PROJ
410 Final Exam Solution 100 % Correct Answers
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PROJ 410 Final Exam Solution 100 %
Correct Answers
1. (TCO 1 & 4) What would facilitate a business process
outsourcing transition quickly and maintain some consistency in the
organization? (Points : 5)
allow the outsourced firm autonomy
to create its own policies and procedures with no regard for the project’s
goals
quickly lay off all employees
retain key employees through transition
sidestep the RFP process because it takes too long
quickly lay off all employees
retain key employees through transition
sidestep the RFP process because it takes too long
2. (TCO 4) Under this pricing contract, the buyer pays the
seller’s actual costs and a fixed fee determined as a percentage of the
estimated project costs. (Points : 5)
CPFF
CPF
CBF
CPIF
CPF
CBF
CPIF
3. (TCO 7) Which step(s) should a buyer take to evaluate the
seller’s proposal? (Points : 5)
Establish a scoring system
Weigh each evaluation criterion
Select key evaluation criteria
All of the above
Weigh each evaluation criterion
Select key evaluation criteria
All of the above
4. (TCO 5) Negotiations in a BPO agreement are largely
determined by which factor? (Points : 5)
The underlying objectives of each of
the parties
The scope of services being outsourced
The relative bargaining positions of the parties
All of the above are factors that determine negotiations
The scope of services being outsourced
The relative bargaining positions of the parties
All of the above are factors that determine negotiations
5. (TCO 6) Employee morale and expectations, buyer’s precedent,
service level desired by the buyer, and the efficient delivery of services by
the seller are all _____. (Points : 5)
reasons affecting the human resource
transfer decision
reasons to outsource human resources
reasons to maintain the business process in-house
reasons to exclude offshoring contractors from bidding on an RFP
reasons to outsource human resources
reasons to maintain the business process in-house
reasons to exclude offshoring contractors from bidding on an RFP
6. (TCO 3) Which is not a key component in the project
procurement management process? (Points : 5)
Select sellers
Plan contracting
Request for proposal
Plan purchases and acquisitions
Plan contracting
Request for proposal
Plan purchases and acquisitions
7. (TCO 6) What are some steps to take when communicating with
employees that outsourcing will take place in the company? (Points : 10)
8. (TCO 2 & 6) What typically gets outsourced and what
would be the benefits to outsourcing the items listed? Please list and discuss
six reasons. (Points : 10)
9. (TCO 9) What happens after a renegotiation? Why does this
happen? (Points : 10)
10. (TCO 8 & 9) What is benchmarking? Give two examples with
which you are familiar, and tell why benchmarking is useful in outsourcing.
(Points : 10)
Page 2
1. (TCO 8) What is a performance standard and how is this
agreed upon? Recommend the components that would need to be included and why.
(Points : 30)
2. (TCO 5) What laws should an organization consult before,
during, and after a BPO? Describe two of the laws and how you would include
this in a presentation to executives. (Points : 30)
3. (TCO 5 & 7) List and describe five components of a BPO.
Then summarize why each of the items that you chose are important to the BPO
process. (Points : 30)
4. (TCO 2 & 5) Describe in detail how the negotiation
process works when this process is done correctly. Then convince the executive
team that the legal team has to be represented in the negotiation process.
(Points : 30)
5. (TCO 8 & 10) What is early termination? Give an example
and then discuss how can this be avoided or minimized. Persuade the legal team
that the verbiage to accomplish this needs to be included in the BPO agreement.
(Points : 30)
6. (TCO 5 & 6) What are some considerations when a company
will be transferring employees to the outsourcer? Anticipate issues that will
be brought up by the employees and the responses that the company will provide.
(Points : 30)
ProJ 410 Final Exam Set No : 2
1.
(TCO 1) A cost-plus-percentage-fee contract is a: _______. (Points : 5)
cost-reimbursable contract, the
seller pays the buyer’s actual costs, and a percentage of the total project
costs
cost-reimbursable contract, the seller pays the buyer’s actual costs, and all of the total project costs
cost-reimbursable contract, the buyer pays the seller’s actual costs, and a percentage of the total project costs
cost-reimbursable contract, the seller pays the buyer’s actual costs, and none of the total project costs
cost-reimbursable contract, the seller pays the buyer’s actual costs, and all of the total project costs
cost-reimbursable contract, the buyer pays the seller’s actual costs, and a percentage of the total project costs
cost-reimbursable contract, the seller pays the buyer’s actual costs, and none of the total project costs
2.
(TCO 2) The difference between the project manager and contract administrator
is: ______.
(Points : 5)
the project manager is responsible
for the project-related coordination, while the contract manager is responsible
for administering the contract
the contract administrator has the authority to make all contract-related decisions, like approving a change order. The project manager does not have this level of authority.
the project manager is responsible for the administering of the contract, while the contract manager is responsible for project-related coordination.
the project manager has the authority to make all contract-related decisions, like approving a change order. The contract administrator does not have this level of authority.
the contract administrator has the authority to make all contract-related decisions, like approving a change order. The project manager does not have this level of authority.
the project manager is responsible for the administering of the contract, while the contract manager is responsible for project-related coordination.
the project manager has the authority to make all contract-related decisions, like approving a change order. The contract administrator does not have this level of authority.
3.
(TCO 3) Which is a key component in the project procurement management process?
(Points : 5)
RFI Request for Issue
RFP Request for Proposal
RFB Request for Buy
RFC Request for Contract
RFP Request for Proposal
RFB Request for Buy
RFC Request for Contract
4.
(TCO 2) Senior management typically has different reasons for issuing the
directive to outsource than management responsible for the business process.
Senior management typically decides to evaluate outsourcing because: ______.
(Points : 5)
there is a means to focus more
resources on business process strategy
there is a means to focus less resources on business process strategy
there is an effort to decrease performance
there is an organization-wide directive to downsize or cut costs
there is a means to focus less resources on business process strategy
there is an effort to decrease performance
there is an organization-wide directive to downsize or cut costs
5.
(TCO ) When notifying third parties in a transition plan, who would not need to
be notified? (Points : 5)
Third-party vendors
Government or regulatory authorities
Customer’s competitors
Customer’s clients
6.
(TCO ) In International contracts, which industry-specific question does not
need to be asked? (Points : 5)
Which country’s standards are used?
What regulatory authorities are
called into question?
What regulations are specific to the
business process operations?
What notice requirements or
approvals are needed before and after a contract signing?
7.
If a contract is seen through its full term, list two items that should be
completed as part of contract close-out? What is a close out manager? Why is
deliverable acceptance documents so important?
8.
(TCO 8) What are the two ways to rank the seller’s proposals before selecting a
seller? (Points : 12)
9.
(TCO 6) Sometimes, a seller is selected based solely on lowest price. However,
sometimes this is not always the most efficient or effective way of selecting a
seller. What are some of the other evaluation criteria that a buyer may use to
help select a seller? (Points : 12)
10. What are some of the common techniques used for
establishing service levels?
Page 2.
1.
(TCO ) What is benchmarking? Please support your answer. Defend the cost of
benchmarking in an industry. (Points : 30)
2.
(TCO ) What happens when there is a failure in an SLA? Use an example to
analyze a failure in an SLA and how important SLAs are to the buyer in a BPO
contract agreement. (Points : 30)
3.
(TCO ) What are the elements of a Request for Proposal (RFP)? Please list and
discuss five of the elements. (Points : 10)
4.
(TCO ) Part 1: Discuss the following types of contract pricing: (a) fixed
price, (b) cost-plus price, (c) time & materials, and (d) unit price. Part
2: Explain the appropriate utilization of each contract pricing type and the
impact of risk to the contracting parties. Part 3: What type of contract
pricing structure misaligns the buyer’s motivations with the seller’s? (Points
: 30)
5.
(TCO ) List and describe five components of a BPO. Then summarize why each of
the items that you chose are important to the BPO process. (Points : 30)
6.
What does the outsourcing of the HR function involve? What are pros and cons of
HR Outsourcing? What do you think are three critical considerations that you
must include in the implementation plan for this outsourcing transition?
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