Please Explain Your Company's Supplier Selection Process for Identifying 3rd Party Relationships.

Project Planning: Putting It All Together

Week 3 Quiz Answer

Weekly Challenge 3

Question 1)

When creating a budget, a project manager must do which of the following? Select all that apply.

• Budget for surprise expenses
• Approve budget increases
• Review and reforecast throughout the project
• Understand stakeholder needs

Question 2)

As a project manager creating a budget, you're thinking about all the parts of a project from beginning to end—making a list of every material, resource, and contract worker. What do you call this type of budgeting?

• Buffers and reserves
• Top-down approach
• Contingency
• Bottom-up approach

Question 3)

Which scenario is an example of proactive budget management?

• While planning your project budget, you gather historical data and consult with industry experts. You consider fixed costs, add relevant line items, and set aside a 5% reserve for unexpected costs.

• You're reviewing your budget and realize that it took much longer than you anticipated for a subject matter expert to complete a task. The labor cost associated with this task is now well over budget. You must now request a budget increase to cover the cost of the labor.

• While planning your project budget, you decide that you don't need to add buffers for unexpected costs. Since you've completed several projects like this one in the past and have always come in under budget, you feel you don't need to plan for any extra cost.

• During your project, the market experiences a shortage of a resource that's crucial for your project's success. Because of the shortage, the price of this resource increases. This is something you did not expect, nor plan for, and must now figure out how you can afford to complete your project.

Question 4)

Which of the following are steps in the procurement process? Select all that apply.

• Analyzing
• Contract writing
• Controlling
• Initiating

Question 5)

Which section of the statement of work (SoW) includes details about what the service entails and may include major project activities?

• Purpose
• Scope
• Target audience
• Schedule overview

Question 6)

"Honesty, responsibility, respect, and fairness are the values . . ." begins what type of saying of the Project Management Institute that serves as a guide to how they do procurement and other business?

• slogan
• requirements
• code of ethics
• motto

Question 7)

To create a well-organized budget, a project manager includes different types of expenses. Which type of budget expense includes costs for day-to-day tasks within a company?

• Operating expenses (OPEX)
• Fixed expenses
• Reserve expenses
• Capital expenses (CAPEX)

Question 8)

At what phase in the procurement process would a project manager review a vendor's performance and determine if they are meeting milestones?

• Controlling
• Investigating
• Completing
• Selecting

Question 9)

Which of the following accurately describes total cost of ownership (TCO)?

• TCO only factors in upfront expenses associated with a product or service.
• TCO is the dollar amount used to measure if a project is on track or not.
• TCO factors in expenses associated with a product or service over its lifetime.
• TCO is the additional room in the budget for unexpected costs.

Question 10)

Which of the following statements is typically true regarding budgeting?

• It's recommended to go either over or under budget.
• It's important to not go under budget, but it's recommended to go over budget.
• It's important to not go over budget, but it's recommended to go under budget.
• It's important to not go over or under budget.

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Extra Questions

Question 11)

Which scenario is an example of planned cost versus actual cost?

• When planning your project budget, you notice that you need to advertise several job positions. The cost to post the job descriptions to several online job boards is $300.

• When planning your project budget, you need to factor in unexpected costs that may occur. You decide to reserve 5% of your overall budget as a buffer.

• When planning your project budget, you document the planned cost of labor. To do this, you use the estimated number of hours your team needs to complete the project. As your project progresses, you document the total hours your team works to determine the total cost of labor for your project. This number may be different from your original cost of labor.

• When planning your project budget, you gather historical data on costs of materials, resources, and labor to determine how much each will cost. Once you begin procuring these items, you don't update the actual cost.

Question 12)

As a project manager creating a budget, you proactively identify factors that may impact expenses. You then take action to minimize the budgetary impact of these factors. What is this task called?

• Baselining the budget
• Estimating cost
• Cost control
• Bottom-up approach

Question 13)

As a project manager, you research and source for a specific service. You then have to manage that relationship. This is known as what type of procurement?

• Performance management
• Cost management
• Budget management
• Vendor management

Question 14)

A document that keeps confidential information within the organization is known as what?

• Statement of work (SoW)
• Scope of work (SoW)
• Non-disclosure agreement (NDA)
• Request for proposal (RFP)

Question 15)

To create a well-organized budget, a project manager includes different types of expenditures. Which type of budget expense creates a future benefit for a company?

• Capital expenses (CAPEX)
• Indirect expenses
• Operating expenses (OPEX)
• Historical expenses

Question 16)

At what phase in the procurement process would a project manager define project resources and make the case for obtaining them?

• Completing
• Selecting
• Controlling
• Initiating

Question 17)

Which of the following factors can lead to scope creep and negatively affect the budget? Select all that apply.

• A vague Statement of Work (SoW)

• Last-minute asks from priority stakeholders

• Agreements about the project that aren't officially documented

• Attainable timeframes and deadlines

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More Related Questions

Question 18)

As a project manager, you review your budget and notice one vendor is costing more than anticipated. You shift funds and recalibrate the budget to offset this increased vendor cost. What is the budgeting term for this task?

• Setting the baseline
• Contingency budgeting
• Reserve analysis
• Reforecasting

Question 19)

Which of the following is an example of using historical data to develop your project budget?

• Reviewing past projects that are similar to yours to get an idea of what your budget could entail
• Reaching out to project managers who worked on past projects at the company
• Thinking about all the parts of your project from the beginning to the end and adding the costs together
• Getting quotes from potential vendors

Question 20)

As a project manager, you're seeking a procurement approach that outlines clear workstreams, hard deadlines, and financially protects your project against unforeseen circumstances. Which procurement approach should you choose?

• Protectionist
• Agile
• Traditional
• Robust

Question 21)

Which of the following justifies sole-supplier sourcing?

• The company is cautious about exposing trade secrets.
• The supplier provided material for the past three projects.
• The supplier is easy to work with and offers a discount.
• The project sponsor asks to only use one particular supplier.

Question 22)

Fill in the blank: A project manager needs to alter their budget after making changes to the project schedule and costs. This is necessary in order to _____.

• re-baseline the budget to track project progress of costs
• re-baseline the budget to track project progress of tasks
• baseline the budget to track project progress of reserves
• baseline the budget to track project progress of costs

Question 23)

Which three costs are examples of resource cost rates?

• The cost of materials when building a house
• The cost of software to help manage a project
• The cost of a task buffer
• The cost of labor for a project team

Question 24)

As a project manager, the project sponsor gives you cost estimates with a set amount of money to spend. What challenge for effective budgeting does this represent?

• Insufficient cash flow
• Pre-allocated budget
• Lack of historical data
• Scope creep

Question 26)

At what phase in the procurement process would a project manager check a vendor's reputation for delivering quality work, and make a site visit?

• Controlling
• Completing
• Selecting
• Introducing

Question 27)

When budgeting a project, you should consider additional expenses such as warranties, supplies, add-ons, and upgrades. Which budgeting term refers to this concept?

• Bottom-up approach
• Total cost of ownership
• Baseline your project
• Top-down approach

Question 28)

Fill in the blank: In project management, the budget is considered a _____—it is a success metric.

• procurement
• reserve
• deliverable
• dependency

Question 29)

Fill in the blank: Typically, a project manager organizes a budget by _____. Then, the project manager lists tasks alongside each task's associated costs.

• tools
• teammates
• dependencies
• milestones

Question 30)

Which of the following may impact ethics in procurement? Select all that apply.

• Bribery or corruption
• Interaction with state-owned entities
• Sole-supplier sourcing
• Union contract negotiations

Question 31)

After receiving multiple bids for your project, you select a vendor you'd like to work with. You're ready to start the contracting process. Which procurement document do you fill out and send the vendor?

• Statement of work (SoW)
• Scope of work (SoW)
• Request for proposal (RFP)
• Non-disclosure agreement (NDA)

Please Explain Your Company's Supplier Selection Process for Identifying 3rd Party Relationships.

Source: https://niyander.blogspot.com/2021/11/project-planning-putting-it-all.html

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