Project MGMT chapter 4 - Winter 2013

Question 1

Balanced scorecard

Answer 1

The methodology that coverts an organizations Value drivers to series of defined Metrics

Question 2

Baseline

Answer 2

The approved project management plan plus approved changes

Question 3

Cash flow

Answer 3

Benefits minus costs or income minus expenses

Question 4

Change control Board (CCB)

Answer 4

A formal group of people responsible for approving or rejecting changes on a project

Question 5

Change control system

Answer 5

A formal, documented process that describes when and how official project documents may be changed

Question 6

Configuration management

Answer 6

A process that ensures that the descriptions of the projects products Are correct and complete

Question 7

Cost of capital

Answer 7

The return available by investing the capital elsewhere

Question 8

Directives

Answer 8

New requirements imposed by management, government, or some external influences

Question 9

Discount factor

Answer 9

A multiplier for each year based on the discount rate and year

Question 10

Discounts rate

Answer 10

The rate used in discounting future cash flows; also called that capitalization rate or opportunity cost of capital

Question 11

Integrated change control

Answer 11

Identifying, evaluating, and managing changes throughout the project lifecycle

Question 12

Interface management

Answer 12

Identifying and managing the points of interaction between various elements of a project

Question 13

Internal rate of return (IRR)

Answer 13

The discount rates that results in an NPV of zero for a project

Question 14

Net present value (NPV) Analysis

Answer 14

A method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time

• Projects with a positive NPV should be considered if financial value is a key criterion
• The higher the NPV, the better

Question 15

Opportunities

Answer 15

Chances to improve the organization

Question 16

Organizational process assets

Answer 16

Formal and informal plans, policies, procedures, Guidelines, information systems, financial systems, management systems, lessons learned, and historical information that help people understand, follow, and improve business processes in a specific organization

Question 17

Payback period

Answer 17

The amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project

Question 18

Problems

Answer 18

Undesirable situations that prevent the organization from achieving its goals

Question 19

Project intergration management

Answer 19

1. develop the project charter
2. develop the preliminary prject scope statement
3. develop the project management plan
4. Direct and manage project execution
5. monitor and control the project work
6. perform integrated change control
7. close the project

considered the key to overall project success.

Question 20

information technology planning stages

Answer 20

• information technology strategy planning
• business Area Analysis
• Project Planning
• Resource Allocation

Question 21

Information technology Strategy Planning Stage

Answer 21

Tie information technology strategy to mission and vision of organizatio. Identify key business areas

Question 22

Business area analysis stage

Answer 22

Document key business processes that could benefit from information technology

Question 23

Project Planning Stage

Answer 23

Define potential projects. Define project scope, benefits, and contraints

Question 24

resource Allocation Stage

Answer 24

Select information technology projects, assign resources.

Question 25

Metohds for selecting projects

Answer 25

1. focusing on broad organizational needs 2. categorizing information technology projects 3. performing net present value or other financial analyses 4. using weighted socring model 5. implementing a balanced scorecard

Question 26

Categorizing information technology projects (3 catagories)

Answer 26

1. problems 2. opportunities 3. directives It is often easier to get approval and funding for projects that address problems or directives because the organization must respond to these categories of projects to avoid hurting their business

Question 27

Four important forces behind NPD success include the following:

Answer 27

- A product innovation and technology strategy for the business - Resource commitment and focusing on the right projects, or solid portfolio management - An effective, flexible, and streamlined idea-to-launch process - The right climate and culture for innovation, true cross-functional teams, and senior management commitment to NPD

Question 28

Three important criteria for projects

Answer 28

+ There is a need for the project + There are funds available + There’s a strong will to make the project succeed

Question 29

Three primary methods for determining the projected financial value of projects:

Answer 29

- Net present value (NPV) analysis - Return on investment (ROI) - Payback analysis

Question 30

Payback Analysis

Answer 30

- Another important financial consideration is payback analysis - Payback occurs when the net cumulative discounted benefits equals the costs - Many organizations want projects to have a fairly short payback period

Question 31

project management plan

Answer 31

is a document used to coordinate all project planning documents and help guide a project’s execution and control

Question 32

Common Elements of a Project Management Plan

Answer 32

- Introduction or overview of the project - Description of how the project is organized - Management and technical processes used on the project - Work to be done, schedule, and budget information

Question 33

Project Execution

Answer 33

- Project execution involves managing and performing the work described in the project management plan - The majority of time and money is usually spent on execution

Question 34

Integrated Change Control

Answer 34

Three main objectives are: - Influencing the factors that create changes to ensure that changes are beneficial - Determining that a change has occurred - Managing actual changes as they occur

Question 35

Suggestions for Performing Integrated Change Control

Answer 35

- View project management as a process of constannt communication and negotiation - Plan for change - Establish aformal change control system, including a change control board - use effective configuration management - Define proecdures for making timely decisions on smaller changes - Use written and oral performance reports to help identify and manage change - use project management and other software to help manage and communicate changes - focus on leading the project team and meeting overall project goals and expectations