Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
What is Project Selection? |
process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved |
|
|
Why is Project Selection Important? |
- helps realize organizational objectives - allows an organization prioritize which "project" fits with their strategy - helps managers extract the relevant issues of a problem - allows managers to decide which project will have the greatest positive impact |
|
|
What are Types of Project Selection Models? |
- non numeric - numeric > profitability & weighted factor |
|
|
What are Non-Numeric Models? |
sacred cow operating necessity competitive necessity special circumstances |
|
|
What is Sacred Cow? |
- project suggested by a senior official - sacred and maintained until proven it is not worthwhile to pursue - dictatorship approach vs. unanimity, majority, or plurality |
|
|
What is Operating Necessity? |
- project is immediate need and required to keep things running - not much evaluation is necessary because of the need (ex: Y2K Compliance) |
|
|
What is Competitive Necessity? |
project necessary to sustain a competitive position (ex: RIM responding to Apple touchscreens and tablets) |
|
|
What is Special Circumstances? |
projects 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 (ex: Beer Companies offering Light Beer) |
|
|
What are examples of "Profitability" Numeric Models? |
- playback period - average rate of return |
|
|
What is a Payback Period? |
# of years required to payback a project Total Fixed Investment / Annual Cash Inflow = Payback Period |
|
|
What is a Average Rate of Return? |
ratio of average annual profit to average investment in the project (Average Annual Profit / Total Fixed Investment) x 100 = Average Rate of Return |
|
|
What is a Weighted Factor Scoring Model? |
- weights reflect the importance of each criteria - weights are a percentage that should add up to 100% |
|
|
What is an Example Weighted Factor Scoring Model? |
|
|
|
What are advantages of Profitability Models? |
- output is familiar to decision makers - clear "Go/No Go" decision - simple to calculate as information is readily available |
|
|
What are disadvantages of Profitability Models? |
- ignore most non-monetary factors - some don't include the time value of money |
|
|
What are advantages of Weighted Factor Models? |
- factor multiple criteria into the decision - flexibility in that calculation can easily be altered with changed to environment - sensitivity analysis and trade-offs can be measured |
|
|
What are disadvantages of Weighted Factor Models? |
- relative measure - calculation can become skewed - still keeps factors linear and indepent |
|
|
What is Project Initiation? |
- market demand - strategic opportunity/business growth - customer/client request - technological advance - legal requirements - cost reduction -maintaining operations - improve speed & efficiency |
|
|
What is a Business Case? |
- captures business need - explains why the project was selected - explains how the proposed project fits into the organization's strategy - lists entailed benefits that have been identified - outlines project costs & required resources |
|
|
Objectives of the Business Core is to justify? |
>what - benefits and costs >why - importance to be funded >where - needs to be implemented >when - can be implemented >who - is required to implement >how - can be implemented with success |
|
|
What are important elements of a Proposal? |
executive summary background & drivers objectives proposed scope project justification proposed approach proposed timeline & budget team bios case studies |
|
|
What is a value proposition? |
a promise of value to be delivered and abelief from the customer that value will be experienced |
