Which type of analysis is used as a general management technique within the Plan Procurements Process?

Question

Options

• ARisk assessment analysis
• BMake or buy analysis
• CContract value analysis
• DCost impact analysis

• A
  3% (1)
• B
  72% (21)
• C
  10% (3)
• D
  14% (4)

Explanation

Make-or-buy analysis (B) is a core general management technique used in the Plan Procurements process because it helps organizations decide whether to produce goods/services internally or purchase them externally - a fundamental procurement planning decision covered in the PMBOK Guide.

Why the distractors are wrong:

• A (Risk assessment analysis) - risk analysis is part of risk management processes, not a named technique within Plan Procurements.
• C (Contract value analysis) - this is not a recognized standard technique in the Plan Procurements process; contract types and values are outputs, not analysis tools.
• D (Cost impact analysis) - while cost is considered, "cost impact analysis" is not the specific named technique used here; it's a generic term not tied to this process.

Memory tip: Think of "Plan Procurements" as the point where you ask "Should we make it or buy it?" - that question is the analysis. The phrase "make or buy" literally names the decision you're planning around.

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