What is the main focus in agile PM?
Solution: Frequent and incremental delivery
The product is developed according to limited duration cycles and delivered in incremental portions to converge on an optimal customer solution
To gain the bility to
create and respond to change in order to profit in a turbulent global business environment
to quickly reprioritize use of resources when requirements, technology, and knowledge shift
What is the correct ordering of risk responses, from correcting the risk to preventing it?
Avoid, Migitate, Transfer, Accept
First preventive strategies that allow to minimize risk before it happens (Avoid & Migitate)
Than Strategies dealing with risks and reduce the impact of risks
Avoid
Most simplistic and often the most practical method
Migitate
Activities designed to reduce project risk.
Transfer
Transferring risk to other stakeholders (insurance policies, hiring of sub-contractors, contract clauses)
Accept
The least desirable response
There are still options available in order to minimize the impact from this risk
Which are the financial measure to be accounted for when initiating a Project?
Whole-life costs
Cost of implementation and any incremental transitional, operational and maintenance costs
Net benefits
Value of the benefits less the cost of implementation, transition and ongoing operation, calculated over a defined period
Return on Investment
Percentage of profits or savings resulting from investments
Internal Rate of Return
Calculation of the period of time required for the ROI to repay the sum of the original investment
Discounted Cash Flow
Means of expressing future benefits based on the current value of money, sometimes discounted cash flows include risk adjustments as the business may
not be confident that all the benefits will materialize
Payback Period
Length of time an investment reaches a break-even point.
Net Present Value
Value of discounted future cash inflows less the initial investment, the shorter the better
Economic Value Added
Residual wealth calculated by deducting the cost of capital from the operating profit, adjusted for taxes on a cash basis
Benefit-cost ratio
The relationship between the relative costs and benefits, expressed in monetary or qualitative terms
Sensitivity Analysis
Adjusting the input factors (e.g. costs, timescale, quality, scope, project risks) to model the point at which the output factors (e.g. operations and maintenance costs, business benefits and business risks) no longer justify the investment
Name the parts of an Project Charter
Stakeholders analysis
Graph: Power over Intrest
Stakeholders needs
Product vision / Objectives
Short text about the objectives of the project
Long-term schedule and milestones
Duration & Ressources
Project organization
Graph with Project Organization (PM-Team, Worker)
Business Case and preliminary budget
Price Braskdown & CF
Risks
Name the kind of floats
Finish Float: Late Start - Early Start
Finish Float: Late Finish - Early Finish
Total Float: Maximum amount of time that will not delay the overall project
Late Finish - Early Finish
Free Float: Amout of time an activity can be delayed without delaying the start of its successors
Early start successor - Early start activity - Duration activity
Whats an critical Path
Path with a total float of zero
The critical path corresponds to the path which has the maximum duration
Equals the minimum duration to execute a process
Activities on the critical path are critical activities that don’t allow float Project duration is therefore given by the sum of the durations of the critical activities
Whats an sub-cirtical path
Path with an total float > 0
Whats an hyper-critical path
Path with total float < 0
Its necassary to increase the number of ressources and productivity or changing the equipment and technologie
Whats an hyper-cirtical activity
If the project duration is predetermined and we have network paths of activities with duration higher than the predetermined one
These activities are included between hypercritical events and identify one or more hypercritical paths
To satisfy the predetermined completion date it is necessary to reduce the duration of the hypercritical activities by increasing the amount of resources assigned to them (which leads to an increase of costs)
Whats an subcritical activity
If the project duration is predetermined and we have network paths of activities with duration lower than the predetermined one
These activities are included between subcritical events and identify one or more subcritical paths
We can increase the duration of the subcritical paths to make them critical (which leads to a reduction of costs)
Formula Paths criticality index
TF = total Float
Whats fast tracking
Overlap consecutive activities that would normally be carried out sequentially.
This means that certain parts of the project are executed simultaneously or partially simultaneously to save time
important to note that this can be associated with increased risk, as activities may not be completed before their dependent activities begin.
A. Crashing an activity reduces the project duration
B. Fast tracking an activity reduces the project duration
C. Fast tracking should be prioritized over crashing
D. None of the above
A & B => Depends on whether it belongs to the CP and whether there are no subcritical paths
C => It depends on how much the risk increases
Whats the WACC
Der WACC (Weighted Average Cost of Capital) ist eine Finanzmetrik, die die durchschnittlichen Kosten des Kapitals für ein Unternehmen darstellt. Es berücksichtigt die verschiedenen Kapitalquellen und ihre jeweiligen Gewichtungen im Gesamtkapital des Unternehmens. Der WACC wird in der Unternehmensbewertung und Kapitalkostenanalyse verwendet
Ce = Cost of equity levered
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