MidTerm Study Guide - Chapter 1 Growth lately is in internal project versus external projects Main forces in driving acceptance of project management o

MidTerm Study Guide - Chapter 1 Growth lately is in...

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Chapter 1Growth lately is in internal project versus external projectsMain forces in driving acceptance of project management:oGrowth of Human KnowledgeoGrowing demand for a broad range of complex goods and servicesoIncreased worldwide competitionProject Management techniques are used in both small and large projectsThree Project Objectives:oTimeoCostoScopeProject success has four dimensions:oEfficiencyoImpact on the customeroBusiness impact on the organizationoOpening new opportunities for the future
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Project Leader may be a better name than Project ManagerProject Management Institute (PMI) largest organizationProject- temporary endeavor undertaken to create a unique product, service, or resultProject Characteristics:oImportanceoScopeoLife Cycle with a finite due dateoInterdependenciesoUniquenessoResourcesoConflict
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Chapter 2Problems with multiple projects:oDelays in one project delays othersoInefficient use of resourcesoBottlenecks in resource availabilityProject Failures :Project Management Maturity is project management competency, organizations do not do wellProject Model CriteriaoRealism-reflect the reality of the firm’s decision situationoCapability-sophisticated enough to deal with the relevant factorsoFlexibility- model should give valid results within the range of conditions that the firm might experienceoEase of Use- reasonably convenientoCost- data gathering and modeling costs should be low relative to the cost of the projectoEasy computerization- easy to gather and store the informationNonnumeric ModelsoSacred Cow- suggested by senior official and is carried out until completion or theofficial sees that it is a failureoOperating Necessity- project is required in order to keep the system operatingoCompetitive Necessity- decision to maintain the company’s competitive position in that market
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oSustainability- environmental, social, and bottom lineNumeric Models: Two categories Profit/Profitability Models and ScoringoPayback Period-length of time until the original investment has been recoupedDoes not consider time value of moneyHard to use with changing cash flowsLess meaningful for longer periods of timeoDiscounted Cash Flow (NPV)-best method, most acceptedoInternal Rate of Return (IRR)- higher IRR the better, disagreement about IRRoProfitability Index- NPV divided by initial cash investment, ratios greater than 1.0
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  • Spring '14
  • KimNeedy
  • Project Management, project manager, Project Management Institute

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