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Questions and Answers
Net present value (NPV) analysis involves discounting all expected future cash outflows to the present point in time.
Net present value (NPV) analysis involves discounting all expected future cash outflows to the present point in time.
False
The higher the NPV, the worse the project is perceived to be.
The higher the NPV, the worse the project is perceived to be.
False
Return on investment (ROI) is calculated by dividing the benefits by the costs.
Return on investment (ROI) is calculated by dividing the benefits by the costs.
False
The payback period refers to the time it takes to recover the total invested amount in a project in the form of net cash outflows.
The payback period refers to the time it takes to recover the total invested amount in a project in the form of net cash outflows.
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Financial analysis of projects includes three primary methods: Net present value (NPV), Return on investment (ROI), and Payback analysis.
Financial analysis of projects includes three primary methods: Net present value (NPV), Return on investment (ROI), and Payback analysis.
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SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Taxes.
SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Taxes.
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Predicting future trends is not a part of strategic planning.
Predicting future trends is not a part of strategic planning.
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Return on investment (ROI) is calculated by subtracting the benefits from the project costs.
Return on investment (ROI) is calculated by subtracting the benefits from the project costs.
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The payback period reveals how long it takes to recoup the total dollars invested in a project in the form of net cash inflows.
The payback period reveals how long it takes to recoup the total dollars invested in a project in the form of net cash inflows.
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Strategic planning only involves setting short-term objectives.
Strategic planning only involves setting short-term objectives.
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Study Notes
Project Attributes
- A project has a unique purpose and is temporary
- Projects are developed using progressive elaboration and require resources
- Projects involve uncertainty and have a primary customer or sponsor
- Project managers work with project sponsors, project teams, and other stakeholders to meet project goals
Project Management
- Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements
- Project managers strive to meet the triple constraint (project scope, time, and cost goals) and facilitate the entire process to meet stakeholder needs and expectations
Triple Constraint
- Project scope goal
- Project time goal
- Project cost goal
Stakeholders
- Stakeholders are people involved in or affected by project activities
- Project stakeholders include the project sponsor, project team, and other people involved in a project
Knowledge Areas
- Project managers must have knowledge and skills in 10 knowledge areas:
- Project integration
- Scope
- Time
- Cost
- Quality
- Human resource
- Communications
- Risk
- Procurement
- Stakeholder management
"Super Tools"
- Software for task scheduling (e.g., project management software)
- Scope statements
- Requirements analyses
- Lessons-learned reports
Three Sphere Model for Systems Management
- Business
- Organization
- Technology
Organizational Structure
- Functional structure: functional managers report to the CEO
- Project structure: program managers report to the CEO
- Matrix structure: middle ground between functional and project structures; personnel often report to two or more bosses
Organizational Culture
- Set of shared assumptions, values, and behaviors that characterize the functioning of an organization
- Underlying causes of company problems often stem from the culture rather than the structure or staff
Project Life Cycle
- Collection of project phases that defines what work will be performed in each phase
- Defines what deliverables will be produced and when
- Defines who is involved in each phase and how management will control and approve work produced in each phase
Systems Development Life Cycle (SDLC)
- Framework for describing the phases involved in developing and maintaining information systems
- Types of SDLC:
- Predictive life cycle: clear project scope, schedule, and cost can be predicted
- Adaptive Software Development (ASD) life cycle: requirements cannot be clearly expressed, projects are mission-driven and component-based, using time-based cycles to meet target dates
SDLC Models
- Waterfall model: well-defined, linear stages of systems development and support
- Spiral model: iterative or spiral approach to software development
- Incremental build model: progressive development of operational software
- Prototyping model: used for developing prototypes to clarify user requirements
- Rapid Application Development (RAD) model: produces systems quickly without sacrificing quality
Process Groups
- Initiating processes
- Planning processes
- Executing processes
- Monitoring and controlling processes
- Closing processes
Scrum Roles
- Product owner: responsible for the business value of the project and deciding what work to do and in what order
- ScrumMaster: ensures the team is productive, facilitates the daily Scrum, enables close cooperation, and removes barriers
- Scrum team or development team: cross-functional team that organizes itself and the work to produce desired results for each sprint
Scrum Artifacts
- Product backlog: list of features prioritized by business value
- Sprint backlog: highest-priority items from the product backlog to be completed within a sprint
- Burndown chart: shows the cumulative work remaining in a sprint on a day-by-day basis
Scrum Ceremonies
- Sprint planning session: meeting to select a set of work from the product backlog to deliver during a sprint
- Daily Scrum: short meeting for the development team to share progress and challenges and plan work for the day
- Sprint reviews: meeting for the team to demonstrate what it has completed during the sprint
- Sprint retrospectives: meeting for the team to look for ways to improve the product and the process based on a review of the actual performance of the development team
Strategic Planning
- Determining long-term objectives, predicting future trends, and projecting the need for new products and services
- SWOT analysis:
- Strengths
- Weaknesses
- Opportunities
- Threats
Financial Analysis of Projects
- Three primary methods for determining the projected financial value of projects:
- Net present value (NPV) analysis
- Return on investment (ROI)
- Payback analysis
Net Present Value (NPV)
- Method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time
- The higher the NPV, the better
Return on Investment (ROI)
- Calculated by subtracting the project costs from the benefits and then dividing by the costs
- ROI = (NPV / discounted costs)
Payback Analysis
- Amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project
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Description
This quiz covers the concepts of project life cycle, including defining work phases, deliverables, stakeholders, and management. It also includes information about Systems Development Life Cycle (SDLC) as a framework for developing and maintaining information systems.
