IT Project Management Quiz

Questions and Answers

What does the term 'measurable' imply in the context of setting objectives?

Objectives must have strict deadlines.

Objectives only need to be set by upper management.

Objectives must include criteria for measuring progress and success. (correct)

Objectives should be abstract and open to interpretation.

Which of the following best describes 'achievable' objectives?

Objectives are only deemed achievable if they are set by team consensus.

Objectives must be realistic and attainable given resources and constraints. (correct)

Objectives should focus solely on long-term outcomes without consideration for resources.

Objectives should be highly ambitious and challenging.

What is the implication of an objective being 'relevant'?

It must have a measurable outcome for financial reporting.

It is irrelevant as long as it is explained well.

It should align with broader goals and be pertinent to the overall vision of the project. (correct)

It needs to be aligned with the personal preferences of team members.

Given the cash outflow for Y0 is -100,000, what could be interpreted regarding initial investments?

An expense of 100,000 is incurred before any revenue is generated. Signup and view all the answers

What is the calculated payback period in months based on the provided data?

17.74 months Signup and view all the answers

Which value represents the 'net present value' (NPV) as calculated?

72,227 Signup and view all the answers

What describes the cash inflow for the second year?

It is 80,000 and contributes to overall revenue. Signup and view all the answers

In calculating the payback period, what does the negative value represent in year one?

Cash losses exceeding initial investment. Signup and view all the answers

How is the discounted cash flow for year three calculated?

By applying a discount factor to the cash inflow of year three. Signup and view all the answers

What does the term 'discounted factor' signify in financial calculations?

The rate at which future cash flows are adjusted for inflation. Signup and view all the answers

Study Notes

Project Lifecycle Phases

Initiation: Establishes project goals and specifications.
Planning: Develops a schedule and allocates budget.
Execution: Involves task assignments and progress monitoring.
Termination: Includes final deliverable review and project documentation.

Project Management Network Diagram Legend

Early Start: The earliest point when an activity can begin.
Activity ID: A unique identifier for each task within a project.
Early Finish: The earliest completion date of an activity.
Slack: Extra time that can be used if a task is delayed.
Description: Brief explanation of the task or activity.
Duration: Total time required to complete the activity.
Late Start: The latest point when an activity can start without delaying the project.
Late Finish: The latest completion date of an activity.

Project Definition and Characteristics

Definition: A project is a complex, non-routine effort designed to meet customer needs, with defined time, budget, resources, and performance specifications.
Characteristics:
- Has established goals.
- Involves performing unique activities.
- Defined span with a clear beginning and end.

Differentiation of Projects, Programs, and Portfolios

Project: Temporary endeavor with specific objectives and a defined life cycle.
Program: A collection of related projects that provides more significant benefits relative to strategic objectives.
Portfolio: A group of programs and projects managed to achieve specific strategic business goals.

Accelerating Projects

When resources are constrained:
- Fast Tracking: Overlapping tasks to shorten duration.
- Critical Chain: Adjusting project schedules based on resource availability.
When resources are not constrained:
- Adding Resources: Increasing workforce or materials.
- Outsourcing Project Work: Engaging third parties for specific tasks.

Identifying Organizational Culture

Study the organization through available materials.
Evaluate physical characteristics and layout of the organization.
Observe interaction patterns among employees within the organization.

Types of Project Risks

Financial Risk: Potential losses affecting project budgets.
Operational Risk: Risks impacting daily operations and processes.
Regulatory Risk: Compliance-related risks emerging from regulations.
Market Risk: Risks related to market competition and changes.

Guidelines for Managing Risk and Uncertainty

Conduct Risk Assessment: Identify and analyze factors that could harm the project.
Practice Diversification: Spread out risks across different areas.
Implement Regular Monitoring: Continually assess risk factors throughout the project.
Develop Contingency Planning: Create backup plans for risk mitigation.

SMART Project Objectives

Specific: Clear and well-defined goals.
Measurable: Criteria to evaluate progress and success.
Achievable: Objectives should be realistic and attainable.
Relevant: Align with broader strategic goals of the project.

Priority Rules for Resource Allocation

To prioritize projects, criteria can include potential returns, urgency, and strategic alignment.

Financial Analysis and Payback Calculation

Net Cash Flow calculations reflect the difference between cash inflows and outflows.
Discounted Cash Flow provides the present value of future cash flows based on established discount factors.
Net Present Value (NPV) assesses the profitability of the project, calculated at 72,227.
Payback Period:
- Initial investment recovery is projected at approximately 17.74 months based on cash inflows and timing.

Description

Test your knowledge of the project lifecycle in IT project management. This quiz covers key processes, events, and specifics about network diagrams used in project management. Prepare to showcase your understanding of the initiation, planning, execution, and termination phases.