3rd Understand the Discovery/Concept Preparation Phase

The Project Business Case

A value proposition for a proposed project that may include financial and non-financial benefits.

About establishing Value

It'll include Business Needs, Analysis, Strategic Alignment, Options, Recommendation, and Feasibility Study

Linear and Nonlinear Programming

Project selection methods using mathematical modelling know as "constrained optimization"

Net Present Value (NPO)

Uses an economic theory that is based on the assumption that value of a sum money today is more than it will be in the future.

Return on Investment (ROI)

A % that shows how much money you'll make by investing in something.

Internal Rate of Return (IRR)

Does the investment have a high or low rate of return(bigger the better)

Benefit Cost Ration (BCR)

How many dollars do I get back for every dollar I invest?

Payback Period (PBP)

How long will it take us to pay back what we invested in the project. (Shorter the better)

Scoring Model

objective technique. Identify relevant criteria, weigh them according to their importance, and then score each project accordingly.

Opportunity Cost

What's the cost of the other opportunities that were given up by investing in this one?

Procurement Method

Build or Make(Made internally by the project team)

Buy (outsource or purchase a solution or item)

Lease (Hire or rent rather than buy)

Subscription / Pay-as-you-go (ex> For cloud services; pau for what you use)

CapEx vs OpEx

Capital Expenditures are major investments that are depreciated over time.

Operational Expenditure refers to ongoing expenses that are often tax-deductible.

Pre-qualified Vendors

a list of approved suppliers

Pre-determined Clients

partner organization we already have agreements with

Pre-existing Contracts

will speed up procurement processess

RFI

(Request for Information) to narrow down the list of possible suppliers

RFP

(Request for Proposal) to include more than just price (e.g., design, approach, timelines)

RFQ

(Request for Quote) When you need a price for a specific items.

RFB

(Request for Bid) When you need a price - perhaps sealed for fairness

Firm Fixed Price (FFP)

Price fixed at outset and won't change unless scope changes

Fixed Price Incentive Fee (FPIF)

Fixed price plus bonus if target is met

Fixed Price with Economic Price Adjustments (FPEPA)

Fixed price with adjustments to cover cost changes(e.g. for currency exchange rate or cost of oil)

Cost Plus Fixed Fee (CPFF)

Cost paid by buyer and then a fixed fee paid on completion

Cost Plus Incentive Fee (CPIF)

Costs paid by buyer, plus bonus if target is met

Cost Plus Award Fee (CPAF)

Costs paid by buyer, plus a performance-based bonus at the buyer's discretion

Time and Materials Contracts

time spent on tasks billed at an agreed hourly rate("unit price" plus materials at cost.

Statement of Work (SOW)

The details of the services or goods we want to purchase so that the vendor know what we're asking them to provide

Terms of Reference (TOR)

The description of the work requirement, including the scope, timeline, resources, etc.

Non-Disclosure Agreement (NDA)

An agreement to stop a person or organization from exposing trade secret of sensitive information

Cease and Desist Letter (C&D)

Used to stop somebody from doing something immediately and never do it again.

Memorandum of Understanding (MOU)

Not legally enforceable but might be useful for outlining terms when it's not possible to create a legal agreement between parties

Letter of Intent (LOI)

Describes the intention of what the buyer and vendor are going to do, usually before they enter into a contract. Not always legally binding buy can carry weight

Master Service Agreement (MSA)

A kind of umbrella agreement to set general terms between parties, which can help streamline future contracts

Service Level Agreement (SLA)

Defines expectations of the level of service provided by the vendor

Maintenance Agreement

Describes what the vendor is expected to do in order to keep the goods or service you purchased up and running

warranty

The vendors guarantee that the product will perform as expected for a specified period of time

Purchase Order (PO)

The official document issued by a buyer committing to pay the vendor for the sale of the specified products or services