Project and Program Management

Question 1

Cost-benefit analysis

Answer 1

Estimates the total monetary value of the benefits and costs to the community of a project(s) to determine whether they should be undertaken (typically used for public projects such as highways and other public facilities)
Conceived by Jules Dupuit
-requires all costs and benefits be converted to a monetary value (social and environmental included)

Question 2

Cost-effectiveness analysis

Answer 2

Method for selecting among competing projects hen resources are limited

• developed by military
• ratio: CE ration = (cost of new strategy - cost of current practice)/(effect of new strategy - effect of current practice)
• if a community has $50k to spend on a park, then several projects can be prepared

Question 3

Net Present Value

Answer 3

Shows the net monetary value of a project, discounted to today’s present value

• if net value of proposed hokey arena is greater than zero, then one can conclude that the monetary benefit outweighs the cost
• to calculate, you need the net present value, years of the project’s lifespan, quantified monetary benefits, monetary costs, and the interest rate

Question 4

Goals Achievement Matrix (GAM)

Answer 4

Comprehensive way to evaluate a project. Consists of a project evaluation matrix that includes competing projects in rows and evaluation criteria inc columns

Question 5

Gantt Chart

Answer 5

Focuses on the sequence of tasks necessary for project completion

Question 6

Linear Programming

Answer 6

Project management method that attempts to find the optimum design solution for a project. Takes a set of decision variables within constraints and comes up with an optimum design solution

Question 7

Program Evaluation and Review Technique (PERT)

Answer 7

Scheduling method that graphically illustrates the interrelationships of project tasks. PERT is a good choice when precise time estimates are not available for project tasks.

1. Identify specific activities and milestones
2. Determine the proper sequence of the activities
3. Construct a network diagram
4. Determine the critical path
5. Update the PERT chart as the project progresses

Question 8

Critical Path Method (CPM)

Answer 8

Tool to analyze a project. The analysis results in one “critical path” through the project tasks. Each project task has a known amount of time to complete and cannot be completed before the previous one is completed.