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Project Evaluation and Selection

Project Evaluation and Selection. IOM580 Hiroshi Ochiumi. Selecting Projects. Is the project potentially profitable? Can the firm acquire the knowledge to carry out the project successfully?

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Project Evaluation and Selection

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  1. Project Evaluation and Selection IOM580 Hiroshi Ochiumi

  2. Selecting Projects • Is the project potentially profitable? • Can the firm acquire the knowledge to carry out the project successfully? • Does the project involve building competencies that are considered consistent with the firm’s strategic plan? • Does the firm currently have the capacity to carry out the project?

  3. Selection completes before PM is appointed. • PM should know • why the project is picked. • what is expected

  4. Non-numeric Selection Methods • The Sacred Cow • The Operating/Competitive Necessity • Comparative Benefits

  5. Numeric Selection Methods • Pay Back Period • Discounted Cash Flow • Real Options • Scoring Methods

  6. Projects/Strategy Alignment • Proliferation of projects • Complexity and diversity of projects increase • Duplicated effort • One failed project after another • Why is this alignment so hard?

  7. Project Portfolio Process • Identify Project Categories • Derivative • Platform • Breakthrough • R&D • Collect data, Assess Resource, Prioritize and Select

  8. Toyota • Rav 4 - Derivative • Corolla - Platform

  9. Honda • Civic - Platform • CR-V - Derivative • Element - Derivative

  10. DaimlerChrysler • SLK - Platform • Crossfire - Derivative

  11. Aggregate Project Plan

  12. The Work Breakdown Structure IOM580 Hiroshi Ochiumi

  13. Simple Approach for Creating WBS • Gather Project Team • Provide Team Members with Pad of Sticky-Notes • Team Members Write Down all Tasks They can Think of. • Sticky-Notes Placed and Arranged on Wall • How could we fail to identify all important tasks?

  14. A Partial WBS

  15. A Linear Responsibility Chart

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