Lecture 9 q1

What involvement would senior managers typically have during the Initiation phase of a project?

• Build the team

• Select and initiate projects

• Oversee the project and provide feedback

• Offer opportunities for staff development.

Name the qualitative factor that may influence senior management in project selection.

Stakeholder ____: Senior management, consciously or unconsciously, considers the biases/preferences/aversions of key stakeholders such as customers, shareholders, employees, and the managers themselves.

Name the qualitative factor that may influence senior management in project selection.

Organizational ___: Project selection should align with an organization’s strategic intent.

Name the qualitative factor that may influence senior management in project selection.

____ ________: A preliminary risk analysis decides whether the project is worth undertaking despite the risks.

Name the qualitative factor that may influence senior management in project selection.

_______ models: Evaluating various elements on several criteria can include weight scoring and prioritization es.

Suppose your company is considering two potential projects. Project A will cost $50,000 and will generate $60,000. Project B will cost $100,000 and will generate $90,000. Which project has a higher benefit-cost ratio (BCR)?

You have 3 minutes to calculate.

• Project A

• Project B

Answer explanation

The BCR of Project A is $60,000/$50,000 or 1.2:1.

The BCR of Project B is $90,000/$100,000 or 0.9:1.

Project A has a higher BCR.

The new building managers are offering you two choices of rental agreements for two years: $20,000 up front or $11,000 at the end of each year. The cost of capital is 8 percent. What would the $11,000 be worth the first year? (Round to two decimal points.)

You have 3 minutes to calculate

Answer explanation

First Year = $10,185

PV= $11,000 / (1 + .08)

PV = $11,000 / (1.08)

PV = $10,185

What about second year?

Second Year = $9,402

PV = $11,000 / (1 + .08)^2

PV = $11,000 / (1.08)^2

PV = $11,000 / (1.17)

PV = $9,402

Once a need has been expressed, what are the essential steps to follow?

Pick two valid answers.

• Determine objectives (an understanding of what the project is expected to accomplish).

• Start implementing the project immediately

• Determine requirements (what the customer needs to have happen—refined objectives).

• Start working on the project without any planning

Name the five elements that characterize well-developed objectives.

• S = Specific

  M = Measurable

  A = Agreed-upon

  R = Realistic

  T = Time-constrained

• S= Sustainable

  M= Measurable

  A= Attainable

  R= Relevant T=Time-bound

• S = Social

  M = Mobile

  A = Analytics

  R = Rethink

  T = Technologies

• S = Self

  M = Monitoring

  A = Analysis

  R = Reporting

  T = Technology

Which statement is incorrect in regards to functional versus technical requirements?

• Functional requirements are expressed in nontechnical language.

• Technical specifications identify the planned technical solution.

• Functional requirements are written in business language.

• The customer is responsible for identifying technical requirements.