Exam 13: Project Supply Chain Management

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

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

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

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

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

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

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

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.​ 

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.

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

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?

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.

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

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.

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

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.

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

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.

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.

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