For the best experience on our site, be sure to turn on Javascript in your browser. It is intended for the current PMP exam and will continue to be relevant throughout For the 10th Edition flashcards, we've added dozens of new terms and concepts related to agile and hybrid methodologies.
The spiral-bound flip book provides questions and answers in a way that makes it easy to study for 5 minutes, 10 minutes, an hour, or more! Whatever you can fit into your busy schedule. These flashcards are also available separately in an online subscription format! Contact Customer Service for even better pricing if ordering more than 20 units.
Be the first to review this product. In stock. Add to Cart. Schedule Management Schedule Management Total float: The amount of time an activity can be delayed without delaying the project end date or an intermediary milestone Free float: The amount of time an activity can be delayed without delaying the early start date of its successor s Project float: The amount of time the project can be delayed without delaying the externally imposed project completion date required by the customer or management also referred to as positive total float What are the two formulas for calculating float?
Schedule Management Schedule Management Helps prove how long the project will take Shows which activities have float and can therefore be delayed without delaying the project Provides information needed to compress the schedule during project planning and whenever there are changes Helps determine where to focus your project management efforts Helps determine which activities have more risk associated with them Helps determine if a delayed activity needs immediate attention What is crashing?
What is fast tracking? Schedule Management Schedule Management Crashing: Adding or adjusting resources in order to compress the schedule while maintaining the original project scope Fast tracking: Compressing the schedule by doing more critical path activities in parallel What is Monte Carlo analysis?
Schedule Management Schedule Management A technique that uses computer software to simulate the outcome of a project, based on the three-point estimates optimistic, pessimistic, and most likely for each activity and the network diagram Monte Carlo analysis is also used as a risk management tool to quantitatively analyze risks What is resource optimization? Schedule Management Schedule Management Finding ways to adjust the use of resources What is resource leveling?
What is resource smoothing? Schedule Management Schedule Management Resource leveling: A resource optimization technique that allows you to level the peaks and valleys of the schedule from one month to the other, resulting in a more stable number of resources Resource smoothing: A modified form of resource leveling, where resources are leveled only within the limits of the float of their activities, so the completion dates of activities are not delayed What are the main presentation formats for a schedule?
What do milestone charts show? Schedule Management Schedule Management Bar charts: Progress reporting and control; they are weak planning tools Milestone charts: High-level project status; they only show major events What is the schedule baseline?
Schedule Management Schedule Management The schedule baseline is the version of the schedule model used to manage the project; it is what the project teams performance is measured against What is reestimating? The most feared cost topic is earned value, but don t worry—this flipbook covers what you need to know. There are many cost formulas; for the exam, you should memorize these formulas and their use.
Cost Management mmmmm lost Management What is the process of cost management? Cost Management Cost Management Cost management plan Quality management plan Scope baseline Lessons learned register Project schedule Resource requirements Risk register Enterprise environmental factors Organizational process assets Project management costs What are the key outputs of the Estimate Costs process? Cost Management Cost Management Work performance information Cost forecasts Change requests Updates to project management plan and project documents What does life cycle costing mean?
Cost Management Cost Management Considering costs over the entire life of the product, not just the cost of the project to create the product What is value analysis? Cost Management Cost Management Finding a less costly way of doing essentially the same work also known as value engineering What three knowledge areas use the concept of cost risk?
Cost Management Cost Management Cost Procurement Risk What calculations can be used to determine whether the project will be paid for with the organizations existing funds or will be funded through equity or debt? Cost Management Cost Management A technique used in project selection to estimate the attractiveness of an investment by predicting how much money will be received in the future and discounting it to its current value In cost management planning, it is used to evaluate the potential revenue to be earned from specific project work What are control thresholds?
When are they determined? Cost Management Cost Management The amount of variation allowed before you need to take action Determined while creating the cost management plan How do variable costs differ from fixed costs? Cost Management Cost Management Variable costs change with the amount of production or amount of work done on the project Fixed costs do not change as production changes What is a direct cost?
What is an indirect cost? Cost Management Cost Management Direct cost: A cost that is directly attributable to the work on the project Indirect cost: Overhead costs or costs incurred for the benefit of more than one project What are the advantages of analogous estimating? Cost Management Cost Management Quick Activities do not need to be identified Less costly to create Project manager will have data to evaluate high-level project feasibility Overall project costs will be capped What are the advantages of bottom-up estimating?
Cost Management Cost Management More accurate Gains buy-in from the team Based on a detailed analysis of the project and the deliverables Provides a basis for monitoring and controlling, performance measurement, and management What is reserve analysis? Cost Management Cost Management Reserve analysis involves identifying which activities on the project have significant risk and determining how much time and money to set aside to account for those risks in case they occur What is the difference between a contingency reserve and a management reserve?
Cost Management Cost Management Contingency reserves are used for known risks, which are specifically identified risks Management reserves are used to accommodate unknown or unidentified risks What is cost of quality? Cost Management Cost Management The cost budget adds management reserves to the cost baseline How can progress reporting help the project manager? Cost Management Cost Management It can help control schedule and costs It can help the project manager assess whether the project is on track through earned value analysis What is earned value analysis, and how is it used?
Cost Management Cost Management It is used in performance reviews to measure project performance against the scope, schedule, and cost baselines Using the work performance information gathered through earned value analysis, a project manager can create reports, including cost forecasts, and other communications related to the projects progress; it may also result in change requests What combined baselines are called the performance measurement baseline?
Cost Management Cost Management Scope, schedule, and cost baselines What is the difference between planned value and earned value? Cost Management Cost Management Planned value is the estimated value of the work planned, as of today Earned value is the estimated value of the work actually accomplished, as of today What is actual cost? What is budget at completion? Cost Management Cost Management The actual cost incurred for the work accomplished, as of today The projects planned budget; indicates what the end cost of the project would be if everything went according to plan What is the formula for cost variance?
Make sure you are familiar with the tools and techniques of quality management. If other departments are doing that work, you need to understand how their results impact your project. If you are trained in quality, bear in mind that the approach tested on the exam may differ from what you are used to doing. Quality Management Quality Management What is the process of quality management?
Quality Management Quality Management Quality management plan Quality metrics Updates to project management plan and project documents What are the key outputs of the Manage Quality Process? Quality Management Quality Management Test and evaluation documents Quality reports Change requests Updates to project management plan and project updates What are the key outputs of the Control Quality process? Quality Management Quality Management Quality control measurements Validated changes Work performance information Updates to project management plan and project documents Change requests Verified deliverables What is the definition of quality?
Quality Management Quality Management The degree to which the project fulfills requirements How does quality differ from grade? Quality Management Quality Management Whereas quality is the degree to which a project or deliverable fulfills requirements, grade refers to a general category or classification of a deliverable or resource that indicates common function, but varying technical specifications What does gold plating mean? Quality Management Quality Management Because the cost of avoiding or preventing mistakes is much less than the cost of correcting them What does continuous improvement involve?
Quality Management Quality Management Continuous improvement involves continuously looking for ways to improve the quality of work, processes, and results How much inventory is maintained in a just in time JIT environment? How does this affect attention to quality? Quality Management Quality Management Little inventory is maintained It forces attention to quality as well as schedule Who has responsibility for quality on a project? Quality Management Quality Management Although team members must inspect their own work, the project manager has the ultimate responsibility for quality What are some tools and techniques that are used in the Plan Quality Management process?
Define cost-benefit analysis. Quality Management Quality Management Benchmarking: Comparing your project to other projects or organizations to establish quality metrics, acceptable variance ranges, and measure quality Cost-benefit analysis: Comparing the costs of an effort to the benefits of that effort What are the impacts of poor quality?
Quality Management Quality Management Ensures the project is not spending too much to achieve a particular level of quality What are examples of costs of conformance and costs of nonconformance? Which should be greater, the costs of conformance or nonconformance? Quality Management Quality Management Costs of nonconformance are associated with poor quality The costs of conformance should be less than the costs of nonconformance What is marginal analysis?
Quality Management Quality Management An analysis focused on finding the point at which the benefits or revenue to be received from improving quality equals the incremental cost to achieve that quality What is a logical data model? Quality Management Quality Management It contains a description of the quality needs of the project and is used to understand the requirements, clarify business rules, and define processes What does a flowchart show?
Quality Management Quality Management How a process or system flows from beginning to end, how the elements interrelate, alternative paths the process can take, and how the process translates inputs into outputs What is the purpose of test and inspection planning? Quality Management Quality Management For the team to determine how it will confirm that the required level of quality has been achieved in the completion of project deliverables, and how the deliverable will be evaluated for performance and reliability What are quality metrics?
Quality Management Quality Management Specific measures of quality that the project manager uses to determine how the project is performing What are some of the tools and techniques used in the Manage Quality process?
Quality Management Quality Management A technique that allows you to systematically change the important factors in a process and see which combinations have an optimal impact on the project deliverables What is the purpose of failure analysis? Quality Management Quality Management It analyzes failed components of deliverables, or failed processes to determine what led to that failure What does mutual exclusivity mean?
Quality Management Quality Management Two events are said to be mutually exclusive if they cannot both occur in a single trial for example, flipping a coin once cannot result in both a head and a tail In what form is probability usually expressed? Quality Management Quality Management As a decimal or a fraction What is a normal distribution curve?
Quality Management Quality Management A bell-shaped frequency distribution curve used to measure variation This is the most common probability density distribution chart What is statistical independence?
Quality Management Quality Management It is a measure of how far you are from the mean not the median Standard deviation Name some Control Quality tools and techniques. Quality Management Quality Management Checklists and checksheets Statistical sampling Questionnaires and surveys Performance reviews Root cause analysis Inspection Control charts Cause-and-effect diagrams Histograms Scatter diagrams Meetings What is a quality checklist?
Quality Management Quality Management A list of items to inspect, a list of steps to perform, or a picture of an item to be inspected, with space to note any defects found How does a checksheet differ from a quality checklist? Quality Management Quality Management Although a checksheet is a type of checklist, its primary purpose is to keep track of data In Control Quality, checklists are used to determine that all required features and functions are included, and that they meet acceptance criteria What is statistical sampling?
Quality Management Quality Management Inspecting by testing only part of a population a statistically valid sample What is a control chart?
What are control limits? Quality Management Quality Management Control charts are used in Control Quality to help determine if the results of a process are within acceptable limits Control limits are the acceptable range of variation on a control chart What are the specification limits on a control chart?
What is a mean on a control chart? Quality Management Quality Management Specification limits: The customer s expectations or contractual requirements for performance and quality on the project Mean: The average, the middle of the range of acceptable variation How do we define a process as statistically out of control?
What does out of control mean? Quality Management Quality Management A data point falls outside the upper or lower control limit There are nonrandom data points; these may be within the upper and lower control limits What is the rule of seven? What does it signify? Quality Management Quality Management An assignable cause or special cause variation signifies that a process is out of control If there is an assignable cause or special cause variation, it means a data point, or a series of data points, requires investigation to determine the cause of the variation What is a cause-and-effect diagram?
Quality Management Quality Management A graphical tool that helps determine the possible root causes of a problem It is also called a fishbone, Ishikawa, or why-why diagram What is a Pareto chart? Quality Management Quality Management A histogram that arranges the results from most frequent to least frequent to help identify which root causes are resulting in the most problems What does a scatter diagram show?
For example, resource management includes developing team members skills and creating recognition and reward systems for them. Resource Management Resource Management Resource requirements Resource breakdown structure What are the key outputs of the Acquire Resources process? Resource Management Resource Management Physical resource assignments Project or work assignments Resource calendars What are the key outputs of the Develop Team process?
Resource Management Resource Management Team performance assessments Change requests Project management plan updates Project documents updates Organizational process assets updates What are the key outputs of the Manage Team process?
Resource Management Resource Management Change requests Project management plan updates Project document updates Enterprise environmental factors updates What are the key outputs of the Control Resources process? Resource Management Resource Management Work performance information Updates to project documents and project management plan Change requests What are the resource responsibilities for project managers?
What does RAM stand for? What does RACI stand for? Resource Management Resource Management The Responsibility Assignment Matrix RAM chart cross-references team members with the activities or work packages they are to accomplish The RACI chart defines role assignments more clearly by noting how team members are to be involved with four categories: Responsible, Accountable, Consulted, Informed RACI What is the purpose of an organizational breakdown structure?
Resource Management Resource Management To assign project responsibilities to divisions or departments within the organization, such as marketing, product development, or IT What are the key elements of a resource management plan? When is negotiation necessary? Resource Management source Management Preassignment: Resources, both physical and team, that are assigned before the project begins Negotiation is necessary when resources are not preassigned; this includes gaining resources from within your organization and in procurement situations What is multicriteria decision analysis?
Resource Management Resource Management Using a set of criteria such as availability, cost, experience, location, skill set, knowledge, or training to evaluate potential team members Name and explain the four motivation theories. Resource Management Resource Management McGregors Theory of X and Y: Managers believe workers are incapable X or employees can direct their own efforts Y Maslows Hierarchy of Needs: People are motivated by using their skills and contributing to the project McClellands Theory of Needs: People are motivated by one of three needs achievement, affiliation, power Herzberg s Two-Factor Theory of Motivation: Hygiene factors are not sufficient to motivate people; motivating agents will keep people energized and engaged What are the responsibilities of the project manager when it comes to team building?
What are some characteristics of team building? Resource Management Resource Management Guide, manage, and improve the interactions of team members Improve trust and cohesiveness among team members Incorporate team-building activities into project activities Team building requires a concerted effort and continued attention throughout the life of the project WBS creation is a team-building activity because it allows team members to actively engage in the planning and ownership of the project Team building should start early in the life of the project According to the Tuckman ladder, what are the stages of team formation and development?
Resource Management Resource Management By listening to differing viewpoints, acknowledging them, and then using communication and persuasive skills, a project manager can develop mutual trust, and, eventually, agreement within the team What is a team performance assessment? What are project performance appraisals? Resource Management Resource Management Team performance assessment: An assessment by the project manager meant to evaluate and enhance the effectiveness of the project team Project performance appraisals: Evaluations of the performance of individual team members How can the training of team members positively impact the project?
Resource Management Resource Management Training can help decrease the overall project cost and schedule by increasing efficiency What is colocation? What are the challenges of a virtual team? Resource Management Resource Management Colocation: The entire team has offices toether in one place or one room Challenge of virtual teams: Extra efforts will be required to keep everyone on a virtual team informed, engaged, and committed to the project work; there is an emphasis on communication Name some communications technology tools that can help a team keep in touch during a project.
Resource Management Resource Management A shared portal Video or audio conferencing Email and online chat Why is it valuable to provide recognition and rewards to a team or individual team members?
Resource Management Resource Management In addition to recognizing past accomplishments, rewards provide incentive for ongoing achievement and efforts What are some of the key actions a project manager can take to help challenge team members to be part of a high-performing team?
Resource Management Resource Management Track and evaluate team performance Provide leadership Deal with team issues and facilitate conflict resolution Negotiate and influence Adjust plans based on performance data Manage risks to team success Observe what is happening Use an issue log to track resolution Actively look for and help resolve conflicts among team members What is an issue log? Resource Management Resource Management A record that lists the project issues, their causes and impacts on the project, the person s responsible for resolving each issue, the issue status, and target resolution dates What are some of the different types of leadership and management styles?
Resource Management Resource Management Formal legitimate Reward Penalty coercive Expert Referent List the most common sources of conflict on projects, in order of most to least common. Resource Management Resource Management 1. Schedules 2. Project priorities 3. Resources 4. Technical opinions 5.
Administrative procedures 6. Cost 7. Personality Name some conflict resolution techniques. Resource Management Resource Management Collaborating problem-solving Compromising reconciling Withdrawal avoidance Smoothing accommodating Forcing directing Define collaborating problem-solving.
Define compromising reconciling. Resource Management Resource Management Collaborating: Openly discussing differences and incorporating multiple viewpoints to achieve consensus a winwin solution Compromising: Finding an outcome that brings some degree of satisfaction to all parties involved a lose-lose solution Define withdrawal avoidance.
Define smoothing accommodating. Define forcing directing. Resource Management Resource Management Withdrawal: Postponing a decision or avoiding the problem Smoothing: Emphasizing agreement rather than differences of opinion Forcing: Pushing one viewpoint at the expense of another a win-lose solution What is emotional intelligence?
Communications management can be a challenging area because it requires you to think through and structure your communications in ways you may never have thought of before.
On large projects, there may be hundreds of people on your project team, and your communications with them must be planned, managed, and monitored.
Communications Management Communications Management What is the process of communications management? Communications Management Communications Management Communications management plan What are the key outputs of the Manage Communications process?
Communications Management Communications Management Project communications Updates to project management plan and project documents Updates to organizational process assets What are the key inputs to Monitor Communications?
Communications Management Communications Management Project management plan Project communications Issue log Lessons learned register Work performance data Enterprise environmental factors Organizational process assets What are the key outputs of the Monitor Communications process? Communications Management Communications Management Work performance information Change requests Updates to project management plan and project documents How should communications flow on a project?
Communications Management Communications Management Formal written Formal verbal Informal written Informal verbal Describe an interactive model of communication. What are the components of effective listening? Communications Management Communications Management Face-to-face interactions Telephone In writing Instant messaging Email Define interactive, push, and pull communication methods.
Communications Management Communications Management Interactive: The sender provides the information, and recipients receive and respond to it Push: The sender provides the information but does not expect feedback on that information Pull: The sender places the information in a central location, and recipients are responsible for retrieving it What is the formula for communication channels?
Communications Management Communications Management To document both the communications needs of stakeholders and a strategy to meet those needs What are the communication blockers that can get in the way of communicating? Communications Management Communications Management Noisy surroundings Distance between those trying to communicate Improper encoding of messages Language Culture What are some rules for effective meetings?
Project managers focus on preventing problems, not just dealing with them. In risk management, we identify and plan for potential problems before they happen. This is a process-oriented knowledge area, so focus on what you do first, second, third, and so on. Risk Management Risk Management What is the process of risk management?
Risk Management Risk Management Risk ranking for the project compared to other projects List of prioritized risks and their probability and impact ratings Results of other risk parameter assessments Risks grouped by categories List of risks for additional analysis and response List of risks requiring additional analysis in the near term Watch list noncritical risks What key outputs of the Perform Quantitative Risk Analysis process are added to the risk register?
Risk Management isk Management Prioritized list of quantified individual project risks The quantified probability of meeting project objectives Trends in quantitative risk analysis Initial contingency time and cost reserves needed Assessment of overall project risk exposure Possible realistic and achievable completion dates and project costs Recommended risk responses What key outputs of the Plan Risk Responses process are added to the risk register?
Risk Management Risk Management Work performance information Risk register updates Change requests Project management plan updates Organizational process assets updates What key outputs of the Monitor Risks process are added to the risk register? Risk Management Risk Management Outcomes of risk reassessments and risk audits Results of implemented risk responses Updates to previous parts of risk management Closing of risks that are no longer applicable Details of what happened when risks occurred Lessons learned What is a risk?
Risk Management Risk Management A future occurrence that may or may not happen that can have a positive opportunity or negative threat impact on the project What are the four key factors that need to be determined for each risk? Risk Management Risk Management Risk appetite: A general, high-level description of the acceptable level of risk to an individual or organization Risk threshold: The specific point at which risk becomes unacceptable A person who is risk averse is: Risk Management Risk Management Someone who does not want to be negatively impacted by threats What are the inputs to the risk management process?
Risk Management Risk Management Project charter Project management plan Project documents Enterprise environmental factors Organizational process assets Agreements Procurement documentation Work performance data and reports Name the risk categories. Risk Management Risk Management An organizational or hierarchical chart that can help identify and document risk categories Name the categories of non-event risks. Risk Management Risk Management Ambiguity lack of understanding and variability inability to predict changes What are some examples of risk identification techniques?
Risk Management Risk Management Assessing the assumptions made on the project and determining whether they are valid During Identify Risks What is the purpose of a prompt list? What is the purpose of a risk report? Risk Management Risk Management A prompt list can help a project team identify risks to individual elements of the project as well as risks to the overall project The purpose of a risk report is to keep stakeholders apprised of risk managment efforts and outcomes What is risk data quality assessment?
Risk Management Risk Management Determining how accurate, reliable, and well understood the risk information is Done during Perform Qualitative Risk Analysis What is a data representation technique that can be used during the Perform Qualitative Risk Analysis process?
Risk Management Risk Management A probability and impact matrix What can a project manager use in order to determine quantitative probability and impact? Risk Management Risk Management Expert judgment from trained risk specialists and team members Data-gathering techniques, such as interviewing Data analysis techniques, such as Monte Carlo analysis Interpersonal and team skills Representations of uncertainty Cost and schedule estimating Use of historical records from previous projects What is the purpose of Monte Carlo analysis?
Risk Management Risk Management Monte Carlo analysis is used to simulate the cost or schedule results of the project What is sensitivity analysis? Risk Management Risk Management A technique to analyze and compare the potential impacts of identified risks What is a decision tree? Risk Management Risk Management A model of real situations used to make informed decisions by taking into account the associated risks, probabilities, and impacts What is the formula for expected monetary value?
What is the formula for schedule? Risk Management Risk Management Exploit: Make sure the opportunity occurs Enhance: Increase probability or positive impact of the risk event Share: Allocate full or partial ownership of the opportunity to a third party Escalate: Move the opportunity to the program or portfolio level Accept: Do nothing; if it happens, it happens What are residual risks?
What are secondary risks? Risk Management Risk Management Residual: Risks that remain after risk response planning Secondary: New risks created by the implementation of risk response strategies What are contingency plans? What are fallback plans? Risk Management Risk Management Contingency plans are plans describing the specific actions that will be taken if the opportunity or threat occurs Fallback plans are actions that will be taken if the contingency plan is not effective Who is a risk owner?
Risk Management Risk Management Early warning signs that a risk event has occurred, or is about to occur They let risk owners know when to take action What are reserves? What are the two kinds of reserves? Risk Management Risk Management Time or cost added to the project to account for risk Management reserve Contingency reserve What are workarounds? When is it done during the risk management process? Risk Management Risk Management Reserve analysis is checking to see how much reserve remains and how much might be needed It is done during the Monitor Risks process What is a risk review?
How often do they take place? Risk Management Risk Management Assessments of the overall process of risk management on the project What are some common risk management mistakes? For the exam, you should know what happens during each part of the procurement process. You should be familiar with the different types of contracts and be able to determine which is best for a particular project.
You should also understand how you would manage a project differently depending on the contract type being used. Procurement Management Procurement Management What is the process of procurement management? Procurement Management Procurement Management Project charter Business documents Project management plan Project documents Project team assignments Requirements documentation Resource requirements Risk register Stakeholder register Enterprise environmental factors Organizational process assets What are the key outputs of the Plan Procurement Management process?
Procurement Management Procurement Management Procurement management plan Procurement strategy Procurement statement of work Source selection criteria Make-or-buy decisions Bid documents Independent cost estimates Change requests Project document updates Organizational process assets updates What are the key outputs of the Conduct Procurements process?
Procurement Management Procurement Management Selected sellers Agreements Change requests Project management plan updates Project documents updates Organizational process assets updates What are the key outputs of the Control Procurements process? Procurement Management Procurement Management Closed procurements Procurement documentation updates Work performance information Change requests Project management plan updates Project documents updates Organizational process assets updates What is an agreement?
What is a contract? Procurement Management Procurement Management Agreement: A document or communication that outlines internal or external relationships and their intentions Contract: A type of written or verbal agreement, typically created with an external entity, where there is some exchange of goods or services for some type of compensation usually monetary ; a contract forms the legal relationship between the entities What is the difference between centralized and decentralized contracting?
Procurement Management Procurement Management Centralized: There is one procurement department, and the procurement manager handles procurements for many projects Decentralized: There is no procurement department or procurement manager assigned, and the project manager may be responsible for the plan, as well as conducting and monitoring work on all procurements What are the advantages and disadvantages of centralized contracting?
What is a seller proposal or price quote? Procurement Management Procurement Management Qualified seller list: A list of sellers that have been preapproved Seller proposal: A seller s response to the bid documents that represents an official offer from the seller; a proposal is usually the response to a request for proposal RFP ; a quote is usually the response to a request for quote RFQ What is make-or-buy analysis?
What is source selection analysis? Procurement Management Procurement Management Make-or-buy analysis: Deciding whether the performing organization should do the project work itself or outsource some or all of the work Source selection analysis: Determines the criteria that will be used to select sellers What is a procurement management plan?
Procurement Management Procurement Management A plan that documents how procurements will be planned, executed, and controlled What are the three broad categories of contracts? What are the advantages and disadvantages of a fixed-price contract? Procurement Management Procurement Management There is one set fee for accomplishing all the work Advantages: Less work for the buyer to manage; seller has a strong incentive to control costs; companies have experience with this type of contract; the buyer knows the total price before the work begins Disdavantages: Seller may try to make up profits by charging more; seller may try to not complete some of the procurement statement of work; requires more work for the buyer to write the procurement statement of work; can be more expensive than other types if the procurement statement of work is incomplete Who has the cost risk in a costreimbursable contract?
Who has the cost risk in a fixed-price contract? What is a fixed price award fee FPAF contract? Procurement Management Procurement Management Fixed price incentive fee: The buyer pays a fixed price plus an additional fee if the seller exceeds performance criteria stated in the contract Fixed price award fee: The buyer pays a fixed price plus an award paid in full or in part based on the seller s performance What is a fixed price economic price adjustment FPEPA contract?
Procurement Management Procurement Management A fixed-price contract with a built-in economic price adjustment to cover cost increases due to future economic conditions What is a time and material contract?
What are the advantages and disadvantages of a time and material contract? Procurement Management Procurement Management A unilateral contract typically used for buying commodities Purchase orders become contracts when the buyer accepts the terms What is a cost-reimbursable contract?
What are the advantages and disadvantages of a cost-reimbursable contract? What is a cost plus percentage of cost CPPC contract? Procurement Management Procurement Management Cost plus fixed fee: All the seller s costs are reimbursed by the buyer, and a fixed fee is negotiated for the seller s profit Cost plus percentage of cost: All the seller s costs are reimbursed by the buyer, and the buyer also pays a specified percentage of those costs as a fee or profit What is a cost plus incentive fee CPIF contract?
What is a cost plus award fee CPAF contract? Procurement Management Procurement Management Cost plus incentive fee: The seller will be paid for actual costs plus a fee; the seller gets a percentage of the savings if the actual costs are less than target costs or shares the cost overrun with the buyer Cost plus award fee: All the seller s costs are reimbursed by the buyer, and the buyer pays a base fee plus an award amount a bonus based on performance What do incentives accomplish?
What might incentives be used for? Procurement Management Procurement Management How the cost savings or cost overrun will be shared as apportioned by percentage e. Procurement Management Procurement Management Final price the cost, or end result What is the ceiling price?
What is the point of total assumption? Procurement Management Procurement Management Ceiling price: The highest price the buyer will pay; its a condition of the contract that must be agreed to by both parties before signing Point of total assumption: For fixed price incentive fee contracts, the amount above which the seller bears all the loss of a cost overrun Describe the three different types of procurement statements of work.
Procurement Management Procurement Management Performance: Conveys what the final product should accomplish Functional: Conveys the end purpose or result the minimum essential characteristics of the product Design: Conveys exactly what work is to be done and how it should be completed Terms of Reference: If the procurement is for services rather than products What is an independent cost estimate?
0コメント