Knowing the Project Management Methodology

Before the project management team can dive in and create the project charter, they also need to understand how their organization approaches project management in general. When I teach my project management seminars, I find that some companies

Time Period

Cash Flow

Present Value

1

I5,000.00

I4,I50.94

2

25,000.00

22,249.9I

3

I7,000.00

I4,273.53

4

25,000.00

I9,802.34

5

I8,000.00

I3,450.65

Totals

$I00,000.00

83,927.37

Investment

78,000.00

NPV

$5,927.37

Table 4-1 Net Present Value Calculation

Table 4-1 Net Present Value Calculation have a formal, highly structured, rigid project management approach. Other companies are, well, loosey-goosey. Their approach can vary from project manager to project manager, and they don't mind.

Whatever methodology an organization has adapted, the project management team must understand how this affects the level of detail they'll need to provide in their project charter. The great thing about this point, in light of your exam, is that every company in the world can take a different project management methodology, so it's tough to ask questions about what's proper or not.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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