Topic 2 & 3: Project Selection & Initiation

Question 1

Internal source of projects

Answer 1

SWOT Analysis

Question 2

External sources of projects

Answer 2

PESTLE

Question 3

Other Source of projects (6)

Answer 3

1. Customers
2. Employees
3. Competitors
4. Suppliers
5. Benchmarking
6. Happy Accidents

Question 4

Define Project Selection

Answer 4

Evaluating and choosing projects that help achieve organisational objectives

Question 5

Criteria for a good selection model (6)

Answer 5

1. Realism: matches the firms reality
2. Capability: handles complexity
3. Flexibility: adapts to change
4. Ease of use: easy to understand and use
5. Cost: cost of model should be less that project benefit
6. Easy computerisation

Question 6

Qualitative Selection Models (7)

Answer 6

1. Sacred Cow
2. Operating necessity
3. Competitive necessity
4. Product line extension
5. Comparative benefit model
6. Subject Matter Expert (SME) Judgement
7. Mandates

Question 7

Quantitative Selection Models (4)

Answer 7

1. Payback Period
2. Net Present Value
3. Internal Rate Of Return
4. Probability Index

Question 8

Feasibility Study: TELOS

Answer 8

T-echnical: can we build it?
E-conomical: benefit > cost
L-egal: is it allowed
O-perational: will it work in our org
S-chedule: can we do it on time

Question 9

Define Project Charter

Answer 9

Document that formally authorises the project, gives PM authority, and aligns everyone

Question 10

Contents Of A Project Charter (8)

Answer 10

1. Project title
2. Objectives
3. Key Deliverables
4. Milestones
5. Assumptions
6. Constraints
7. Risk
8. Stakeholders

Question 11

Who signs a project charter

Answer 11

The sponsor
Key managers