Sunday, September 20, 2009

What is a Make-or-Buy Analysis?

Make-or-Buy Analysis:
  • is a technique used to determine whether it would be more cost effective to produce a prudct or service in-house or from an outside vendor.
  • can significantly impact project time, cost, quality, scope, etc.

Introduction on Plan Purchase and Acquisitions

Plan Purchase and Acquisitions is a critical process that involves acquiring goods and services from outside the organization.

Saturday, September 12, 2009

What is a Letter of Intent?

Letter of Intent is:
  • normally NOT a contract but simply a letter with legal binding that says the buyer intends to hire the seller.

What is a Non-Disclosure Agreement?

Non-Disclosure Agreement is:
  • an agreement between the buyer and any prospective sellers stating what information or document they will hold confidential and control.

Saturday, September 5, 2009

What is a Contract?

A contract refers to the entire agreement between both parties (Buyer and Seller).

It includes business terms regarding:
  • Payment
  • Reporting requirement
  • Proposal
  • Contract statement of work
  • Others

Project Manager's Role in Procurement

The project manager must be involved in the creation of contracts and fulfills the following key roles:
  • Understand contract terms and conditions

  • Identify risks and incorporate mitigation and allocation of risks into the contract

  • Fit the schedule for completion of the procurement process into the schedule for the project

  • Be involved during contract negotiation to project relationship with the seller

  • Work with contract manager to manage changes to the contract

Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)