66 terms

Project Management Test 1

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Terms in this set (...)

Project
Unique venture with a beginning and end, conducted by people to meet established goals within parameters of cost, schedule, and quality
ERP Software
Collect and organize data from across the company. Provide management with insight into key performance indicators (KPIs) in real time
Why are projects important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex & technical products
4. Global Markets
5. Economic period marked by low inflation
Project Life Cycle
Stages in a projects development
Demonstrate logic that governs a project
Help develop plans for carrying out project
Conceptualization
development of initial goal and technical specs
Planning
stage in which all detailed specs, schematics, schedules, and other plans are developed
Execution
actual work of project is performed, bulk of project team labor is done
Termination
completed project is transferred to customer, project is closed out
Project Efficiency
meeting budget and schedule expectations
Impact on customer
meeting technical specs, addressing customer needs, & creating a project that satisfies customer needs
Business Success
Determining whether the project achieved significant commercial success
Preparing for the Future
determining if the project opened new markets or new product lines or helped develop new tech
Project Scheduling
The organization has tools and techniques for creating project schedules (e.g. Microsoft Project)
Personnel Development
systematic methods for improving the skills for project management personnel
Structural Support
The organization has created a structure that supports the practice of project management
Portfolio Management
Strategic integration of a firm's complete portfolio of projects
Strategic Management
Science of formulating, implementing, and evaluating cross functional decisions that enable an organization to achieve its objectives
TOWS Matrix
Threats-Opportunities-Weaknesses-Strengths, refers to challenges companies face both internally and externally
Stakeholder Analysis
useful tool for demonstrating some conflicts that occur through the planned creation and introduction of any new project
Project Stakeholders
all individuals or groups that have an active stake in the project and can impact its development
External Environment
all forces or groups outside the organization that have the potential to impact the organization
Functional Organizations
companies are structured by grouping people performing similar activities into departments
Project Organizations
companies are structured by grouping people into project teams on temporary assignments
Matrix Organization
companies are structured by creating a dual hierarchy in which functions and projects have equal prominence
Weak Matrix
functional department maintains control over resources, project manager role is to coordinate activities
Balanced Matrix
goal is to equally distribute authority and resource assignment responsibility between the project manager and the function department
Strong Matrix
power has shifted in favor of project manager
Heavyweight Project Organization
belief that organization can sometimes gain tremendous benefits from creating a fully dedicated project organization
Project Management Office (PMO)
centralized unit within organization department that oversees or improves the management of projects
Weather Station Model
PMO used as monitoring and tracking device
Control Tower Model
PMO treats project manager as a business skill to be protected and supported
Resource Pool Model
PMO goal is to maintain and provide a cadre of trained and skilled project professionals as they are needed
Organizational Culture
The unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.
Expert Power
Supervisor's special knowledge and expertise
Subordinates will come to their supervisor to help solve technical problems
Some people are better than others at appearing to be experts
Education
Titles
Experience
Referent Power
The extent to which the subordinate likes and identifies with the supervisor
This power can be developed through personal relationships
Legitimate Power
Power by virtue of your job title
Conveys a legitimate right or authority to be in charge
If the subordinate refuses to recognize the authority of the title, then the power does not exist
Reward Power
The extent to which the supervisor can hand out rewards
Salary increase
Bonus
Desirable job assignment
Promotions
Coercive Power
The extent to which the supervisor can hand out punishments
Disciplinary actions
Fines
Salary reduction
Firing
Realism
Effective model must reflect organization objectives, must take into account commercial risk and technical risks including performance, cost and time
Capability
model should allow company to compare different types of projects
Flexibility
easily modified if trial applications require change
Ease of Use
Simple enough to be used by people in all areas of the organization
Cost
Should be cost effective
Comparability
Broad enough to be applied to multiple projects
Numeric Models
Seek to use numbers as inputs for the decision process involved in selecting projects
Nonnumeric Models
do not employ numbers as decision inputs; instead use other data
Checklist
simplest method, list of criteria that pertain to our projects, and then applying them to different possible projects
Simplified Scoring Model
each criterion is ranked according to its relative importance
Analytical Hierarchy Process (AHP)
developed by Thomas Saaty, 4 step process
Construct a hierarchy of criteria and subcriteria
Allocate weights to criteria
Assign numerical values to evaluation dimensions
Scores determined by summing the products of numeric evaluations and weights
Profile Model
allows managers to plot risk/return options, uses effective frontier
Payback Period
estimated amount of time necessary to recoup the investment in a project
Net Present Value (NPV)
most popular financial model, projects the change in a firm's value if project is undertaken
IRR
project must meet "hurdle rate"
Project Portfolio Management (PPM)
systematic process of selecting, supporting, and maintaining firm's collection of project
Line Manager
official titles and power in an organization
Project Managers (Leaders)
focus on interpersonal relationships rather than administration
Self-Awareness
understand your own strengths and weaknesses
Self Regulation
act, but not act impulsively
Motivation
ability to keep score of project process, strive for greater challenges
Empathy
willingness to consider other team members' feelings
Social Skills
ability to be friendly, approachable, and persuasive
Project Champions
Fanatics in the single minded pursuit of their pet ideas
Creative Originator
driving force behind idea
Entrepreneur
person who actively works to sell the idea throughout the organization
Godfathers
senior level executive who does everything possible to promote the project
Project Manager
can assume role of champion with sufficient authority to effectively advocate the project