139 - Chapter 11-13

Suppliers and concerned citizens are considered external stakeholders because they are individuals or entities that are not directly involved in the day-to-day operations of a company but have an interest or influence in its activities. Suppliers provide goods or services to the company, while concerned citizens may include community members, activists, or organizations that have a vested interest in the company's actions and impact on the community or environment. Both suppliers and concerned citizens have a role in shaping the company's reputation and success from an external perspective.

Risk is an uncertainty that can have a negative or positive effect on meeting project objectives. It refers to the possibility of encountering unexpected events or circumstances that may impact the success of a project. By identifying and assessing risks, project managers can develop strategies to mitigate or capitalize on them, ultimately improving the chances of achieving project objectives.

An RFP (Request for Proposal) is often written in the project procurement management process of planning procurement management. This process involves identifying the necessary goods or services to be procured and determining the most appropriate procurement approach. Writing an RFP is a crucial step in this process as it allows the project team to clearly communicate their requirements to potential sellers and solicit competitive proposals. By writing an RFP during the planning phase, the project team can ensure that they have a well-defined procurement strategy in place before moving forward with conducting procurements or selecting sellers.

Controlling stakeholder engagement should start in the early phases of a project because it is crucial to establish effective communication and build relationships with stakeholders from the beginning. This allows for better understanding of their needs, expectations, and concerns, which can help in managing their engagement throughout the project lifecycle. By starting early, project managers can identify key stakeholders, establish clear lines of communication, and address any potential issues or conflicts before they escalate. This proactive approach ensures that stakeholders are actively involved and engaged in the project, leading to increased chances of project success.

The Delphi technique involves gathering input from a panel of experts anonymously to reach a consensus on future events. This method allows for unbiased opinions and encourages open discussion without the influence of dominant personalities. The experts provide their input and predictions independently, and the facilitator compiles and summarizes the responses to identify common themes and areas of agreement. This technique helps in identifying and assessing risks by leveraging the collective knowledge and expertise of the panel.

The project team is choosing to avoid the risk of using the upcoming release of software because it may cause a delay in the schedule. By avoiding the risk, they are actively deciding not to engage with it and are taking steps to prevent it from occurring. This strategy allows them to minimize the potential negative impact on the project's timeline.

A risk register is a document that contains results of various risk management processes, and is often displayed in a table or spreadsheet format. It is used to identify, assess, and track risks throughout a project or organization. The register includes information such as the risk description, likelihood, impact, mitigation strategies, and responsible parties. It helps to prioritize risks and allocate resources accordingly to manage and mitigate them effectively.

Triggers are indicators or symptoms of actual risk events. They can be seen as warning signs that suggest the occurrence of a risk event. In the given example, a cost overrun on early activities is a trigger that indicates poor cost estimates. Triggers help in identifying and addressing potential risks before they escalate into bigger issues.

A fixed-price contract has the least amount of risk for the buyer because the price is agreed upon upfront and does not change, regardless of any unforeseen circumstances or changes in the project. The buyer knows exactly how much they will be paying, which eliminates the risk of cost overruns or additional expenses. In contrast, other types of contracts such as cost plus incentive fee (CPIF), time and material, or cost plus fixed fee (CPFF) may involve more uncertainty and potential for increased costs.

This example of hiring a specialist in a certain field for training falls under the reason for outsourcing of "accessing skills and technologies." By outsourcing this training to a specialist, the organization can benefit from the expertise and knowledge of someone who has specific skills and technologies in that field. This allows the organization to gain access to resources that they may not have internally, ultimately enhancing their own capabilities and improving the quality of the training provided.

In this scenario, the correct answer is "contingency". A contingency plan refers to a backup or alternative plan that is prepared in case the desired or intended plan does not work out. In this case, if the new release of the software application is not available, the team has a contingency plan to use the current release instead.

The project's estimated monetary value is $67,000. This is calculated by multiplying the probability of each outcome by its corresponding monetary value and summing them up. In this case, there is a 30% chance of losing $10,000 (-$10,000 * 0.30 = -$3,000) and a 70% chance of earning $100,000 ($100,000 * 0.70 = $70,000). Adding these values together gives us -$3,000 + $70,000 = $67,000.

After purchasing the item, the daily cost is $100. The lease cost is $200 per day. To find out when the lease cost will be the same as the purchase cost, we need to find the number of days it takes for the total cost of leasing to equal the investment cost of purchasing. Since the investment cost is $6,000 and the daily cost difference between leasing and purchasing is $100, it will take 60 days for the lease cost to be the same as the purchase cost.

The correct answer is project stakeholder management. This knowledge area was first introduced in the PMBOK® Guide in 2012. It focuses on identifying and engaging stakeholders throughout the project lifecycle to ensure their needs and expectations are met. This includes processes such as stakeholder identification, analysis, communication, and management. By actively managing stakeholders, project managers can enhance project success and minimize potential conflicts or issues.

A person who is risk-seeking is someone who actively seeks out and enjoys taking risks. They are more satisfied when there is a higher potential payoff involved and are even willing to pay a penalty in order to engage in risky activities. This indicates that they have a higher tolerance for uncertainty and are motivated by the excitement and potential rewards that come with taking risks.

The UK is requiring people to complete a new academic program in project management before leading a large government project due to a series of large project disasters. This suggests that the UK government has recognized the need for better project management skills to prevent future failures and is taking proactive measures to ensure that project leaders are adequately trained and qualified in this area.

E-procurement refers to the use of electronic platforms and technologies to carry out various procurement functions. This can include activities such as sourcing, ordering, and payment processes, all of which are done electronically. E-procurement allows for greater efficiency, transparency, and cost savings in the procurement process, as it eliminates the need for manual paperwork and streamlines communication between buyers and suppliers. It is widely used in both public and private sectors to streamline and automate procurement processes.

If a college or university wants to gather information from potential sellers for the purpose of building a new sports stadium, they would require a proposal from the potential sellers. A proposal is a formal document that outlines the seller's approach, plans, and costs for the project. It provides detailed information about the seller's capabilities and expertise, as well as their understanding of the project requirements. This document helps the college or university evaluate and compare different sellers' offerings before making a decision.

Performing qualitative risk analysis involves prioritizing risks based on their probability and impact of occurrence. This process helps to identify and assess risks qualitatively, without assigning specific values or numbers to them. By prioritizing risks, organizations can focus their resources on addressing the most critical and high-impact risks first. This analysis helps in understanding the potential consequences of each risk and determining the appropriate risk response strategies.

Simulation is a quantitative risk analysis tool that uses a model of a system to analyze its expected behavior or performance. It involves creating a virtual representation of the system and running various scenarios to understand how it will behave under different conditions. By simulating the system, analysts can identify potential risks, evaluate the impact of different variables, and make informed decisions to mitigate risks and optimize performance.

The Point of Total Assumption refers to the point at which the contractor assumes total responsibility for each additional dollar of contract cost. This means that beyond this point, any additional costs incurred by the contractor will not be reimbursed by the client or the contract. It is an important concept in contract management as it helps determine the financial risk and potential profit for the contractor.

A power/interest grid can categorize stakeholders based on their level of authority and concern. This grid helps to identify and prioritize stakeholders based on their power or influence over a project or decision, as well as their level of interest or concern in the outcome. By plotting stakeholders on this grid, it becomes easier to determine how to engage and manage them effectively, based on their level of authority and concern.

When a project stakeholder has both a high amount of authority and a high amount of interest, it is crucial to manage the relationship closely. This stakeholder has the power to make significant decisions that can impact the project's success, and their high level of interest indicates their involvement and potential impact on the project. By managing the relationship closely, the project manager can ensure effective communication, address any concerns or issues promptly, and actively involve the stakeholder in decision-making processes. This approach helps to maintain a positive and collaborative relationship, ensuring that the stakeholder's needs and expectations are met throughout the project.

An issue log is a tool that can be used to document, monitor, and track items that need resolution on a project. It allows project managers and team members to record and track any issues or problems that arise during the project, including their status, priority, and assigned resolution actions. By using an issue log, project stakeholders can effectively manage and address any challenges or obstacles that may impact the project's progress and success.

The stakeholder register includes information about stakeholders such as their identification, classification, and assessment. However, the engagement level of stakeholders is not included in the stakeholder register. The engagement level refers to the extent to which stakeholders are actively involved and participating in a project or organization. This information is typically tracked separately from the stakeholder register and is important for understanding the level of support or opposition from stakeholders.

Texting is not an example of a microblog. A microblog is a platform where users can post short updates or messages, typically in the form of text, images, or links. Texting, on the other hand, refers to the act of sending short messages via mobile phone or other devices. While texting can be used to communicate with stakeholders, it is not considered a microblogging platform.

The top reason for global outsourcing of IT services is a shortage of qualified personnel. This means that companies are unable to find enough skilled individuals locally to meet their IT needs. As a result, they turn to outsourcing to access a larger pool of talent from around the world. Outsourcing allows companies to tap into the expertise of professionals in different countries who possess the necessary skills and qualifications. This helps address the shortage of qualified personnel and ensures that companies can meet their IT requirements effectively.

An expectations management matrix can help clarify which knowledge areas are most important to stakeholders on a project. This matrix allows project managers to identify and prioritize the expectations of stakeholders, which in turn helps in understanding the knowledge areas that are crucial for meeting those expectations. By using this matrix, project managers can effectively manage and align stakeholder expectations with project goals and objectives.

A proposal evaluation sheet is an example of a weighted scoring model because it assigns different weights to various criteria or factors that are important in evaluating proposals. These weights reflect the relative importance of each criterion, and the scores assigned to each proposal are then multiplied by these weights to calculate a weighted score. This allows for a more objective and systematic evaluation of proposals, as it takes into account the different priorities and preferences of the evaluators.

Buyers often prepare a short list when selecting a seller to make the process more manageable. This means that they narrow down their options to a smaller number of preferred and qualified suppliers. By doing so, buyers can focus their attention on evaluating and comparing a select few sellers, rather than having to consider a large number of potential options. This helps streamline the decision-making process and allows buyers to make a more informed choice.