performance
C) Each cost is converted to a "cost ratio"
D) The highest individual cost ratio is then used to adjust the supplier's price
E) Adjusted prices are then used in supplier evaluation

Question 23

Which of the following statements about critical path scheduling is not true?

A) The critical path is the longest path through the network
B) Critical path scheduling allows managers to not manage non-critical activities
C) As a manager we need to know the critical path to identify which activities we should focus our efforts on controlling
D) A delay in a critical path activity delays the expected project completion time
E) Critical path analysis lets us know which activities do not need to be managed as strictly

Question 24

Which of the following is not a common approach that buying firm's use to punish a supplier?

A) Bad mouthing the supplier to other buyers
B) Litigation and punitive damages
C) Not awarding future business
D) Downgrading a supplier
E) Billing the supplier for failures

Question 25

In managing the relationship between buyers and sellers,the use of ________ has proven to be very effective.

A) Pert
B) CPM
C) Cross functional teams
D) The legal contract
E) Liberal reward systems