PMP proc question
Submitted by pmasp1 on Sun, 11/20/2011 - 22:30
Please help me in this question ..
Which of the following should you (the buyer) pay attention to when you administer a contract? |
||
Choice 1 | Ensure that contractual obligations are met. | |
Choice 2 | Apply appropriate project management processes to the contractual relationship and integrate the outputs from these processes to the overall management of the project. | |
Choice 3 | Monitor payments to the seller. | |
Choice 4 | Perform regular procurement audits. |
Forums:
kmrk
Tue, 11/22/2011 - 21:45
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Tricky Question
Out of the 4 answers, 2 &3 are ruled out, they are not relvent to the question, so the choice left out is 1 or 4.
Here (4) perform regular procurement audits is the core activity of Admin Contract and the question is about what you do, what you focus on, so the answer is (A) Ensure that contractual obligations are met.
Pls. correct me if I am wrong.
kmrk
Fri, 12/02/2011 - 03:13
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Hey is it correct? pls share
Hey is it correct? pls share the answer.
projmanpro
Tue, 04/17/2012 - 12:23
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hi kmrk.. i agree with u
hi kmrk.. i agree with u partly that the quetion is quite tricky. I fully agree with u that choices 2&3 are already ruled out and what are remaining are choices 1 & 4. And u guys pick is 1.
Well, the correct answer is 4. Why?? Let me explain:
The context of the question is "Administer a contract" in PMBOK it is Administer procurement, we know that procurement is nothing but the contract.
As the PMBOK describes or defines Administer Procurements - The process of managing procurement relationship, monitoring contracts performance, and making changes and corrections as needed. Ref: PMBOK ® Guide 4th Edition, page 313.
Now let us investigate the choices.
Choice 1. "Ensure that contractual obligations are met." Now, let me ask u guys, Can "ensuring that contractual obligations are met" be a process of managing procurement relationship? can it be a process of monitoring contracts performance and making changes and corrections as needed? For sure your answer will be NO.
What about Choice 4: "Perform regular procurement audits." Let us ask the same: Can this be a process of managing procurement relationship? can it be a process of monitoring contracts performance and making changes and corrections as needed? For sure you will say YES.
Hence, the correct answer is Choice 4, as this is the condition that meets the Administer Procurement definition.
I hope i have helped you guys figure out this question and answer.
Guys, you can follow me also through www.PMPTrend.com i am also posting in the forum there if i have time. I have expounded this in my post there here is the link http://www.pmptrend.com/index.php/en/forum/11-Questions-Answers-Queries-Infos-Etc/45-Explaining-on-a-Procurement-PMP-Exam-Question#45
PMNovice
Sun, 06/03/2012 - 17:44
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Procurement audits are also
Procurement audits are also done during "Close Procurment"
pmasp1
Fri, 12/02/2011 - 04:21
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The answer according to test
The answer according to test is 4 ...
But I went with 1 ..as I thought procurement audits are tt of close procurements....
kghebbar
Thu, 02/23/2012 - 10:00
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Choise 1 should be correct
Choise 1 should be correct
krantikumar50
Fri, 02/24/2012 - 11:24
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same here!!!
I would also go with 1, since Procurement Audit is basically T&T of Close procurements.
Thanks,
KK
sspawar
Tue, 05/08/2012 - 12:01
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PMBOK 4th EDITION 12.3 Administer Procurement
PMBOK 4th EDITION 12.3 Administer Procurement Suggests in 3rd sentence:
Each must ensure that both parties meet their contractual obligations --------
Hence Answer is 1
Why it will not 4
Bks Procurement Audit is Joint process under execution (conduct procurement)
PMBOK 12.3.2.3
Inspection and Audits are required by buyers and supported by sellers ------- can be conducted during execution ------
Regards
SSP
projmanpro
Tue, 05/08/2012 - 12:21
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hello guys.. im sorry to say,
hello guys.. im sorry to say, but know what, if the way you guys would interpret questions is like that, you may fail the actual pmp exam. "Administering a Contract" IS ALREADY GIVEN AND CLEARLY STATED IN THE QUESTION. NO NEED TO DIVERT OUR MINDS TO OTHER ACTIVITIES OR PROCESS, WHATEVER LIKE ITTO, CONDUCT PROCUREMENT, ETC. JUST FOCUS ON THE GIVEN PROCESS AS ADMINISTER CONTRACT" AND THEN ASK YOURSELVES WHAT ACTIVITIES FROM THE CHOICES THAT SATISFY THIS PROCESS AS DEFINED BY PMBOK. AS SIMPLE AS THAT GUYS. The question is so clear. YOU ARE TO ADMINISTER A CONTRACT. Now ask yourselves... What activities are subsets of administering contract that satisfy its definition as per the PMBOK Guide? It is only Choice 4.
sspawar
Tue, 05/08/2012 - 18:07
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I have quoted : PMBOK verdicts as it is
In short I repeat:
As soon you will read it once in PMBOK, you will be convinced.
It is very clear and directly written in PMBOK, word to word.
It does not require any explanation or clarification.
administer procurement - is process under monitoring and controlling group
procurement audits is part of executing process group which is being used as TT for administer procurement.
And tools and tch is not a part of "what to do"
it is a part of a means by which you can do what you wanted to do.
in your explanation you mentioned first 2 lines of 12.3, I dam sure at that time if you could read the 3rd one, your answer were be 1.
projmanpro
Wed, 05/09/2012 - 05:36
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he he.. I think u really
he he.. I think u really didnt understand the question dude.
Here are u need to understand:
1. Understand the definition of Administer Procurement, and draw up question from the given choices if which among them satisfies the condition of the question and its definition. This is what i explained in my first thread.
2. It is not word-for-word. What the PMBOK tells us related to what you are saying (that is in page 335), "Administer Procurement" is a process that both parties have to do - logically speaking, this means, the buyer has to administer the contract to make sure that his rights are protected, and in the same manner, the seller also administer it (from their side) to protect also its rights. Yes, there is no wrong to say, the bottomline there is - to make sure their contractual obligations are met, and both their legal rights are protected.
But...... this is not what the questions asked about. If i would rephrase the question, this must be:
"You are to administer procurement, one of the most impotant tasks you need to do is to ____?"
Now you will answer, to make sure that the contractual obligations are met? NO!. To have that assurance that the contractual obligations are met is already an OUTPUT of actions that you do in administering the contract, AND THIS IS WHAT IS BEING ASKED IN THE QUESTION.
Look in what you wrote which is inconsistent.
You wrote, "procurement audits is part of executing process group which is being used as TT for administer procurement."
NOTICE, it is your own writing that says, "procurement audits" is a TT for ADMINISTER PROCUREMENT. And this actually answers the question dude. You have misudnerstood the concept of ITTO dude. TT are not only limited to means or strategies, or whatever you may call it, but in totality, TT involves ACTIONS TO DO to give you your desired OUTPUT. While INPUTS are already output from prior process or actions, that would HELP YOUR TT TO PRODUCE THE OUTPUTS.
Moreover, you also misunderstood the concept of execution and monitoring and controlling. YES, they are of defined & different process group BUT IN FACT, they are inseparable. Monitoriing and Controlling is always associated with EXECUTION, see the charts in page 19 and page 40.
NOW to conculde, let me ask you. IF U CHOSE A - "Ensure that Contractual obligations are met", my question is, HOW CAN YOU ENSURE THIS? HOW CAN YOU KNOW THAT THESE CONTRACTUAL OBLIGATIONS ARE MET?
Is it not you need to closely monitor and control how the procurement is executed? and to know this, you have to do procurement audits (inspection and audits) and tHIS IS ONE OF THE CORE TOOLS AND TECHNIQUE OF ADMINISTER PROCUREMENT. SO HOW CAN MY EXPLANATION BE WRONG AND MY CHOICE D BE WRONG? HOW CAN ALSO BE THE ORIGINAL AUTHOR OF THAT QUESTION TOLD US THAT THE ANSWER MUST BE D?
Again, i would reiterate. If you guys interpret questions and the PMBOK differently, even if you think you have studied the book cover to cover and you have taken millions of mock exams, you chance of passing the actual PMP exam is still low.
sspawar
Wed, 05/09/2012 - 08:33
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Ensure that Contractual obligations are met
Perform procurement audit is a part of -Ensure that Contractual obligations are met
---------------------------------------------
Few things I want share:
When we are at forum
we should follow a forum ethics and behave and conduct within that perview.
We can tell about us every thing what would you like but to others you cant comments or objects sercastically or unethiclly.
we shuld avoid such words/comments
- he he ---, your performance will be low or you guys interpret ---
In your personal life whatever you may be but at forum : you are equal and if want to advise- it should be in modest way like :
As per my opinion, as per my understanding, as per my view , I believe .
We cant insist or compel or be forcing or authorative.
We should be presented ourself self Respeced , and to respect others ,be fair and responsible.
Thanks and Regards
projmanpro
Wed, 05/09/2012 - 19:05
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dude, forgive me, but i didnt
dude, forgive me, but i didnt intend to hurt anyone. If i write "he he" it doesnt mean anything but just my real expression, i could use the smiley instead, so i think there is no issue with it.
if i say or warn - that if anyone continues to uphold his/her thinking without reconsdiering whether or not it is as per what the PMBOK really means, then it is only a reality that passing the exam is least chanced. I am saying this to inspire any PMP aspirant to become smarter in interpreting tricky and situational questions as this is the modality of the actual PMP exam. My heart's intent is really JUST TO HELP, even if anyone wants me to coach free of charge, i do it.
I respect everyone's opinion. But also, i believe that THIS FORUM in some ways become reference of those PMP aspirants. Now, it is fatal if what they read in this forum are contradicting and against the PMBOK. They may be learning the wrong doctrine in this case. Thus, if i write in contradiction to some posts, it doesnt mean i am attacking that person, but rather I am writing for the benefit of those who are visiting the forum whose intents are to refer or to find some correct solutions.
In your case sspawar, you have some posts with which i agreed and supported, for i know your point is correct, but if your post is obviously not correct, then i cannot just keep on silence, and leave upon the guys that what you wrote is correct. This is normal in a forum like this. At the end, we respect each one's opinions.
lastly, i dont use the phrase "in my opinion, in my view, etc, as you suggested" if i am sure that what i am saying is based on truths, say based on PMBOK. Though, if it is just my opinion, then i use those words. For what i am saying if these have factual or truthful reference, then this is no longer an opionion.
May you all guys understand, and forgive me if my posts are sometimes strong. If you are learning from my posts, then enjoy it. If my posts tend you to open and read the PMBOK again, then enjoy it. If my posts hurt you, then forgive me.
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Mon, 07/09/2012 - 03:08
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suvoraj239
Mon, 12/17/2012 - 01:30
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I agree with sspawar.. choice
I agree with sspawar.. choice 1 is correct. During Admister procurement both buyer and seller should pay attention to ensure all the contractual obligations are satisfied and fulfilled.
If proc audit needs to be performed then why do we need another auditing in 'close procurement' ? In real life also we do the audit at the end of proc/service to ensure everything has been completed as per the proc docs like proc sow etc. As per PMBOK it is choice 1
sspawar
Fri, 12/28/2012 - 06:27
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Yes Suvraj, your choice is
Yes Suvraj, your choice is correct.
Few more points
In my earlier reply - dated 5/8/2012, by mistake I wrote , execution and conduct proc, please read it M&C and Admin Proc. But main content of my reply is relevant to the asked question.
Second thing -- Procurement Audit is tool of Close Procurement process, but as per PMBOK it is performed from plan procurement to close procurement through administer procurement. But it does not mean that it is only a performance (where it is tool) for Administer procurement.
Obligation should met --- it covers every thing and also cross the limit of tools, because only T&T and only one T&T (regular procurement audit) can not be considered as a whole (complete- comprising all) process action.
gangnam
Fri, 01/04/2013 - 14:42
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I guess correct answer
is 4.
Since the Administer Procurements has inspection and audit T&T, we shouldn't rely on Procurement Audit from Close Procurement process only.
Shortly, audit can be proceed from Administer also. However they have different objectives... And to "Ensure that contractual obligations are met" is closer to Audit from Closing stage
Please correct me if something wrong...
gangnam
Fri, 01/04/2013 - 14:54
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Sorry, i didnt noticed the
Sorry, i didnt noticed the message above...
PMBOK 12.3 Each must ensure that both parties meet their contractual obligations and their own legal rights are protected
Seems to be the 1st option is correct
sspawar
Mon, 01/07/2013 - 18:00
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Dear Gangnam star,"are met" ---
Dear Gangnam star,
"are met" --- people are accepting this part of speech as "have been met"
there is lot of difference in this two.
ARE MET -- is a passive and present continue, through out the adminidtering th rpcuremrnt. Read PMBOK , you will get the idea, what is meaning of this sentence.
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kishorevaishnav
Mon, 01/28/2013 - 23:45
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Is the Question complete ?
Hi All,
raza82
Mon, 02/04/2013 - 12:17
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I found this question
I too found this question in PMSTUDY free test, question no: 164.
I chosed Ensure that contract obligations are met and got it wrong, the answer saif Peform regular Procurement Audits is the right answer and the explaination given is ridiculous which is pointing towards Close Procurement
Question No : 164
Which of the following should you (the buyer) pay attention to when you administer a contract?
Choice 1 Ensure that contractual obligations are met.
Choice 2 Apply appropriate project management processes to the contractual relationship and integrate the outputs from these processes to the overall management of the project.
Choice 3 Monitor payments to the seller.
Choice 4 Perform regular procurement audits.
Correct Choice : 4
Justification :
A procurement audit is a structured review of the procurement process
originating from Plan Procurements process through
Administer Procurements process.
This is one of the tools and techniques used in Close Procurements process.
Reference: PMBOK® Guide Fourth Edition, Pages 336 and 343
sspawar
Mon, 02/04/2013 - 14:19
Permalink
what is your view, is it
what is your view, is it correct explanation.
what is purpose of procurement audit as per pmbok?
is it only the aim of buyer?
raza82
Mon, 02/04/2013 - 15:20
Permalink
My understanding
Actually this question is a bit tricky because it is asking only from buyers point of view, if the question would have asked what should the buyer and seller has to pay attention to, then it will be definitely 1, no doubt about it..
My understanding is that both buyer and seller should administer the procurement contract . in Administer procurement both the buyer and seller are responsible to ensure that both meet the contract obligations.
And how they should do this?
The buyer should ensure that the seller is performing according to the contracts requirement and
The seller ensures that the buyer performs following the terms of the legal contract.
Now this question is asking from only the buyers point of view, not from the sellers point of view.
So according to the definition The buyer should ensure that the seller is performing according to the contracts requirement.
Wheras the definition of Procuremet Audit according to PMBOK is "The objective of a procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project".
In this question the most important thing for the buyer is not to identify success and failures but to ensure contract obligations are met.
However there is a term added here in front of Procurement Audit which is "Regular" which makes one feel that this is part of Administer Contract since Inspection and Audit is a tool of Administer Contract as well and this is where all the confusion is.......
Definition of Inspection and Audit for Tools is: Inspections and audits required by the buyer and supported by the seller as specified in the procurement contract can be conducted during execution of the project to verify compliance in the seller’s work processes or deliverables.
....however explaination given by PMSTUDY by just saying that Procurement Audit is a tool of Close Procurement is implying that it is a wrong option but they have infact chosen that one as the answer.
sspawar
Tue, 02/05/2013 - 01:00
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very good analysis.but it
very good analysis.
but it seems by heart you want to be with PMSTUDY but your mind is making you aware of the facts.
siddus
Tue, 07/09/2013 - 10:32
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Agree with sspawar and
Agree with sspawar and others. I came across this question in a pmstudy mock and got it wrong. A quick google search led me here. Here is the explanation given by pmstudy:
"A procurement audit is a structured review of the procurement process originating from Plan Procurements process through Administer Procurements process. This is one of the tools and techniques used in Close Procurements process."
As you can see, pmstudy clearly contradicts its own answer. Don't know why projmanpro is hell bent on proving that (d) is the right answer. It is not. (a) is the right choice.
During the course of my PMP preparation, I have come across a number of questions in reputed sources like Rita, Oliver Lehman, and now in pmstudy which are clearly wrong. I believe these are just typos, which the respective authors have either overlooked or forgotten to correct or clarified separately in errata sheets.
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