APM PMQ - 6. Understand Planning for Success (Exam prep Based On Syllabus For Bok 7 - Learning Outcome 6) with Complete Solutions

APM PMQ - 6. Understand Planning for Success (Exam prep Based On Syllabus For Bok 7 - Learning Outcome 6) with Complete SolutionsAPM PMQ - 6. Understand Planning for Success (Exam prep Based On Syllabus For Bok 7 - Learning Outcome 6) with Complete SolutionsAPM PMQ - 6. Understand Planning for Success (Exam prep Based On Syllabus For Bok 7 - Learning Outcome 6) with Complete SolutionsAPM PMQ - 6. Understand Planning for Success (Exam prep Based On Syllabus For Bok 7 - Learning Outcome 6) with Complete Solutions 6.1 explain the importance of a business case throughout the project life cycle - ANSWER-Justification for undertaking a project Evaluates benefits, cost, risk preferred option and alternative options. Owned by the sponsor who makes sure it remains viable. Concept - Written Definition - Used as basis for the PMP, can be updated once PMP is complete. Deployment - analysis of change requests and viability at decision gates. Transition - assess whether achieved success criteria in business case. 6.2 explain what is meant by benefits management (including identification, definition, planning, tracking and realisation) - ANSWER-Benefit management - identification, definition, planning, tracking and realisation. Identification - potential benefits and drawback. Definition - recording benefit profile, how it will be tracked, who will benefit. Planning - who will collect and report data. when will benefits be measured. how will benefits be measured and reported. Tracking - monitoring from business case to BAU. Realisation - ensure benefits are realised, embedded and sustained. 6.3 explain investment appraisal techniques used by a project manager (including Internal Rate of Return (IRR) and Net Present Value (NPV)) - ANSWER-Net present value - value of money across time to calculate net return of a project over a period of time. Discount rate applied to cumulative cash flow. Benefit: realistic rate of return and truer picture of value for money than payback. Internal Rate of Return - finds discount rate that will return NPV to zero. Benefit: takes into account value of money over time. Easier to prioritise projects (highest IRR =