Project Management Quiz #1 (Ch. 1&2) – Flashcards
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Best Practice
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An optimal way recognized by industry to achieve a stated goal or objective.
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Ethics
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A set of principles that guide our deision making based on personal values of what is "right" and "wrong".
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Leader
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A person who focuses on long-term goals and big-picture objectives, while inspiring people to reach those goals.
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Manager
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A person who deals with the day to day details of meeting specific goals.
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Portfolio
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A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.
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Program
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A group of projects managed in a coordinated way to obtain benefits and control not available from managing them individually.
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Program Manager
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A person who provides leadership and direction for the project managers heading the projects within the program.
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Project
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A temporary endeavor undertaken to create a unique product, service or result.
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Project Management
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The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.
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Project Management Process Groups
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Initiating, planning, monitoring and controlling and closing.
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Project Manager
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The person responsible for working with the project sponsor, the project team and other people involved in a project to meet project goals.
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Project Management Institute (PMI)
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International professional society for project managers.
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Project Management Knowledge Areas
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Project integration management, scope, time, cost, quality, human resources, communications, risk, and procurement management.
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Project Management Professional (PMP)
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Certification provided by PMI that requires documenting project experience, agreeing to follow the PMI code of ethics and passing a comprehensive exam.
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Project Management Tools and Techniques
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Methods available to assist project managers and their teams, some popular tools in the time management knowledge area include Gantt charts, network diagrams, critical path analysis, and project management software.
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Project Portfolio Management
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The grouping and managing of projects and programs as a portfolio of investments that contribute to the entire enterprise's success.
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Project Sponsor
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The person who provides the direction and the funding for the project.
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Stakeholders
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People involved in or affected by project activities.
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Triple Constraint
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Balancing scope, time and cost goals.
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Approximately what percentage of the world's gross domestic product is spent on projects?
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25%
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What is not a potential advantage of using good project management?
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Lower cost of capital
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A ______ is a temporary endeavor undertaken to create a unique product, service or result.
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Project
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What is not an attribute of a project?
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Projects involve no uncertainty.
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What is included in the triple constraint of project management?
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Meeting scope, time and cost goals.
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_____ is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.
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Project management
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Project portfolio management addresses ____ goals of an organization, while project management addresses ____ goals.
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strategic, tactical
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Several individual housing projects done int he same area by the same firm might best be managed as part of a ____.
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Program
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What is the most significant characteristic or attribute of an effective project manager?
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Leads by example.
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What is the certification program called that the Project Management Institute provides?
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Project Management Professional (PMP)
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Balanced Scorecard
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A methodology that converts an organization's value drivers to a series of defined series.
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Cash Flow
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Benefits minus cost, or income minus expenses.
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Directives
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The new requirements imposed by management, government or some external influence.
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Discretionary Costs
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Costs that organizations have discretion in deciding whether to fund them.
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Discount Factor
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A multiplier for each year based on the discount rate and year.
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Discount Rate
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The rate used in discounting future cash flows.
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Internal Rate of Return (IRR)
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The discount rate that results in an NPV of zero for a project.
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Mind Mapping
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A technique that uses branches radiating out from a core idea to structure thoughts and ideas.
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Net Present Value (NPV) Analysis
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A method of calculating the expected net monetary gain or loss from a project by discounting all future cash inflows and outflows to the present point in time.
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Non-discretionary Costs
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Costs that organizations must fund to stay in business.
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Opportunity Cost of Capital
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The return available by investing the capital elsewhere.
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Payback Period
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The 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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Required Rate of Return
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The minimum acceptable rate of return on an investment.
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Return on Investment (ROI)
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(Benefits minus costs) divided by costs.
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Strategic Planning
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The process of determining long-term objectives by analyzing the strengths and weaknesses of an organization, studying opportunities and threats in the business environment, predicting future trends and projecting the need for new products and services.
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SWOT Analysis
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Analyzing strengths, weaknesses, opportunities and threats.
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Weighted Scoring Model
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A technique that provides a systematic process for basing project selection on numerous criteria.
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What are the steps in the Four Stage Planning Process?
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Strategic planning, Business area analysis, Project planning, Resource Allocation.
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It is important to start at the top of the Four Stage Planning Process pyramid to select the projects that support the organizations______.
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Business strategy
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What is false concerning the financial analysis of projects?
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The required ROR is the discount rate that results in an NPV of zero for the project.
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What is NOT a major benefit of grouping projects into programs?
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Increasing revenues
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The goal of project portfolio management is to help maximize business value to ensure ______.
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Enterprise success
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Many organizations find duplicate or unneeded projects after they perform which step in project portfolio management?
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Putting all projects in one list.
