Chapter 1 Flashcards
Define A Project
A project brings about a unique product, service, or result and has definite beginning and ending dates
Identify the differences between a project and ongoing operations
A project is a temporary endeavor to create a unique product or service. Operational work is ongoing and repetitive.
Define a program
A program is a group of related projects managed to gain benefits that couldn’t be realized if they were managed independently
Define a portfolio
Portfolios are collections of programs and projects that support strategic business goals or objectives. Programs and Projects within portfolios may not be related to one another.
Name the life cycle phases of a project and their primary purpose
The phases are Discovery/Concept, Initiating, Planning, Executing and Closing. Discovery is where the business case is created and the project is justified. Initiating is where the preliminary scope statement and project charter are created. Planning consists of preparing for the work of the project. Executing is where the work of the project is performed, monitored and tracked. Closing is where project closeout occurs and contracts are closed, team members are released and more.
What are the needs and demands that bring about a project?
The needs and demands that bring about a project include market demand, organizational need, customer request, technological advance, legal requirements, ecological impacts and social need.
What is the purpose of a business case?
A business case documents the business need for the project and determines whether the investment in the project is worthwhile.
Describe the two steps involved in validating a project.
Validating a project involves writing and reviewing the business case and analyzing the stakeholders.
Identify the commonly used business case justifications and project selection methods.
The most common project selection methods are cost-benefit analysis, scoring model, payback period, discounted cash flow, net present value (NPV), Return on Investment (ROI), Internal rate of return (IRR), and current state versus future state.
Define Payback Period
Payback period is a cash flow technique that identifies the length of time it takes for the organization to recover all the costs of producing the project. It compares the initial investment to the expected cash inflows over the life of the project and determines how many time periods elapse before the project pays for itself. It is the least precise of all the cash flow techniques.
Define Expert Judgment
Expert judgement relies on the expertise of stakeholders, Subject Matter Experts (SME) or those who have previous experience to help reach a decision regarding project selection.
Define Cost of Capital
Cost of Capital used interchangeably with Interest rates, is the rate of return the organization might earn if they chose to invest in something other than the project.
Define Discounted Cash Flow
A technique that compares the value of the future worth of the projects expected cash flows to today’s dollars, known as present value (PV).
What is the Project Management Body of Knowledge (PMBOK Guide)
It is a guide published by the Project Management Institute (PMI) of project management standards
What is the Project Management Institute (PMI)
It is the de facto standard in project management worldwide with nearly 700,000 members from multiple countries around the globe.
