Project Management Evaluation Quiz
26 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are development costs typically classified as?

  • One-time costs (correct)
  • Ongoing costs
  • Recurring expenses
  • Variable costs

    • Which of the following is NOT considered an operational cost?

  • Software licensing fees
  • Cloud vendor fees
  • Consultant fees (correct)
  • Equipment upgrades

    • When forecasting cash flow for a project, what is the typical timeframe considered?

  • 5–10 years
  • 3–5 years (correct)
  • 1–2 years
  • 2–3 years

    • What does ROI stand for in the context of project evaluation?

    <p>Return on Investment (B)</p> Signup and view all the answers

    Which of the following steps involves assigning numbers to tangible costs and benefits?

    <p>Assign Values to Costs and Benefits (A)</p> Signup and view all the answers

    What is the purpose of determining the Break-Even Point in project evaluation?

    <p>To find when benefits exceed costs (D)</p> Signup and view all the answers

    Which of the following is an essential component of the Total Cost of Ownership (TCO)?

    <p>Both development and operational costs (D)</p> Signup and view all the answers

    In the context of project evaluation, why is it essential to include intangible benefits when assigning values?

    <p>They provide a comprehensive view of project value (A)</p> Signup and view all the answers

    What is the primary role of a project sponsor?

    <p>To initiate the project and be the main contact for the business (A)</p> Signup and view all the answers

    Which of the following describes 'business requirements'?

    <p>The improved capabilities the system will provide to the business (D)</p> Signup and view all the answers

    What does 'business value' refer to in project management?

    <p>The net impact the system will have on the organization's performance (B)</p> Signup and view all the answers

    Which of the following is NOT considered a business need?

    <p>Increase project scope without additional resources (D)</p> Signup and view all the answers

    What is an example of a special issue or constraint in a project?

    <p>Government-mandated deadline (D)</p> Signup and view all the answers

    In benefit analysis, what would a 3% increase in sales represent?

    <p>A direct benefit to the organization (A)</p> Signup and view all the answers

    Which of the following is a common way to identify costs related to a project?

    <p>Calculating fixed and variable expenses (D)</p> Signup and view all the answers

    What does cash flow forecasting help to assess in a project?

    <p>The timing of cash inflows and outflows (B)</p> Signup and view all the answers

    Which option best defines ROI evaluation?

    <p>Examination of the project's return relative to its cost (D)</p> Signup and view all the answers

    What is an example of a business requirement for improving online user support?

    <p>Provide online access to information (A)</p> Signup and view all the answers

    What is the primary reason for organizations to focus more on testing than on writing programs?

    <p>The cost of fixing bugs can be immense. (D)</p> Signup and view all the answers

    Which step is NOT part of the implementation phase mentioned?

    <p>Analyzing business needs. (C)</p> Signup and view all the answers

    What is a crucial aspect of the system installation process?

    <p>Training users for the new system. (D)</p> Signup and view all the answers

    Which of the following examples best illustrates a business need that may lead to project identification?

    <p>Improving interactions with suppliers. (C)</p> Signup and view all the answers

    Why might an organization monitor emerging technology?

    <p>To identify competitive advantages using IT. (A)</p> Signup and view all the answers

    Which statement best describes the role of the analyst team after system installation?

    <p>They establish a support plan for the system. (B)</p> Signup and view all the answers

    What is one potential 'pain' that could trigger a business need for a new system?

    <p>Unacceptable product defect rates. (A)</p> Signup and view all the answers

    In the context of system conversion, why is training important?

    <p>It ensures users can effectively manage the new system. (D)</p> Signup and view all the answers

    Flashcards

    Project Sponsor

    The person who first suggests a project and acts as the main point of contact for the project on the business side.

    Business Need

    The reason for starting a system, related to the company's goals.

    Business Requirements

    New or improved abilities the system will offer, based on business needs.

    Business Value

    The good things the system will bring to the company, like increased sales or cost savings.

    Signup and view all the flashcards

    Special Issues

    Problems related to project approval, which need special attention.

    Signup and view all the flashcards

    Constraints in Project

    Factors that limit the project or make it challenging.

    Signup and view all the flashcards

    FTE

    Full-time equivalent. A measure of the number of full-time employees.

    Signup and view all the flashcards

    Government-mandated deadline

    Deadline set by a government agency.

    Signup and view all the flashcards

    System Needed in Time

    A project needing completion by a specific date.

    Signup and view all the flashcards

    Top level security

    Security measures required for the highest levels of project access.

    Signup and view all the flashcards

    Development Costs

    Tangible expenses during system creation, like salaries, hardware/software, consulting, and training.

    Signup and view all the flashcards

    Operational Costs

    Tangible expenses to run a system, like operation staff, software licenses, upgrades, and cloud fees.

    Signup and view all the flashcards

    Total Cost of Ownership (TCO)

    All relevant costs over a system's lifespan.

    Signup and view all the flashcards

    Cost-Benefit Analysis

    Identifying, valuing, and forecasting costs and benefits of a project. Helps make reasoned decisions.

    Signup and view all the flashcards

    Return on Investment (ROI)

    Rate of return on investment, calculated by dividing total returns by total investment.

    Signup and view all the flashcards

    Break-Even Point (BEP)

    Year when cumulative project benefits surpass cumulative costs.

    Signup and view all the flashcards

    Tangible Costs

    Measurable and quantifiable costs.

    Signup and view all the flashcards

    Intangible Costs

    Costs that aren't easily measured, like time or employee morale.

    Signup and view all the flashcards

    System Construction

    The process of building and rigorously testing a system to ensure it functions as intended. This phase is a major part of the development process, often lengthy and costly.

    Signup and view all the flashcards

    Installation

    The transition from the old system to the new system. This involves switching off the previous system and activating the new one, usually accompanied by user training and organizational changes.

    Signup and view all the flashcards

    Support Plan

    A strategy for maintaining and improving the system after it is launched. This includes a formal or informal review and a process for identifying needed changes.

    Signup and view all the flashcards

    Project Idea Source

    The origin of a project idea. It can arise from a business need, like supporting a marketing campaign, reaching new customers, or improving supplier relationships.

    Signup and view all the flashcards

    Business Pain

    Issues that affect the company's operations and require a solution, such as declining market share, poor customer service, or product defects.

    Signup and view all the flashcards

    Business Initiatives

    Strategies designed to improve business operations, like new campaigns, reaching new customers, or entering new markets.

    Signup and view all the flashcards

    Emerging Technology

    Technology that is relatively new and in its early stages of widespread business use.

    Signup and view all the flashcards

    Unique and Competitive IT Use

    Innovative ways of using IT to gain a competitive advantage within the market.

    Signup and view all the flashcards

    Study Notes

    Planning Phase

    • The planning phase focuses on understanding the need for an information system and creating a plan for its development.
    • Two primary issues are involved: understanding the justification for the system and developing a plan for how the project team will proceed.
    • Deliverables from these steps are combined to form the complete project plan.
    • The project sponsor and approval committee will then determine if the project should continue.

    Systems Analyst and Information Systems Development

    • This chapter introduces the systems analyst's role in information systems development.
    • The fundamental four-stage systems development life cycle (planning, analysis, design, and implementation) is presented.
    • Identifying projects that add value to the business and creating a system request are initial steps in the development process.
    • Analysts conduct a feasibility analysis to evaluate the technical, economic, and organizational suitability of the system.
    • Key objectives include explaining the systems analyst's role, describing the SDLC, and explaining how organizations identify information systems development projects.

    Introduction

    • The systems development life cycle (SDLC) is a process for designing, building, and implementing an information system to support business needs.
    • Projects involving information technology often have high failure rates (30-70%).
    • The systems analyst plays a key role in identifying opportunities for improvement and designing the information system to implement the solutions.
    • The primary objective of a systems analyst is to create a valuable system that increases organizational value, typically measured in terms of increased profit.

    Managerial Causes of IT Failures

    • Organizational issues, rather than technical ones, often cause IT project failures.
    • Examples include poor management of project scope, inattention to users' needs, and conflict with unions.
    • Qantas Airways has experienced significant IT project failures due to complicated infrastructures, outdated applications, and management indifference to user feedback.

    Systems Analyst Skills

    • The systems analyst requires a blend of technical, business, analytical, interpersonal, management, and ethical skills in order to execute a project efficiently.
    • New systems frequently cause organizational and personnel changes, requiring a strong change management ability.
    • A systems analyst must have technical knowledge of the current technology environment and the proposed system.
    • Good business understanding ensures IT delivers real value to the business.

    Spotlight on Ethics

    • Systems analysts must consider the ethical implications of their work involving sensitive data.
    • Analysts should have appropriate practices regarding data protection and usage, and be aware of potential conflicts of interest
    • It is the analyst's role to use their skills in a way that positively impacts the organization through the development of a strong ethical framework.

    The Systems Development Life Cycle

    • The SDLC outlines the phases of developing an information system, similar to constructing a building which includes planning, analysis, design and implementation.

    Project Identification and Initiation

    • Project ideas can arise from a variety of sources within the business.
    • A system request comprehensively describes the business reasoning, requirements, and projected value for the new system.
    • Project implementation involves turning the old system off while installing and training on the new system, followed by post-implementation reviews.

    Feasibility Analysis

    • A comprehensive feasibility analysis is required before approving a project, reviewing its technical, economic, and organizational feasibility.
    • Determining whether a project is technically feasible involves considering existing technology and its compatibility with the new system.
    • The financial value of a project is assessed through detailed cost-benefit analysis, determining if the benefit outweighs the cost.
    • Organizational feasibility considers if users will adopt the system.

    Return on Investment

    • Return on Investment (ROI) measures the profitability of a project.
    • A break-even point calculation determines the time it takes for projected earnings to equal the initial investment in the project.
    • Present value (PV) considers the time value of money, so funds received earlier are worth more than funds received later.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    My Project - Part One - Planning Phase - PDF

    Description

    Test your knowledge on project management evaluation concepts including development costs, operational costs, cash flow forecasting, and ROI. This quiz covers essential elements such as Total Cost of Ownership and business value, providing a comprehensive overview of the key aspects in project evaluation.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser