Chapter 1 Flashcards
(29 cards)
Project
- Temporary endeavor
- Definite beginning/ending dates
- Results in a unique product, service or result
Operations
- Are ongoing & repetitive. No start/end date unless you’re starting a new operation or closing an old one.
Program
A group of related projects that are managed together using coordinated processes & techniques.
PMO
project management offices
Project Management
Brings together a set of tools & techniques - performed by people - to describe, organize, & monitor the work of project activities.
Project Management Body Of Knowledge (PMBOK)
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Strong Matrix
- emphasizes project work over functional duties.
* project manager has power
Weak Matrix
- emphasizes functional work over project work & operates more like a functional hierarchy.
- functional manager has power
Balanced Matrix
- balanced matrix organization shares equal emphasis b/t projects & functional work.
- project manager & functional manager share power
Benefit Measurement methods
- provide a means to compare the benefits obtained from project requests by evaluating them using the same criteria.
Co-located
- team members work together at the same physical location
Constrained Optimization Methods
- Decision models that use complex principles of statistics and other mathematical concepts to assess a proposed project.
Cost-Benefit Analysis
- compares the cost to produce the product or service to the financial gain (or benefit) the organization stands to make as a result of executing the project.
Decision Model
- A formal method of project selection that helps managers make the best use of limited budgets and human resources. Includes benefit measurement methods and constrained optimization models.
Discounted Cash Flow
- compares the value of the future worth of the project’s expected cash flow to today’s dollars.
Economic Model
- a series of financial calculations, which provide data on the overall financials of the project.
Expert Judgment
- relies on the expertise of stakeholders, subject matter experts, or others w/previous experience.
Feasibility Study
- Undertaken to determine whether the project is a viable project, the probability of project success, and the viability of the product of the project.
Functional organization:
Classic organizational structure
- often work independently which can be annoying
- no accountability b/t departments
- Project Manager have LIMITED authority
Internal Rate of Return (IRR)
- the discount rate when the present value of the cash inflows equals the original investment.
Matrix organization
- must be clear which manager (project or functional)
- availability of resources
- allocate proper time constraints
- low/moderate authority for Project Manager
Net Present Value (NPV)
- calculates the revenues or cash flows the organization expects to receive over the life of the project in today’s dollars.
Operations
- are ongoing & repetitive.
- no start/end date unless you’re starting a new operation or closing old one.
Payback Period
- cash flow technique that identifies the length of time it takes for the organization to recover all the costs of producing the project.
