Exam 12: Project Supply Chain Management

According to the PMBOK Guide,the project procurement management knowledge area includes four processes.Identify and briefly describe each of these processes.

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:

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?

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.

The evaluation criteria developed during procurement planning should guide the vendor evaluation and selection.

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

Lean purchasing 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.

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

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

A project organization can serve as either the buyer or the seller in a project related contract.

Effective project partnerships generally require shared responsibilities,shared resources,shared information,shared rights and shared risks between suppliers and customers.

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

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

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

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.

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

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.

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 obtaining materials and services internally.

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

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.