Project 3

Welcome! You are invited to analyze the scenario below and determine from the requests what actions
you are to take, using your knowledge of Project Management and your ability to analyze and make an
informed decision.

All that you need to perform the activities below can be found in the Simplilearn material and the
PMBOK® Guide - Sixth Edition, but if you need further clarity, please feel free to reach out to trainers for
guidance.

The times documented below are recommendations and should be suggestions of the level of detail
expected. You cannot assume you have enough information to do these assignments as in a real project,
but you should be able to provide enough information to show that you understand what is being
discussed, why it’s important, and what action you would take to control your Project.

The data provided is general, but specific. The data will provide hints as to what you need to consider. If
they don’t make sense, you have two options – use them anyway or ask for clarification. You may want
to revise numbers or add specific details. Yes, you can do this, much like you would do this on any project.
However, if you modify the scenario, it must be reasonable and realistic, and it must be wholly integrated
into the project. Remember – all aspects of the project must either support the project success and/or
minimize failure, and you will need to justify that to ensure a successful outcome.

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
Probability 70%
Impact Gain is $120K
In-house investment is $100K
Probability 30%
Impact Loss is $30K
Probability 50%
Impact Gain is $100K
Outsourcing investment is $40K
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

Irrespective 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. Once the seller makes their changes, you need to consider the changes to your project. What is
the output of this process that allows you to consider changes? Trace this to the update of the
Project Management Plan to adjust your estimates, and the impact to the other change
management processes - 30 Minutes

The total duration is 110 Minutes.