TOPIC: Free PMP® Exam Sample Question of the Week

Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator.

A particular item that is needed for the project is not available in your organization. Considering this, what would you suggest to do first?

A. Conduct a make-or-buy analysis
B. Conduct procurement negotiations
C. Conduct bidder conference
D. Create a request for proposal

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HINT: What should the team do first?

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Answer and Explanation:
The correct answer is A.

The project team should first conduct a make-or-buy analysis to determine if the item can be produced in-house or is it more viable to be procured. A make-or-buy analysis doesn't necessarily have to be formal and in-depth. In some situations, this analysis and decision can be, and in fact, is a "split second" decision by the sponsor or project manager. For example: "Based on my knowledge of our company, there is no way that we can make this item in-house, so let's go ahead and buy it."