Chapter 4 Flashcards

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she
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27280
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Chapter 4 Flashcards
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2010-07-19 09:25:41
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PMP
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Chapter 4 Flashcards
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  1. What is the project manager’s role
    • To perform integration management
    • Note: put the pieces together into a cohesive whole
    • Balancing the processes in the knowledge areas
  2. List the knowledge areas
    • scope
    • Time
    • Cost
    • Quality
    • Human resource
    • Communications
    • Risk
    • Procurement management
  3. Name the process groups containing the scope knowledge area
    • Planning
    • Monitor & control
  4. Name the process group containing the time knowledge area
    • Planning
    • Monitor & control
  5. Name the process group containing the cost knowledge area
    • Planning
    • Monitor & control
  6. Name the process group containing the quality knowledge area
    • Planning
    • Execute
    • Monitor & control
  7. Name the process group containing the human resources knowledge area
    • Planning
    • Execute
  8. Name the process group containing the communications knowledge area
    • Initiation
    • Planning
    • Execute
    • Monitor & control
  9. Name the process group containing the risk knowledge area
    • Planning
    • Monitor & control
  10. Name the process group containing the procurement knowledge area
    • Planning
    • Execute
    • Monitor & control
    • Close
  11. What process actions are used in creating the project charter
    • Id stakeholders
    • High level req, Project Scope, Risks, Issues
    • Define Product scope, objectives, success criteria, doc risks
  12. Two project selection methods
    Benefit measurement-comparative, Constrained optimization-mathematical
  13. Benefit measurement(comparative) project selection method
    Murder Board, Peer Review, Scoring Models, Economic Models
  14. Constrained optimization(mathematical)project selection method
    Linear, Integer, Dynamic and Multi objective programming
  15. PV: Present value-understand concept only
    • The value today of future cash flows
    • An economic model for project selection
  16. PV has 2 meanings, what are they
    • Present Value: project selection
    • Planned Value: cost management
  17. NPV: Net Present value-understand concept only
    • The present value of total benefits over many time periods, + NPV
    • is good
    • An economic model for project selection
  18. IRR: Internal rate of return - understand concept only
    • The higher value of IRR is better
    • An economic model for project selection
  19. Payback period - understand concept only
    • The # of time periods to recover investment
    • An economic model for project selection
  20. Benefit cost ratio - understand concept only
    Benefit of project related to cost, >1 benefit greater than cost. Payback in this case is 1 x the cost. An economic model for project selection
  21. Economic Value Added (EVA) - understand concept only
    • The amount of added value a project produces for the company’s shareholders. An economic model for project selection.
    • Note: EVA is also Earned Value Analysis as a cost measurement
  22. Which Project would you choose using "Net present Value (NPV)"
    Project A: $95,000
    Project B: $75,000
  23. Project A
  24. Which Project would you choose using "Internal Rate of Return (IRR)"
    Project A: %13
    Project B: %17
  25. Project B
  26. Which Project would you choose using "Payback Period"
    Project A: 16 Months
    Project B: 21 Months
  27. Project A
  28. Which Project would you choose using "Benefit Cost Ratio"
    Project A: 2.79
    Project B: 1.3
  29. Project A
  30. Opportunity Cost - understand concept only
    The opportunity given up by selecting one project over another. An economic model for project selection
  31. Sunk Cost - understand concept only
    Expended costs. Should not be considered when deciding whether to continue a troubled project. An economic model for project selection
  32. Law of Diminishing returns - understand concept only
    After a certain point, adding more input does produce increased productivity. An economic model for project selection
  33. Working Capital - understand concept only
    Current assets minus current liabilities. $ available to invest. An economic model for project selection
  34. Depreciation - understand concept only
    Assets that lose value over time. There are 2 forms. Straight Line and Accelerated. An economic model for project selection
  35. Straight Line Depreciation - understand concept only
    Assets that lose value over time. Same amount is taken each year. An economic model for project selection
  36. Accelerated Depreciation - understand concept only
    Assets that lose value over time. Depreciates faster than Straight Line. There are 2 kinds. Double Declining Balance and Sum of the Years Digits. An economic model for project selection
  37. List constraints
    Scope, Schedule, Budget, Resources, quality, risks, cost
  38. Operations are not a project. Define Operations.
    Ongoing execution of activities that produce the same product or repetitive service requiring business process management.
  39. X
    X

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