Study Cards - Chapter 4 (not finished) Flashcards
The project charter is (two answers)…
- A brief 2-3 page document that imparts high-level information about the project.
- A required element that must be signed off before further project work can begin.
The project charter contains…
- The project description and title
- Project manager and their authority level
- High-level business case
- Stakeholders
- High-level deliverables list
- High-level project risks
- Defined project objectives
- Project approval requirements
- S.M.A.R.T. goals
- Formal sign-off
The key benefits of a project charter are…
Primary benefit
- PM is authorized to spend money and commit resources to the project
Other benefits
- Formally recognizes existence of the project
- Describes high-level requirements
- Links the project to other work in the organization
The project Statement Of Work is (three answers)…
- A high-level description of the products or services the project will create.
- Usually created by the customer or sponsor.
- A narrative that describes products or services that are delivered by the project.
The three fundamental elements of an SOW are…
- Business need
- Product scope description
- Strategic plan
A procurement statement of work is…
- For external services that are procured
- A legal document that requires a legal review and review by contract administration professionals.
Enterprise Environmental Factors are…
- A recurring input to over 20 of the processes, primarily in the Planning process group
The key elements involving EEFs include…
- Organizational culture and structure
- Government and industry standards
- Existing human resources
- Personnel administration
- Company work authorization system
- Marketplace conditions
- Stakeholder risk tolerances
- Commercial databases
A work authorization system is designed to (three answers)…
- Ensure that work is approved before it begins
- Ensure the work is done at the right time and in the correct sequence
- Help prevent scope creep as well as goldplating
Organizational Process Assetts include…
- Standards and policies
- Performance measurement criteria
- Templates
- Communication requirements
- Project closure guidelines
- Procedures
- Approving and issuing work authorizations
- Organization knowledge base
The benefit measurement methods for project selection are…
- Murder board
- Weighted scoring model
- Internal rate of return (IRR)
- Benefit cost ration (BCR)
- Present Value (PV) / Net Present Value (NPV)
- Payback Period
- Opportunity Costs
The benefit measurement methods that help to determine ROI are…
- IRR
- BCR
- PV / NPV
- Payback Period
The constrained optimization methods for project selection are…
- Linear programming
- Nonlinear programming
- Dynamic programming
- Integer programming
- Multi-Objective programming algorithms
A murder board looks for projects that are…
- Do not meet strategic objectives
- Might be a pet project
- Are impractical or unrealistic
- Do not add much value to the project portfolio
A weighted scoring model…
- Compares projects based on critical criteria
- Can be used to screen projects based on ‘showstopper’ criteria
Present value is…
- The specific value today of an amount of money in the future
- A reflection of the diminishing value of a fixed amount of money over time
Net present value is…
- The total present value of a time series of cash flows
- The most precise and most conservative
- Better when it is higher (choose the project with the highest NPV)
Future value is…
- A measurement of the future sum of money that a given sum of money is worth at a specific time in the future.
- Better when it is higher (choose the project with the highest Future Value)
Internal Rate of Return is…
- The interest that you get paid for an investment on a yearly basis
- Accurate if there are not negative cash flows
- Should result in the same decision as NPV
Payback period is…
- The number of complete time periods needed to recover your investment in the project
- The lease precise and simplest to compute
- Better when shorter (choose the project with the shortest payback period)
Benefit Cost Ratio is…
- A comparison of the benefits of doing a project in relation to its costs
- Better when higher (choose the project with the Highest BCR)
Two key considerations for BCR are…
- Projects with a BCR of < 1 should be rejected
- Benefit does not always equate to profit
Opportunity cost is…
- The amount of money you give up on one opportunity to pursue another
Sunk costs are…
- What you have spent
- Should not be considered when deciding whether to continue with a troubled project
The law of diminishing returns states that…
The more you put in, the less you get in return.
Working capital is…
- Assets minus liabilities
- What the company has to invest in projects
Two types of depreciation are…
- Straight-line depreciation
- Accelerated depreciation (double declining balance, Sum of the Years Digits)
Four categories of cost are…
- Direct
- Indirect
- Variable
- Fixed
Economic value added of the project is…
- The value produced above the costs of financing the project
Three approaches to compute NPV are…
- Adjusted Present Value
- Flows To Equity
- Weighted Average Cost of Capital
The major inputs to the Project Management Plan are…
- The project charter
- Enterprise Environmental Factors
The project management plan (two answers)…
- Defines how you will execute, monitor & control, and close the project
- Integrates and consolidates all of the subsidiary management plans and baselines from the planning process
- Requires sign-off by all key stakeholders when it is complete
Five key characteristics of the Project Management Plan are…
- Always written out (not an MS Gantt chart)
- A repository for subsidiary plans
- Created by the PM with input from stakeholders
- A formal document approved by key stakeholders
- Progressively Elaborated
Four reasons that a Project Management Plan is important are…
- Captures changes to the project
- Captures versions of the PM Plan to identify trends
- Key to understanding what we did and why
- If it is not written down, it doesn’t exist
When is the project plan baselined…
- When all stakeholders have completed and signed-off on all of the elements in the Project Planning Phase
The project baseline is…
- Starting point for progressive elaboration
- Critical for managing change
- Key in defining lessons learned
Configuration Management is…
- A key element of the project plan (works with change control system)
- Used to document the functional and physical characteristics of a product
- Also a key element for both manufactured and software products
The Project Management Information System includes…
- The configuration management system
- The change control system
- It is usually an automated system
The kick-off meeting is…
- Called by the project manager
- Used to formally introduce the project team and stakeholders to the project
The direct and manage project execution process…
- Performs the work described in the project management plan
A frequent output of direct and manage project execution is…
Change requests which can include preventive actions, corrective actions, or defect repairs
Work performance Information typically addresses…
- Deliverable status
- Schedule progress
- Costs incurred
Additional elements of Direct and Manage project execution are…
- Ensuring a Common Understanding
- Being of Service
The monitoring and control project work process…
- Is done from the beginning of the project through the close
- Applies to the project as well as each phase
A corrective action is…
- Any action needed to bring future project performance in line with the PM plan
Three basic steps for corrective action are…
- Identify the need to take action
- Take corrective action
- Measure the result to determine if additional action is needed
Excessive changes on a project can be caused by…
- Missed requirements
- Failing to engage a key stakeholder
- Stakeholder misunderstanding
- Poorly designed WBS
- Inadequate risk assessment
A frequent input to most M&C process areas across the nine knowledge areas is…
Work Performance Information
What is the configuration hierarchy from lowest to highest level…
- Change Requests
- Change Control System
- Change Management
- Configuration Management
The seven steps needed to implement a change are…
- Identify actual need for change
- Impact assessment
- Identify change alternatives
- Create a change request
- Meet with internal stakeholders
- Meet with the customer (if required)
- Submit to change control board
Changes can be…
- Requested by executing or monitoring and controlling
- Approved or Rejected in integrated change control
- Implemented by executing
