Project+ (PK0-004) question and answer 2023(latest update)

Project+ (PK0-004) question and answer 2023(latest update)Benefit measurement methods Decision model that compares the benefits obtained from new project requests by evaluating them using the same criteria and comparing the results. Constrained optimization models Decision models that use statistics and other mathematical concepts to assess a proposed project. Cost-benefit analysis benefit measurement. Calculates the cost of producing the result of the project and compares to the financial gain the project will generate. Decision model Method of project selection that helps managers make the best use of limited budgets and human resources. Discounted cash flow (DCF) Compares the value of the future cash flows of the project to today's dollars. Economic model benefit measurement method. Series of financial calculations that provide data on the overall financials of the project. used as a project selection technique. Feasibility study determine whether the project is a viable project, the probability of project success, and the viability of the product of the project. Functional organization organizational structure. Functional organizations are traditional organizations with hierarchical reporting structures. Internal rate of return (IRR) The discount rate when the present value of the cash inflows = the original investment. higher IRR values are considered better than projects with lower IRR values. Matrix organization An organizational structure where employees report to one functional manager and at least one project manager. Functional managers assign employees to projects and carry out administrative duties, while project managers assign tasks associated with the project Net present value (NPV) Evaluation of the cash inflows using the discounted cash flow technique, which is applied to each period the inflows are expected. NPV subtracts the initial project investment from the total cash flow in today's dollars. Operations Operations typically involve ongoing functions that support the production of goods or services. They don't have a beginning or an end. Payback period The length of time it takes a company to recover the initial cost of producing the product or service of the project. Program A grouping of related projects that are managed together to capitalize on benefits that couldn't be achieved if the projects were managed separately. Project Temporary in nature, with a definite start and end date; creates a unique result. completed when the goals of the project have been met and signed off on by the stakeholders. Project management Applying skills, knowledge, and project management tools and techniques to fulfill the project requirements. Project Management Institute (PMI) The world's leading professional project management association. Project management office (PMO) create and maintain procedures and standards for project management methodologies to be used throughout the organization. Project manager The person responsible for applying the skills and knowledge to the project activities to successfully complete the project objectives. Project plan A document that constitutes what the project is, will deliver, and how all processes will be managed. guideline throughout the project Project selection Used to determine which proposed projects are approved to move forward. Scoring model benefit measurement methods for project selection. a predefined list of criteria against which each project is ranked. Each criterion has a scoring range and a weighting factor. also be used as a tool to select from among vendors. Project justification Documentation in the project charter that includes the reason and the business need the project will address. Customer The recipient of the product or service created by the project. In some organizations this stakeholder may also be referred to as the client. Project champion The person who fully understands, believes in, and espouses the benefits of the project to the organization. This is the cheerleader for the project. Sponsor An executive in the organization with authority to allocate funds, assign resources, and enforce decisions regarding the project.