Project management and accounting

What is a project?

A temporary endeavor undertaken to create a unique product

What are the key characteristics of a project?

Projects are temporary with a beginning and an end

What is Project Management?

The application of knowledge

What are the five main process groups in project management?

Initiating

Why is project planning essential?

To ensure all requirements are considered

What is the impact of poor project management?

It can lead to an inability to complete projects on budget

What are the three basic objectives of a successful project?

Cost

How does the project management triangle illustrate the relationship between cost

time

What is meant by 'scope creep'?

The gradual expansion of project scope without adjustments to time

What was a major factor in the Challenger space shuttle disaster?

Poor communication between engineers and management regarding the risks of cold weather on the O-rings.

What lesson can be learned from the Airbus A380 project?

The importance of ensuring all team members are using compatible tools and techniques to avoid misalignment.

What are deliverables in project management?

The desired outcomes or outputs of a project.

Who are stakeholders in a project?

Persons or organizations who will affect or be affected by the project.

What is the significance of quality in project management?

Quality is non-negotiable and must not be downgraded in priority against time and cost.

What is the role of project setup and close-out?

These stages are critical for ensuring resources are adequately allocated and that the project is completed successfully.

What can happen if teams under-resource the project setup phase?

They may encounter problems later due to inadequate planning and resource allocation.

What is the definition of quality according to Duran?

A product or service must be fit for its intended purpose.

How can project management affect investor relations?

Poor project management can lead to a lack of confidence from investors and partners

What is the importance of communication in project management?

Effective communication is crucial to convey messages and results

What is the relationship between cost

time

What is a common mistake in project management?

Failing to work within given constraints

What is the significance of dividing activities into correct groups?

It allows for early review of requirements

What does it mean for a project to have a unique outcome?

Each project produces a distinct product

Why might a project manager need to prioritize cost

time

What is a Gantt chart?

A type of bar chart that illustrates a project schedule

Who popularized the Gantt chart?

Henry Gantt

What are the key components to consider when setting up a Gantt chart?

Identify all tasks

What is a stakeholder in project management?

An individual

Why are stakeholders important in a project?

They can positively or negatively influence the project with their decisions.

What are key stakeholders?

Critical stakeholders whose support is needed for the project to exist.

Name one advantage of stakeholder mapping.

It helps structure and organize projects effectively.

What is a risk register?

A document used to track and report on project risks and opportunities throughout the project's life cycle.

What are some uses of a risk register?

Identifying potential risks

What standard columns are included in a project risk register?

Identification number

What is a Kanban board?

A visual tool used in project management to give an overview of current work status and simplify team communication.

What is the primary benefit of using Kanban boards?

They help optimize and continuously improve business processes.

What does SMART stand for in project objectives?

Specific

What does 'Specific' mean in SMART objectives?

Describing the objective clearly by answering 'what

How does one measure the success of an objective?

By having metrics and specific values that can be monitored.

What does 'Achievable' imply in the context of SMART objectives?

Goals should be possible for the team to achieve to avoid demotivation.

Why is it important for objectives to be 'Relevant'?

They should align with the organization's focus and long-term goals.

What does 'Time-limited' mean in SMART objectives?

The aim should be to achieve objectives within a specific time-frame.

What is one pitfall in stakeholder communication?

Relinquishing too much power to stakeholders can undermine project control.

What can happen if stakeholders are incorrectly identified?

It may lead to prioritizing the wrong parties in the project.

What is a common issue caused by stakeholders during project progress?

Stalling project progress due to slow decision-making or self-interest.

Why is it important to keep stakeholders updated?

To maintain transparency and manage expectations throughout the project life cycle.

What does project scope refer to?

The limits of a project

What is a project scope statement?

A documented statement outlining everything necessary for project success

What is the purpose of a project charter?

To capture initial project information and authorize the start of a project.

What is included in a project scope document?

Project goals

What is the initiating process in the project life cycle?

Processes to define a new project or phase and obtain authorization to start.

What is stakeholder mapping?

The process of identifying people or organizations impacted by the project and documenting their interests.

What are the advantages of comprehensive stakeholder examination?

It helps structure projects

What is a feasibility study?

An evaluation to confirm market opportunities and assess the viability of a project before commitment.

What are the stages of a feasibility study?

Scoping study

What is the purpose of a scoping study?

To evaluate the attractiveness of a project based on initial data.

What is the role of a project initiation document (PID)?

To provide detailed breakdowns of tasks

What is the significance of SMART objectives in project management?

They provide specific

What is the difference between internal and external stakeholders?

Internal stakeholders are part of the organization

What does the term 'constraints' refer to in project management?

Limitations of time

What is the purpose of a business case in project management?

To focus on financial feasibility and outline stakeholders and risks.

What is the outcome of a feasibility study?

A quantification of project value and risk

What does the term 'deliverables' mean in a project?

Tangible results or products that are produced as part of the project.

What is the importance of identifying success criteria in project management?

To establish clear metrics for evaluating project success.

What is the role of the project management team in writing the project charter?

They assist in drafting

What is the significance of documenting project boundaries?

To clarify the scope and limitations of the project

What is the purpose of a project brief?

To provide a concise summary of the project's high-level scope for potential partners and sponsors.

What does the term 'project lifecycle' refer to?

The series of phases that a project goes through from initiation to completion.

What is the role of risk identification in project management?

To enable proactive planning and response strategies for potential project risks.

What is a project blueprint?

A comprehensive document that consolidates all important project information for stakeholders.

What is the iterative nature of feasibility studies?

They involve repeated evaluations to refine project viability assessments.

What is the significance of market analysis in feasibility studies?

To assess the potential demand and competitive landscape for the project's output.

What does 'out-of-scope work' mean?

Tasks or deliverables that are explicitly excluded from the project scope.

What is the role of empirical rules in scoping studies?

To guide initial evaluations based on assumptions and past experiences.

What is the difference between a risk and an issue in project management?

A risk is a possible future event that may negatively affect project objectives

When should risk management begin in a project?

Risk management begins at the concept and feasibility stage and continues through all project phases

What are the steps in the risk management process?

1. Identify risks 2. Create a risk register 3. Analyze risks (qualitative & quantitative) 4. Decide risk responses 5. Monitor and review risks regularly.

What are some methods for identifying risks?

Brainstorming

What are internal risks in project management?

Risks that can be controlled

What are external risks in project management?

Risks that cannot be controlled

What is qualitative risk analysis?

A subjective assessment that uses High

What is quantitative risk analysis?

A numerical assessment that uses probability multiplied by impact for a more accurate evaluation

What is a risk matrix?

A tool that ranks risks based on their probability and impact

What should a risk register typically contain?

Risk description

What are the four risk response strategies?

1. Avoid - change plan to remove risk 2. Mitigate - reduce likelihood or impact 3. Transfer - insurance

What is the purpose of financial appraisal in project management?

To evaluate whether a project is worth investing in

What is the simple payback method?

A method that calculates the time taken to recover the initial investment

What does the discounted cash flow (DCF) method recognize?

It recognizes inflation

What is the net present value (NPV) formula?

NPV = Σ (Cash Flow / (1 + r)^t) - Initial Investment

What are the components of cost estimating?

Prime costs (direct costs)

What are project controls?

Processes to monitor

What are key areas of control in project management?

Time

What is the purpose of Gantt charts in project planning?

To provide a visual timeline of tasks

What should effective project plans include?

Task dependencies

What is the significance of early risk consideration in project management?

It helps to anticipate problems and saves time and money by addressing potential obstacles before they impact the project.

What is a functional organization in project management?

An organization where staff are grouped by department

What are the advantages of a projected organization?

Fast decisions

What is a matrix organization?

A hybrid organization structure combining functional and projectized elements

What is the impact of job insecurity in a projected organization?

It can lead to concerns among team members about their future employment after project completion.

What is the role of stakeholder communication in implementing risk responses?

Continuous communication ensures alignment of responses with project objectives and keeps stakeholders informed.