6. Understand planning for success Flashcards
6.1 Explain
the importance of a business case throughout the project life cycle
Business case Provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.
Life cycle - A framework comprising a set of distinct high-level stages required to transform an idea or concept into reality in an orderly and efficient manner. Life cycles offer a systematic and organised way to undertake project-based work and can be viewed as the structure underpinning deployment.
6.2 Explain
what is meant by benefits management (including identification, definition, planning, tracking and realisation) [IDPTR]
Benefit - A positive and measurable impact of change.
Disbenefit - A consequence of change perceived as negative by one or more stakeholders.
Benefits management - The identification, definition, planning, tracking and realisation of benefits. IDPTR(B)
Benefits management plan - A plan that specifies who is responsible for achieving the benefits set out in the benefits profiles and how achievement of the benefits is to be measured, managed and monitored.
Benefits framework - An outline of the expected benefits of the project (or programme), the business operations affected and current and target performance measures. The totality of plans and arrangements to enable the organisation to realise the defined benefits from a project or programme of projects.
Planning - Determines what is to be delivered, how much it will cost, when it will be delivered, how it will be delivered and who will carry it out.
Benefits profile - A representation of when the benefits are planned to be realised.
Benefits realisation - The practice of ensuring that benefits are derived from outputs and outcomes.
Benefits realisation review - A review undertaken after a period of operations of the project deliverables. It is intended to establish that project benefits have been or are being realised.
6.3 Explain
investment appraisal techniques used by a project manager (including Internal Rate of Return (IRR) and Net Present Value (NPR))
Investment - The outlay of money or time usually for income, profit or other benefit, such as the capital outlay for a project.
Investment appraisal - The analysis done to consider the profitability of an investment over the life of an asset alongside considerations of affordability and strategic fit. An input to the investment decision.
Investment decision - The decision made by the sponsor and governance board that justifies the investment in a project, programme or portfolio. Investment decisions rely on robust investment appraisal.
Internal rate of return (IRR) - Used to determine the profitability of a potential investment. It is the discount rate that makes the net present value zero.
Net present value (NPV) - The difference between the present value of cash inflow and the present value of cash outflow over a period of time. It is the monetary value used to judge the value of an investment at a particular discount rate.
6.4 Explain
an information management process (including collection, storage, curation, dissemination, archiving, and the destruction of information) [CSCDAD]
Information management - The collection, storage, curation, dissemination, archiving and destruction of documents, images, drawings and others sources of information.
6.5 Explain
factors which would typically be reported on to help ensure successful project outcomes
Factors - Situations that affect or influence outcomes.
Reporting - Reporting takes information and presents it in an appropriate format, which includes the formal communication of project information to stakeholders.
Reports -
(1) The presentation of information in an appropriate format (e.g. management report).
(2) A written record or summary, a detailed account or statement or a verbal account.
(3) A term used to refer to a role that is subordinate to another role in an organisation structure.
6.6 Explain
the relationship between the deployment baseline, and the development of a project management plan, in linear and iterative lifecycles
Baseline - The reference levels against which a project, programme or portfolio is monitored and controlled.
Baseline plan - The fixed project plan. It is the standard by which performance against the project plan is measured.
Integrated baseline review (IBR) - A review held following the establishment of the initial baseline.
Integrated planning - The application of management processes that bring together the planning of benefits, success criteria, scope, quality, time, resources, cost, risk, communications, etc. to create the project management plan.
Project management plan (PMP) - The output or process of integrated planning for a project or programme.
Baseline cost(s) - The amount of money a project or activity was intended to cost when the project plan was baselined.
Baseline date(s) - The original planned start and finish dates for a project or an activity when the schedule was baselined.
Baseline schedule - The fixed project schedule. It is the standard by which project schedule performance is measured.
6.7 Explain
the importance of producing a Project Management Plan
Project management plan (PMP) - The output or process of integrated planning for a project or programme.
Project management processes - The generic processes that need to apply to each phase of the project life cycle. These may be described as a starting or initiating process, a defining and planning process, a monitoring and controlling process and a learning or closing process.
Project management software - Computer application software designed to help with planning and controlling projects.
Project management team - Members of the project team who are directly involved in its management.
6.8 Describe
the typical contents of a Project Management Plan
6.9 Explain
approaches to producing estimates (including parametric, analogous, analytical, Delphi) [PAAD]
Estimate A forecast of the probable time or cost of completing work.
Estimating - The use of a range of tools and techniques to produce forecasts of the probable time or cost of completing work.
Analogous estimating - An estimating technique based on the comparison with, and factoring from, the cost of similar, previous work. Also known as comparative estimating. [Concept]
Analytical estimating - An estimating technique that uses detailed specifications to estimate time and cost for each product or activity. Also known as bottom-up estimating. [Definition]
Parametric estimating - An estimating technique that uses a statistical relationship between historic data and other variables to calculate an estimate.
Delphi technique - The generation of an estimate through individual expert judgement followed by facilitated team consensus. [ All phases]
Estimate at completion (EAC) - A value expressed in money and/or hours to represent the projected final costs of work when completed. Also referred to as projected outturn cost.
Estimated cost to complete (ECC) - The value expressed in either money or hours developed to represent the cost of the work required to complete an activity.
Estimating funnel - A representation of the increasing levels of estimating accuracy that can be achieved through the phases of the life cycle.
6.10 Explain
the reasons for, and benefits of, re-estimating throughout the project lifecycle
6.11 Explain
the relationship between stakeholder analysis, influence and engagement
6.12 Explain
the importance of managing stakeholder expectations to the success of the project
6.13 Explain
why a project manager would use earned value management
6.14 Interpret
earned value data (including variances and performance indexes)
6.15 Explain
the benefits of using the interpretation of earned value data
