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Prepared byScott M. Shafer,
Updated by William E. Matthews and
Thomas G. Roberts, William Patterson University
Copyright 2007 John Wiley & Sons, Inc. 1-1
Mantel, Meredith, Shafer, and Sutton
John Wiley and Sons, Inc.
Many tasks do not fit neatly into business-as-usual.
Need to assign responsibility and authority for achievement of organizational goals.
Copyright 2007 John Wiley & Sons, Inc. 1-2
Unique Specific DeliverableSpecific Due Date
Copyright 2007 John Wiley & Sons, Inc. 1-3
MultidisciplinaryComplexConflictPart of Programs
Copyright 2007 John Wiley & Sons, Inc. 1-4
“A project is a unique temporary endeavor, with a set beginning and end ”
PMI defines project management as
“the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project “
Project Management Institute, 2007
Copyright 2007 John Wiley & Sons, Inc. 1-5
Conflict ResolutionCreativity and FlexibilityAbility to Adjust to ChangeGood PlanningNegotiation
win-win versus win-lose
Copyright 2007 John Wiley & Sons, Inc. 1-6
The Sacred Cow- Special pet project advocated by President or Supervising Manager of Firm.
The Operating/Competitive Necessity
Comparative BenefitsCopyright 2007 John Wiley & Sons, Inc. 1-7
Copyright 2007 John Wiley & Sons, Inc. 1-8
Financial Assessment Methods
payback perioddiscounted cash flowScoring Methodsunweighted 0-1 factor methodweighted factor scoring method
Copyright 2007 John Wiley & Sons, Inc. 1-9
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InflowsCash Net Annual
Investment Fixed Initial
Copyright 2007 John Wiley & Sons, Inc. 1-11
n
tt
t
k
F
10 )1(
I- (project) NPV
where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate
Copyright 2007 John Wiley & Sons, Inc. 1-12
n
jjiji wsS
1
where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion
Time required to complete a project Availability of key resources Cost of resources Timing of solutions to technological
problems Actions taken by competitors Uncertainty cannot be eliminated, but if
managed properly, it can be minimized.
Copyright 2007 John Wiley & Sons, Inc. 1-13
Estimate probabilities or distributions associated with key parameters
Develop analytic or simulation model Analyze distribution of outcomes
generated by model
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Assumption CellsDistribution GalleryForecast Cells
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Establish a Project Council Identify Project Categories and Criteria Collect Project Data Assess Resource Availability Reduce the Project and Criteria Set Prioritize the Projects within Categories Select the Projects to be Funded and Held
in Reserve Implement the Process
Copyright 2007 John Wiley & Sons, Inc. 1-16
Copyright John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.
Copyright 2007 John Wiley & Sons, Inc. 1-17
