P.L3 Flashcards
(33 cards)
involves a multifaceted
approach that incorporates various techniques and components.
Strategic
alignment analysis ensures that projects are aligned with organizational
goals and objectives, while financial analysis evaluates the financial
viability and potential returns of projects.
Project Selection in Portfolio Management
what are the techniques commonly used in Project Portfolio Management (PPM): enumerate
- Strategic Alignment Analysis
- Financial Analysis
- Risk Assessment
- Resource Capacity Analysis
- Benefit Cost Ratio (BCR)
- Scoring Models
- Opportunity Cost Analysis
involves ensuring that the proposed projects are in line with organizations strategic goals and objectives
Strategic Alignment analysis
t/f: Strategic alignment
ensures that resources are allocated to initiatives that drive the organization forward rather than
detracting from its core mission
true
Strategic alignment analysis includes:
- evaluation criteria
- integration with strategy
- balancing short-term and long-term goals
- alignment across stakeholders
-continuous monitoring
involves evaluating the financial viability and potential returns of proposed
projects.
Financial Analysis
Financial Analysis includes:
-net present value (npv)
-internet rat of return(irr)
-payback period
-sensitivity analysis
-risk-adjusted returns
-cost-benefit analysis
-alignment with budget
involves identifying, analyzing, and mitigating risks associated
with proposed projects.
risk assessment
risk assessment includes:
-identification of risks
-qualitative and quantitative analysis
-risk mitigation strategies
-contingency planning
-monitoring and control
-communication and reporting
involves evaluating the organization’s ability to
allocate resources to proposed projects
Resource Capacity Analysis
Resource Capacity Analysis includes:
Resource Identification
Resources required for project execution include financial resources,
human resources, equipment, technology, and facilities. A comprehensive
inventory of available resources is conducted to assess capacity
Resource Identification
resource identification includes:
*Resource Allocation
*Resource Constraints
*Resource Optimization
*Scenario Planning
*Cross-functional Collaboration
*Monitoring and Adjustment
compares the total expected benefits of a project to its total
expected costs.
benefit-cost ratio(bcr)
benefit-cost ratio(bcr) includes:
- Calculation
- Consideration of Intangible Benefits
- Discounting Future Benefits and Costs
-Comparative Analysis
*Sensitivity Analysis
*Risk Adjustment
*Alignment with Strategic Objectives
*Long-term Perspective
involve establishing criteria and assigning weights to different project
attributes to prioritize projects.
Scoring Models
Scoring Models includes:
*Criteria Definition
*Objective Evaluation
*Weighting of Criteria
*Scoring Methodology
*Aggregation of Scores
*Sensitivity Analysis
*Stakeholder Involvement
*Continuous Improvement
involves assessing the potential benefits foregone by choosing
one project over another or by not pursuing a project at all.
Opportunity Cost Analysis
Opportunity Cost Analysis includes:
*Definition of Opportunity Cost
*Comparison of Alternatives
* Quantification of Benefits
*Trade-off Analysis
*Consideration of Risks
*Strategic Alignment
*Dynamic Nature
*Decision Support
*Communication and Transparency
is a fundamental tool for evaluating
the financial performance and profitability of investments.
Return On Investment analysis
Return On Investment analysis components:
-Financial Returns (Gain)
-Cost Savings
- Investment Costs (Expense)
-Ongoing Expenses
-Timeframe
-Time Value of Money
-Risk Assessment
-Risk Mitigation Strategies
This component involves assessing the potential revenue generated
by the investment. It includes direct income from sales, services, or other
revenue streams associated with the project.
Financial Returns (Gain)
ROI analysis considers the cost-saving opportunities resulting from
the investment. This could include reductions in operational costs,
overhead expenses, or efficiencies gained through process improvements.
Cost Savings
The upfront costs associated with implementing the project, including
capital expenditures, equipment purchases, software licenses, and
implementation fees.
Investment Costs (Expense)
