Portfolio Flashcards
Portfolio management should avoid:
a. Listening to the customer
b. Interactions with the culture aspects of the organization
c. Basing projects on your hopes, dreams, expectations
d. Having a risk-reward balance of projects
c. Basing projects on your hopes, dreams, expectations
When using scoring models to make portfolio management decisions:
a. All projects should be scored on the same agreed upon criteria
b. The criteria used should be dependent on the risk and potential rewards of each project
c. All criteria should be based on non-financial metrics
d. Both b and c
a. All projects should be scored on the same agreed upon criteria
Which of the following statements regarding portfolio management is most appropriate?
a. The best new product portfolio is the one where the projects with the highest NPV are selected
b. The best new product portfolio is the one where the projects with the best Monte Carlo results are selected
c. The best new product portfolio is the one where the projects with the highest scoring value returns based on management input are selected
d. The best new product portfolio is the one where a number of techniques are used to select the projects possibly including the items listed above and others
d. The best new product portfolio is the one where a number of techniques are used to select the projects possibly including the items listed above and others
Project plan:
a. An approved, formal document used as a guide for project execution and control. It documents decisions, planning assumptions, approved scope, cost, schedule deadlines and facilitates communication among stakeholders.
b. An approved, formal financial control plan of a new product in the development portfolio
c. A road map for the development of a new product concept used in the development phase
d. A plan that ssumes an orderly development of prohects through the proper process as specified
a. An approved, formal document used as a guide for project execution and control. It documents decisions, planning assumptions, approved scope, cost, schedule deadlines and facilitates communication among stakeholders.
Non-controllable factors of portfolio management include:
a. Voice of the customer
b. Direct costs
c. Abilities of project team
d. Government actions
d. Government actions
The role of senior management in portfolio management includes
a. Product line architect
b. Direction setter
c. Process creator/owner
d. All of the above
d. All of the above
Drivers of portfolio decisions could include:
a. Management hopes for the company
b. New Product development strategy
c. An active portfolio management process
d. All of the above
b. New Product development strategy
The value of mastering portfolio management is:
a. Early selection of exceptional projects
b. Increased speed to market
c. Holistic decision making
d. All of the above
d. All of the above
When most companies initially implement a portfolio process, they often finad that they:
a. Have too many projects
b. Dont meet launch schedules
c. Done have enough resources
d. All of the above
d. All of the above
Product platform:
a. The project plan of a new product project that has been officially entered into the project portfolio
b. The attribute features that support a group of new products
c. Basic architecture or underlying structures common across a group of products or that will be the basis of a series of products commercialized over a number of years
d. A grouping of similar customers that are the initial target market of a proposed new product which can be sxtended to other customer groups later
c. Basic architecture or underlying structures common across a group of products or that will be the basis of a series of products commercialized over a number of years
mpanies have a project portfolio that features:
a. A balance of new project types
b. An emphasis on degree of fit with overall strategy
c. An emphasis on degree of fit with overall strategy
d. An emphasis on potential ROI
a. A balance of new project types
Portfolio management includes:
a. Future events
b. Limited resources
c. Senior management
d. All of the above
d. All of the above
When implementing portfolio management, all of the following are true EXCEPT:
a. Reward back-door performance as long as the job gets done
b. Get buy-in from all stake holders
c. Make sure all stakeholders understand reason for implementation
d. Make sure decisions are consisten and fair
a. Reward back-door performance as long as the job gets done
The top-down approach to portfolio management is:
a. Determined by available resources
b. Also called the strategic bucket approach
c. A strategy criteria built into the selection criteria for each project
d. Likely to not result in the desired % of spending for particular types of projects
b. Also called the strategic bucket approach
The disadvantage of using NPV as a criteria include:
a. Assumes financial projections are accurate
b. Ignores probabilities and risks
c. Very easily manipulated
d. All of the above
d. All of the above
In portfolio management, the decision environment could be described as:
a. Assuming unlimited resources for the purposes of evaluating projects
b. Very dynamic
c. Focusing on projects at the same level of completion
d. Relatively static
b. Very dynamic
Weaknessess of NPV as a significant evaluation tool include:
a. NPV does not take into account costs
b. It is difficult to calculate cash flows in early stages of the NPD process
c. It provides a one-dimensional lok at a project
d. All of the above
b. It is difficult to calculate cash flows in early stages of the NPD process
The types of projects that represent the lowest risk and lowest difficulty includes:
a. Platform and breakthrough projects
b. Derivative and platform projects
c. New to the world and support projects
d. Derivative and support projects
d. Derivative and support projects
According to the PDMA, the scope of portfolio management is:
a. The responsibility of all persons involved in NPD
b. Included all projects w/in an organization
c. Is never political
d. Limited to new product projects
d. Limited to new product projects
The value of portfolio management is diminished when:
a. Subordinate employees and stakeholders do not understand the decision process
b. Scoring models are used
c. Senior management controls the process
d. Financial and non-financial measures are used to determine the balance of the portfolio
a. Subordinate employees and stakeholders do not understand the decision process
Drivers of portfolio management could include:
a. Need for fast decision making
b. A coordinated company approach
c. Limited resources
d. All of the above
d. All of the above
For NPD and portfolio management, the phrase “new product” refers to:
a. A service new to the firm marketing it
b. Manufactured products new to the firm marketing them
c. Manufactured products and/or services for which a new marketing plan has been developed
d. Both manufactured products and services which are new to the firm marketing them
d. Both manufactured products and services which are new to the firm marketing them
A balanced scorecard is a comprehensive performance measurement technique that balances what four performance dimensions?
a. Product champion, product sponsor, project leader, and process owner
b. Having a great idea, 2-3 new customer value propositions, executing well, and product launch plans
c. Management, development, operations, finance
d. Customer perceptions of how we perform in a must excel area, innovation performance, learning performance, and financial performance
d. Customer perceptions of how we perform in a must excel area, innovation performance, learning performance, and financial performance
Pipeline alignment is:
a. The way new products are aligned with current product mix
b. The balancing of project demands with available resource supply
c. The stpes taken to make sure the pipeline is accomplishing the right things for business success
d. The linkage between what is in the pipeline and the NPD strategy of the organization
b. The balancing of project demands with available resource supply
