Chapter 2 Flashcards
(20 cards)
benefit measurement methods
This is a category of project selection methods. They employ various forms of analysis and comparative approaches to make project decisions and include cost-benefit analysis, scoring models, benefit contribution methods, and economic models.
calculation methods
This is a category of selection methods outlined in the project selection methods of the Initiation process. Calculation methods provide a way to calculate the value of the project. This value is used in the project selection decision-making process.
mathematical models
…are a category of project selection methods. They are complex mathematical models that use linear, dynamic, integer, nonlinear, and/or multi-objective programming in the form of algorithms, or in other words, a specific set of steps to solve a particular problem.
cost-benefit analysis
This compares the financial benefits to the company of performing the project to the costs of implementing the project.
decision models
This is a category of selection methods. Decision models are used to examine different criteria to help make a decision regarding project selection. See also calculation methods.
discounted cash flow
This compares the value of the future cash flows of the project to today’s dollars using time value of money techniques.
expert judgement
Expert judgment is a tool and technique of several processes. Expert judgment relies on individuals or groups of people who have training, specialized knowledge, or skills about the inputs you’re assessing
historical information
This is an input to several Planning processes that refers to information or records regarding past projects and their performance. Records are available for reference on the existing project.
Identify Stakeholders
The Identify Stakeholders process involves identifying and documenting all the stakeholders on the project, including their interests, impact, and potential negative impacts on the project. Information regarding the stakeholders is recorded in the stakeholder register
Initiating
This is the first project management process group and generally the first phase of a project life cycle. It acknowledges that the project, or the next phase in an active project, should begin.
internal rate of return (IRR)
This is the discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally considered better than projects with lower IRR values. IRR assumes that cash inflows are reinvested at the IRR value.
constrained optimization methods
Mathematical models, also called constrained optimization methods, are a category of project selection methods. They are complex mathematical models that use linear, dynamic, integer, nonlinear, and/or multi-objective programming in the form of algorithms, or in other words, a specific set of steps to solve a particular problem
net present value (NPV)
Net present value evaluates the cash inflows using the discounted cash flow technique, which is applied to each period the inflows are expected. The total present value of the cash flows is deducted from the initial investment to determine NPV. NPV assumes that cash inflows are reinvested at the cost of capital. This is similar to discounted cash flow.
payback period
This is the length of time it takes a company to recover the initial cost of producing a product or service of a project.
project charter
This is an official, written acknowledgment and recognition that a project exists. The project charter is issued by senior management and gives the project manager the authority to assign organizational resources to the work of the project.
project statement of work (SOW)
This describes the product or service the project was undertaken to complete. It is an input to several processes. See also contract statement of work.
scoring model
This is a project selection method used to score and rank project proposals. Scoring models might also be used in the Conduct Procurements process.
steering committee
This is a group of high-level managers or executives in the organization who manage project prioritization and various project decisions. The steering committee typically represents functional areas or departments within the organization.
weighting system & weighted scoring model
This is a way to rank and score vendor proposals or project proposals. Weighting systems assign numerical weights to evaluation criteria and then multiply this by the weight of each criteria factor to come up with total scores for each project or vendor. These systems keep personal biases to a minimum.
Develop Project Charter
Tbd
