Project Management Exam 3

What is Return on Investment (ROI)?

The percentage return on an initial investment

How is ROI calculated?

by taking the total projected net benefits and dividing them by the cost of the investment.

What are the components of an ROI calculation?

Annual revenue – annual expenses = Net Operating Income

What information does ROI convey?

ROI provides an estimate of profitability

Is it better to have a higher or lower ROI?

Higher ROI, the better an investment is estimated to be

What is Internal Rate of Return (IRR)?

The projected annual yield of an investment, incorporating both initial and ongoing costs.

How is IRR calculated?

Annual Income / Cap Rate

What information does IRR convey?

IRR is a measure of return to cost

What is Payback Period (PBP)?

The time needed to recover an investment, usually in months or year.

How is PBP calculated?

Initial Investment / Net Operating Income

What information does PBP convey?

How long it takes to pay off a project.

Is it better to have a higher or lower PBP?

Lower PBP, lower risk

What is Net Present Value (NPV)?

The future value of expected benefits expressed in the value that those benefits have at the time of investment.

What information does NPV convey?

NPV provides insight into whether an investment will provide value

Is it better to have a higher or lower NPV?

Higher NPV, the greater the amount of value an option is expected to provide.

What is business analysis?

Business analysis is the application of knowledge, skills, tools, and technology to determine problems and opportunities, identify business needs, and recommend viable solutions.

What are some objectives of business analysis?

Supporting strategic decision-making, managing requirements and product information, and determining how to measure and realize value from business solutions.

How do business analysts typically spend their time?

one-third of their time (31%) performing needs assessment and business analysis planning, and 41% of their time performing elicitation and analysis.

What is the importance of business analysis planning?

Business analysis planning captures stakeholder expectations, scope of work, amount and level of analysis required for the project.

What are stakeholders?

An individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio.

What are some examples of stakeholders?

Sponsor who is initiating and responsible for the project

What roles do stakeholders play on a project?

Who will benefit from an improved project, Who will articulate and support the financial or other benefits of a solution, Who will use the solution, Whose role and/or activities may change as a result of the solution, Who may regulate or constrain part or all of the solution, Who will implement the solution, Who will support the solution

What is stakeholder elicitation?

Requirement elicitation is the process of communicating and collaborating with key stakeholders to assemble the insight and identify the project's needs.

What are some stakeholder requirements elicitation techniques?

Interview, brainstorm, focus group, requirements workshop, prototyping, interface analysis, user interface analysis, survey and questionnaire, documentation analysis

What is a stakeholder register?

A project document that includes information about project stakeholders including an assessment and classification of project stakeholders.

How is a stakeholder register used?

as a central tracking document to identify, analyze, and manage the expectations, communication needs, and influence of everyone involved in or impacted by a project

What is a Requirement?

A condition or capability that is necessary to be present in a product, service, or result to satisfy a need(s).

What are some types of project Requirements?

Business requirements

 Solution requirements

Functional requirements

Nonfunctional requirements

Transition requirements

one state to another Stakeholder requirements

What are examples of each type of Requirements?

Business requirements – why the project is being undertaken

 Solution requirements – Features, functions, and characteristics of a

product, service, or result that will meet the business and stakeholder

requirements

Functional requirements – behaviors of the product

Nonfunctional requirements – Conditions for the product to be effective

Transition requirements – Training, operational changes, to transition from

one state to another

Stakeholder requirements – customers, suppliers, partners

What is a Requirements Traceability Matrix?

A requirements traceability matrix is a document that demonstrates the

relationship between requirements and other artifacts

How is a Requirements Traceability Matrix used?

It's used to prove that requirements have been fulfilled. And it typically documents requirements, their source, type, the WBS, and a description

How are Requirements prioritized?

The practice of identifying and managing the importance of various requirements to acknowledge the limited resources available. Most stakeholders view all requirements as equally important. They don't always understand that development teams are working with limited time and resources.

What types of Requirements should projects avoid?

Urgent not important (skull and crossbones)

What is a Business Case?

A business case provides justification for undertaking a project, program or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution

What are some common components of a Business Case?

Problem/opportunity

Analysis of the situation – how a solution will support and contribute to the business goals and objectives.

Recommendation

Evaluation

What are some inputs to a Business Case?

Business goals and objectives

Feasibility study results

Product roadmap

Recommend solution option

Required capabilities and features

Situation statemen

What are some Business Case outputs?

Business case

Project scope

What are some Business Case considerations for predictive projects?

Project features

 Rigorous estimate

 List of benefits

 Risks

 Assumptions

 Constraints

 Dependencies

What is a Project Charter?

formal document that officially authorizes a project to begin.

How is a Project Charter used?

Define project goals

 Establish project scope

Identify stakeholders

Set expectations

What are some approaches to stakeholder engagement?

Identify stakeholders.

Understand stakeholder needs

Prioritize stakeholders

What are some ways to communicate with stakeholders?

Email

 Meetings

 Presentations

 Phone calls

 Project status reports

What are some characteristics of adaptive/agile projects?

An overall vision is developed but detailed planning is done in increments as the project is executed.

What are some characteristics of predictive projects?

Detailed scope statements, a full WBS, detailed cost estimate, detailed schedule and risk are all completed, creating a full project baseline before the project begins.

In what industry did agile originate?

Software Development

What are the four preferred items on the left of the agile manifesto?

Individuals and Interactions, Working Product, Customer Collaboration, Responding to Change

What are the important but less preferred items on the right of the agile manifesto?

Processes and Tools, Comprehensive Documentation, Contract Negotiation, Following a Plan

What are the 12 agile principles?

1. Satisfy the customer

2. Trust

3. Excellence

4. Welcome changing requirements

5. Face to face conversation

6. Simplicity

7. Deliver working software frequently

8. Working software is the primary measure of progress

9. Self organizing teams

10. Work together

11. Maintain a constant pace

12. Become more effective

What is a Scrum Master?

Professional who leads a team using Agile project management through the course of a project.

What are some of the duties of a Scrum Master?

Facilitator, coach, manager, mentor, servant leader, teacher, impediment remover, change agent

In agile what is the relationship between the product and the project?

In Agile, the product is the project

What is meant by the agile mindset?

When you work on an agile project you need to understand it does not follow the traditional project approach

What are the five levels of agile planning?

Vision planning (yearly), Roadmap planning (Bi- annually), Release planning (quarterly), Iteration planning (Bi-weekly), Daily commitment planning (Daily)

What is a product roadmap?

plan of action for how a product or solution will evolve over time.

How often should stakeholders be engaged during the execution of an agile project?

Stakeholders should be engaged frequently throughout the project.

What is the sequential order of sprint planning, sprint retrospective, daily scrum, sprint review?

Sprint planning, daily scrum, sprint review, sprint retrospective

What is a sprint?

A dedicated period of time in which a set amount of work will be completed on a project.

What is a feature?

Service or function of the product that delivers business value and fulfils the customer's need.

What is an epic?

a large body of work that can be broken down into a number of smaller stories.

What is a theme?

Wide area of focus that helps an Agile team to keep track of their organizational goals

What is a product owner?

The one handling changes to the product backlog. The product owner is responsible for prioritizing (not estimating) work. They should prioritize features and work that are aligned with the needs and expectations of the customers they represent.

What is the primary purpose of sprint planning?

To define what can be delivered in the sprint and how that work will be achieved.

What is timeboxing?

Management technique where you allocate a fixed time period to a planned activity. You work on the activity during the fixed time period and stop working on it once the time is up

What is velocity when used in Agile?

Velocity is a measure of the amount of work a Team can tackle during a single Sprint and is the key metric in Scrum.

How is Velocity calculated?

Totaling the Points for all fully completed User Stories.

What are story points?

A unit of measurement used to express an estimation of the effort required to implement an item on the product backlog or any other piece of work.

How does the project team decide how many story points it will attempt during a sprint?

The team determines how much work it can attempt based on its capacity and the highest-priority items identified for the sprint.

What is t-shirt sizing?

Methodology for estimating story points

What is the purpose of a scrum?

promote teamwork, communication, and collaboration

What is the product backlog?

priority list of user requirements, use cases to be done in order to create, maintain and sustain a product.

How often is the product backlog updated?

Constantly

When can features be added to a product backlog?

Features can be added at any time throughout the product's lifecycle

At what point in the sprint cycle do you consider the number of story points completed in the last sprint?

During sprint planning, the team considers its previous performance to help determine how much work it can attempt in the next sprint.

When are features in the product backlog reprioritized?

Reprioritized based on customer feedback and business value

What is a kanban board?

Organizes the workflow in three steps

What are the primary steps conveyed in a Kanban Board?

“To do,” “In progress,” and “Done.” A task board.

What is the pull method in kanban when used in agile?

pull method allows a team to take on work from the board when they are ready to limit the amount of work in progress.

What is MosCoW in agile?

MoSCoW is a prioritization technique. Stands for must have, should have, could have, and won’t have

How is MosCoW used?

can be used to prioritize the project backlog, sprint backlog, or both

Once a sprint starts how is the order of work determined?

Scrum team decides how it will work off the sprint backlog.

What is a story card?

One unit of delivery for an agile team. Quickly signifies the task for the team to see on the storyboard, kanban board, scrum board, or other progress visualization tool.

What is the purpose of a Scrum Team Charter?

Guiding document that outlines the overall mission, goals, values, and operational scope of an Agile team. It is used to keep teams on track as they undertake various Agile projects, ensuring they do not stray too far from their original purpose

What is a daily scrum or stand-up meeting?

daily check-ups help teams stay on track and mark progress.

What are some basic elements discussed in the daily scrum or daily stand-up?

what they worked on yesterday, what they’re doing today, and what’s blocking them from moving forward

How often does the Scrum or stand-up meeting happen?

Every day

What is the typical duration for a standup meeting?

15-30 minutes

What time of day does the Scrum or standup meeting occur?

Morning

What is a burndown chart?

Shows sprint tasks remaining for the sprint.

What is a burnup chart?

Shows the tasks completed thus far.

What is a sprint review?

collaborative meeting that is typically held at the end of every sprint. This is when the team runs through work items they completed during the sprint or iteration.

What is a sprint retrospective?

team meets to discuss what processes and practices went well during the iteration. They also identify areas of improvement

What are examples of agile ceremonies?

Daily stand up (daily scrum), sprint planning, sprint review, sprint retrospective

What are the steps in the backlog refinement process?

Review the product backlog, prioritize items, define user stories, identify highest priority, determine scope, use MoSCoW prioritization.

At what point in the sprint cycle is the sprint review typically conducted?

The final day of the sprint