Numeric Project Portfolio Management (PPM)

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Questions and Answers

What is the first stage in the project selection process?

Identification of projects (correct)

Review of projects

Evaluation and prioritizing projects

Selection and initiation of projects

Why is it easier to use models in project selection?

Models offer a realistic reflection of the decision-making situation.

Models provide a perfect replication of reality.

Models are always optimal in producing decisions.

Models simplify the complex reality of decision-making. (correct)

What is a key characteristic of a model in project selection?

A model is an exact replica of reality.

A model is a complete representation of the decision situation.

A model is a simplified version of reality. (correct)

A model is fully capable of producing optimal decisions.

What is one essential non-numeric criterion in choosing a model for project selection?

Realism Signup and view all the answers

Why should a model for project selection be capable according to the text?

To simulate various situations over time periods. Signup and view all the answers

What is the primary role of strategy in an organization?

To compete with rivals in the industry Signup and view all the answers

What does project management maturity refer to?

The advancement in project and multi-project management proficiency Signup and view all the answers

Why is it crucial for a project to align with the strategic goals of an organization?

To ensure project success and organizational strategy coherence Signup and view all the answers

What is the purpose of continuously scanning the political-legal, economic, socio-cultural, technological, and natural aspects?

To respond to changes in the external environment for competitive position Signup and view all the answers

How does an organization determine the appropriate level of project management maturity?

By considering goals, strategies, resource capabilities, scope, and needs Signup and view all the answers

What is the first step in project selection according to the text?

Appraising each project proposal Signup and view all the answers

What is the primary focus of project portfolio management (PPM)?

Managing a firm's sets of projects as a strategic portfolio Signup and view all the answers

In the execution phase of PPM, what is one of the tasks carried out within each business unit?

Exploring project solution options Signup and view all the answers

What is one of the key responsibilities of corporate executives during the preparation phase of PPM?

Setting high-level strategy Signup and view all the answers

What is one of the essential assumptions set up for assessment during PPM?

Risk tolerance Signup and view all the answers

Which phase in PPM involves naming, categorizing, and assembling projects into groups within each business unit?

Execution phase Signup and view all the answers

In PPM, what is the importance of aligning programs and projects with organizational objectives?

To ensure optimal resource utilization Signup and view all the answers

What is the purpose of the PERFORMANCE MANAGEMENT phase in the Project Portfolio Management (PPM) timeline?

To examine project deficits and make decisions for current investment Signup and view all the answers

What does the Executive Summary of a business project proposal include?

Broad description of the problem to be resolved or project to be done Signup and view all the answers

Which part of the business project proposal outlines the methodology of resolving the technical problem?

Methodology of resolving the problem Signup and view all the answers

What is NOT included in the executive summary of a business project proposal?

Record equipment, overhead, and administrative cost Signup and view all the answers

In a business project proposal, what is required to be provided under 'Change Management'?

Change management procedures and policies Signup and view all the answers

Which aspect is essential in the 'Technical Approach' outline section of a business project proposal?

Methodology of resolving the problem Signup and view all the answers

Study Notes

Project Selection Process

The first stage in the project selection process is identification of opportunities.

Models in Project Selection

Models make it easier to select projects by simplifying complex decision-making processes.
A key characteristic of a model in project selection is its ability to handle both quantitative and qualitative data.
One essential non-numeric criterion in choosing a model for project selection is its ease of use.
A model for project selection should be capable of accommodating multiple criteria and uncertainty.

Organizational Strategy

The primary role of strategy in an organization is to provide direction and guidance.
Project management maturity refers to an organization's ability to deliver projects efficiently and effectively.

Alignment with Strategic Goals

Aligning projects with strategic goals is crucial for an organization's success.
Continuously scanning the political-legal, economic, socio-cultural, technological, and natural aspects helps an organization identify opportunities and threats.

Project Management Maturity

An organization determines the appropriate level of project management maturity by assessing its current capabilities and identifying areas for improvement.

Project Portfolio Management (PPM)

The primary focus of project portfolio management is to select the right projects that align with organizational objectives.
The first step in project selection is to identify opportunities.
In the execution phase of PPM, one of the tasks carried out within each business unit is to allocate resources to selected projects.
One of the key responsibilities of corporate executives during the preparation phase of PPM is to define the organization's objectives and priorities.
One of the essential assumptions set up for assessment during PPM is that the organization's resources are limited.
The categorization phase in PPM involves naming, categorizing, and assembling projects into groups within each business unit.
Aligning programs and projects with organizational objectives is crucial for achieving strategic goals.
The PERFORMANCE MANAGEMENT phase in the PPM timeline involves tracking and reviewing project performance.

Business Project Proposal

The Executive Summary of a business project proposal includes an overview of the project, its objectives, and expected outcomes.
The Technical Approach section outlines the methodology of resolving the technical problem.
Financial information is not included in the executive summary of a business project proposal.
Under 'Change Management', a plan for managing and implementing changes is required to be provided.
The 'Technical Approach' outline section of a business project proposal should provide a detailed description of the methodology and approach to be used.

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Description

Learn about project portfolio management practices for selecting, supporting, and managing a firm's projects strategically based on cost, benefits, and resource utilization. Understand the importance of alignment of programs to the firm's goals.