Beruflich Dokumente
Kultur Dokumente
Overview
Project Selection and Criteria Project Selection Models Uncertainty and Risk Information for Project Selection Project Proposals
Many projects fall outside company mission. Many Projects dont fit with organizational goal/objective Project budgets not tied to cost-benefit analysis (funding levels that are excessive relative to their expected benefits).
(2)Multiple
80 percent of all projects are not actually projects at all, since they do not include the three project requirements for objectives, budget, and due date.) Problems in organizations trying to manage multiple projects are:
1.
2.
3.
conflicts (common resource needs) Technological dependencies The inefficient use of corporate resources results in peaks and valleys of resource utilization. Bottlenecks in resource availability (Lack of resource ) or lack of required technological inputs
(2)Multiple
A major development among those choosing to develop project management expertise in house, is the initiation of a Project Management Office (PMO), This office strives to develop multi-project management expertise throughout the organization, to evaluate the interrelationships between projects (e.g., such as resource and skill requirements), and to ensure that projects are clearly related to the organizations goals.
Challenges
Making sure projects are closely tied to goals and strategy How to handle the growing number of projects? How to make these projects successful?
2-6
2-7
Types of Companies
Companies whose core business is completing projects Companies whose core business is something else Companies looking at projects to do for others Companies looking at projects to do for themselves
2-8
Project Selection
Is the process of evaluating individual projects or groups of projects and then Choosing to implement some set of them so that Organizational objectives will be achieved.
Project Selection
Each project will have different costs, benefits, and risks, the selection of one project out of a set is a difficult task. Choosing a number of different projects, a portfolio, is even more complex. rarely will a project manager be involved in the process by which projects are selected for inclusion
Project Selection
There are several techniques (DSS)that can be used to help senior managers select projects. Project selection is only one of many decisions associated with project management. To deal with all of these problems, models are used because it abstracts the relevant issues about a problem from the mass of detail in which the problem is embedded
This process of carving away the unwanted reality from the bones of a problem is called modeling the problem. Models represent the problems structure Aid in evaluating risks and options
The model should reflect the reality of the firms decision situation. The model should also take into account the realities of the firms limitations on facilities, capital, personnel, and so forth, and include factors that reflect project technical and market risks: performance, cost, time, customer rejection, and implementation.
1.
Capability- The model should be sophisticated enough to deal with the relevant factors: multiple time periods, situations both internal and external to the project (e.g., strikes, interest rate changes), and so on.
4.
5.
6.
do not make decisions - People do!, The manager may delegate the task of making the decision to a model, but the responsibility cannot be abdicated. All models are only partial representations of reality, Therefore, no model can yield an optimal decision except within its own, possibly inadequate, framework.
Nonnumeric Models
1.
2.
3.
4.
Product Line Extension - projects are judged on how they fit with
current product line, fill a gap, strengthen a weak link, or extend the line in a new desirable way.
5.
2.
3.
Net Present Value (NPV) Method determines the net present value of all cash flows, Early in the life of a project, net cash flow is likely to be negative, the major outflow being the initial investment in the project. If the project is successful, however, cash flows will become positive.
4.
risk has been interpreted as being unsure about project task durations and/or costs, uncertainty plagues all aspects of the work on projects and is present in all stages of project life cycles. In this section, we will consider uncertainty as it affects the selection process.
Risk Analysis
Principal contribution of risk analysis is to focus the attention on understanding the nature and extent of the uncertainty associated with some variables used in a decision making process Usually understood to use financial measures in determining the desirability of an investment project
Support Multiple Goals Direct Organizational Improvement Enhance/Enable Key Areas Limit Active Projects to Manageable Level Identify Risk Balance Short, Medium, Long-term Returns
2.
2-22
For each project, assemble the data appropriate to that categorys criteria. Project Attributes Tied to Selection Criteria cost data, the timing (both date and duration), expected benefits and resource needs, etc.. Document assumptions Screen out weaker projects The fewer projects that need to be compared and analyzed, the easier the work of the council
2-23
2-24
Organizations goals Have competence Market for offering How risky the project is Potential partner Right resources Good fit
2-25
Apply the scores and criterion weights Consider in terms of benefits first and resource costs second Summarize the returns from the projects
2-26
Step 7: Select the Projects to be Funded and Held in Reserve Determine the mix of projects across the categories Leave some resources free for new opportunities Allocate the categorized projects in rank order
2-27
I.e., to make the results of the PPP widely known. Top management must now make their commitment to this project portfolio process totally clear by supporting the process and the results.
2-28
3.
4.
5.
Which projects should be bid on? How should the proposal-preparation process be organized and staffed? How much should be spent on preparing proposals for bids? How should the bid prices be set? What is the bidding strategy? Is it ethical?
Executive Summary
Cover Letter: All proposals should be accompanied
by a cover letter.
3. 4. 5.
Nature of the technical problem Plan for Implementation of Project Plan for Logistic Support & Administration of the project Description of group proposing to do the work
Any relevant past experience that can be applied
6.
7.