Chapter 3 Flashcards
What is the initiating process
- Needs or demands create requests for projects
- Initiation process starts
- Output is the project charter
Business needs or strategic opportunities
A need from inside the business
Market Demand
Changes in the economy, supply and demand cycles can create demands
Customer Requests
clients asking for a project to be done
Legal Requirements
Laws changing that need to be addressed in businesses
Technological advances
Upgrading technology in an office
Social Needs
Needs or demands that benefit society
Ecological impact
Green initiatives
What is the project request process
- Project is submitted to a review committee on a project request form
- Review and prioritize the requested project.
Project concept document
Outlines the objectives and high-level goals of the project.
Elements of a Project Concept Document
- Project requestor information
- Date
- Project Name
- Business Justification
- Project Description
- Project costs
- Required completion date
Business Case
A document designed to understand the business need for the project and to determine whether the investment in the project is worthwhile.
Elements of a business case
- Project description
- high-level deliverables
- Name of stakeholders
- analysis of need or demand
- high-level risks
- alternative
- recommendations
- Evaluation statement
Critical success factors
the project deliverables or requirements that absolutely must be completed and completed correctly to consider the project a success
Calculating return
determines if the time and resources being used is worth the effort
Payback period
The amount of time it takes to recoup the original investment.
Discounted cash flow
A financial calculation used to determine the project worth or profitability in today’s value.
Cost-benefit analysis
type of analysis that compares the costs to produce the product or service of the project to the financial benefits gained from doing so
internal Rate of Return
The discount rate when the present value of the cash inflows or the value of the investment in today’s dollar, equals the original investment.
Return on investment (ROI)
Measures the amount of saving or profit that the project will generate.
Feasibility Study
A preliminary study that examines the profitability of the project, the soundness of the product, the marketability of the product, alternative solutions, and the business demands that generated the request.
Project Sponsor
An executive within the organization who has the authority to make decisions, assign resources, and assign a budget to the project.
Responsibilities of a PM
- Manages project
- creates project plans
- creates management plans
- measures project performance
- takes corrective action
- controls project outcomes
- manages project team
- Reports status
Responsibilities of Project Sponsor
- Oversees project
- adviser to the PM
- Makes decisions
- issues project charter
- assigns resources and budget
Responsibilities of Function Managers
- Completing projects activities and producing deliverables
Responsibilities of customers
- Provides project requirements
- Approves project deliverables and verifies that they meet requirements
- serves on project oversight and steering committee
Project Charter
The official written acknowledgement and recognition that a project exists.
Purpose of the project charter
- To acknowledge that the project should begin
- Assign and empower PM
- Commits resources to project
- Ensures that everyone is on the same page
- Appoints PM
- Provides an overview of the project and it’s goals
Elements of the Project Charter
- Project overview
- Project objectives
- High-level requirements
- business justification
- resource and cost estimates
- roles and responsibilities
- sign off
- attachments
Tips for a kickoff meeting
- Create agenda
- introduce key players
- Project Overview
- Cover each section of the charter one at a time
- Take time with roles and responsibilities
- Close meeting with a Q&A
