Project Management Exam 1 (Chapters 1-4)With Complete Solutions

Projects w Business Strategy - ANSWER -Most orgs can't take on most potential projects due to resource limitations & other constraints. -An orgs overall Business Strategy should guide project selection process and management of those projects. Strategic Planning - ANSWER -By analyzing the strengths and weaknesses of an org, you are able to determine long-term objectives. -Also by studying opportunities & threats in the business environment. -Predicting future trends. -Projecting the need for new products & services. Strategic Planning Includes - ANSWER -Usually includes the orgs mission, vision, and goals for the next 3-5 years. -Provides important info to help orgs identify & select potential projects. SWOT Analysis - ANSWER -Analyzing Strengths, Weaknesses, Opportunities, & Threats. -It can help in identifying potential projects. 4 Stage Strategic Planning for Project Selection - ANSWER -It is very important to start at the top of the pyramid to chose projects that support the orgs business strategy. Methods for Selecting Projects - ANSWER -Focus on a competitive strategy & broad org needs. -Perform NPV analysis. -Use a weighted scoring model, balanced scorecard. -Address problems, opportunities, & directives. -Consider project time frame, and project priorities. Competitive Strategy - ANSWER -Cost Leadership: : Customers primarily because products or services are inexpensive. Examples include Walmart. -Focus: Develop products and services for a particular market niche. Examples include Babies "R" Us and Ron Jon Surf Shop. Net Present Value Analysis - ANSWER - (NPV) analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. - NPV means the return from a project exceeds the opportunity cost of capital—the return available by investing the capital elsewhere. - Projects with higher NPVs are preferred to projects with lower NPVs if all other factors are equal. Chapter 1 Summary - ANSWER -An organization's overall business strategy should guide the project selection process and management of those projects. -The four-stage planning process helps organizations align their projects with their business strategy. -Several methods are available for selecting projects, including financial methods (net present value, return on investment, and payback); weighted scoring models; balanced scorecards; addressing problems, opportunities, and directives; project time frame; and project priority. -The main criteria for program selection are the coordination and benefits available by grouping projects. -The goal of project portfolio management is to help maximize business value to ensure enterprise success. Project Management Process Groups (Chapter 3) - ANSWER -Range from initiating activities to planning activities, executing activities, monitoring & controlling activities, & closing activities. -A Process is a series of actions directed toward a particular result. Initiating Processes - ANSWER -Include actions to begin projects & project phases. Planning Processes - ANSWER -Creating