You work for an automobile industry. Your organization has initiated a project to upgrade the cars. The sponsor has appointed you as the Project Manager.
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Description
Situation:
You work for an automobile industry. Your organization has initiated a
project to upgrade the cars. The sponsor has appointed you as the Project
Manager. For this project, one of the requirements is special electronic auto
parts. Your organization has the capability to produce these auto parts.
However, during the planning phase, some stakeholders suggest that the
production of the auto parts can be outsourced. You feel that there is a risk
associated with this; you decide to use the decision tree tool to figure out
whether it is better to outsource this or do it yourself. After brainstorming
with the team, you identify the following values and the risks
associated.
|
Decision |
Outcome |
|
|
In-house
investment is $100K |
Probability |
70% |
|
|
Impact |
Gain is
$120K |
|
|
Probability |
30% |
|
|
Impact |
Loss is
$30K |
|
Outsourcing
investment is $40K |
Probability |
50% |
|
|
Impact |
Gain is
$100K |
|
|
Probability |
50% |
|
|
Impact |
Loss is
$10K |
A. Use the Decision Tree tool and decide which option
is better: Producing in-house or outsourcing - 15 Minutes
Regardless of the Decision Tree outcome, you decide to outsource the production
of electronic parts. For this, you need to plan the procurement. With this
process, you can come up with a subsidiary plan.
Many sellers in the market can produce these electronic parts. You need to
evaluate and select a seller. To make this happen, you decide to develop Source
Selection Criteria.
B. Develop the relevant subsidiary plan and the possible Source
Selection criteria list - 30 Minutes
C. After the planning is done, you select the seller and sign the
contract. This process can be termed an agreement. Develop a sample agreement
that has the key elements - 20 minutes
As part of the Control Procurements process, you receive the work performance
data and report from the seller. The data says that 40% of work is completed,
whereas the seller is supposed to complete 50% of the work. This calls for a
change request to bring the project on track.
D. Briefly explain Work Performance Data, Work Performance
Information, and Work Performance Report. Develop possible Work Performance
Data and Work Performance Report documents for this scenario. Also
explain the techniques used in this process to address the change - 15 minutes
E. To monitor the procurement-related activities, you can use the
control procurement process. List the techniques used under control
procurements and write down a few lines about these techniques - 30
minutes.
