Project Management
Basic Characteristics of a PROJECT. (Just give 1)
Temporary Endeavor/ Creates Unique Product or Service/ Brings Change and Adds Value
This is the phase where we inform stakeholders of the scope and discuss how their participation in the project can help to ensure their expectations are met.
INITIATING PHASE
Give one common pitfall in a project
§Unclear objectives
§Scope Creep
§Lack of senior management support
§Lack of effective project integration
§Inadequate Funding
§Change in business priorities
§Original assumptions invalid
§Ineffective team
§Lack of effective communication processes
§Others
Give one tool in project finance.
1. Expected Cash Flows
2. Net Present Value
3. Profitability Index
4. Internal Rate of Return
__________ measures the rate of foregone revenues or opportunity of a chosen investment. It normally uses targeted weights of after-tax financing program
COST OF CAPITAL
Complete the statement: “The application of knowledge, skills, tools and techniques to project activities in order to meet or exceed ________________________ from a project.”
This is the phase where we put the project plan into motion and perform the work of the project.
EXECUTION PHASE
Give one common pitfall in a project.
§Unclear objectives
§Scope Creep
§Lack of senior management support
§Lack of effective project integration
§Inadequate Funding
§Change in business priorities
§Original assumptions invalid
§Ineffective team
§Lack of effective communication processes
§Others
It is measured as the cash balance from the uses and sources of cash from a project.
Expected cash flows
Two main sources of capital funding.
Equity and Debt
Give at least two differences of PROJECTS and OPERATIONS.
PROJECT - OPERATIONS
1. Temporary Endeavor - Ongoing Routine
2. New Original Work - Repeated Work
3. Unique Output - Repetitive Output
4. Terminated once objectives are met - Adopted new objectives once achieved
This is the phase where we prepare the Internal and External Organization for first time use,
DEPLOYMENT PHASE
Name one common report needed in a project.
§Cash Disbursement Forecast
§Gantt Chart
§ CER Monitoring and Availment
If change in net working capital is greater than 0, then there is a _______ in cash flow.
Decrease
_________________ is the calculation used to find today’s value of a future stream of payments (investment worth vs investment cost)
Net Present Value (NPV)
PROJECT ROLE AND RESPONSIBILITIES
Who is responsible in providing business expertise, knowledge and guidance during design/ validation process
BUSINESS PROCESS OWNERS
This is the phase where we monitor performance based on value creation presented.
CLOSING PHASE
A meeting to know the current status of the project.
PROJECT UPDATE
_________ is the general increase in prices; the value of money depreciates over time as a result of the change in level of prices.
INFLATION
The interest rate that would set the net present value to zero.
Internal Rate of Return
These are the departments whose operations are substantially impacted by the project, but who do not have significant authority to change project direction.
PROJECT STAKEHOLDERS
Give the five stages of a project.
1. Initiating Phase
2. Planning/Design Phase
3. Execution Phase
4. Deployment Phase
5. Closing Phase
Definition of CER.
Capital Expenditure Request
Give the formula for the present value for a single sum.
Present Value = Cash Flow x (1+i)∧n
i = interest/discount rate
n= number of periods
This is the length of time to recover the investment amount.
Payback Period