WGU C722 Test Bank Project Management , Top Ex am Questions and answers, Approved. A Guide to Project Management Body of Knowledge (PMBOK Guide) The project management standard developed by the Project Management Institute. Benefit measurement methods A type of decision model that compares the b enefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results. Co-located When team members work together at the same physical location Constrained optimization models Decision models that use complex principles of statistics and other mathematical concepts to assess a proposed project. Cost -benefit analysis A commonly used benefit measurement method that calculates the cost of producing the product, service, or result of the project and compare s this to the financial gain the project is expected to generate. Decision model A formal method of project selection that helps managers make the best use of limited budgets and human resources. Includes benefit measurement methods and constrained optimiz ation models. Discounted cash flow (DCF) Compares the value of the future cash flows of the project to today's dollars. Economic model A type of benefit measurement method. It is a series of financial calculations that provide data on the overall financials of the project and is generally used as a project selection technique. Expert judgment A technique used in project selection, determi ning estimates, and determining other related project information that relies on the knowledge of those with expertise on the requested subject matter. Expert judgment can come from, stakeholders, other departments, consultants, team members, vendors, or i ndustry groups. Feasibility study Undertaken to determine whether the project is a viable project, the probability of project success, and the viability of the product of the project Functional organization A form of organizational structure. Functional or ganizations are traditional organizations with hierarchical reporting structures. Internal rate of return (IRR) The discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally consi dered better than projects with lower IRR values. Assumes that cash inflows are reinvested at the IRR value. Matrix organization An organizational structure where employees report to one functional manager and at least on project manager. Functional manage rs assign employees to projects and carry out administrative duties, while project managers assign tasks associated with the project to team members and execute the project. Net present value Evaluation of the cash inflows using the discounted cash flow te chnique, which is applied to each period the inflows are expected. NPV subtracts the initial project investment from the total cash flow in today's dollars. It is similar to discounted cash flows. Operations Operations typically involve ongoing functions t hat support the production of goods or services. They don't have a beginning or an end. Payback period The length of time it takes a company to recover the initial cost of producing the product or service of the project. Program A grouping of related proje cts that are managed together to capitalize on benefits that couldn't be achieved if the projects were managed separately. Project Temporary in nature, with a definite start and end date; creates a unique product, service, or result. It is completed when t he goals and objectives of the project have been met and signed off on by the stakeholders. Project management Applying skills, knowledge, and project management tools and techniques to fulfill the project requirements. Project Management Institute (PMI) The world's leading professional project management association. Project management knowledge areas The ten project management groupings, or Knowledge Areas, that bring together common or related processes. They are Integration, Scope, Time, Cost, Quality, Human Resource, Communications, Risk, Procurement, Stakeholder. Project management office (PMO) Established by organizations to create and maintain procedures and standards for project management methodologies to be used throughout the organization. Project manager The person responsible for applying the skills, knowledge, and project management tools a nd techniques to the project activities to successfully complete the project objectives. Project performance indicators Measures that the project manager uses to determine whether the project is on track, such as any deviation from the baseline schedule or the baseline budget. Project plan A document, or assortment of documents, that constitutes what the project is, what the project will deliver, and how all the processes will be managed. Used as the guideline throughout the project Executing and Controllin g phases to track and measure project performance and to make future project decisions. Also used as a communication and information tool for stakeholders, team members, and management. Project selection Used to determine which proposed projects are approv ed to move forward Project -based organization An organizational structure focused on projects. Project managers generally have ultimate authority over the project, and sometimes supporting departments such as human resources and accounting might report to the project manager. Project managers are responsible for making project decisions and acquiring and assigning resources. Scoring model One of the benefit measurement methods used for project selection. It contains a predefined list of criteria against whi ch each project is ranked. Each criterion has a scoring range and a weighting factor. A scoring model can also be used as a tool to select from among competing vendors. Assumption An event or action believed to be true for planning purposes. Project assump tions should always be documented. Business analyst The person in charge of understanding the business unit's needs when assessing a project request. The business analyst might be assigned directly from the business unit itself or may be part of the IT organization. Business case Formally documents components of the project assessment, including a description of the analysis method and the results. Business process reengineering Applying changes to an IT system and putting those elements into place based on a project request and a business analyst's examination of the workflow --how people handle their work relative to the request. Business requirements The requirements that describe how the business objectives of the project will be met Closing A process tha t documents the final delivery and acceptance of the project and is where hand -off occurs to the operational unit. Lessons learned are performed during this process, and project team members are released. Commercial off -the-shelf (COTS) Describes a software application that is purchased from a re -seller, vendor, or manufacturer. Customer The recipient of the product or service created by the project. In some organizations this stakeholder may also be referred to as the client Enterprise p roject A project that will be used by users throughout the enterprise. Executing This project process group is where the work of the project is performed. Fast-tracking A schedule compression technique where two activities that were previously scheduled to start sequentially start at the same time. Fast -tracking reduces schedule duration. Functional requirements
