Purchasing Methodology: Definition Phase

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What type of contract implies the highest level of risk for the purchasing company?

Cost-reimbursement contract (correct)

Fixed-price contract

Hybrid contract

Modified fixed-price contract

When is the system design and building phase necessary in the purchasing methodology?

During the contract negotiation phase

When modifications are to be made to the package (correct)

During the construction phase

During the definition phase

Why is it beneficial to use an attorney during contract negotiations?

To reduce the likelihood of future legal problems (correct)

To lengthen the contract negotiation phase

To increase the risk of future legal problems

To increase the cost of the purchasing process

What is a characteristic of a fixed-price contract?

The purchasing company knows the total price in advance Signup and view all the answers

What is an example of a contract type that includes additional charges for changes?

Fixed-price contract with additional charges Signup and view all the answers

What is the primary purpose of a Request for Proposal (RFP) document?

To provide vendors with information about the company's needs and objectives Signup and view all the answers

In which phase of the purchasing methodology is contract negotiation typically involved?

Definition phase Signup and view all the answers

What is the primary objective of the definition phase in the purchasing methodology?

To evaluate the available packages and choose the best fit Signup and view all the answers

During the definition phase, what is the primary goal of the project team?

To evaluate how well available packages meet the company's needs Signup and view all the answers

What is one way to address discrepancies between the available packages and the company's needs?

Modify the package to meet the company's needs Signup and view all the answers

What is the purpose of obtaining references from users of the software package in other companies?

To gather additional information about the software package's performance Signup and view all the answers

What is one of the general criteria used to evaluate proposals from vendors?

The environment in which the system will be used Signup and view all the answers

What is a disadvantage of having the vendor handle maintenance in the implementation phase?

The company may not get specific changes that it wants Signup and view all the answers

What is essential for short-term success in the implementation phase?

Good communication with the vendor Signup and view all the answers

Who is typically responsible for managing the project team in purchasing package implementation?

Project manager, usually a business manager Signup and view all the answers

What is an advantage of having the vendor handle maintenance in the implementation phase?

It can lead to significant cost avoidance over the life of the system Signup and view all the answers

What is a common challenge in the implementation phase of purchasing packages?

Integrating the system into the company's ongoing operations Signup and view all the answers

Who may be included in the project team for purchasing packages?

Business managers, users, IS professionals, project manager, software vendor personnel, and sometimes a third-party implementation partner and purchasing specialists and attorneys Signup and view all the answers

Purchasing Methodology: Definition Phase

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