Professional Documents
Culture Documents
Approval
Important factors
Selection Methods
Value Analysis, Optimization
Planning process for project selection
• Cost cutting/avoidance
• Revenue maintenance/enhancement
• Entering new market
• Gaining market share
Measurement of project effect
Estimation pitfalls (difficulties)
• INTANGIBLES
– Difficult to measure cost and benefits
• HIDDEN OUTCOMES
– time, budget subject to great error
• CHANGE of Information technology
– technology changes rapidly
• outdating many good project idea
• Technology is highly dynamic
Measurement of project effect
Estimation pitfalls (difficulties) continued…
• IRR, find what discount rate result in an NPV of zero for the project. There
is no direct formula for calculating IRR return. It is found using an iterative
process using NPV. The closest thing to a formula is the following:
If NPV=0 then IRR=discount rate used to calculate the NPV. So we
calculate NPV with different discount interest rates, zeroing in on NPV=0
to find the IRR.
Quotes
• What you don't know hurts you.
• The sooner you begin coding the later you finish.
• If everything is going exactly to plan, something somewhere is
going massively wrong.
• The first 90% of a project takes 90% of the time the last 10%
takes the other 90%
• A minute saved at the start is just as effective as one saved at
the end.
• Projects happen in two ways: a) Planned and then executed or
b) Executed, stopped, planned and then executed.
Selection Methods
criteria1 25% 90 90 50
criteria2 30% 70 90 50
Criteria3 40% 50 80 60
Criteria4 5% 80 90 50
Weighted 100% 67.5 86 54
project score
Questions to Help You
Plan Your Project
• When you begin a project, you always feel the pressure to jump in and start
working to meet the aggressive time schedules. You want to be sure it’s planned
out before you start, but you’re not quite sure where to begin, and you’re always
under pressure to start producing results. Answer the following questions in this
chapter to be sure you’ve completely identified all the work your project will
require.
• What’s the Purpose of Your Project? As soon as you’re
assigned to your project, get a clear and complete picture of its significance.
Determine the following:
- What situation(s) led to your project?
- Who had the original idea?
- Who else hopes to benefit from it?
- What would happen if your project weren’t done?
An accurate appreciation of your project’s purpose can lead to better plans, a
greater sense of team-member commitment, and improved performance.
Questions to Help You
Plan Your Project
• Whom Do You Need to Involve? Knowing early whom you need to
involve allows you to plan for their participation at the appropriate times.
Involving these people in a timely manner ensures their input will be available
when it’s needed and lets them know that you value and respect their
contributions. As you determine who may play a role in your project’s success,
categorize them as follows:
_ Drivers: People looking for your project’s results.
_ Supporters: People who can help your project succeed.
_ Observers: People interested in your project.
After you have this comprehensive list, decide whom to involve and when and how
you want to involve them.
• What Results Will You Produce? Specify all the outcomes you
expect your project to produce. Be sure that you describe clearly
each product, service, or impact; make the outcomes measurable
and include performance targets. Confirm that your project’s
drivers believe these outcomes meet their needs and expectations.
Questions to Help You
Plan Your Project
• What Constraints Must You Satisfy? Identify all information,
processes, and guidelines that may restrict your project activities and your
performance. Distinguish between the following:
- Limitations: Restrictions that people outside your project team set.
- Needs: Restrictions that you and your project team members establish.
When you know your constraints, then you can plan to minimize their effect on
your project.
• When Does Each Activity Start and End? Develop a detailed schedule
with clearly defined activities and frequent intermediate milestones. Having this information
allows you to give team members precise guidance on when to perform their assignments. This
information also supports your ongoing monitoring and control of work in progress. Take the
following into account when you create your schedule:
_ Duration: The actual calendar time to perform each individual activity.
_ Interdependencies: What you must finish before you can begin your activity.
_ Resource availability: When you need particular resources and when they’re available.
Questions to Help You
Plan Your Project
• Who Will Perform the Project Work? Knowing who will
perform each task and how much effort they’ll have to devote allows you to
plan for their availability and more accurately estimate the overall project
budget. Specify the following information for all people who need to work
on your project:
_ Identify each person by name, by position description or title, or by the
skills and knowledge required to do the assignment.
_ When more than one person must work on the same activity, describe the
specific roles and how these people can coordinate their efforts.
_ Specify the level of effort each person has to invest.
_ If a person will work less than full time on an activity, specify exactly
when she will work. Consult with the people who’ll perform the project
tasks to develop this information.
Questions to Help You
Plan Your Project