Managerial Finance Quiz
1.
Question :
(TCO 2) A firm should concentrate on its _____ processes while outsourcing its _____ processes.
Student Answer:
overhead, core
core, non-core
non-core, overhead
non-core, core
Instructor Explanation:
Page 2
Points Received:
5 of 5 Comments:
2.
Question :
(TCO 5) To assess the impact of a contract on both the buyer and seller, an analysis of exposure can be completed. Categories analyzed in this exposure analysis include all of the following except: ______.
Student Answer:
terms with no quantifiable impact
key contract terms
significant contract terms
informational terms from the RFP
Instructor Explanation:
Page …show more content…
This area briefly answers the who, what, when, how, and why questions. Common issues addressed in the introduction include contact information, how to respond, submittal format, and timeframe for response. Background: Here is the part in which the buyer needs to let the sellers know the decision and thought process behind how the buyer reached the conclusion to outsource (i.e., why it is soliciting bids for a certain outsourced product or service). Scope of Services: The "meat and potatoes" of the RFP. It is the buyer's responsibility to provide a clear and accurate description of the scope of services. Contractors will base their staffing, pricing, and timeline on this scope of services. If the buyer has left the scope of services inaccurate, misleading, or incomplete, there will be a lot of contingency planning happening once the contract has been awarded (and ultimately, the contract may break down somewhere along the line). Common issues addressed in this section include employee migration (if any), location, and transition. Performance Standards: While some buyers elect not to include performance standards, it is recommended that requests for proposal include these standards. Performance standards are key for alerting sellers to how and when the buyer will evaluate the seller's work. Examples of a performance standard for a metal parts manufacturing plant would have to be less than 10% of all parts reviewed, with an error …show more content…
This is the step where the buyer decides whether or not to procure a part of the project. Using a project scope and project management plan, the buyer would conclude to outsource after doing a make-or-buy analysis or using expert judgment. If procurement is a result of that analysis, a procurement management plan is created. Plan Contracting: Once a procurement management plan has been created, the plan is used to prepare the necessary documents needed to solicit bidders. A contract statement of work is created and updated, a request for proposal is written, and evaluation criteria are determined. The buyer is still in planning mode. No formal interaction between buyer and potential sellers has occurred. Request Seller’s Response: In the request seller’s response step, the procurement documents, including the request for proposals, are advertised or sent to potential sellers. The buyer develops a qualified seller’s list (a short list of sorts of potential winners of the work). Select Seller: After receiving the procurement documents packages from the qualified sellers, the buyer must select a seller and award a contract. Sellers are selected using various tools and techniques, including weighted systems, screening processes, seller rating systems, and expert judgment. Negotiations between the selected seller and buyer take place before a contract is drafted
Question :
(TCO 2) A firm should concentrate on its _____ processes while outsourcing its _____ processes.
Student Answer:
overhead, core
core, non-core
non-core, overhead
non-core, core
Instructor Explanation:
Page 2
Points Received:
5 of 5 Comments:
2.
Question :
(TCO 5) To assess the impact of a contract on both the buyer and seller, an analysis of exposure can be completed. Categories analyzed in this exposure analysis include all of the following except: ______.
Student Answer:
terms with no quantifiable impact
key contract terms
significant contract terms
informational terms from the RFP
Instructor Explanation:
Page …show more content…
This area briefly answers the who, what, when, how, and why questions. Common issues addressed in the introduction include contact information, how to respond, submittal format, and timeframe for response. Background: Here is the part in which the buyer needs to let the sellers know the decision and thought process behind how the buyer reached the conclusion to outsource (i.e., why it is soliciting bids for a certain outsourced product or service). Scope of Services: The "meat and potatoes" of the RFP. It is the buyer's responsibility to provide a clear and accurate description of the scope of services. Contractors will base their staffing, pricing, and timeline on this scope of services. If the buyer has left the scope of services inaccurate, misleading, or incomplete, there will be a lot of contingency planning happening once the contract has been awarded (and ultimately, the contract may break down somewhere along the line). Common issues addressed in this section include employee migration (if any), location, and transition. Performance Standards: While some buyers elect not to include performance standards, it is recommended that requests for proposal include these standards. Performance standards are key for alerting sellers to how and when the buyer will evaluate the seller's work. Examples of a performance standard for a metal parts manufacturing plant would have to be less than 10% of all parts reviewed, with an error …show more content…
This is the step where the buyer decides whether or not to procure a part of the project. Using a project scope and project management plan, the buyer would conclude to outsource after doing a make-or-buy analysis or using expert judgment. If procurement is a result of that analysis, a procurement management plan is created. Plan Contracting: Once a procurement management plan has been created, the plan is used to prepare the necessary documents needed to solicit bidders. A contract statement of work is created and updated, a request for proposal is written, and evaluation criteria are determined. The buyer is still in planning mode. No formal interaction between buyer and potential sellers has occurred. Request Seller’s Response: In the request seller’s response step, the procurement documents, including the request for proposals, are advertised or sent to potential sellers. The buyer develops a qualified seller’s list (a short list of sorts of potential winners of the work). Select Seller: After receiving the procurement documents packages from the qualified sellers, the buyer must select a seller and award a contract. Sellers are selected using various tools and techniques, including weighted systems, screening processes, seller rating systems, and expert judgment. Negotiations between the selected seller and buyer take place before a contract is drafted