2A - Identify the Project Selection Process Flashcards
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.
Strategic relevance
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
operational relevance
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.
project requirement
The pressing organizational needs that drive decision makers to sponsor projects and prioritize competing projects.
business requirements
Project requirements that detail the desired functionality, capacity, or capability expected from the project.
functional requirements
The technical needs that are crucial for a project.
technical requirements
The act of choosing a project from among competing proposals.
project selection
The standards and measurements that the organization uses to select and prioritize projects.
project selection criteria
Any systematic approach that is used to analyze the value of a proposed project in order to choose among competing proposals.
project selection methods
A framework for comparing competing project proposals by helping decision makers compare the benefits of one project with another.
project selection decision model
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.
benefit measurement models
The discount rate that makes the NPV of the future cash return equal to the initial capital investment.
IRR
What does IRR stand for?
Internal Rate of Return
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.
mathematical models
A decision-making process that is used to evaluate fixed asset purchases.
capital budgeting
The time taken to reclaim the original investment that was made.
payback period
A method that is used to evaluate the opportunity of an investment.
DCF
What does DCF stand for?
Discounted Cash Flow
The present value of an investment minus the initial investment.
NPV
What does NPV stand for?
Net Present Value
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.
decision tree
A decision model that is used to evaluate and score alternatives on each criterion.
criteria profiling
A decision model that applies a multiplier based on importance to each criterion, which is factored into the scoring.
weighted factor
A decision model that uses groups of people to rate the relative priority of a number of alternatives.
Q-sorting
