1 - Introducing the Project Flashcards
What is the importance of obtaining the CompTIA Project+ certification?
Many employers look for this certification in addition to real-life experience and formal education.
What does the PMBOK® Guide stand for?
A Guide to the Project Management Body of Knowledge.
What is a project?
A temporary endeavor that has definite beginning and ending dates, resulting in a unique product, service, or result.
What are the criteria that define a project?
- Unique
- Temporary
- Reason or Purpose
- Stakeholder Satisfaction
What distinguishes a project from an operational activity?
Projects have defined start and end dates and aim to achieve specific, unique results.
What is a program in project management?
A group of related projects managed together using coordinated processes and techniques.
What is a portfolio in project management?
A collection of programs, subportfolios, and projects that support strategic business goals or objectives.
True or False: Projects and operations are the same.
False
What is the primary purpose of project management?
To integrate all components of the project and bring it to a successful conclusion.
What are the five phases of the project life cycle according to CompTIA?
- Discovery/Concept
- Initiating
- Planning
- Executing
- Closing
What is the purpose of the Discovery phase?
To determine whether the project is worthwhile and create a business case.
What activities are included in the Initiating phase?
- Creating the preliminary scope statement
- Creating the project charter
- Identifying and assessing stakeholders
- Developing a responsibility assignment matrix (RAM)
Fill in the blank: The _______ phase involves refining project goals and creating time and cost estimates.
Planning
What document authorizes the project to begin?
Project charter
What is a responsibility assignment matrix (RAM)?
A document that defines stakeholder responsibilities, often incorporating a RACI chart.
What is the main focus during the Executing phase?
Performing and monitoring the work of the project.
What does RACI stand for?
- Responsible
- Accountable
- Consult
- Inform
What is a business case?
A document that helps determine the benefits and rewards of the project.
What is the purpose of a project management plan?
To consist of all the project planning documents such as charter, scope statement, schedule, and more.
What is the final report that summarizes the closeout of all project phases called?
Project closeout report
True or False: The PMBOK® Guide is used as a primary basis for the CAPM® and PMP® certifications.
True
What is the focus of the Planning phase?
To break down project goals into manageable units of work and create estimates.
What is the purpose of the Executing phase?
To coordinate project members and resources, manage change, and report on status.
What is the primary purpose of the Executing phase in project management?
To perform and monitor the work of the project according to the project management plan.
List key activities in the Executing process.
- Producing and verifying deliverables
- Implementing change management
- Managing vendors
- Tracking and reporting project results
- Updating project elements such as budget, risk, and timelines
- Managing conflict
- Monitoring the risks and issues log
- Performing quality assurance/governance activities
- Monitoring the budget
- Conducting project meetings and updates
What happens if deliverables do not conform to expectations during the Executing phase?
Change requests are created or corrective actions are taken.
What is the primary purpose of the Closing phase?
To validate deliverables and document the formal acceptance of the project work.
List key activities in the Closing process.
- Validating deliverables
- Closing contracts
- Removing access
- Releasing resources
- Holding the project closure meeting
- Writing the project closeout report
- Obtaining feedback and lessons learned
- Project sign-off
- Handing off the product to the organization
- Evaluating the project
- Archiving project documents
- Rewards and celebration
True or False: The Closing phase is often skipped in project management.
True
What is the first phase in the project management life cycle?
The Discovery/Concept Preparation phase.
What is the purpose of preparing a business case in the Discovery phase?
To determine the merits of the project.
Identify one reason why projects come about.
- Market Demand
- Organizational Need
- Customer Request
- Technological Advance
- Legal Requirement
- Social Need
What must project managers recognize regarding regulations and legal requirements?
They must investigate specific industry regulations and communicate their impacts on the project.
What are stakeholders in the context of project management?
Anyone who has a vested interest in the project, including individuals and organizations.
What is the purpose of the business case?
To document the business need for the project and determine if the investment is worthwhile.
List elements included in the business case.
- Description
- Justification
- Alignment to the Strategic Plan
- Stakeholders
- Analysis of the Problem or Opportunity
- High-Level Risk Analysis
- Alternative Solutions
- Recommended Solution
- Feasibility Study Results
What is a cost-benefit analysis?
A comparison of the cost to produce a product or service to the financial gain from executing the project.
Fill in the blank: A _______ model has a predefined list of criteria against which each alternative solution is rated.
scoring
What is a key weakness of a cost-benefit analysis?
It does not account for other important factors, such as strategic value.
What should be included in the high-level risk analysis of a business case?
Known risks and a description of those risks.
True or False: A feasibility study is always included in every business case.
False
What is an example of an organizational need that might drive a project?
Request for a new accounting system to improve efficiency.
What does the justification section of a business case describe?
The benefits to the organization for undertaking the project.
What is one impact of ecological considerations on project management?
Projects may be initiated to implement ecologically friendly equipment or processes.
What role does the project sponsor play in project management?
The executive who authorizes the project and allocates funds and resources.
What is the significance of stakeholder analysis in project management?
To identify and understand the interests and impacts of all involved parties.
What is the minimum standard for the scoring model?
A minimum standard must be obtained for a project to remain in the selection process.
What is a benefit of using a scoring model?
It allows placing a heavier weight on a criterion of more importance.
What is a weakness of a scoring model?
The ranking is as valuable as the criteria and weighting system it is based on.
What is the purpose of the weighted scoring model?
To determine the recommended solution among alternatives.
What does the payback period measure?
The length of time it takes for an organization to recover all costs of producing the project.
How is the payback period calculated?
By comparing the initial investment to expected cash inflows over time.
True or False: The payback period is the most precise cash flow technique.
False.
In the example provided, what is the initial investment for the alternative solution?
$425,000.
What cash inflows are expected in year 1 and year 2?
$175,000 in year 1 and $250,000 in year 2.
What is the payback period in the provided example?
Two years.
What does cash flow techniques provide data on?
The overall financials of alternative solutions or projects.
What is the time value of money?
Money received in the future is worth less than money received today.
What formula is used to calculate future value?
FV = PV * (1 + i)^n.
What does the cost of capital represent?
The rate of return the organization might earn if investing elsewhere.
What does discounted cash flow compare?
The future worth of expected cash flows to today’s dollars.
What is net present value (NPV)?
A technique that calculates expected revenues in today’s dollars.
What should be done if NPV is greater than 0?
Accept the project.
What does return on investment (ROI) measure?
The profitability of an investment compared to its costs.
How is ROI calculated?
(Current Value - Cost of Investment) / Cost of Investment.
What is internal rate of return (IRR)?
The discount rate when the present value of cash inflows equals the original investment.
What does current state vs. future state analysis examine?
Business processes and potential improvements.
What is the first step in current state vs. future state analysis?
Documenting the current state.
What techniques can be used to gather information for current state analysis?
- Interviewing subject matter experts
- Observing the process
- Focus group meetings
- Surveys.
What are existing artifacts in project management?
Documents created during the life of the project, such as project charters and risk logs.
What is the benefit of examining existing artifacts?
It can save time and alert you to risks before starting the project.
What is an example of a project that was undertaken related to data centers?
Upgrading the organization’s data center.
What is the definition of a project?
A temporary endeavor undertaken to create a unique product, service, or result
A project has definitive start and finish dates.
What distinguishes operations from projects?
Activities that are ongoing that support the organization’s business
A project is temporary and unique, while operations are repetitive.
What is a program?
A group of related projects managed to gain benefits that couldn’t be realized if they were managed independently.
What is a portfolio in project management?
Collections of programs and projects that support strategic business goals or objectives.
What are the phases of the project life cycle?
Discovery/Concept, Initiating, Planning, Executing, Closing.
What is the purpose of the business case?
Documents the business need for the project and determines whether the investment in the project is worthwhile.
What can bring about a project?
Market demand, organizational need, customer request, technological advance, legal requirement, ecological impact, social need.
What is a prequalified vendor list?
A list of vendors that have already been vetted by the organization.
What are project selection methods?
Methods used to determine which proposed projects should receive approval and move forward.
What is a decision model?
A formal method of project selection that helps selection committees decide among competing projects.
Name two primary categories of decision models.
Benefit measurement methods and constrained-optimization models.
What are benefit measurement methods?
- Cost-benefit analysis
- Scoring models
- Payback period
- Discounted cash flow
- Net present value
- Internal rate of return
- Return on investment.
What is expert judgment in project selection?
Relies on the expertise of stakeholders or subject matter experts to help reach a decision regarding project selection.
What is a common risk of relying solely on expert judgment?
Decisions may be made based solely on who has the best presentation rather than on objective data.
What is the initiating phase of a project?
Where the preliminary scope statement and project charter are created.
What is the closing phase of a project?
Where project closeout occurs, contracts are closed, and team members are released.
What is the significance of the CEO’s opinion in project selection?
A CEO’s decision can override financial analysis and influence project approval.
What does the project manager do?
Responsible for project integration and applying tools and techniques of project management.
What are the two steps involved in validating a project?
Writing and reviewing the business case and analyzing the stakeholders.
Fill in the blank: A project is a _______ endeavor that produces a unique product, service, or result.
temporary
True or False: Portfolios consist only of related projects.
False
What is a scoring model?
A decision model used to evaluate and rank competing projects.
What type of need does a request for a customer management system for service-support staff describe?
Organizational need
What should a business case include? (Choose all that apply)
- Feasibility study
- Alignment to the strategic plan
- Justification
- Alternative solutions
Preexisting contracts, prequalified vendors, and project documents are known as what?
- Historical information
- Artifacts
What technique was used to determine expected cash inflows totaling $7.6 million?
Discounted cash flow
Which formula is used for calculating the profitability of an investment?
(Current Value or Gain from the Investment – Cost of Investment) / (Cost of the Investment)
What is the idea behind most cash flow techniques regarding the value of money?
Time value of money
What should the alternative solutions section of a business case contain? (Choose all that apply)
- High-level description of the costs
- Feasibility of implementing each alternative
- Expected results of each solution
- Description of the impacts of the alternative to the organization
What is the payback period if projected revenues are $500,000 in year 1 and $700,000 in year 2 with an initial investment of $850,000?
21 months
What should be recommended if a project poses significant risk after reviewing the business case?
Perform a feasibility study
What can help speed up the procurement of resources for a project? (Choose all that apply)
- Preexisting contract
- Prequalified vendor list
Which project selection methods are used? (Choose all that apply)
- Cash flow techniques
- Constrained optimization models
- Expert judgment
- Decision models
What is it called when a company recommends three implementation firms for a project?
Prequalified vendor list
If expected cash inflows are $7.8 million and the initial investment is $9.2 million, what is true?
NPV is less than 0, so this project should be rejected.
What are the steps required to validate a project? (Choose all that apply)
- Analyze the feasibility
- Justify the project
- Align it to the strategic plan
- Create the business case
What technique is used to analyze the current procurement process and its potential improvements?
- As is—to be
- Current state versus future state
- Performance analysis
