PM Chapter 2 - Project Management and Information Technology Context Flashcards
A weighted scoring model is a tool that provides a systematic process for selecting projects based on many criteria.
True
Organizations should only pursue projects that have the best financial value.
False
Low- or medium-priority projects that can be finished in less time than high-priority projects should always be completed first.
False
You can determine minimum scores or ____________________ for specific criteria in a weighted scoring model.
Thresholds
From the viewpoint of NPV only, if Project 2 has a higher NPV than Project 1, Project 1 should be chosen.
False
A program for IT ____________________ projects might include purchasing new hardware, software, and networking equipment, or determining standards for IT.
infrastructure
The main goal of programs is to obtain benefits and control not available from managing projects separately.
True
When using the hierarchical four-stage planning process for selecting projects, you must start at the bottom of the pyramid.
False
Grouping related ____________________ into programs helps improve coordination through better communications, planning, management, and control.
Projects
___________________ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.
Net Present Value
A(n) ____________________ rate is the rate used in discounting future cash flows.
Discount
An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection
True
___________________ analysis determines how much time will lapse before accrued benefits overtake accrued and continuing costs.
Payback
Project portfolio management focuses on ____________________ issues while individual projects often focus on tactical issues.
Strategic
____________________ planning involves determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends, and projecting the need for new products and services
Strategic
NPV analysis is a method for making equal ____________________ between cash flow for multiyear projects. Comparison
Comparison
Organizations—both large and small—cannot undertake most of the potential projects identified because of resource limitations and other constraints.
True
The required rate of return is the minimum acceptable rate of return on an investment.
True
A construction firm using ____________________ of scale can purchase materials, obtain services, and hire workers for less money if it is managing the construction of 100 houses instead of just one house.
Economies
With respect to NPV, all organizations start discounting in Year 0 (immediately).
False
A SWOT analysis involves the examination of Strengths, Weaknesses, Opportunities, and ____________________.
Threats
Just as projects are unique, so are project portfolios.
True
A balanced ____________________ is a methodology that converts an organization’s value drivers—such as customer service, innovation, operational efficiency, and financial performance—to a series of defined metrics.
Scorecard
Organizations have no choice in whether to fund projects that use __________ costs.
nondiscretionary