CAPM Predictive Plan-Based Methodologies Practice Question
A project manager in a predictive manufacturing project needs to procure a specialized component. The procurement process requires a detailed statement of work (SOW) and firm fixed price (FFP) contract. What should the project manager create first?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create the procurement management plan.
According to the PMBOK Guide, the procurement management plan is the first document created in the procurement process. It defines how procurement will be managed, including procedures for developing the statement of work (SOW), conducting make-or-buy analysis, selecting contract types (such as FFP), and managing seller relationships. Without this plan, subsequent procurement activities lack guidance. Option A (developing SOW) occurs after the plan is established. Option B (make-or-buy analysis) is part of planning but is typically conducted during the development of the procurement management plan. Option C (drafting the contract) happens after seller selection, which follows the plan and SOW creation. Therefore, the procurement management plan must be created first to set the framework for all procurement activities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Develop the procurement statement of work (SOW).
Why it's wrong here
SOW is part of the procurement documents, but the plan precedes it.
- ✗
Conduct a make-or-buy analysis.
Why it's wrong here
Make-or-buy is an analysis, not a document; it follows the plan.
- ✗
Draft the contract with the selected seller.
Why it's wrong here
Contract drafting occurs after seller selection, which is later in the process.
- ✓
Create the procurement management plan.
Why this is correct
The procurement management plan outlines how to manage procurement activities.
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