Documentos de Académico
Documentos de Profesional
Documentos de Cultura
30 Percent late
Over half 190 percent over budget
Over half 220 percent late
Challenges
Project selection
Evaluating
Choosing
Implementing
Same process as other business
decisions
Types of Companies
Stochastic Model
A model that includes the probabilities of events
occurring within the model. In other words, the
same inputs might yield different outputs at
different runs. Also known as a probabilistic model.
Deterministic Model
A model that does not include probabilities. Given
the same inputs, the outputs will always be the
same.
Criteria For Project Selection
Models
Realism
Capability
Flexibility
Easy to use
Inexpensive
Easy to implement
Realism
Nonnumeric models
Numeric models
Nonnumeric Models
Sacred Cow
A project, often suggested by top management,
that has taken on a life of its own. It continues, not
due to any justification, but just because.
Operating Necessity
A project that is required in order to protect lives
or property or to keep the company in operation.
Competitive Necessity
A project that is required in order to maintain the
companys position in the marketplace.
Types of Nonnumeric Models Continued
Project Cost
Payback Period
Annual Cash Flow
$100,000
Payback Period 4
$25,000
Payback Period Drawbacks
Ft
NPV (project) A0 t 1
n
1 k t
NPV Formula Terms
8
$25,000
NPV (project) $100,000
t 1 1 0.15 0.03
t
$1,939
Internal Rate of Return [IRR]
Figure 2-2
Weighted Factor Model
Figure B
Analysis Under UncertaintyThe
Management of Risk
1. Accounting data
2. Measurements
3. Uncertain information
Accounting Data
Senior management
The project managers of major projects
The head of the Project Management Office
Particularly relevant general managers
Those who can identify key opportunities and
risks facing the organization
Anyone who can derail the PPP later on
Step 2: Identify Project Categories and
Criteria
1. Derivate projects
2. Platform projects
3. Breakthrough projects
4. R&D projects
Step 3: Collect Project Data
Communicate results
Repeat regularly
Improve process
Project Proposals
Cover letter
Executive summary
The technical approach
The implementation plan
The plan for logistic support and
administration
Past experience