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PROJ 410 Final Exam Answers


PROJ 410 Final Exam Answers

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1. (TCO 1 & 4) What would facilitate a business process outsourcing transition quickly and maintain some consistency in the organization? (Points : 5)


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)


3. (TCO 7) Which step(s) should a buyer take to evaluate the seller's proposal? (Points : 5)

4. (TCO 5) Negotiations in a BPO agreement are largely determined by which factor? (Points : 5)



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)


6. (TCO 3) Which is not a key component in the project procurement management process? (Points : 5)


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)




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)




PROJ410 Final Exam Part 2

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1. (TCO 1) A cost-plus-percentage-fee contract is a: _______. (Points : 5)

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2. (TCO 2) The difference between the project manager and contract administrator is: ______.

(Points : 5)

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3. (TCO 3) Which is a key component in the project procurement management process? (Points : 5)

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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)

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5. (TCO ) When notifying third parties in a transition plan, who would not need to be notified? (Points : 5)

6.  (TCO ) In International contracts, which industry-specific question does not need to be asked? (Points : 5)

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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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