QUIZ 1 BMFP 4542 PROJECT MANAGEMENT *

Transcription

1 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT * Name:... No. Matrix:... 1A. Which of the following is not considered to be a characteristic of a project? A) an established objective B) only for internal use C) complex tasks D) a clear beginning and end E) never been done before Answer: B Level: Medium 1B. The intended outcome of strategy/projects integration is A) clear organization focus. B) best use of scare organization resources. C) improved communication across projects and departments. D) both a and c are correct E) a, b, and c are all correct Answer: E Level: Medium 2. The Qocar Qacir company has setup a weighted scoring matrix for evaluation of potential projects. Below are three projects under consideration. a. Using the scoring below, which project would you rate Highest? Lowest? b. If the weight for Strong Sponsor is changed from 2.0 to 6.0, will the project selection change? What are the three highest weighted projects scores with this new weight? CRITERIA WEIGHT Strong Sponsor Supports Business Strategy Urgency 10% of Sales from New Products Competition Fill Market Gap with Strong Sponsor is PROJECT PROJECT PROJECT PROJECT PROJECT A1. PROJECT 5 2A.2._ PROJECT 2 2B.1 YES / NO 2B2. PROJECT 3 ; 5 ; 1 3. Assume that you are considering whether or not to invest in a project that will cost RM 100,000 in initial investment. Your company requires a rate of return of 10%, and you expect inflation to 1

2 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT * remain relatively constant at 4%. You anticipate a useful life of four years for the project and have projected future cash flows as follows: Year Inflows Outflows Net Flow Discount Factor NPV 0 RM 100,000 (100,000) 1.00 (100,000) 1 RM 20,000 20, ,544 2 RM 50,000 50, ,475 3 RM 50,000 50, ,745 4 RM 25,000 25, ,803 NPV = I o + F t / (1+ r + p) t Discount Factor = (I / (1+ k + p) t ) = (1/( ) 3 ) = A major responsibility of the priority team is to balance projects by type, risk, and resource demand. This requires a total organization perspective. Haery and Sihombing studied R&D organizations and develop a matrix that could be used for assessing a project portfolio (see Figure 1). The vertical axis the degree of difficulty. The horizontal axis reflects potential commercial value. Discuss the four quadrants in briefly and give examples of each with different project dimension. TECHNICAL FEASIBILITY (How easy is it?) BREAD & BUTTER WHITE ELEPHANT PEARL OYSTER LOW Net Present Value Given Success COMMERCIAL POTENTIAL Figure 1. Matrix of a Project Portfolio Bread & Butter Projects typically involve evolutionary improvements to current products and services Examples include software upgrades and manufacturing cost reduction efforts Pearls 2

3 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT * Represent revolutionary commercial advances using proven technical advances. Examples include next generation integrated circuit chip and sub surface imaging to locate oil and gas Oysters Involve technological breakthroughs with high commercial payoffs. Examples include embryonic DNA treatments and new kinds of metal alloys. White Elephants Are project that at one time showed promise but are no longer viable. Examples include products for a saturated market or a potent energy source with toxic side effects 3

4 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT ** Name:... No. Matrix:... 1A. Which of the following is not considered to be a characteristic of a project? A) an established objective B) only for internal use C) complex tasks D) a clear beginning and end E) never been done before Answer: B Level: Medium 1B. The intersection of the WBS and the OBS is called the A) responsibility matrix B) cost account C) work package D) priority matrix E) project overlap Answer: B Level: Medium 2. The Qocar Qacir company has setup a weighted scoring matrix for evaluation of potential projects. Below are three projects under consideration. a. Using the scoring below, which project would you rate Highest? Lowest? b. If the weight for Strong Sponsor is changed from 2.0 to 5.0, will the project selection change? What are the three highest weighted projects scores with this new weight? CRITERIA WEIGHT Strong Sponsor Supports Business Strategy Urgency 10% of Sales from New Products Competition Fill Market Gap with Strong Sponsor is 5.0 PROJECT PROJECT PROJECT PROJECT PROJECT A1. PROJECT 1 2A.2._ PROJECT 3 2B.1 YES / NO 2B2. PROJECT 2 ; 1 ; 5 1

5 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT ** 3. Assume that you are considering whether or not to invest in a project that will cost RM 100,000 in initial investment. Your company requires a rate of return of 10%, and you expect inflation to remain relatively constant at 4%. You anticipate a useful life of four years for the project and have projected future cash flows as follows: Year Inflows Outflows Net Flow Discount Factor NPV 0 RM 100,000 (100,000) 1.00 (100,000) 1 RM 20,000 20, ,544 2 RM 50,000 50, ,475 3 RM 50,000 50, ,745 4 RM 25,000 25, ,803 TOTAL 4,567 NPV = I o + F t / (1+ r + p) t Discount Factor = (I / (1+ k + p) t ) = (1/( ) 3 ) = A major responsibility of the priority team is to balance projects by type, risk, and resource demand. This requires a total organization perspective. Haery and Sihombing studied R&D organizations and develop a matrix that could be used for assessing a project portfolio (see Figure 1). The vertical axis the degree of difficulty. The horizontal axis reflects potential commercial value. Discuss the four quadrants in briefly and give examples of each with different project dimension. TECHNICAL FEASIBILITY (How easy is it?) BREAD & BUTTER WHITE ELEPHANT PEARL OYSTER LOW Bread & Butter Net Present Value Given Success COMMERCIAL POTENTIAL Figure 1. Matrix of a Project Portfolio 2

6 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT ** Projects typically involve evolutionary improvements to current products and services Examples include software upgrades and manufacturing cost reduction efforts Pearls Represent revolutionary commercial advances using proven technical advances. Examples include next generation integrated circuit chip and sub surface imaging to locate oil and gas Oysters Involve technological breakthroughs with high commercial payoffs. Examples include embryonic DNA treatments and new kinds of metal alloys. White Elephants Are project that at one time showed promise but are no longer viable. Examples include products for a saturated market or a potent energy source with toxic side effects 3

7 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT *BMFU Name:... No. Matrix:... 1A. Which of the following is not considered to be a characteristic of a project? A) never been done before B) an established objective C) complex tasks D) a clear beginning and end E) only for internal use Answer:E Level: Medium 1B. The intended outcome of strategy/projects integration is A) clear organization focus. B) best use of scare organization resources. C) improved communication across projects and departments. D) both a and c are correct E) a, b, and c are all correct Answer: E Level: Medium 2. The Qocar Qacir company has setup a weighted scoring matrix for evaluation of potential projects. Below are three projects under consideration. a. Using the scoring below, which project would you rate Highest? Lowest? b. If the weight for Strong Sponsor is changed from 4.0 to 6.0, will the project selection change? What are the three highest weighted projects scores with this new weight? CRITERIA WEIGHT Strong Sponsor Supports Business Strategy Urgency 10% of Sales from New Products Competition Fill Market Gap with Strong Sponsor is 6.0 PROJECT PROJECT PROJECT PROJECT PROJECT A1. PROJECT 3 2A.2._ PROJECT 5 2B.1 YES / NO 2B2. PROJECT 3 ; 1; 2 1

8 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT *BMFU 3. Assume that you are considering whether or not to invest in a project that will cost RM 100,000 in initial investment. Your company requires a rate of return of 10%, and you expect inflation to remain relatively constant at 4%. You anticipate a useful life of four years for the project and have projected future cash flows as follows: Year Inflows Outflows Net Flow Discount Factor NPV 0 RM 100,000 (100,000) 1.00 (100,000) 1 RM 20,000 20, ,544 2 RM 50,000 50, ,475 3 RM 50,000 50, ,745 4 RM 25,000 25, ,803 NPV = I o + F t / (1+ r + p) t Discount Factor = (1 / (1+ k + p) t ) = (1/( ) 3 ) = A major responsibility of the priority team is to balance projects by type, risk, and resource demand. This requires a total organization perspective. Haery and Sihombing studied R&D organizations and develop a matrix that could be used for assessing a project portfolio (see Figure 1). The vertical axis the degree of difficulty. The horizontal axis reflects potential commercial value. Discuss the four quadrants in briefly and give examples of each with different project dimension. TECHNICAL FEASIBILITY (How easy is it?) BREAD & BUTTER WHITE ELEPHANT PEARL OYSTER LOW Net Present Value Given Success COMMERCIAL POTENTIAL Figure 1. Matrix of a Project Portfolio 2

9 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT *BMFU Bread & Butter Projects typically involve evolutionary improvements to current products and services Examples include software upgrades and manufacturing cost reduction efforts Pearls Represent revolutionary commercial advances using proven technical advances. Examples include next generation integrated circuit chip and sub surface imaging to locate oil and gas Oysters Involve technological breakthroughs with high commercial payoffs. Examples include embryonic DNA treatments and new kinds of metal alloys. White Elephants Are project that at one time showed promise but are no longer viable. Examples include products for a saturated market or a potent energy source with toxic side effects 3

10 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT **BMFU Name:... No. Matrix:... 1A. Which of the following is not considered to be a characteristic of a project? A) only for internal use B) an established objective C) complex tasks D) a clear beginning and end E) never been done before Answer: A Level: Medium 1B. The intersection of the WBS and the OBS is called the A) cost account B) responsibility matrix C) work package D) priority matrix E) project overlap Answer: A Level: Medium 2. The Qocar Qacir company has setup a weighted scoring matrix for evaluation of potential projects. Below are three projects under consideration. a. Using the scoring below, which project would you rate Highest? Lowest? b. If the weight for Competition is changed from 1.0 to 4.0, will the project selection change? What are the three highest weighted projects scores with this new weight? CRITERIA WEIGHT Strong Sponsor Supports Business Strategy Urgency 10% of Sales from New Products Competition Fill Market Gap Competition is PROJECT PROJECT PROJECT PROJECT PROJECT A1. PROJECT 2 2A.2._ PROJECT 4 2B.1 YES / NO 2B2. PROJECT 2 ; 1 ; 4 1

11 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT **BMFU 3. Assume that you are considering whether or not to invest in a project that will cost RM 100,000 in initial investment. Your company requires a rate of return of 10%, and you expect inflation to remain relatively constant at 4%. You anticipate a useful life of four years for the project and have projected future cash flows as follows: Year Inflows Outflows Net Flow Discount Factor NPV 0 RM 100,000 (100,000) 1.00 (100,000) 1 RM 20,000 20, ,544 2 RM 50,000 50, ,475 3 RM 50,000 50, ,745 4 RM 25,000 25, ,803 TOTAL 4,567 NPV = I o + F t / (1+ r + p) t Discount Factor = (1 / (1+ k + p) t ) = (1/( ) 3 ) = A major responsibility of the priority team is to balance projects by type, risk, and resource demand. This requires a total organization perspective. Haery and Sihombing studied R&D organizations and develop a matrix that could be used for assessing a project portfolio (see Figure 1). The vertical axis the degree of difficulty. The horizontal axis reflects potential commercial value. Discuss the four quadrants in briefly and give examples of each with different project dimension. TECHNICAL FEASIBILITY (How easy is it?) BREAD & BUTTER WHITE ELEPHANT PEARL OYSTER LOW Bread & Butter Net Present Value Given Success COMMERCIAL POTENTIAL Figure 1. Matrix of a Project Portfolio 2

12 QUIZ 1 BMFP 4542 PROJECT MANAGEMENT **BMFU Projects typically involve evolutionary improvements to current products and services Examples include software upgrades and manufacturing cost reduction efforts Pearls Represent revolutionary commercial advances using proven technical advances. Examples include next generation integrated circuit chip and sub surface imaging to locate oil and gas Oysters Involve technological breakthroughs with high commercial payoffs. Examples include embryonic DNA treatments and new kinds of metal alloys. White Elephants Are project that at one time showed promise but are no longer viable. Examples include products for a saturated market or a potent energy source with toxic side effects 3