Project management Flashcards
(40 cards)
What is a project
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
Key project characteristics
- One time processes with a lifecycle
- Limited life, budget, schedule, and resources
- Developed to address a key goal
- Customer-focused
Project success determinants
Budget, time, performance and Client acceptance
Project management stakeholders: Managing stakeholders
External environment, stakeholders goals, internal capablitites, problems, solutions and testing
Functional structure
\+Specialization \+Projects within the departments -Low customer focus -Lack of commitment -Longer times to implement projects
Matrix structure
+Mix between project and functional orientation
+Promotes cross functional collaboration
+Efficient use of resources
-Leadership challenges
-Workers commitment
-Negotiation for sharing scarce resources
Project structure
+Project management specialization
- Project commitment rather than firm
- Future uncertainty
- Difficult to develop intellectual capital
Why does project screening and selection matter
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
What is project screening
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
Principles to project screening model
Realism, capability, flexibillity, ease of use, cost effectiveness and comparability
Project selection models/methods
Numerical and non numerical
Numeric selection model
Payback period
Net present value
Discounted payback period
Internal rate of return (IRR)
Non numeric selection models
Checklist model
Weighted scoring model
Analytical hierarchy process (AHP)
Profile model
Payback period
(formula)
Estimated project investment / Annual cash savings
Checklist model
Pros: Simple/flexible
Facilitate conversation and discussion
Cons: Assumes all criteria are equally important
Each potential porject will have a different set
Weighted scoring model
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
Non-numeric model AHP
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
Project scope
The end result or mission of your project - a product or service for your client/customer
Scope management
The function of controlling a project in terms of its goals and objectives through the process of conceptual developemnt, full definition, execution and termination
Statement of work
A detailed narrative description of the work required for a project
Questions to consider in risk management
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
Four stages of risk management
1) risk identification
2) analysis of probability and consequences
3) risk mitigation strategies
4) control and documentation
Delphi approach
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
Risk mitigation strategies
Accept, minimize, share & transfer
