Introducing Project Procurement Management - Planning for Purchases

15 important questions on Introducing Project Procurement Management - Planning for Purchases

What are the four elements procurement planning focusses on?

  • Whether procurement is needed
  • What to procure
  • How much to procure
  • When to procure
Report

What are other names for sellers?

Contractors, subcontractors, vendors, suppliers, and service providers.
Report

What are other names for buyers?

Clients, customers, prime contractors, contractors, acquiring organizations, government agencies, service requestors, or purchasers.
Report

What are the two things a project manager relies upon when starting with procurement?

Enterprise Environmental Factors and Organizational Process Assets.
Report

Why is an evaluation of the marketplace needed?

To determine what products and services are available and from whom and on what terms and conditions they are available.
Report

What do the following key terms mean: sole source, single source, oligopoly?

Sole source - Only one qualified seller exists in the marketplace
Single source - The performing organization prefers to contract with a specific seller
Oligopoly - There are few sellers, and the actions of one seller will have a direct effect on the sellers' prices and the overall market condition
Report

Why is the scope baseline important as input for making procurement decisions?

Because it defines the project work and thus the limitations of the project it can help the project manager, the contract specialist, and other procurement professionals to determine what needs to be purchased, and what does not.
Report

Why is the WBS and WBS dictionary important for procurement planning?

It defines the end result of the project and serves as valuable input regarding what needs to be procured and what does not.
Report

When could the SOW be interesting for procurement?

When an entire project is to be procured from a vendor, the SOW and the product description become one and the same.
Report

How is the project management plan important for the procurement planning process?

It guides how the project should progress, and each subsidiary plan may need to be referenced for procurement guidelines.
Report

What is one of the most important things to consider during procurement management?

The reliance on the risk response transference.
Report

What do we mean with a teaming agreement?

A legally binding venture between two or more organizations that plan to complete a defined set of work or to seize an opportunity or some other venture that the parties involved couldn't completely necessarily on their own.
Report

How is the project schedule important for procurement planning?

The project manager needs to understand when resources are needed to keep the project moving. Coupling this with the activity cost estimate and the cost performance baseline and the project manager can do cash flow forecasting, communication with management about upcoming expenses and ensuring that the vendors are paid on time.
Report

How are project requirements important in project procurement?

  • To determine what you'll purchase from vendors
  • To understand whether any aspects of the requirements affect the contracting process
Report

What other things should be considered when looking at procurement?

  • The risks
  • The project schedule - the vendor can impact it
  • The project budget - how much can you spend on the vendor
Report

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart