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A company asks one of the project managers to lead a project to create a substantially improved version of one of the best selling company’s products. The project manager is given total freedom of decision and resources including whether to utilize contractor services and/or company’s resource pool. Under these circumstances, which of the following is the BEST way for the project manager to build the team?
a) She should choose her team from the top developers and fabrication workers in the company.
b) She should create a team of company line workers and contract the development services under a cost reimbursable contract with provisions to protect confidentiality
c) She should contract the entire team utilizing a cost plus incentive fee type of contract.
d) She should contract selected team members on an adhoc and as needed basis utilizing a time and material contract
The correct answer is A.
This question deals with a make-or-buy decision. Since this project involves an important project for the company, key aspects of it should be retained in-house. Therefore, an ad hoc basis (choice D) is not appropriate, nor is completely using outside services (choice C). In this case the development work (choice B) would be done in-house as the company has expertise. Only choice A is viable.
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