project initiation - Week 1 Flashcards
How big is the project-oriented sectors is expected to grow by 2027
According to the Project Management Institute, the project management labor force in seven project-oriented sectors is expected to grow by 33 percent, or nearly 22 million new jobs, by 2027
What are some of the project manager’s responsibilities during the initiation phase? Select all that apply.
Identify project goals
Identify project resources
Determine the criteria for project success with stakeholders
Make the project plan
Identify project goals
Identify project resources
Determine the criteria for project success with stakeholders
What is a cost Benefit Analysis
the process of adding up the expected value of a project (the benefits) and comparing them to the dollar costs.
Questions Benefits
1) What value will this project create?
2) How much money could this project save our organization?
3) How much money will it bring in from existing customers?
4) How much time will be saved
5) How will the user experience be improved?
Questions Costs
1) How much time will people have to spend on this project?
2) What will be the one time costs?
3) Are there any ongoing costs?
4) Long term costs?
What questions can a project manager ask to determine a project’s benefits? Select all that apply.
What can cause the project to fail?
Has the company announced a public launch date for the project?
How much money can this project save our organization?
How much time will this project save customers?
How much money can this project save our organization?
How much time will this project save customers?
6 Components to the planning phase of a project
1) goals
2) scope,
3) deliverables,
4) success criteria,
5) stakeholders
6) resources.
Who determines goals?
senior company leaders, with your help
Scope
This is the process to define the work that needs to happen to complete the project
deliverables
They’re the products and services that you will create for your customer, client or project sponsor.
.Deliverables can be anything from product features and functionalities to documentation, processes and more, anything that enables the goal of your project to be achieved. Deliverables are submitted to help you reach your project goals
success criteria
Success criteria are the standards by which you measure how successful a project was in reaching its goals.
stakeholders
Stakeholders are key to making informed decisions at every step of the project, including the initiation phase.
resources.
resources generally refer to the budget, people, materials, and other items that you will have at your disposal.
What is a project charter?
A project charter is a document that contains all the details of the project.
Project charters clearly define the project and its goals and outline what is needed to accomplish them. A project charter allows you to get organized, set up a framework for what needs to be done and communicate those details to others.
Which of the following are key components of project initiation?
Resources
Scope
Deliverables
Timeline
Goals
Resources
Scope
Deliverables
Goals
Calculating costs and benefits -return on investment
(G-C) / C = ROI
G represents the financial gain
C represents the upfront and ongoing costs
Example on return on investment
For example, imagine your project costs $6,000 up front plus $25 per month for 12 months. This equals $300 per year, but you estimate that the project will bring in $10,000 in revenue over the course of that year. Using the formula above, you calculate the ROI as: ($10,000 - $6,300) ÷ $6,300 = 0.58 = 58%
The ROI comes to 0.58, or 58%. You consider this to be a strong ROI, so you decide to pursue the project.
To determine the benefits of a project, you might ask:
What value will this project create?
How much money could this project save our organization?
How much money will it bring in from existing customers?
How much time will it save?
How will it improve the customer experience?
And to determine the costs of a project, consider questions such as:
How much time will people have to spend on this project?
What are the one-time costs?
Are there any ongoing costs?
What about long-term costs?
You might also consider questions about intangible benefits.
Customer satisfaction. Will the project increase customer retention, causing them to spend more on the company’s products or services?
Employee satisfaction. Is the project likely to improve employee morale, reducing turnover?
Employee productivity. Will the project reduce employee’s overtime hours, saving the company money?
Brand perception. Is the project likely to improve the company’s brand perception and recognition, attracting more customers or providing a competitive advantage?
intangible costs
These are costs that are not quantifiable. For example, might the project put customer retention, employee satisfaction, or brand perception at risk?
