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Flashcards in 03) Integration Management Deck (46)
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1

What is the process of integration management?

  • Develop Project Charter
  • Develop Project Management Plan
  • Direct and Manage Project Work
  • Monitor and Control Project Work
  • Perform Integrated Change Control
  • Close Project or Phase

2

What is the Develop Project Charter process?

Creating the project charter, which formally establishes the project and gives the project manager authority to spend money and commit resources to the project

3

What is the Develop Project charter key output?

Output: Project charter

4

What is the Develop Project Management Plan process?

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

5

What is the Develop Project Management Plan output?

Output: Project management plan

6

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

  • Deliverables
  • Work performance data
  • Change requests
  • Updates to the project management plan and project documents

7

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

  • Change requests
  • Work performance reports
  • Updates to the project management plan and project documents

8

What are the key outputs of the Perform Integrated Change Control process?

  • Approved change requests
  • Change log
  • Updates to the project management plan and project documents

9

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

  • Final product or service
  • Formal acceptance of project or phase
  • Lessons learned and other organizational process assets updates

10

Explain the project manager's role as an integrator.

Making sure all the pieces of the project are properly coordinated and put together into one cohesive whole

11

What are the two major categories of project selection methods?

  1. Benefit measurement (comparative)
  2. Constrained optimization (mathematical)

12

What are the economic models for selecting a project?

  • Present value
  • Net present value
  • Internal rate of return
  • Payback period
  • Cost-benefit analysis

13

Define present value.

The value in today's dollars of a future cash flow

14

Define net present value (NPV).

The present value of total benefits (income or revenue) minus costs over a series of time periods

15

How is net present value (NPV) interpreted?

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

16

Define internal rate of return (IRR).

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

17

How is the internal rate of return (IRR) interpreted?

The higher the internal rate of return (IRR), the better

18

Define payback period.

The length of time required for the organization to recover its investment in the project (before the project starts yielding profit)

19

How is the payback period interpreted?

The shorter the payback period, the better

20

Define cost-benefit analysis.

Comparing the expected costs of a project to its potential benefits (revenue)

21

What is the result of the cost-benefit analysis?

The benefit cost ratio (BCR)

22

How is the cost-benefit analysis interpreted?

The higher the benefit cost ratio (BCR), the better

23

Define opportunity cost.

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

24

What are sunk costs?

Expended costs

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

25

Define the law of diminishing returns.

After a certain point, adding more input will not result in a proportional increase in productivity.

26

Define working capital.

Current assets minus current liabilities.

The amount of money the company has available to invest, including investment in projects.

27

What are the two types of depreciation?

  1. Straight line depreciation:  Depreciate the same amount each time period
  2. Accelerated depreciation:  Depreciate an amount greater than straight line each time period

28

What is the project statement of work?

  • Describes need, product scope, and how the project fits into the organization's or the customer's strategic plan
  • Created by the customer/sponsor before the project starts
  • Later refined in the project scope statement

29

What is a project charter?

A document issued by the sponsor during project initiating that:

  • Formally recognizes (authorizes) the existence of the project
  • Gives the project manager authority to spend money and commit resources to the project
  • Provides the objectives, high-level requirements, and success criteria for the project
  • Identifies the constraints and high-level risks for the project
  • Uncovers assumptions about the project
  • Links the project to the ongoing work of the organization

30

What is a business case?

The project purpose and justification

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.