PROTEC.

ELFCr
O.shoctSeleckon
Projoct troce DP 2Naluakng proposed Decks otor qroup
poposes oyerts
oprEects and hen cho0sing
to implembnt soma se of thenqroup
so thot
h strotegic objechves o ihe orgonisa.hon ulL be auieyed.
Project Model Criterta Realism
Capabilih4 flexibiitu
Eoue o e CosE
Loku omputerLakon

Noture o Projeet selechon Modela-

Models are toclshat Hunn input s into out puAs
dhe inputs neverLlly d&gtribe the situakiDn, She outut navec
describe the expeck ed reults
Manageis a1 he_decisdon_makens hat decde the ycuue
Roy inputs evaluAate he output

Model Tupes
Non-mumeric model¢ -_Moels Hhat donot fekurn_a numer valuL
ora poetk o beomared with other projetts
Jutkkahions forpre.cEs
Sacrd Cow Rmieck Suggealed by a enior louweral ophicial:fn_

aken on a like D s own, and is malntained unHI 4he boA conAide

it al iailuho and terminates i t

Oporahn Necceihy-Pmiett reqd in o1der n prote ct

Oparahn.g lives

brDperu or o KOLp Lompany in operaion.

DL is e1amined to Keep it low n onsist.eut with pra ete, ut tuo2

boest w be funded
Compe KHve Neceessity hoject reqvired in ondeA to maintoin tue
mnys osikon in h e moAKOt plat
Modutt Lne exbension Pojett required to deveap g dismbuBe n

ro ducts whch irms etisknq produtE line

ts the
on e ntalsysdem tha
esion maker's beli e en e Kely impatt
e produch saddod to H in
 that are rantod on Hu
Comparakve Benet Model: hojed
baus o thir aertuived bennt o t Dmpany
10thest than
Sustainabilits - fo cuLLs 0hong-run poftabiliy
chert-run bayof

that 1etwn a numAi

valuL for a
NumeriC Models- model!
proett beanly combareduth othur bojktts
tan

LOsk Kewonus
ProtProitabi luts- Models hat looK at
a
Payback Pertod-Lenqth D Kmeuni the onignal invenint
beon reLo.upedby tho þoieLk
PaybacK Perlod niact ost
Annual tagh tloup
Dicacdvantaqe-Doein Lonáder kme ualue e man
Difkuto wwhAn_o^h Aouw_changL Ovey KMo
d meaningtul y 1onqor poriod Kima
Discountzd caih lnw Net present Valun LNPV) method
Dotermin2s NPV D all nsh Aows by distDunhng thLm bs the reauiri
ratoeretunn FtatashHnwn periodt
NPV Aot 4K) Kmad rate e retuun
A-itinl cauh inYEAtmant
PpradidedTatk a intlaKo
Iniernal Rate of Raturn- MsLDunt 2ale'K' Hat cauwe h NPV
ho be eaval
1RR- bette
Propitabilits Index -BeneiE ost ratio
NPy O
IniKal uln 9nvetment

Rhos han are goool

dvantagJ
easu n ,Baied on accounhng.data -reLas
we k undersdand
can be adiwted to aount or priact ik
 DATE

PAGE

isadvantages

lanore
all non- monctaUy actoS
Ianore hme-valuue omone uy

D&pendet on determ nahon cah flows

shongy biasedDaydchort lerm soluion
Sensive
to data TONS

Real 0phons Posihons_ he organisakon to capitalize en tuture

o b e hunkes

tk sedute both Aechnological& Lommartial nsK

Scornb
weighted factoy Storing Modol-ihen oumamc welgnk rejthin th
elahvoimportante cach indiviualcoiterlonaie added
St where Si:total sLYe rneet_
j1
Sij-score prmect on iterion
Laut a _citedon
Unweiahted 0-1 fachoh Model facors sted ha prepintad arm_
Ratrs score the pnieton Rach tactoYS k Hh2pniect qtti. a
total cuph.
siode ues mulhpl outena.
Modal- Replates Y'S with katkor LOTR
Chweiqht.ed FactoY SLorln
GA Lcoli - S addinq ha o lumn Suoe
a l e cled
och athoy weigntd the same
DD Simpla suthre, QA n e and under stand
Mulhple uteia edluahoy

Olahted factoy madal allows Some actor S ure nore iup: han 0he

Mlowsaly enihvihy analis

Aie creeron o manggial
 DATE

PAGE

Disadvantage unear in form

Rulav 2 measu
Larg no o uter ia
Unwciqhted modelu aMumeequal mbo tanLe

window o Dppotunlhy Analuis Protend where cOse, Hme and

perormante spekitaous a 1e dsnodbefove any D woxK
Eample tor a potenkal prnducHon proce innovahion, Current produhon
pDLRM i sanalysed in_ askail d a t a is collecked
Leve improvem.ent naLdad Jor the potess i determinndd

Eshmatea he beneils Reom pocend imbrnvemenE profeut sis

abboved

DRscoveny Drdven_ plannin funds enough o4 the pet to determinA

inikal aMumbhon Lontrnin Cosls beuit etc: au aLlale
dea i not to imploment h1t Bo leaxn aboutt the þreent

Choosin6 a prnert selechon Model-

stpna
Sapnay avoured weiqhded stornq modll Becae-
allow mulHHte obiethve9 bë conaidered
£auly4- adabted
Not -bialed touoad ghort-ULN

RisK Constderado tn Pmieut selechon

Unterdani tes about iak duaakon otc and benei
ogshmahng about tuL probauR EA eLLtuorU subjecHve
pr b abilk
Uneortaining e me duraHon u caihlows rietk
Untertainits about drect outiomei e he je
UnterAointy about ideekecH Hh poi2Lt
 DATE

PAGE

Proiect Port follo Management PPM) AnKL the organizahbnS

broeds to the qoals Strateqy o f ha ofganisahion
o Occurs hroughout Ahe ifetycle o the proects.
eans monitorunq ktenellin OKganizakon's stratgic nects

Symptoms D aMsalianed Portolio

-_
More pmieets than manage.ment expecked.
Costs exLerd theirbenat
No dk analyaisoprets
COmatHn preuts
No idnhted lent o r any poecks

RarposeDf PMM:-
Eliminate proieuts with xLexive niK or (ost
o balant theresourLeA uith ne mee dA

iorkze prmects
JdanHfy non-bn&Lts
dimit mo o pts

Prdheet Portfplio Process Steps

Step-11Establish a Projet Counil- Establish arktulak a Hralegic Arec
for thote prdiects spannin internal &exkenal boundacie e o1a
Senior anaq play a mapr yrole în his countil
Regonsible jov alncain unds hat upport nrgaais.atons goauK
LanOallntakians reMDute (kills to ho pojeis
denifs Rojett tate gortes Cniterta- Projeet co.tganekindaMngita io
he hoiekk und SPTRad apkrapnialey ho con hibiu o organiza Kon's qoals._
A Separa cakgome of pmts
0
Berua Hve nigtsrogetds utn bHeckue bdahve.aleAdpt:inboth adut
pnce om cxishin farins
Platform oietks
Brathuaho2tB
A R2D pejeikk.
 DAE

PAGE

gChLLout
Assemble the data anol
Step-3 COlle ctProject Data-
weaker proietts ld-
netds o be combared kanalul
tha availa.biliy both
wCrproiecls
Asseu
Avallabillty
step-y Assess Reaburce
inlernal_external Tesourceg_
LOMiervahVelu-
Labour avaîlabiihu etmated
mportant
Timin isparKculaals dewn the
andcriterla get-Narnw
Step-5 Reducethe Arone
How nisky iti
tome hno j e tts baied on -
Haus_pnktable o 1t there a bDttnäal
RiautTeADur ( ,
et
barHn&rDomlnatd by another exishng /mpoked projent
hem uitn_nu,MDre
hiswill kulp_in cantlin or peeplatin
promisin pDjeks
Step-6 Priortize Pmsets uithin tategories Applieihe sLOres and
lentedan uugiqhts to rankproietts wthin ach _categpy.
Somehard to-meaiure_uiteria Qut or subiecbive alauahon
Summanse oeturng from Me poeLE
Step- select pmiects to be funded & HeLd fn resenve
Organisakon's stratea Anves apprepriate. mid. opraeuts
Some o_organisahon's reinurce catai hreoar nw opozBuaity
Few pnjeuk but uident Aunding tn_allou pnieitiomplefia,
9tep- Implomet he Pro.ce Lmprove Me pro ces b tommunicatinq-
te riuAs eaularly-

Projet Btds and 6RFP Rrmgotal e_pojerE bu.tt ng toqtlaen all-

me dotailed analyais o Hae prn2LA
Project Proposal tondends-
CDV letter Plan or legiskcsuppoht k admlnatmka-
exeukve summau Paut ex penienta
echnital aproachn
9mplemeut aKbn plan