Chapter 12 Written Discussion Questions

1. List fve reasons why organizations outsource. When should an organization choose not to outsource? Why are some organizations beginning to rural source? Organizations outsource to reduce both fxed and recurrent costs, to allow the client organization to ocus on its core business, to access sills and technologies, to !rovide "exibility, and to increase accountability. accountability. #ore organizations are using outsourcing or the above reasons. $he government does not have the s!ecialized sills needed to meet the growing growing need to %$ !ro&ects, !ro&ects, so it !lans to outsource even more. O'shore outsourcing has increased !rimarily to reduce costs. (. )x!lain the mae*or*buy decision !rocess and describe how to !erorm the fnancial calculations in the sim!le lease*or*buy exam!le !rovided in this cha!ter. What are the main ty!es o contracts i you decide to outsource? What are the advantages and disadvantages o each? %n a mae*or*buy analysis, you set u! an e+uation so that the cost to mae something is e+ual e+ual to the cost to buy it. ee that section o the text text or a detailed exam!le. $he ty!es o contracts are are fxed !rice, cost*reimbursable, cost*reimbursable , hybrids lie time and materials, or unit !rice contracts, as described in the text. -is is a ey actor regarding advantages and disadvantages. . /o you thin many %$ !roessionals have ex!erience writing -0s and evaluating !ro!osals or %$ !ro&ects? What sills would be useul or these tass? #ost inormation technology !roessionals !roessionals have not had much frst*hand ex!eriencing in writing or evaluating !ro!osals. 2seul sills would include good writing, analysis, and evaluation sills 3. 4ow do organizations decide whom to send -0s or -05s? Organizations oten use a !reerred sellers list, but there are several ways to decide who to as to do outside wor or !ro&ects. 6. 4ow can organizations use a weighted scoring model to evaluate !ro!osals as !art o seller selection? Organizations can decide on ey criteria or selecting sellers, weight each criterion, enter scores or each seller, and then determine a weighted score. 7. List two suggestions or ensuring ade+uate change control on !ro&ects that involve outside contracts. utting changes in writing is im!ortant, as is evaluating changes beore a!!roving them. 8. What is the main !ur!ose o a !rocurement audit?

9 !rocurement audit hel!s identiy lessons learned in the entire !rocurement !rocess. :. 4ow can sotware assist in !rocuring goods and services? What is e*!rocurement sotware? /o you see any ethical issues with e*!rocurement? 0or exam!le, should stores be able to bloc !eo!le with smart!hones rom taing !ictures o barcodes to do com!arison sho!!ing? everal ty!es o sotware can be used during !ro&ect !rocurement management, including word !rocessing and s!readsheet sotware, the %nternet and other communications sotware, and e*!rocurement sotware designed s!ecifcally to assist in !rocurement management.