Week 1 Flashcards
Difference between operational and project?
Operational - On going.
Project - Ends ( Has a beginning and end )
Definition of project
A project is a temporary endeavor undertaken to create a unique product, service or result.
When will a project end?
a) Objectives achieved
b) Terminated ( customer, sponsor or champion wish to terminate)
A project can create
a) Project
b) Service
c) Improvement
d) Result - Outcome & Document
Examples of projects
- Developing a new product, service or result.
- Conducting a research effort whose outcome will be aptly recorded.
- Constructing a building, industrial plan or infrastructure.
- Implementing, improving or enhancing existing business processes and procedures.
Definition of project management
The application of knowledge, skills, tools and techniques to project activities to meet the project requirements.
Two main reason PM need to understand organization mission and strategy
- Can make appropriate decisions and adjustments.
- Can be effective project advocates. PM need to be able to demonstrate to senior management how their project contributes to their firm’s mission.
Definition of portfolio
A collection of projects, programs, subportfolios and operations managed as a group to achieve strategic objectives.
Definition of programs
Programs are grouped within a portfolio and are comprised of subprograms, projects or other work in support of the porrfolio.
Classification of project in portfolios
- CEOSP
- Compliance and emergency (MUST DO)
eg: Rebuilding a factory destroyed. - Operational (SUPPORT CURRENT OPERATIONS)
eg : Total quality management (TQM) - Strategic projects
( DIRECTLY SUPPORT THE ORGANIZATION’S LONG RUN MISSION )
eg : New products, research and development.
Definition of project life cycle.
A project life cycle is the series of phases that a project passes through from initiation to its closure. (From start until end)
Main Project Documents of PLC
- Project Charter
- Project management plan
- Accepted deliverable
- Archived project documents
Definition of project charter
- A document issued by the project initiator or sponsor
- Formally authorizes the existence of a project
- Provides the project manager with the authority to apply organization resources to project activities.
Definition of Project Management Plan
The document that describes how the project will be executed, monitored and controlled.
Definition of Deliverables
- Any unique and verifiable product, result, or
- capability to perform a service that is required to be produced
- To complete a process, phase or project
PLC GENERIC CYCLE
- Defining
- Planning
- Executing
- Closing
Defining stage
- Specifications of the project are defined
- Project objectives are defined
- Project objectives are established
- Teams are formed
Defining stage
- Specifications of the project are defined
- Project objectives are defined
- Project objectives are established
- Teams are formed
Planning stage
The level of effort increases and plans are developed to determine the project
- When it will be entail
- When it will be scheduled
- Whom it will benefit
- What quality level should be maintained
- What budget
Executing stage
A major portion of the project work both physical and mental
Closing
- Delivering project to customer
- Redeploying project resources
- Post-project review
Types of Project Life Cycle
a) Predictive and fully plan-driven
b) Iterative and incremental
c) Adaptive / change-driven / agile
Two project selection methods
A) Benefit Measurement Methods
- Economic models
B) Constrained Optimization Methods
- Linear Programming
Advantages of payback
Simplest and most widely used model. Emphasizes cash flows, a key factor in business.
Some managers use the payback model to eliminate unusually risky projects (long payback periods)
Limitations of payback
- Ignores the time value of money
- Assumes cash inflows for the investment period (and not beyond)
- Does not consider profitability
