Project Management FAQ

I want some Frequently Asked Question of Project Management which I think have all answer which can solve my confusion so please provide me the same.

[Pathak]

Here I am providing you a pdf file of Project Management FAQ which contain all important question related to Project Management courses with its answer and here is some of them:

What is ROI?
ROI stands for return on investment. Business executives want a quantitative measure that tells them
what they get back from a project (i.e., beneficial returns) for what they give (i.e., resources invested). The
value or worth of IT may be financial or non-financial; sometimes, it is both. There are generally three
reasons for ROI analysis: justification of an existing project, rationalization of a previous expenditure, and
persuasion to take a specific course of action.


How do I calculate ROI for a project?
Here's a list of the information that you would need for most financial ROI calculations:
Project cost: maintenance and operating costs (Annual for each year included in the
analysis period.)
Financial benefits (If any. Annual for each year included in the analysis period.)
Annual cash flow (Just subtract the annual costs from the annual financial benefits.)
The numbers needed for non-financial calculations depend upon the measure used.
Generally, it will include a combination of costs over time and either a rate or amount
indicating a non-monetary business improvement (e.g., timeliness, quality, or quantity).
More often than not, you will be expected to produce financial ROI numbers. Anyone can
complete these calculations very simply and quickly with a commercial ROI calculator or
a comparable tool developed in-house.


What is a cost-benefit analysis?
Every business-IT decision involves choices. You can choose "A," "B," or nothing at all. Ultimately, only
one of these choices is "best." A cost-benefit analysis (CBA) compares choices (technologies, projects,
etc.) and indicates which one is the best way to go. A good cost-/benefit analysis will help you to calculate
data that will illustrate the impact of your project. Sometimes, a CBA is a systematic assessment of the
costs and benefits of two or more alternative solutions to a problem to see which offers the best value for
the money. But a CBA is also used to flesh out the monetary expectations of one project. It would include
the average cost for internal corporate labor, the number of years the system is expected to be utilized,
capital costs, contract labor costs, etc.
Is a business case the same as a cost-benefit analysis?
They're similar, but they're not the same. Both are techniques for generating facts to help decisionmakers
make more informed decisions. A "business case" is an advocacy document whose purpose is to
persuade interested parties to follow a certain course of action. It's more comprehensive than a costbenefit
analysis. For example, a business case will often include a discussion of strategic alignment, while
a CBA often does not. The cost-benefit analysis is a "neutral" assessment of a few viable alternatives.
The CBA develops key facts regarding the costs, benefits, risks, and returns of alternative choices. It also
compares the choices to identify which is most advantageous. A business case generally includes the
results of a CBA.

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