Welcome!
PM Hub now offers you the benefit of daily guidance to help you stay on the road to success with the project management exam or to sharpen and exercise the project management skills you already possess. Each edition of the PM Hub/Crosswind Tip of the Day will give you a question of the day, daily terminology booster, and links to other helpful tools that will prepare you for exam success.
 
Question of the Day
Your company just completed a make-or-buydecision regarding a new product line to complement a service your company offers. The company has decided to buy the product line and resell it under their own branding. As a result of this decision, it is concerned about risk exposure in the contract type. Which type of contract would it prefer to use if it wants to control costs and minimize risk?

A) Purchase Order
B)  Unilateral Order
C)  Cost Plus Percentage of Costs
D)  Fixed Price
 
Terminology of the Day
 Procurement Documents (Ou
 Documents involved in the bidding and proposal activities; can include request for information (RFI), request for quote (RFQ), or request for proposal (RFP) among others
 
Answer and Explanation to Yesterday's Question
The team has implemented a Risk Response Plan when a vendor was found in default of a contract commitment. The response was to choose another vendor from the qualified supplier list. Because of the short notice, the other vendor cannot fulfill the need of the team because of previous commitments. Which best describes what happened with the different vendor?
A)  Workaround
B)  Secondary Risk (Correct)
C)  Risk Response Plan
D)  Residual Risks
 Explanation: Secondary Risk is what happens when a risk event happens and creates new risk. The workaround is what is done when risk responses do not work as planned. The Risk Response Plan is to define what the risk responses will be if the risk events occur. Avoidance is a risk response strategy.
For more questions, terminology and other exercises please see the PMP® Exam Success Series: Certification Exam Manual at http://www.crosswindpm.com/
 
TEST PRODUCT AD SECTION
PMP/CAPM Exam Success Series Processes Audio CD
The PMP®/CAPM® Success Series: Understanding the Processes Audio CD is a key tool for anyone preparing for the PMP®/CAPM® exam. This CD has descriptions of all 44 processes covered on the PMP®/CAPM® exams. The format describes each of the processes, where they occur and have impact, as well as a description of the process and key inputs, tools, and outputs. It's perfect for memorizing how all the pieces of the PMBOK® Guide fit together during that long commute to the office or that late night study session.
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