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NEW QUESTION: 1
Which of the following techniques is described in the statement below?
"It is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources."
A. Risk analysis
B. Contract type
C. Expert judgment
D. Make-or-Buy analysis
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Answer option B is correct.
A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs.
Answer option D is incorrect. Risk analysis is a method or a technique that can be used to identify and assess factors that may hinder the successful completion of a project or the achievement of a goal. It is also known as Project Impact Analysis or PIA. Risk analysis can also be used to determine business needs to start a project.
Answer option A is incorrect. Expert Judgment is a term that refers a specifically to a technique in which judgment is made based upon a specific set of criteria and/or expertise that has been acquired in a specific knowledge area, or product area, a particular discipline, an industry, etc. When project conflicts arise, expert judgment is used to evaluate the inputs into the process. Specifically, expert judgment is used to assess the product description, the project-selection criteria, and the validity of the historical information. In addition, expert judgment could be used to identify key assumptions and constraints. The expert can be anyone from within or external to the project team that has the required specialized knowledge and/or experience relevant to the goals of the project can be used as a source of expert judgment. Just who is an expert? While SMEs (Subject Matter Experts), customers, industry experts, consultants are all examples of experts, it doesn't have to be a person who is considered the ultimate in that sphere. It could be anyone who has the required experience to provide the input and judgment required to address the conflict.
Answer option C is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition" Chapter: Procurement and Project Integration Objective: Make vs. Buy Analysis