37 Free Online PMP Exam Prep Questions On Initiating Project

37 free online PMP exam prep questions on initiating project are accessibly developed to test out your understanding level of project selection and initiation. Its coverage features such terms and concepts as realism, capability, flexibility, comparability, discounted cash flow analysis, to name a few. That’s not all, to facilitate your best grip of such knowledge and free your stress during the exam practice, those free sample PMP questions useful are friendly formatted to shine out on the simply white background and for your focus riveting. After you’re done answering those multiple choice quizlets, you can check out your answers and score, define which knowledge you’re more proficient and the other way around by hitting the handy ‘submit’ button at the end of the test. Overall, it’s worthy of your time as a result of its user friendliness and tightly focused coverage adherent to PMI’s expectations.

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37 Free Online PMP Exam Prep Questions On Initiating Project

• Most popular of the financial models• Estimates the change in the firm's value if a project is undertaken.• Positive NPV indicates that the firm will makemoney and its value will rise.• Also employs the discounted cash flow analysis by discounting future streams of income to estimate the present value of money.

Project Charter
Ease of use
Business case
Net Present Value

Project portfolio management: the systematic process of selecting, supporting, and managing a firm's collection of projects• projects managed under a single umbrella, maybe either related or independent of one another• Key is that a firm's projects share a commonstrategic purpose & the same scarce resources• Entails: decision making, prioritization, review,realignment, & reprioritization of a firm'sprojects.

Project Charter
Project Initiation
Project Initiation Package
Project Portfolio Management

analyzes questions as to whether the technology needed exists, how difficult it is to build/acquire the technology, etc...

Culture Feasibility Study
Technical Feasibility Study
Schedule Feasibility Study
Economic Feasibility Study

Ability to apply the model to multiple projects

Flexibility
Capability
Contracts
Comparability

narrative description of products or services to be delivered by the project- contains: scope, location of work to be performed,period of performance, deliverables schedule including key milestones, applicable standards (ex.ISO), quality requirements, specialized requirements

Ease of use
Contracts
Statement of Work (SOW)
Financial Models

• Address technical & managerial problemsassociated with scoring models• Increasingly popular method for project selection• 4 steps involved• Step 1: Structure the hierarchy of the criteria• Decide on criteria (first level) then decide onsubcriteria (second level)• Step 2: Allocate weights to the criteria and split amongsubcriteria• Step 3: Assign numerical weights to evaluationdimensions (ex. poor=0, fair=.1, good=.3, very good=.6,excellent=1.0)• Step 4: Evaluate the projects: multiply the numericevaluation of the project by the weights assigned to thecriteria and then add up the results and compareprojects

Approaches to Project Selection: Method #1, Checklist Model
Approaches to Project Selection - Method #3, Analytical Hierarchy Process:
Approaches to Project Selection - Method #4, Profile Models:
Approaches to Project Selection - Method #2, Simplified Scoring Models:

• Feeds into the business case• Preliminary study undertaken to determine and document a projects viability• Allows organization to make an informed decision about weather or not to proceed w/ a project• Used to ascertain the likelihood of a projects success before "real work" begins• Provides alternative solutions to a problem andrecommendation on the best choice to resolve the issue• Ex. Determining best site to build a new firm

Economic Feasibility Study
Feasibility Study
Culture Feasibility Study
Flexibility

• Management's opportunity to review and accept/reject the project• Power point slides (to the point not too wordy)• Highlight major project points and any findings from the feasibility and needs assessment studies• Capture elements of the project charter• Include a copy of the stakeholder register

Project Charter
Project Portfolio Management
Project Initiation
Project Initiation Package

Realism, Capability, Flexibility, Ease of Use, Cost, Comparability

6 Important Issues when evaluating screening/selectionmodels:
Approaches to Project Selection - Method #4, Profile Models:
3 common financial models:
Approaches to Project Selection: Method #1, Checklist Model

the initiating process group consists of thoseprocesses performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase- Initial scope is defined (top level)- Initial financial resources are committed- Internal & external stakeholders are identified- 2 Outputs:- project charter- project stakeholder register

Project Charter
Project Initiation Package
Project Initiation
Flexibility

model should be easy to adjust. ex.exchange rate changes

Comparability
Realism
Capability
Flexibility

The model itself should be cost effective (bothtime money)

Realism
Capability
Cost
Contracts

document that formally authorizes the existence of a project- Establishes a partnership between the performing organization and requesting organization- Contains: top level scope statement (project purpose), measurable project objectives and related success criteria, high level requirements, high level risks, high level schedule, high level budget, project approval requirements,name of proj. mgr/team members, name of sponsor- Short document; often only 1 page

Project Initiation
Contracts
Project Charter
Business case

Money earned today is worth more than money we expect to earn in the future, due to inflation & inability to invest the money

Ease of use
Internal Rate of Return (IRR)
Time Value of Money principle
Statement of Work (SOW)

measures the impact of various actions on the local general culture

Schedule Feasibility Study
Culture Feasibility Study
Economic Feasibility Study
Feasibility Study

• Allows for plotting of risk/return options• Select the project that maximizes returns whilestaying within a certain range of minimalacceptable risk.

Approaches to Project Selection - Method #4, Profile Models:
Approaches to Project Selection: Method #1, Checklist Model
Approaches to Project Selection - Method #3, Analytical Hierarchy Process:
Approaches to Project Selection - Method #2, Simplified Scoring Models:

• Payback period: an estimate of the amount of timethat it will take the project to "pay back" its initialbudget and begin to generate a positive cash flow.• Discounted cash flow analysis is used to determinethe payback period.• goal: to estimate cash outlays and expected cashinflows resulting from investment in the project• a discount rate based on the firm's cost of capital isweighted and applied to the the calculation• Payback period = investment/annual cash savings

Ease of use
Discounted cash flow analysis
Gap Analysis
Business case

• Simplest method of project screening & selection• A list of criteria that pertain to choice projects• ex. Cost & Speed to Market• Screen each project against criteria• Select project with best fit• Drawbacks: subjective in nature, fail to resolvetrade-off issues

Approaches to Project Selection: Method #1, Checklist Model
Approaches to Project Selection - Method #4, Profile Models:
Approaches to Project Selection - Method #3, Analytical Hierarchy Process:
Approaches to Project Selection - Method #2, Simplified Scoring Models:

• Each criterion is ranked according to importance• Weights are assigned to each criteria• The choice project reflects a desire to maximize the impact of certain criteria on the decision• Solves trade-off issue• Procedure:1. Assign importance weights to each criterion2. Assign score values to each criterion (High=3,Medium=2, Low=1)3. Multiply importance weights by scores to =weighted scores4. Add the weighted score to find the overall projectscore5. Accept project with the highest acceptance score

Approaches to Project Selection: Method #1, Checklist Model
Approaches to Project Selection - Method #4, Profile Models:
Approaches to Project Selection - Method #3, Analytical Hierarchy Process:
Approaches to Project Selection - Method #2, Simplified Scoring Models:

model should reflect the organizations objectives, goals, & mission. Must be reasonable in terms of resource constraints & must take intoaccount performance, cost, and time

Realism
Cost
Capability
Contracts

• Discounted cash flow analysis• Net present value• Internal rate of return

Gap Analysis
Project Initiation
Financial Models
3 common financial models:

such as, policies, procedures, templates, historical information from a lessons learned knowledge base

Financial Models
Business case
Net Present Value
Organizational Process Assets

Using financial analysis to make project selection decisions

Financial Models
Gap Analysis
Capability
3 common financial models:

Contains all details related to identified stakeholders including, identificationinformation (name, org, etc), assessment information, stakeholder classification (internal/external)

Project Portfolio Management
Project Charter
Project Stakeholder Register
Project Initiation Package

Organizational guidelinesselection models: save time & money, maximizelikelihood of success

Approaches to Project Selection - Method #3, Analytical Hierarchy Process:
Out of a countless number of opportunities, how doesthe organization decide which projects to pursue?
Approaches to Project Selection: Method #1, Checklist Model
Approaches to Project Selection - Method #4, Profile Models:

• Alternative method for evaluating the expectedoutlays and income associated with a new project• Asks: what rate of return will the project earn?• Required "hurdle" rate must be met• IRR = discount rate that equates the presentvalues of a project's revenue and expense streams

Ease of use
Time Value of Money principle
Statement of Work (SOW)
Internal Rate of Return (IRR)

The model should be simple enough so that people from all areas of the organization can utilize it

Ease of use
Cost
Realism
Business case

• Feeds into statement of work (SOW), outcome of needs may be funded via other monies• Purely identifies gaps in knowledge, skills, or processes• An analysis of a process, group, or person that measures the knowledge, skills, interest, attitude, and/or abilities relevant to a particular issue, organization, goal, or objective

Ease of use
Needs Assessment
Realism
Gap Analysis

used to measure "gaps" btwn what currentlyexists and what should exist for project to take place- Gaps identified could be infrastructure, technology, processes, or knowledge- i.e. certain test equipment, actors with a specific acting ability, animation specialist etc...

Realism
Contracts
Capability
Gap Analysis

model should be flexible to consider alternatives, and robust enough to accommodate new criteria and constraints

Comparability
Realism
Capability
Flexibility

answers questions pertaining to time availability & resource availability

Technical Feasibility Study
Schedule Feasibility Study
Culture Feasibility Study
Economic Feasibility Study

determine what type of economical impact the concept will have on a given area

Culture Feasibility Study
Schedule Feasibility Study
Economic Feasibility Study
Technical Feasibility Study

available as an input if the project is beingcompleted for an external customer (for the class you could utilize the syllabus as the contract)

Comparability
Contracts
Cost
Realism

high level description of work that is to be accomplished

Top level scope statement
Project Portfolio Management
Needs Assessment
Net Present Value

provides information from a businessstandpoint to determine if the project is worth therequired investment (utilize feasibility study)

Ease of use
Contracts
Business case
Realism

such as organizational structure, marketplace conditions, gov't or industry standards

Inputs to the Project Charter
Enterprise Environmental Factors
Net Present Value
Top level scope statement

Top level scope statement, Statement of Work (SOW), Business Case, Contract, Enterprise Environmental Factors, Organisational Process Assets

Project Charter
Inputs to the Project Charter
Net Present Value
Organizational Process Assets

37 Free Online PMP Exam Prep Questions On Initiating Project