Subtitles of the Movie

In this movie, our focus will be on the workbook exercises of the plan purchases and acquisitions process. You'll find a total of 18 questions within your workbook that provide you with a review and recap of the process information that we covered earlier in this section. Question one says what is the purpose of this process? And that purpose is to determine what to purchase or acquire and when and how. Moving on to the inputs, tools and techniques and outputs of the process, to cover questions two, three and four, the inputs include Enterprise environmental factors, organizational process assets, the project scope statement, the WBS and the WBS dictionary along with the project management plan. Tools and techniques include the make or buy analysis, expert judgment and contract types. And the outputs are the procurement management plan, contract statement of work, make or buy decisions and requested changes. Question five is a true-or-false question. It says the procurement processes are completed for each item within the project that is purchased or acquired: true or false? And this is true. Each item that is completed externally to the project team goes through this process individually. Question six is actually a two-part question: A, define make or buy decisions and B, what factor does it take into consideration? The first part, A, is a technique used to determine whether a product or service can be produced internally by the project team or must be contracted out or purchased. And the answer to B is budget constraints. Next, what is expert judgment used for? The answer is to assess the process' inputs and outputs and modify evaluation criteria for proposals and offers. In the next set of questions, we'll cover the types of contracts. Question eight: fixed-price or lump-sum contracts are meant for which types of purchases? And these are purchases with a fixed total price, delivery date and well-defined product. Which contract type involves reimbursement to the seller for the seller's actual cost plus an additional amount? And we have three options: A, fixed price or lump-sum contracts; B, cost reimbursable contracts or C, time and material contracts. The answer is B, cost reimbursable contracts. Question ten; we see the same three options for a multiple choice question. The question says which contract type may include an adjustment increase for lengthy contracts to account for economic changes? The answer is A, fixed price or lump-sum contracts. Question 11, which contract type is based on a per-hour or per-unit cost that is agreed upon but is open ended? The answer is C, time and material contracts. Continuing on with the same question format, question 12: which contract type is typically used when buyers can describe the work but not how to go about the work? The answer is B, cost reimbursable contracts. And question 13; which contract type is the most common type used globally? The answer is A, fixed price or lump-sum contracts. Question 14 asks for you to describe the sub-types of cost reimbursable contracts. The first type is cost plus fee or cost plus percentage of cost and that's the seller is reimbursed for approved costs plus fee of percentage of cost. This is where the seller is reimbursed for cost plus a fixed fee. And then we have cost plus incentive fee contracts where the seller is reimbursed for cost plus a fee plus an incentive bonus. Next, for each contract type, note down whether the buyer or the seller has the highest risk. It's the seller who has the highest risk in a fixed-price contract, the buyer in a cost-reimbursable contract and both have a medium level of risk in time and material contracts. In question 16, we get to review the contents of the procurement management plan. You are asked to name three, although there's a long list that you may have chosen from. These include type of contract to be used, who is responsible for preparing independent estimates, decision-making power of procurement, contracting and purchasing team, procurement documents to be used, management of multiple providers, coordinating procurement alongside other project components, constraints and assumptions, management of lead times to purchase or acquire items, managing make or buy decisions, identifying performance bonds and insurance contracts to mitigate project risk, establishing direction for sellers on contract WBS, establishing the form and format of contract statement of work, identifying pre-qualified selected sellers and procurement metrics. Moving on to our final two question, number 17; what does the contract statement of work define? And it defines the portion of the scope that's being purchased or acquired and describes the products, service or result to be supplied by the seller. And finally, what are make or buy decisions? These are documented decisions of what products, services or results will be acquired and purchased or developed internally. We've covered all the workbook exercises relating to the plan purchases and acquisitions process, bringing this movie and section to a close.