2A - Identify the Project Selection Process

Question 1

Determines whether the project should be done and requires that the desired future state established in the project concept definition is aligned with, coordinated with, or in support of the organizational strategic objectives set by senior leadership.

Answer 1

Strategic relevance

Question 2

A project responsibility that requires that the desired future state described in the project concept definition is aligned with, coordinated with, or in support of the operational priorities authorized by tactical management for the stated management horizon

Answer 2

operational relevance

Question 3

A statement that defines why a project is being undertaken, the functionality that a project is designed to accommodate, or how the functionality will be achieved and satisfied by the solution.

Answer 3

project requirement

Question 4

The pressing organizational needs that drive decision makers to sponsor projects and prioritize competing projects.

Answer 4

business requirements

Question 5

Project requirements that detail the desired functionality, capacity, or capability expected from the project.

Answer 5

functional requirements

Question 6

The technical needs that are crucial for a project.

Answer 6

technical requirements

Question 7

The act of choosing a project from among competing proposals.

Answer 7

project selection

Question 8

The standards and measurements that the organization uses to select and prioritize projects.

Answer 8

project selection criteria

Question 9

Any systematic approach that is used to analyze the value of a proposed project in order to choose among competing proposals.

Answer 9

project selection methods

Question 10

A framework for comparing competing project proposals by helping decision makers compare the benefits of one project with another.

Answer 10

project selection decision model

Question 11

A project selection decision model that analyzes the predicted value of the completed projects in different ways. They may present the value in terms of forecasted revenue, ROI, predicted consumer demand in the marketplace, or the IRR.

Answer 11

benefit measurement models

Question 12

The discount rate that makes the NPV of the future cash return equal to the initial capital investment.

Answer 12

IRR

Question 13

What does IRR stand for?

Answer 13

Internal Rate of Return

Question 14

A project selection decision model that uses different types of mathematical formulas and algorithms to determine the optimal course of action. Variables such as business constraints, the highest possible profit that could be made on a project, and the laws and safety regulations that govern business operations may be considered.

Answer 14

mathematical models

Question 15

A decision-making process that is used to evaluate fixed asset purchases.

Answer 15

capital budgeting

Question 16

The time taken to reclaim the original investment that was made.

Answer 16

payback period

Question 17

A method that is used to evaluate the opportunity of an investment.

Answer 17

DCF

Question 18

What does DCF stand for?

Answer 18

Discounted Cash Flow

Question 19

The present value of an investment minus the initial investment.

Answer 19

NPV

Question 20

What does NPV stand for?

Answer 20

Net Present Value

Question 21

A type of screening system decision model that uses a branch diagram to choose among two different alternatives. This model incorporates probabilities of occurrence and the costs or rewards of each decision.

Answer 21

decision tree

Question 22

A decision model that is used to evaluate and score alternatives on each criterion.

Answer 22

criteria profiling

Question 23

A decision model that applies a multiplier based on importance to each criterion, which is factored into the scoring.

Answer 23

weighted factor

Question 24

A decision model that uses groups of people to rate the relative priority of a number of alternatives.

Answer 24

Q-sorting

Question 25

A group technique that extracts and summarizes anonymous group input to choose among various alternatives. This technique is often used to arrive at an estimate or forecast.

Answer 25

Delphi technique

Question 26

An analysis that provides technical and operational data to management to help determine if a project will work for the organization or if an alternative should be pursued.

Answer 26

feasibility analysis

Question 27

An organizational characteristic that measures the extent an organization’s shared values support the project’s goals.

Answer 27

cultural feasibility

Question 28

A feasibility study to analyze the hardware, software, facilities, and databases needed for a proposed project.

Answer 28

technical feasibility

Question 29

A person with technical expertise in a particular subject area.

Answer 29

SME

Question 30

What does SME stand for?

Answer 30

Subject Matter Expert

Question 31

Any disadvantage or obstacle created by the fact that a project will generate an outcome that has never been created before, and consequently nobody within the organization has any experience with the operation of the new capability.

Answer 31

first-time/first-use penalty

Question 32

A comparison of the predicted costs versus the predicted benefits of a project.

Answer 32

cost-benefit analysis

Question 33

A technique that formally documents the manner in which work gets done and displays the work in a flowchart.

Answer 33

work flow analysis

Question 34

A method for designing information systems by breaking down requirements into user functions. Each ___ is an event or sequence of actions performed by the user.

Answer 34

use case analysis

Question 35

A simulated version of a new system, essential for clarifying information elements.

Answer 35

prototype

Question 36

A method for developing potential or likely eventualities for different situations.

Answer 36

scenarios