LIBS 837 - PROJECT MANAGEMENT

1. A. LIST AND DISCUSS FOUR (4) METHODS FOR SELECTING PROJECTS.

Cost-benefit analysis (CBA

Cost-benefit analysis (CBA) is a widely used method for evaluating projects. It is a

relatively objective method, as it is based on the costs and benefits of the project.
However, it can be difficult to quantify all of the costs and benefits of a project, and
the results of a CBA can be sensitive to the assumptions that are made.

Scoring model

Scoring model is a more subjective method for evaluating projects. It allows the
organization to consider a wider range of factors, such as the financial, environmental,
and social impacts of the project. However, it can be difficult to determine the
weights that should be assigned to each factor, and the results of a scoring model can
be subjective.

Payback period

Payback period is a simple and easy-to-understand method for evaluating projects. It is

based on the time it takes for the project to recoup its initial investment. However, it
does not take into account the time value of money, and it may not be appropriate for
projects with long payback periods.

Internal rate of return (IRR)

Internal rate of return (IRR) is a more sophisticated method for evaluating projects.
It takes into account the time value of money, and it can be used to compare projects
with different payback periods. However, it can be difficult to calculate the IRR, and
it may not be appropriate for projects with non-financial benefits.

1B. DEMONSTRATE HOW TO CALCULATE NET PRESENT VALUE.

Net present value (NPV) is a financial calculation used to determine the present value of a
future stream of cash flows. It is calculated by discounting the future cash flows to the
present day using a discount rate. The discount rate is a measure of the time value of
money, which means that money today is worth more than money in the future.

The formula for NPV is:

NPV = ∑(Cash flowt / (1 + r)^t)

where:

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  t is the time period

 Cash flowt is the cash flow in period t

 r is the discount rate

For example, let's say you are considering investing in a project that will generate $1000
in cash flow in one year and $2000 in cash flow in two years. The discount rate is 5%. The
NPV of this investment would be:

NPV = ($1000 / (1 + 0.05)^1) + ($2000 / (1 + 0.05)^2) = $1818.18

2. DESCRIBE THE PROJECT PORTFOLIO SELECTION PROCESS AND THE FIVE

LEVELS OF PROJECT PORTFOLIO MANAGEMENT.

Project portfolio selection is a critical process that organizations use to choose and
prioritize projects that align with their strategic goals and resources. The process
involves evaluating potential projects, assessing their feasibility, and making decisions
about which projects to undertake. The following are the selections processes

1. Reactive: This is the lowest level of PPM. At this level, projects are managed
individually, with little or no coordination between them. Decisions are made on an ad
hoc basis, and there is no overall strategy for managing the portfolio.

2. Emerging discipline: At this level, there is a beginning of a PPM framework. Projects

are still managed individually, but there is some coordination between them. Decisions
are made based on the best interests of individual projects, but there is some
consideration of the overall portfolio.

3. Initial integration: At this level, there is a more formal PPM framework in place.
Projects are managed as a portfolio, and decisions are made based on the overall
portfolio goals. However, there is still room for improvement in the way that projects
are aligned with the organization's strategic goals.

4. Effective integration: At this level, PPM is fully integrated into the organization's
strategic planning process. Projects are selected and managed based on their alignment
with the organization's strategic goals. There is a strong focus on continuous
improvement, and the PPM process is constantly being refined.

5. Optimized: This is the highest level of PPM. At this level, PPM is used to optimize the
organization's investments in projects. Projects are selected and managed based on
their expected value to the organization. There is a strong focus on innovation and risk
management.

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3. DISCUSS PROJECT CONSTRAINTS WITH RELEVANT EXAMPLES

Project constraints are limitations or restrictions that can impact the planning, execution,
and successful completion of a project. The following are the three major types of project
constraints.

Scope

The scope of a project is the work that needs to be done to complete the project. It is
defined by the project's goals, deliverables, and features. The scope of a project can be
limited by the time or budget constraints. For example, if the project is not completed on
time, the scope may need to be reduced. Scope creep is the tendency for the scope of a
project to increase over time. This can happen for a variety of reasons, such as changes in
the project's goals, new requirements from stakeholders, or unforeseen challenges. Scope
creep can lead to delays, budget overruns, and project failure.

Schedule

Schedule is one of the project constraints that a project manager needs to consider when
planning and managing a project. The schedule is the amount of time available to complete
the project. It is often the most important constraint, as it can affect the other
constraints. For example, if the project is not completed on time, it may not be completed
within budget or to the required quality.

Cost

Cost is one of the project constraints that a project manager needs to consider when
planning and managing a project. The cost is the amount of money available to spend on the
project. It is often the most important constraint, as it can affect the other constraints.
For example, if the project is not completed within budget, it may not be completed on
time or to the required quality.

4. ENUMERATE AND EXPLAIN COMMON TOOLS AND TECHNIQUES OF PROJECT

MANAGEMENT

Data gathering:

benchmarking, brainstorming, check sheets, checklists, focus groups, interviews, market

research, questionnaires and surveys, statistical sampling.

Data analysis:

Alternatives analysis, assessment of other risk parameters, assumption and constraint

analysis, cost of quality, cost-benefit analysis, decision tree analysis, document analysis,
earned value analysis, influence diagrams, iteration burndown chart make-or-buy analysis,

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performance reviews, process analysis, proposal evaluation, regression analysis reserve
analysis, risk data quality assessment, risk probability and impact assessment, root cause
analysis, sensitivity analysis, simulation stakeholder analysis SWOT analysis, technical
performance analysis, trend analysis, variance analysis, and what-if scenario analysis

Data representation:

affinity diagrams, cause-andeffect diagrams, control charts, flow charts, hierarchical

charts, histograms, logical data models, matrix diagrams, matrix-based charts, mind
mapping, probability and impact matrix, scatter diagrams, stakeholder engagement
assessment matrix, stakeholder mapping/representation, and textoriented formats.

Decision making:

Multi-criteria decision analysis and voting

Communication:

feedback and presentations Interpersonal and team skills: active listening, communication
styles assessment, conflict

5. HIGHLIGHT AND EXPLAIN SUGGESTED SKILLS FOR PROJECT, PROGRAM, AND

PORTFOLIO MANAGERS

All ten project management knowledge areas

1. The application area which consist of (domain, industry, market, etc.)

2. The project environment which consist of (politics, culture, change management, etc.)

3. General business which consist of (financial management, strategic planning, etc.)

4. Human relations which consist of (leadership, motivation, negotiations, etc.)

6. EXPLAIN THE CATEGORIZATION OF PROJECT MANAGEMENT SOFTWARE

WITH EXAMPLES

Project management software is a type of software tool designed to help individuals and
teams plan, execute, monitor, and complete projects efficiently. These software solutions
can be categorized into several types based on their functionality and intended use. Here
are some common categorizations of project management software with examples:

Low-end tools:

These tools provide basic project management features and generally cost less than $200
per user or a low monthly fee for online software. They are often recommended for small
projects and single users. Most of these tools allow users to create Gantt charts, which

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cannot be done easily using current productivity software. Some of these tools are
available online while others are stand-alone desktop applications. There are also several
smart phone applications, and many online tools include smart phone integration.

Midrange tools:

A step up from low-end tools, midrange tools are designed to handle larger projects,
multiple users, and multiple projects. All of these tools can produce Gantt charts and
network diagrams, and can assist in critical path analysis, resource allocation project
tracking, status reporting, and other tasks. Prices range from about $200 to $600 per
user or require a monthly fee per user. Microsoft Project (Professional, to be specific) is
still the most widely used project management software today in this category and in
general.

High-end tools:

Another category of project management software is high-end tools, sometimes referred

to as PPM or enterprise project management software, as described earlier. These tools
provide robust capabilities to handle very large projects, dispersed workgroups, and
enterprise and portfolio management functions that summarize and combine individual
project information to provide an enterprise view of all projects.