An Introduction to Project

Management

Unit 2
Project Selection – Part II

1
Course Schedule│

• Week 1: Feb 7th Public holiday

• Week 2: Feb 14th Introduction (CYJ&LPL)
• Week 3: Feb 21th Project Selection (LPL)
• Week 4: Feb 28th Project Selection - Part 2 (LPL)
• Week 5: Mar 6th Project Initiation (LPL)
• Week 6: March 13th Project Planning (CYJ)
• Week 7: March 20th Project Planning (CYJ)
• Week 8: March 27th Project Planning (LPL)
• Week 9: April 3rd Project Execution (CYJ)
• Week 10: April 10th Project Monitoring & Control (CYJ)
• Week 11: April 17th Project closing (CYJ)
• Week 12: April 24th Group Project Presentations
2
Overview of Lecture 2 │

1. What is project selection?

2. Project Selection Methods
1. Numerical Methods
2. Non-Numerical Methods
3. Multifactor scoring methods
3. Project Risk Assessment
4. The Project Team

3
Selection Methods │
Risk Assessment

Q) Can the uncertainty surrounding

projects ever be eliminated?

A) No.

But

!! It can be managed !!

4
Selection Methods │
Risk Assessment

• In order for a decision on a given project to be

made the associated risks must be assessed

• Identification of these risks is also essential for

later stages of the project e.g. planning and
execution processes

5
Selection Methods │
Risk Assessment

Business Risk
• Health & Safety
• Environmental issues
• Competitors
• Technological change
• Material storage
• Time required to complete a project
• Availability of key resources
• Cost of resources
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Selection Methods │
Risk Assessment

Insurable Risk
• Personnel
• Legal liability
• Property damage

7
Selection Methods │
Risk Assessment

Risk Analysis Method

• Estimate risk probabilities associated with key
parameters (Project Risk Factor)
• Develop analytical or simulation model
• Analyze distribution of outcomes generated by
model

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Selection Methods │
Risk Assessment

Project Risk Factors

Probability of Occurrence

0 0.5 1

Consequence of Risk

0 0.5 1
Project Risk Factor = ∑ {( Probability of occurrence)} x (Consequence of risk)}9
Selection Methods│Short Case Study

• Suppose your college or organization is considering a new

project that would involve developing an information system
for all employees and students/customers to access and
maintain their own human resource-related information,
such as address, marital status, tax information, and so on.
The main benefits of the system would be a reduction in
human resources personnel and more accurate information.
For example, if an employee, student, or customer had a
new telephone number or e-mail address, he or she would
be responsible for entering the new data in the new system.
The new system would also allow employees to change
their tax withholdings or pension plan contributions. Identify
five potential risks for this new project. Provide a detailed
description of each risk and propose strategies for
mitigating each risk.

• Source : Schwalbe, (2002), IT in Project Management, 2nd Ed, Chapter 10, 10

Exercise Q1.
Ex2.7: Risk Assessment

Exercise 2.6
PROJECT SELECTION :
Conduct a risk assessment on your
shortlisted projects

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Ex2.6: Risk Assessment
• Step 1: Select three projects
• Step 2: Determine the different project risks (use
brainstorming) for each of your three projects
• Step 3: Determine the criticality for each risk
• Step 3: Determine the probability of each risk
occurring for each of your projects
• Step 4: Determine the risk level for each project

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Ex2.6: Risk Assessment

Exercise 2.6
PROJECT SELECTION :
Risk Assessment

10 Marks
Bonus for the first to finish!!!
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Project Selection Process │

Method 1 Method 1
This should be a screening method

Method 2
Method 2

e.g. assessment against strategic goal Method 3

Method 3 Method 4
e.g. a numeric method
Method 5

Method 4
e.g. a non-numeric method
Method 6 14
|
Ex2.7: Selection Process

Exercise 2.7
PROJECT SELECTION :
Develop a Project Selection Process
for your company

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|
Ex2.7: Selection Process

• Step 1: Create a flow chart or other visual

representation of your companies project
selection process using the different
selection methods

• Step 2: Apply your project selection process

to ALL your brainstormed ideas

• Step 3: Shortlist your potential projects 16

 |
Ex2.7: Selection Process

Exercise 2.7
PROJECT SELECTION :
Selection Process

Marks – best matrix 10points

Bonus for the first to finish!!!
17
Overview of Lecture 2 │

1. What is project selection?

2. Project Selection Methods
1. Numerical Methods
2. Non-Numerical Methods
3. Multifactor scoring methods
3. Project Risk Assessment
4. The Project Team

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The Project Team|
Roles of the PM
• The roles of the PM are diverse and highly
integrated into the project.
• The following are some of the PM roles in
approximate order of importance:
– To ensure the project objectives are achieved to the
satisfaction of the stakeholders

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The Project Team| PM

• Credibility - The PM is believable:

– Technical knowledge
– Administrative knowledge

• Sensitivity - Politically astute and aware of

interpersonal conflicts

• Leadership, Style, Ethics - Ability to direct

project in ethical manner 20
The Project Team| PM

• They are “closers”.

• Have high administrative and technical credibility.
• Show sensitivity to interpersonal conflicts.
• Possess political know-how to get help from senior
management.
• Should be a leader.
• Adopt a participatory management style.
• Ability to direct project in ethical manner.
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The Project Team| PM

• Goal orientated
• Problem orientated
• See the big picture
• Good motivators and leaders
• Effective communicators
• Familiar with company practices and processes
• Understands the project management process
• Maintains a team player attitude
• Generalist rather than specialist
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The Project Team| PM

• Willing to challenge internal/external obstacles

• Has an understanding of the technology involved in the
project
• Is committed to the project’s success
• Well respected by peers
• Flexible
• Tactical not strategic
• Egoless but not mindless
• Always say yes but shows the consequences 23
The Project Team| PM

• The PM should be given a written letter of

appointment to avoid confusion
• A written appointment makes a “public”
statement about the project manager’s role
• The appointment should be communicated to all
groups that are involved
• Agreement should be obtained from the
candidates manager that he/she has the time
available to manage the project 24
The Project Team| PM

Communication Paths Between Project’s Parties-At-Interest 25

Summary │No10

Project selection is a process

typically consisting of a number of
sub processes

Each organization should have

their own process
26
Summary │No9
A good first step
Customer New
The first process…
Technical Requirements Technologies Available
opportunities Staff Filter proposals
Against Strategic
Ideas Objectives
Strategic
Infrastructure Product / Service plans
Requirements As good first step in any project
Proposal Customers & Suppliers selection process is to filter the
project proposals against your
originations strategic objectives

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Summary │No8
As a second step
Customer New
The first process…
Technical Requirements Technologies Available
opportunities Staff Filter proposals
Against Strategic
Ideas Objectives
Strategic
Infrastructure Product / Service plans Non-Numeric
methods
Requirements
Proposal Customers & Suppliers
As second step we typically use
non-numeric methods such as
murder boards to further filter the
proposals 28
Summary │No7
The third step is to use
Customer New Use numeric methods
The first process…
Technical Requirements Technologies Available
opportunities Staff Filter proposals
Against Strategic
Ideas Objectives
Strategic
Infrastructure Product / Service plans Non-Numeric
Requirements method
Proposal Customers & Suppliers
Numeric
methods
29
 Summary │No6
Filter proposals As a final step
Against Strategic
Objectives
The short listed projects
should have a risk
Non-Numeric assessment performed
method on it

Numeric
methods

Numeric
methods 30
Summary │No5

Why are project selection processes so important?

• Many Project Fail

• To make sure projects meet the
strategic objectives of the
organization
31
Summary │No4

There are three main classes of

selection methods

• None Numeric Selection Methods

• Numeric Selection Methods
• Multiple Weighted Scoring Methods
32
Summary │No3

Classification of risk

• Business Risk

• Insurable Risk

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Summary │No2

Attributes of
Good Project Managers

• Credibility -
• Sensitivity -
• Leadership, Style, Ethics -
34
Summary │No1

The Next Step

• Project Initiation

• The first Project Management

Group Processes

35
Introduction to project management
References │
• http://www.maxwideman.com/papers/questions/answers.htm#1
• http://maxwideman.com/pmglossary/index.htm
• http://en.wikipedia.org/wiki/List_of_project_management_topics
• A Guide To The Project Management Body Of Knowledge
(PMBOK Guides), Project Management Institute, 3rd Edition,
2004.
• Project Management – The Third Edition by Harvey Maylor.
2003

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