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. 

 

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