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PMP® 2018 Certification Project: Automobile Industry

Project 1
DESCRIPTION
Project 1: Automobile Industry
Duration - 110 minutes
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

In-house investment is $100K Probability

Impact

Probability
 Impact

Outsourcing investment is $40K Probability

Impact

Probability

Impact
A. Use the Decision Tree tool and decide which option is better: Producing in-house or
outsourcing - 15 Minutes
Regardless 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. To monitor the procurement-related activities, you can use the control procurement
process. List the techniques used under control procurements and write down a few lines
about these techniques - 30 minutes.
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