Chapter 4 - Integration Flashcards
What is the purpose of the project charter?
- Authorizes the project
- Gives the project manager authority
- Defines high level requirements
- Defines high level scope
- Documents business needs
- Defines customer need (product description)
What is the first step in Integration Management process group?
Develop project charter
What are the 2 categories of project selection methods?
- Benefit measurement methods (Comparative Approach)
2. Constrained optimization approach (Mathematical Approach)
Name 4 benefit measurement methods? (Comparative Approach)
- Murder boards – panel trying to shoot down a new project idea
- Peer reviews
- Scoring models
- Economic models (described next)
Name 5 economic modeling tools (Comparative Approach, Economic Models)
- NPV
- PV
- IRR (Internal Rate of Return)
- Payback period
- Benefit Cost Ratio
Constrained optimization approach (Mathematical Approach)
Uses mathematical calculations such as linear programming and algorithms. An example would be lines of code.
Explain the concept of present value. Note – years have already been taken into account for NPV
It’s the value today of future cash flows. In other words – how much is X dollars received in the future worth today. It is defined by the formula:
PV= FV/(1+r)^n
Explain the concept of Net Present Value.
It is the present value of total income/revenue minus total cost over several time periods.
What is the general rule associated with selecting projects using NPV?
Choose the project with the greatest NPV
What is the general rule associated with selecting projects using IRR?
Choose the project with the highest IRR
What is the general rule associated with selecting projects using payback period?
Choose the project with the lowest payback period
What is the general rule associated with selecting projects using benefit cost ratio?
Choose the project with the greatest ratio
What is opportunity cost?
It is the opportunity given up by selecting one project over another
What are sunk costs?
Expended costs. These costs should not be considered when deciding whether to continue a project.
What are the 2 forms of depreciation?
- Straight line
2. Accelerated
How does straight line depreciation depreciate value?
The same amount is depreciated each year.
What are two methods of accelerated depreciation?
- Sum of the year digits
2. Double declining balance
What is the purpose of the project management plan?
It integrates all of the knowledge areas management plans into a cohesive whole.
Name the 3 performance baselines.
- Scope
- Schedule
- Cost
What is the usual cause of deviations from the baselines?
Incomplete risk identification and risk management
What is the purpose of the kickoff meeting?
To ensure everyone is on the same page
What is corrective action in a project?
Any action designed to bring the project performance back in line with the project management plan
What is the difference between corrective action and preventive action?
Corrective action involves implementing actions to deal with actual deviations from the performance measurement baseline whereas preventive action deals with anticipated or possible deviations.
What is the general process for making changes to the project?
- Evaluate the impact
- Create options
- Get change request approved
- Get customer buy-in (if required)
