Project management

Question 1

What is a project

Answer 1

Projects are complex, one-time processes

• Projects are limited by budget schedule, and resources
• Projects are developed to resolve a clear goal or set of goals
• Projects are customer-focused

Question 2

Key project characteristics

Answer 2

• One time processes with a lifecycle
• Limited life, budget, schedule, and resources
• Developed to address a key goal
• Customer-focused

Question 3

Project success determinants

Answer 3

Budget, time, performance and Client acceptance

Question 4

Project management stakeholders: Managing stakeholders

Answer 4

External environment, stakeholders goals, internal capablitites, problems, solutions and testing

Question 5

Functional structure

Answer 5

\+Specialization
\+Projects within the departments
-Low customer focus
-Lack of commitment
-Longer times to implement projects

Question 6

Matrix structure

Answer 6

+Mix between project and functional orientation
+Promotes cross functional collaboration
+Efficient use of resources
-Leadership challenges
-Workers commitment
-Negotiation for sharing scarce resources

Question 7

Project structure

Answer 7

+Project management specialization

• Project commitment rather than firm
• Future uncertainty
• Difficult to develop intellectual capital

Question 8

Why does project screening and selection matter

Answer 8

Firms are constrained by limited resources
Choices must be made in a timely and efficient manner to seize the opportunities
Decision makers develop various screening and selection methods that allow them to filter, estimate, evalueate and finally choose projects

Question 9

What is project screening

Answer 9

Preliminary examination of the project opportunity
Simple criteria to provide sufficient indication whether to accept/reject
If it’s a go it will proceed to more detailed project selection activities

Question 10

Principles to project screening model

Answer 10

Realism, capability, flexibillity, ease of use, cost effectiveness and comparability

Question 11

Project selection models/methods

Answer 11

Numerical and non numerical

Question 12

Numeric selection model

Answer 12

Payback period

Net present value

Discounted payback period

Internal rate of return (IRR)

Question 13

Non numeric selection models

Answer 13

Checklist model

Weighted scoring model

Analytical hierarchy process (AHP)

Profile model

Question 14

Payback period

(formula)

Answer 14

Estimated project investment / Annual cash savings

Question 15

Checklist model

Answer 15

Pros: Simple/flexible
Facilitate conversation and discussion

Cons: Assumes all criteria are equally important
Each potential porject will have a different set

Question 16

Weighted scoring model

Answer 16

Pros: Easy to use and understand, provide overall benefit measure and can be added/deleted without needing to recalculate

Cons: Does not tell the difference between score
Relative scores can be misleading

Question 17

Non-numeric model AHP

Answer 17

Pros: Consider both quantitative and qualitative criteria, Unlike the simple scoring model these scores can be compared.

Cons: Requires all criteria in advance, require extensive managerial input, and not parsimonious – scores are relative

Question 18

Project scope

Answer 18

The end result or mission of your project - a product or service for your client/customer

Question 19

Scope management

Answer 19

The function of controlling a project in terms of its goals and objectives through the process of conceptual developemnt, full definition, execution and termination

Question 20

Statement of work

Answer 20

A detailed narrative description of the work required for a project

Question 21

Questions to consider in risk management

Answer 21

1) The probability and impact
2) Minimizing the probability or impact of these events
3) What clues will signal the need for such action
4) Likely outcomes

Question 22

Four stages of risk management

Answer 22

1) risk identification
2) analysis of probability and consequences
3) risk mitigation strategies
4) control and documentation

Question 23

Delphi approach

Answer 23

Collect people in one big room /send out a questionnaire to a bunch of people who, as experts, give their opinion on the risk of the project

Question 24

Risk mitigation strategies

Answer 24

Accept, minimize, share & transfer

Question 25

Contingency reserves

Answer 25

Task contingency, managerial contingency

Question 26

PRAM

Answer 26

presents a generic methodology that can be applied to multiple project environments and encompasses the key components of project risk management

Question 27

Key features of PRAM

Answer 27

Risk management follows a life cycle, Risk management strategy changes over the project life cycle and synthesized, coherent approach

Question 28

Cost management

Answer 28

Encompasses data collection cost accounting and cost control

Question 29

Common sources of project cost

Answer 29

Labor, materials, subcontractors, equipment, facilities and travel

Question 30

Direct costs

Answer 30

Labor or material that can be directly attributed to project

Question 31

Indirect costs: o

Answer 31

Overhead, selling & general administration

Question 32

Fixed costs

Answer 32

Independent usage of e.g. leasing equipment or project hardware

Question 33

Variable cost

Answer 33

Is in direct proportion to use

Question 34

Normal cost

Answer 34

Incurred in routine process of working to complete the project as per origional schedule

Question 35

Expedited

Answer 35

Unplanned cost for speeding up the project, (e.g. overtime or hiring additionally temps)

Question 36

Ballpark

Answer 36

+-30%

Question 37

Comparative

Answer 37

+-15%

Question 38

Feasibility

Answer 38

+-10% (done after completion of preliminary project design

Question 39

Definition

Answer 39

+-5% (done after completion of most project design. All major POs have been submitted

Question 40

Continencies are needed because

Answer 40

Project scope may change, murphys law is present, cost estimation must anticipate interaction costs , and normal conditionas are rarely encountered