Module 2 and Module 3: Beginning a Project and Risk Management

Flashcards covering key definitions, processes, selection methods, and risk management concepts from Modules 2 and 3.

How are benefits defined in project management?

A measure of the positive outcomes of the project, often described as 'the reasons why you are undertaking the project'.

What is project selection?

The process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved.

What is project scope and where is it documented?

Project scope is a detailed outline of all aspects of a project, including all related activities, resources, timelines, and deliverables, as well as the project's boundaries. It is documented in a scope statement.

What is a Statement of Work?

The official document that outlines the requirements for a particular project. It is the first step toward defining project scope and provides necessary information for management to estimate costs and provide a proposal.

What is a Project Charter?

A formal, typically short document that describes your project in its entirety—including what the objectives are, how it will be carried out, and who the stakeholders are.

What is meant by a 'Sacred Cow' in a project environment?

One that is often unreasonably immune from criticism or opposition; something that people do not like to question; a taboo subject.

What is Quality Function Deployment (QFD) and where/when was it first developed?

QFD is a focused methodology for carefully listening to the voice of the customer and effectively responding to those needs and expectations. It was first developed in Japan in the late 1960s as a form of cause-and-effect analysis and brought to the US in the early 1980s.

What are the four phases of the Project Management Life Cycle?

1. Initiation, 2. Planning, 3. Execution, 4. Closure.

What are the six steps to start a project management project?

Step 1: Identify & Meet with Stakeholders; Step 2: Set & Prioritize Goals; Step 3: Define Deliverables; Step 4: Create the Project Schedule; Step 5: Identify Issues and Complete a Risk Assessment; Step 6: Present the Project Plan to Stakeholders.

How is a stakeholder defined?

Anyone affected by the results of your project plan.

What are the four rules of project success criteria?

1. Define what success looks like or you won't know if you achieved it. 2. Measure what's important to your stakeholders. 3. Document success criteria and get everyone to agree to them. 4. Use continuous measurements where possible.

What are the four phases of the QFD process?

1. Product Planning, 2. Product Development, 3. Process Planning, 4. Production Planning.

What are the eight steps to develop a Project Charter?

1. Identify the Project Vision, 2. Identify the Stakeholders and the Customers, 3. Create an Organizational Chart, 4. Define Project Milestones, 5. Create a Resource Plan, 6. Set the Budget for the Project, 7. List Down the Dependencies, Constraints, and Risks, 8. Lay Out the Implementation Plan.

What are the five criteria for project selection listed in the notes?

Expected revenue, Market share growth, Improvement to brand awareness, Risk assessment, and Resources required.

What are the eight various project selection methods?

1. Benefit Measurement Methods, 2. Benefit/Cost Ratio, 3. Economic Model, 4. Scoring Model in Project Management, 5. Payback Period, 6. Net Present Value, 7. Discounted Cash Flow, 8. Internal Rate Of Return.

What is project risk, and how are positive risk events classified?

Project risk is any uncertain event or condition that might affect your project. Positive events or conditions are called opportunities.

What is the key difference between quantitative and qualitative risk analysis?

Quantitative Risk Analysis is better for managing the risk of modern projects, whereas Qualitative Risk Analysis gauges probability and prioritizes risk by ranking severity in broader terms (easy for non-project controls people to understand).

What are the four basic ways to handle or mitigate risk?

Avoid, Mitigate (or Risk Reduction), Transfer (or Risk Sharing), and Accept.

What are the six core concepts of risk control?

1. Avoidance, 2. Loss Prevention, 3. Loss Reduction, 4. Separation, 5. Duplication, 6. Diversification.

What are the ten categories of risk sources?

Technical, Cost, Schedule, Client, Contractual, Weather, Financial, Political, Environmental, and People.

What do the mitigation codes RA, RS, RR, and RT stand for in a Risk Breakdown Structure (RBS) legend?

RA: Risk avoidance; RS: Risk sharing; RR: Risk reduction; RT: Risk transfer.

How does risk evolve from the Initiation Phase to the Closeout Phase of a project?

Initiation Phase has high unknowns and high overall risk. In Planning Phase, detailed risks are identified. In Implementation Phase, total risk reduces as activities finish without loss, releasing unused contingency funds. In Closeout Phase, risk-sharing/transfer agreements conclude, ensuring all risks were avoided/mitigated.

What is a Monte Carlo Simulation and when is it used?

A statistical model that simulates a range of possible outcomes by trying many combinations of risks based on their likelihood. It is used on highly complex projects.

What happened during the Sumitomo Electric case regarding Business Continuity Plans (BCPs)?

Sumitomo Electric developed BCPs in 2008 and used them during the March 2011 Great East Japan earthquake. BCPs did not reach all goals due to unprecedented damage, which led to continuous practical drills, training, and systems for infectious disease outbreaks.