Purchase Order

Purchase Order is a legal document used for general purchase. Eg: commodity type purchases. Quantity, Price etc. will be mentioned.

Purchase Order is also used for unilateral contracts (one-sided negotiations).

 

RFP, RFQ, RFI, IFB – what and when

Below are the typical occations for each request:

  • RFP – Request For Proposal 
    • A very detailed and specific approach to a customized solution and a total price
  • RFQ – Request For Quote 
    • Getting prices from a company for goods or services
  • RFI – Request For Information
    • For finding potential vendors for consolidation of proposals or quotes
  • IFB – Invitation for Bid
    • Is usually a sealed bidding processes used by Govt. contracting
 

Facilitated Workshops

Workshops are the primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences.

  • Joint Application Developer (JAD) is used in Software Industry – used to bring users and development team together to improve software development process
  • Quality Function Deployment (QFD) is used in Manufacturing Industry – helps determine critical characteristics for new product development. QFD starts by collecting customer needs – called Voice of the Customer (VOC)
 

Kill Point

A phase-end represents a natural point to reassess the effort underway and to change or terminate the project if necessary.

These points are referred to as

  • phase exits,
  • milestones,
  • phase gates,
  • decision gates,
  • stage gates,
  • kill points.

 

Source: Internet

 

Seven Run Rule

It is a situation in which there are at least 7 consecutive data points on one side of the mean, implying that the process could have some type of problem.

Source: Internet

 

Scope Creep

A process of adding additional scope without addressing impacts on time, cost, resources etc. or may not be having customer approval also.

 

Tornado Diagrams/Plots/Charts and Sensitivity Analysis

You must have now got an idea why this diagram was named. This is basically a bar chart. This type of chart is mainly used for Sensitivity Analysis.

Sensivity Analysis
It is the comparison of relative importance of variables. This Analysis helps to determine which risks have the most potential impact on the project.

 

Risk tolerance & Residual Risk

  • Risk tolerance – It is a stakeholder’s willingness to accept variying degrees of risk
  • Residual Risk – It is a risk which remains even after the risk responses are implemented