Podcast
Questions and Answers
Which of the following elements is NOT a key component of a project's investment appraisal?
Which of the following elements is NOT a key component of a project's investment appraisal?
What is the primary reason for evaluating the benefits and dis-benefits of a project?
What is the primary reason for evaluating the benefits and dis-benefits of a project?
Which of the following is NOT a potential source for determining the reasons why a particular project option was chosen?
Which of the following is NOT a potential source for determining the reasons why a particular project option was chosen?
Which project selection method specifically focuses on the time it takes for an investment to recoup its initial costs?
Which project selection method specifically focuses on the time it takes for an investment to recoup its initial costs?
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Why is it crucial to consider threats and opportunities during project planning?
Why is it crucial to consider threats and opportunities during project planning?
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Which project selection method calculates the value of an investment by considering the time value of money and potential risks?
Which project selection method calculates the value of an investment by considering the time value of money and potential risks?
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What is the primary purpose of tracking the timescale and costs associated with a project?
What is the primary purpose of tracking the timescale and costs associated with a project?
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A project with a high benefit-cost ratio suggests that:
A project with a high benefit-cost ratio suggests that:
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Why is it important to understand the reasons why a project option was chosen over the alternatives?
Why is it important to understand the reasons why a project option was chosen over the alternatives?
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Which of the following factors can lead to a previously less attractive project option becoming more attractive?
Which of the following factors can lead to a previously less attractive project option becoming more attractive?
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What is the primary purpose of sensitivity analysis in project selection?
What is the primary purpose of sensitivity analysis in project selection?
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What is the primary difference between the benefits and dis-benefits of a project?
What is the primary difference between the benefits and dis-benefits of a project?
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Which project selection method directly considers the cost of capital in its calculation?
Which project selection method directly considers the cost of capital in its calculation?
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How can the timescale and costs of a project change during its lifecycle?
How can the timescale and costs of a project change during its lifecycle?
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Which of the following statements is true regarding the role of the project manager in managing threats and opportunities?
Which of the following statements is true regarding the role of the project manager in managing threats and opportunities?
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Which of the following is NOT a factor that influences the development of a project charter?
Which of the following is NOT a factor that influences the development of a project charter?
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What is the primary purpose of a project charter?
What is the primary purpose of a project charter?
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What is the relationship between the Project Charter and the Project Statement of Work (SOW)?
What is the relationship between the Project Charter and the Project Statement of Work (SOW)?
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Which of the following is a potential risk that could be identified in a project charter?
Which of the following is a potential risk that could be identified in a project charter?
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Why are constraints and assumptions refined during the Define Scope process?
Why are constraints and assumptions refined during the Define Scope process?
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How does a project charter empower the project manager?
How does a project charter empower the project manager?
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What is the role of the Project Sponsor in relation to the Project Charter?
What is the role of the Project Sponsor in relation to the Project Charter?
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What is the relationship between the Project Charter and the Project Manager's responsibilities and authority?
What is the relationship between the Project Charter and the Project Manager's responsibilities and authority?
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Which process group is directly associated with the effort to define the project scope and the tasks required to achieve it?
Which process group is directly associated with the effort to define the project scope and the tasks required to achieve it?
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In the context of the PMBOK® Guide, which of the following knowledge areas is NOT directly involved in the Planning Process Group?
In the context of the PMBOK® Guide, which of the following knowledge areas is NOT directly involved in the Planning Process Group?
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The 'Develop Schedule' process within the Project Schedule Management knowledge area is MOST CLOSELY associated with which of the following?
The 'Develop Schedule' process within the Project Schedule Management knowledge area is MOST CLOSELY associated with which of the following?
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Which of the following is NOT an output of the 'Control Costs' process within the Project Cost Management knowledge area?
Which of the following is NOT an output of the 'Control Costs' process within the Project Cost Management knowledge area?
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Which of the following knowledge areas MOST CLOSELY aligns with the 'Direct and Manage Project Work' process?
Which of the following knowledge areas MOST CLOSELY aligns with the 'Direct and Manage Project Work' process?
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What is the PRIMARY focus of the 'Monitor and Control Project Work' process within the Monitoring and Controlling Process Group?
What is the PRIMARY focus of the 'Monitor and Control Project Work' process within the Monitoring and Controlling Process Group?
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The 'Close Project or Phase' process within the Closing Process Group is MOST LIKELY to involve which of the following actions?
The 'Close Project or Phase' process within the Closing Process Group is MOST LIKELY to involve which of the following actions?
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Which of these statements is NOT true about a business case?
Which of these statements is NOT true about a business case?
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What is the PRIMARY purpose of a business case?
What is the PRIMARY purpose of a business case?
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Which of these is NOT a key component typically found in a business case?
Which of these is NOT a key component typically found in a business case?
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How does a business case differ from a project charter?
How does a business case differ from a project charter?
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Which statement best describes how the concept of 'need' is related to a business case?
Which statement best describes how the concept of 'need' is related to a business case?
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In the context of project management, what role does the project charter play in relation to the business case?
In the context of project management, what role does the project charter play in relation to the business case?
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Which of these situations would most likely require the creation of a business case?
Which of these situations would most likely require the creation of a business case?
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Which of these best describes the connection between the business case and stakeholder engagement?
Which of these best describes the connection between the business case and stakeholder engagement?
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Which of the following is NOT a key element of a successful stakeholder engagement strategy?
Which of the following is NOT a key element of a successful stakeholder engagement strategy?
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Based on the provided information, which stakeholder group likely holds the most influence over project decisions?
Based on the provided information, which stakeholder group likely holds the most influence over project decisions?
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In the context of stakeholder analysis, what is the primary purpose of determining a stakeholder's 'requirements'?
In the context of stakeholder analysis, what is the primary purpose of determining a stakeholder's 'requirements'?
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A project team effectively manages a stakeholder by ensuring their needs and expectations are met. Based on the provided information, what is the most critical factor in achieving this goal?
A project team effectively manages a stakeholder by ensuring their needs and expectations are met. Based on the provided information, what is the most critical factor in achieving this goal?
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Which of the following best describes the relationship between 'requirements' and 'expectations' in stakeholder analysis?
Which of the following best describes the relationship between 'requirements' and 'expectations' in stakeholder analysis?
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The power/interest grid is a valuable tool for stakeholder analysis. What is the primary benefit of using this grid?
The power/interest grid is a valuable tool for stakeholder analysis. What is the primary benefit of using this grid?
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What is the most likely challenge the project team would face when attempting to manage hundreds of stakeholders?
What is the most likely challenge the project team would face when attempting to manage hundreds of stakeholders?
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Based on the provided information, which THREE of the following are considered key factors in building and maintaining a good relationship with a stakeholder?
Based on the provided information, which THREE of the following are considered key factors in building and maintaining a good relationship with a stakeholder?
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Study Notes
Project Initiation
- Instructor: Dr. Timur Narbaev, PhD, PMP®, A.M.ASCE
- Department: DIGEP, 5th floor
- Email: [email protected]
- Meeting requests: By email
Reading Material
- Kerzner book, 11th edition, chapters 10, 23, and 26
- PMBOK® Guide, 6th edition; Process groups; Knowledge areas on stakeholder management
Course Topic Map (PMBOK Guide, 6th ed.)
- Knowledge Areas: Initiating, Planning, Executing, Monitoring & Control, Closing
- Processes: Detailed processes listed under each process group (Initiating, Planning, Executing, Monitoring & Control, Closing) covering topics like project integration management, scope management, schedule management, cost management, quality management, resource management, communications management, risk management, and procurement management, including stakeholder engagement.
Main Learning Outcomes
- Understand project needs
- Use the project charter
- Engage stakeholders
Content
- Business case: A documented economic feasibility study to authorize further PM activities. It determines if a project's investment is worthwhile.
- Project charter: A document issued by the project sponsor authorizing the project and giving authority to the project manager to use resources.
- Project stakeholder management: Managing the individuals, groups or organizations who are affected by, or who affect, a project.
Business Case Development
- Reasons for a business case: Market demand, organizational need, customer request, technological advance, legal requirement, ecological impacts, social need.
- 5 Reasons why a project needs a Business Case: Alignment to strategy, commercial viability check, show the long-term view, demonstrate deliverability, present options and recommendations.
- Components of a business case development: Executive summary, investment appraisal, reasons/needs, options, benefits/dis-benefits, timescale/costs, threats/opportunities.
- Reasons/Needs: What prompts the need for action; Business problem/opportunity, project scope, and stakeholders involved.
- Options: Set of scenarios for addressing a problem statement; Includes "Do Nothing," "Do minimum work possible," "Do more than minimum work possible."
- Benefits/Dis-benefits: Outcomes that provide value to the sponsoring organization; Understanding options and why the chosen option was selected.
- Timescale/Costs: Minimally includes time and costs to completion; can include operational/maintenance factors impacting project success.
Investment Appraisal
- Project success metrics: Measured by metrics of Time, Cost, Scope, and Quality. Should consider achieving project objectives.
- Key questions: What does success look like, How will success be measured, and What factors impact success?
Project Charter
- A document authorizing a project's existence and giving the project manager authority over resources.
- Theoretically prepared by the sponsor, but often prepared by the project manager for the sponsor's signature.
- Content (minimum): Project manager identification, responsibilities and authority, project purpose, summary of project conditions, project description, project scope, key stakeholders and roles, risks.
- What is included in a project charter?
- What does the project charter do for the project manager?
- Activity: Review the project charter
- Development elements: Business case, constraints/assumptions, Statement of Work (SOW), agreements/contracts, Project selection methods.
Project Selection Methods
- Whole-life costs: Implementation costs, transitional costs, operational and maintenance costs.
- Net Benefits: Benefits minus costs.
- Return on Investment (ROI): Percentage of profits/savings.
- Internal Rate of Return (IRR): Calculation of time required for ROI to repay the original investment.
- Discounted Cash Flow: Expressing future benefits using current value of money.
- Payback Period: Time it takes for investment to reach a breakeven point.
- Net Present Value (NPV): Difference between discounted future inflows and initial investment
- Economic Value Added: Residual when capital costs are deducted from operating profit.
- Benefit-cost ratio: Relationship between costs and benefits.
- Sensitivity Analysis: How project changes impact output
Stakeholder Management
- Identify Stakeholders: Identifying people, groups, or organizations that affect, or are affected by a project.
- What do you do with stakeholders? Identify all stakeholders, determine requirements/expectations/influence level, determine how to manage and communicate with stakeholders, engage stakeholders.
- Stakeholder analysis: Grouping stakeholders based on power/influence and interest in project outcomes.
- Stakeholder analysis (example): Using a power/interest grid to categorize stakeholders based on their influence and interest, examples use the Olympic Games project.
- Stakeholder register: A record of stakeholders with their contact info, requirements/expectations, influence levels, and classification.
- Plan Stakeholder Engagement: Planning how to manage stakeholder impacts, engage them, and control engagement.
- Manage Stakeholder Engagement: Communicating and working with stakeholders, meeting their needs/expectations.
- Think about: Expectations, beliefs, future pictures
- Control Stakeholders: Maintaining relationships and managing engagement throughout the project lifecycle.
- Efficiency vs Effectiveness: Maintaining requirements vs Maintaining correct engagement format
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Description
Test your knowledge on the key components of project investment appraisal. This quiz covers various methods for evaluating project benefits, costs, and selection criteria. Understand the importance of tracking and assessing project performance and decision-making.
