Question 23 (2 points)

Tracy is a project manager for a local not-for-profit organization that is in the planning phase for an affordable housing project. Tracy is evaluating the need to buy project scope, which of the following would not be a reason to make project scope?

Question 23 options:

	Lack of suitable suppliers
	Adequate managerial or technical resources
	More accountability for Quality and Time
	Utilize project team expertise and time

Question 24 (2 points)

Jacob is a project manager working for Fantastic marketing firm. Fantastic headquarters is in downtown Toronto and has been at this location since 1967. As part of the firm's capital expenditures they have put aside $1 million for a fit-out project to modernize their building. The modernization project was assigned to Jacob. Midway through the project Jacob finds out that a $200,000 universal accessibility package was missed during the design phase. The universal accessibility package is needed in the project locality, so Jacob escalated the issue to the executive. Jacob was granted approval to proceed with the work and management reserve funds were allocated. Why did the firm carry out the universal accessibility package work, even though it was 20% over the initial budget?

Question 24 options:

	An organizational need
	A legal requirement
	A technological advance
	A customer request or market demand

SA

Question 25 (15 points)

Note. Provide your detailed solution to this exercise and NOT just the final answers.

Mr. X is the project manager for a aerospace project. He calculates that an in-house solution will cost the company $330,000 to create the package and based on OPA information, another $10,000 per month to maintain it.

Ms. Y, the purchaser for the project advises Mr. X that it would cost the project $235,000 to purchase the scope plus another 10,000 to customize it for the needs of the project. However the supplier requires a maintenance plan which will cost the project $15,000 per month. The company plans on using the aerospace project for 540 days.(Assume 30 days flat every month)

A. Based on the information above, make a quantitative make or buy analysis decision. Please indicate the cost of making, cost of buying and Make or Buy analysis result.

B.From a quantitative analysis perspective, at what month is the make solution more cost effective?

C. Mr Y is negotiating to remove the customization cost, but unsure whether this would really impact the Make or Buy decision. Does that really change the decision at all? How? Provide calculations and explanations.

Question 25 options:

Add a FileRecord AudioRecord Video

True or False questions

Question 26 (1 point)

According to PMBOK 6^th Ed., during the "plan procurement management" process, a make or buy analysis is NOT a "data gathering" tool and technique.

Question 26 options:

	True
	False

Question 27 (1 point)

It is not possible under any circumstance for the contracted vendor to go from being the seller to the buyer for any given contract lifecycle on a project.

Question 27 options:

	True
	False