The choice of a project that should be undertaken by an organisation is a daunting task and is probably the biggest decision that the organisation has to take. There are many factors that need to be taken care of before an organisation can decide which proposal should be taken up as a project and which are to be scrapped.
The organisation needs to choose the most practical proposal, which has to be in line with the organisation’s future goals and future requirements. Since the organisation needs to decide which project would be viable and which project is worth approval hence the different project selection methods come into use.
It is very important to choose the proper method for project selection. This choice ultimately decides which project should be taken up by the organisation.
Hence the organisations need to be very careful in terms of project selection, as even a small mistake could prove disastrous to the project as a whole and may damage the organisation also in the long run.
Selection Methods
Different project selection methods are used by different organisations as per the management decision an suitability to their particular line of business. All these methods have different features and different characteristics. Therefore every selection method is good for different organisations.
Even though these project selection methods may be different but the basic principles and concepts remain the same.
In the next picture we can see two of such methods: Benefit measurement and Payback period method (constrained optimisation method)
The benefit measurement methods are used where various projects are to be compared against each other. This may include different styles of comparison, some of which are discussed in th...
... middle of paper ...
...n most of the cases. Hence we can say that it is sufficient to choose either the Net Present Value Method or the internal rate of Return Method.
It is also referred to as Economic rate of Return Method (ERR).
Advantages and Disadvantages of IRR
1. Perfect Use of Time Value of Money Theory
2. All Cash Flows are Equally Important
3. Uniform Ranking
4. Maximum profitability of Shareholder
5. Not Need to Calculate Cost of Capital
Disadvantages of Internal Rate of Return
1. To understand IRR is difficult
2. Not Helpful for comparing two mutually exclusive investments.
Implementation of the Chosen Method:
The above mentioned methods can be used in different combinations in every organisation. There may be other factors also which need to be taken into account apart from the methods discussed above hence the project choice should be done very carefully.
Determining a project delivery method to use is one of the most important decisions made by every owner embarking on
To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement strategy will be made after analyzed the all factor that affect the procurement selection.
First is to examine each of those projects to the corporate objectives, compare and contrasting project selection criteria and justify why a project meets the selection criteria.
Project Management Critical Success Factors defining project success poses another challenge in understanding project management and accordingly assessing its performance. It is generally accepted however, that the success of a project can be well-defined through the convergence of, the ability of the process to meet the technical goals of the project while not deviating from the three constraints of scope, time and cost; the usefulness of the project as perceived by project team, sponsors and beneficiaries; and the performance of the project (Kerzner, 1992, 2001, 2003). Hence, project success or failure can only be effectively measured at the completion of the
First, there should be a clear project that the committee is expected to implement. This makes it easier for the selection process to have a detailed description of all the components required in the implementation process. Subdividing the project into smaller chunks makes it easier for specific committees to address specific issues within the context of the component identified.
Project planning in teams is an integral constituent of team dynamics. When a team has been already formed it is time for it to start working on a project in order to reach the goals of the team or company in a whole. It is necessary to keep in mind two peculiarities about team projects. The first peculiarity is that all projects no matter what their goals are need to be carefully planned and structured before the implementation. And the second peculiarity is that the given projects will be performed not by an individual but a group of individuals, which may result in a certain conflict of interests or other problems, which may be encountered while working with a group of people.
We can estimate the completion time of the project using this method and can reduce the factor of uncertainty by considering both the shortest and longest time calculation for the critical path.
Project management planning, scheduling, controlling and implementation can be a difficult and challenging task. This is because a project involves many organizations and stakeholders whose interests and needs should be adequately addressed. Failure to address such issues among various stakeholders and interested parties can create conflicts. However, the method and strategy of resolving such conflicts will determine the sub sequent success of the project. Therefore, project managers need to learn appropriate and effective conflict resolution methods and techniques to employ during planning and implementation of a project (Borisoff & Victor, 1989).
This activity gives a review on what factors to consider that would be beneficial to a great deal of people when it comes to implementing projects. In this way, not only are doing something that makes the world a brighter place, but it also enhances the overall well-being of the people involved. If only more people would think this way, then maybe the combined efforts of all who want to make a difference will surely change the world to be
In the world of fierce competition between businesses, some of the utmost important decisions that organizational leaders are faced with are decisions related to the projects they agree to undertake. Every organization has to determine how to make their product or service stand out, this typically leads to project proposals. The majority of organizations have a process, some formal and some informal, to select and prioritize projects. Once a project proposal has been submitted to the organization, there are various factors that need to be considered before the project is to officially begin. The selection process is a process to assess each project idea and ultimately help leaders select projects that further meet the organizational goals. The process of project selection can be simple or more involved depending on what the organization uses as a method for selection. This selection will lead to how well the project is executed. Consequently, choosing a project selection method is of the greatest importance.
One of the biggest decisions organizations have to make is related to the projects they agree to undertake. Once a project proposal has been submitted to the organization, there are many factors that need to be considered before the project is approved to begin. The selection process is a process to assess each project idea and select the project with highest priority. It can be simple or more involved depending on what the organization uses a method for selection. Choosing a project using the right method is therefore of the greatest importance.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
PRINCE2 works with a large portion of the procedures which help for the usage of project management in a win full manner. There are fundamentally three sorts of procedures which are utilized for the advancement of the of project
The first and most crucial step is to create a solid plan. Plan should include the techniques, tools and data that are going to used in the project. The responsibilities of all the members should be distributed at this step. The utilization of resources and budgeting of the project should be done here. Management tools such as probability and Impact Matrix, FMEA are useful at this point.
For decision making purposes, the projects can be further divided into two groups which is independent project and mutually...