Project Management Essentials

What is the primary purpose of Project Portfolio Management?

• To eliminate all projects that do not generate profit.

• To focus solely on individual project success without regard to overall strategy.

• To increase project costs and timelines.

• The primary purpose of Project Portfolio Management is to align projects with organizational strategy and optimize resource allocation.

Define the term 'Request for Proposal' (RFP).

• A Request for Proposal (RFP) is a document used to request proposals from vendors for a specific project or service.

• A Request for Proposal (RFP) is a summary of a company's financial status.

• An RFP is a document that outlines the terms of a purchase order.

• A Request for Proposal (RFP) is a type of contract awarded to the lowest bidder.

What are the key components of a technical appraisal in project appraisal?

• Budget analysis and financial forecasting

• Market demand evaluation

• Stakeholder engagement strategies

• Key components include technical feasibility, design specifications, resource requirements, and risk assessment.

Explain the significance of the payback period in a feasibility study.

• The payback period measures the total profit generated by an investment.

• The payback period indicates the overall market demand for a product.

• The payback period is used to calculate the interest rate of a loan.

• The payback period helps assess the risk and liquidity of an investment by indicating how quickly the initial investment can be recovered.

How is Net Present Value (NPV) calculated?

• NPV = Σ (Cash Flow_t * r) - Total Revenue

• NPV = Cash Flow_t * (1 + r)^t + Initial Investment

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

• NPV = (Initial Investment / Cash Flow_t) + r

What does IRR stand for and why is it important?

• Interest Rate Ratio

• Investment Return Rate

• Internal Rate of Revenue

• Internal Rate of Return

List the main steps involved in project planning.

• Conduct a market analysis

• Hire project team members

• Launch the project immediately

• 1. Define project scope 2. Set objectives 3. Identify resources 4. Create a timeline 5. Establish a budget

What is a Master Plan in project management?

• A Master Plan is a list of team members involved in the project.

• A Master Plan is a daily task checklist for project execution.

• A Master Plan is a comprehensive project strategy document that outlines objectives, timelines, resources, and responsibilities.

• A Master Plan is a financial budget for the project.

How do you define the project scope?

• The project scope is defined by the project manager's preferences.

• The project scope is defined by outlining objectives, deliverables, tasks, costs, deadlines, and stakeholder requirements.

• The project scope is solely based on the budget.

• The project scope includes only the final deliverables.

What is a Work Breakdown Structure (WBS)?

• A Work Breakdown Structure (WBS) is a hierarchical breakdown of a project into smaller tasks.

• A WBS is a list of all project stakeholders.

• A WBS is a financial report for project budgeting.

• A WBS is a timeline of project milestones.