RMC Hot Topics 9th Edition Flashcards - Integration Management - Deck 1

Question 1

What is the process of Integration Management?

Answer 1

1. Develop Project Charter
2. Develop Project Management Plan
3. Direct and manage project work
4. Manage project knowledge
5. Monitor and control project work
6. Perform Integrated Change Control
7. Close project or phase

Question 2

What is the Develop Project Charter process?

What are its outputs?

Answer 2

Creating the project charter, which involves planning the project at a high level to assess whether it is feasible within the given constraints.

Outputs:

• Project Charter
• Assumption Log

Question 3

What is the Develop Project Management plan process?

What is its output?

Answer 3

The process of creating a project management plan that is bought into, approved, realistic, and formal.

Output: Project Management plan

Question 4

What are the key outputs of the Direct and Manage Project work process?

Answer 4

1. Issue log
2. Deliverables
3. Work performance data
4. Change requests
5. Updates to the Project Management Plan and project documents
6. Updates to Organizational Process Assets

Question 5

What is the key output of the Manage Project Knowledge process?

Answer 5

The Lessons Learned Register

Question 6

What are the key outputs of the Monitor and Control Project Work process?

Answer 6

1. Change Requests
2. Work Performance Reports
3. Updates to the Project Management Plan and project documents

Question 7

What are the key outputs of the Close Project or Phase process?

Answer 7

A project manager must get formal acceptance of the project and its deliverables, issue a final report that shows the project has been successful, issue the final lessons learned, and index and archive all of the project records

Question 8

Explain the project manager’s role as an integrator.

Answer 8

Pulling all of the pieces of the project into a cohesive whole that gets the project done faster, cheaper, and with fewer resources, while meeting project objectives

Question 9

What are the two major categories of project selection methods?

Answer 9

Benefit measurement methods (comparative)

Constrained optimization methods (mathematical)

Question 10

What are the economic measures for selecting a project?

Answer 10

1. Return on investment
2. Present value
3. Net present value
4. Internal rate of return
5. Payback period
6. Cost–benefit analysis

Question 11

Define present value.

Define net present value (NPV). How is it interpreted?

Answer 11

Present value: The value today of future cash flows

Net present value: The present value of total benefits(income or revenue) minus costs over many time periods.

Generally, if the net present value of a project is positive, the investment is a good choice–unless an even better investment opportunity exists.

Question 12

Define internal rate of return(IRR).

How is it interpreted?

Answer 12

The rate at which a project’s inflows and outflows are equal (i.e. the rate of return of an investment in a project)

The higher the IRR, the better.

Question 13

Define Cost benefit analysis.

What is the result of this analysis?

How is it interpreted?

Answer 13

Comparing the expected costs of a project to the potential benefits it could bring the organization.

The benefit–cost ratio(BCR).

The higher the BCR, the better.

Question 14

What concept is concerned with whether the project returns to the company more value than the initiative costs?

Answer 14

Economic value added (EVA).

Question 15

Define opportunity cost.

Define sunk cost.

Answer 15

Opportunity cost: the opportunity given up by selecting one project over another(i.e., The value of the project not selected).

Sunk costs: Expended costs.

Sunk costs should not be considered when deciding whether to continue with a troubled project.

Question 16

Define the law of diminishing returns.

Define working capital.

Answer 16

Law of diminishing returns: after a certain point, adding more input will not result in a proportional increase in productivity.

Working capital: an organization’s current assets minus its current liabilities.g., The amount of money the company has available to invest, including investing in projects).

Question 17

What are the two types of depreciation?

Answer 17

Straight–line depreciation: depreciate the same amount each time.

Accelerated depreciation: depreciate faster than straight-line depreciation.

Question 18

What is a business case?

Answer 18

The justification for a project or initiative.

Explains why the project was selected, how it fits into the organization’s strategic goals, and how it will bring business value to the organization.

Question 19

What is the purpose of a benefits management plan?

Answer 19

To capture the organization’s desired benefits from a project, whether economic or intangible, and how those benefits will be maximized and sustained

Question 20

What are constraints?

What are assumptions?

Answer 20

Constraints: Factors that limit the team’s options, such as limits on resources, budget, schedule, and scope.

Assumptions: things that are assumed to be true but that may not be true.

Question 21

Define payback period.

How is it interpreted it?

Answer 21

The length of time it takes for the organization to revoer its investment in the project before it starts accumulating profit.

Payback period is likely to be one of the only several financial factors used in selecting a project; in some cases, the best choice might be a project that has a longer payback period.