PMP Topic

Procurement Management Practice Questions

Master Procurement Management for the PMP exam with comprehensive practice questions, detailed explanations, and proven study strategies.

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What You'll Learn

Procurement Management is a crucial knowledge area within the Project Management Professional (PMP) exam. This topic covers the processes involved in purchasing or acquiring products, services, or results needed from outside the project team to perform the work. Effective Procurement Management ensures that the right goods and services are obtained at the best possible price, while also managing the relationship with the selected vendors or suppliers. Understanding Procurement Management is essential for PMP candidates, as it helps them navigate the complexities of sourcing and contracting to successfully deliver projects.

Key Concepts

Plan Procurement Management

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Conduct Procurements

The process of obtaining seller responses, selecting a seller, and awarding a contract.

Control Procurements

The process of managing procurement relationships, monitoring contract performance, and making changes and corrections as appropriate.

Close Procurements

The process of completing each project procurement, including the settlement of any open items and closing each contract.

Procurement Documents

The documents used in the procurement process, such as requests for information (RFIs), requests for proposal (RFPs), requests for quotation (RFQs), and contracts.

Make-or-Buy Analysis

The process of determining whether to obtain a product or service from outside the organization (buy) or to have the project team produce it (make).

Contract Types

Different types of contracts, such as fixed-price, cost-reimbursable, and time and materials, which have different levels of risk and responsibility for the buyer and seller.

Common Mistakes to Avoid

  • Failing to properly plan the procurement process, leading to ineffective or inefficient sourcing and contracting.
  • Not considering all relevant procurement documents and their specific requirements when selecting a seller.
  • Neglecting to monitor and control the procurement process, resulting in issues with vendor performance or contract compliance.
  • Overlooking the importance of close-out procedures for completed procurements, leading to unresolved issues or incomplete records.
  • Misunderstanding the different types of contracts and their implications for risk management and project success.

Sample Procurement Management Questions

Question 1

Which of the subsequent options does NOT represent a tool or technique utilized during the Conduct Procurements process?

A.

Audits

(Correct)
B.

Bidder conferences

C.

Interpersonal and team skills

D.

Advertising

Explanation:

Correct answer: Audits Tools and techniques employed during the Conduct Procurements process include: Expert judgment Advertising Bidder conferences Data analysis Interpersonal and team skills Audits are instead a tool or technique applied during the Control Procurements process.

Question 2

All listed are tools and techniques employed in the Control Procurements process, except:

A.

Work performance data

(Correct)
B.

Audits

C.

Claims administration

D.

Inspection

Explanation:

Correct answer: Work performance data Tools and techniques in the Control Procurement process include: Expert judgment Claims administration Data analysis Inspection Audits Work performance data is used as input for various processes, including Control Procurements, but is not itself a tool or techn...

Question 3

Which pair of elements is considered input to the Conduct Procurements process?

A.

Project management plan; Procurement documents

(Correct)
B.

Procurement management plan; Approved change requests

C.

Procurement management plan; Agreements

D.

Agreements; Procurement documentation

Explanation:

Correct answer: Project management plan; Procurement documents Inputs to the Conduct Procurements process include: Project management plan Project documents Procurement documentation Seller proposals Enterprise environmental factors Organizational process assets Agreements and Approved change reques...

Study Tips for Procurement Management

Familiarize yourself with the key procurement processes and their inputs, tools and techniques, and outputs.

Practice identifying the appropriate procurement documents for different procurement scenarios and understanding their purpose.

Review case studies and examples of successful and unsuccessful procurement management to understand the real-world application of these concepts.

Understand the different contract types and their advantages and disadvantages, as well as the factors that influence the selection of a contract type.

Carefully review the procurement-related questions in PMP practice exams and analyze the reasoning behind the correct answers.

Frequently Asked Questions

How many Procurement Management questions are on the PMP?

Procurement Management is an important component of the PMP exam. Upsero includes hundreds of practice questions covering all aspects of this topic.

How do I study for Procurement Management?

Start with understanding the key concepts, then practice with realistic exam questions. Upsero's ReadyScore tracks your mastery of Procurement Management so you know when you're ready for the real exam.

Are the practice questions similar to the real PMP?

Yes! Our Procurement Management questions are designed to match the exact format, difficulty, and style of the actual PMP exam. Many students say our questions are even harder than the real exam.

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