Tools and Techniques for Selecting a Project

Here are Some Preferred Tips  on How to Select a Project

*This information is taken from the Certificate IV in Project Management course delivered online via LMIT

1. Project Selection Methods

Project selection methods are used to determine which project the organisation will select. These methods generally fall into one of two broad categories:

Benefit measurement methods that are comparative approaches, scoring models, benefit contribution, or economic models. There are several different benefit measurement methods. These methods are all about comparing values of one project against the values of another. Usually, the projects with higher, positive values typically get selected over projects with low values. The following are some common benefit measurement methods:

Murder Boards Murder boards are committees that ask every conceivable negative question about the proposed project. Their goal is to expose strengths and weakness of the project—and kill the project if it’s deemed worthless for the organisation to commit to.

Scoring Models Scoring models (sometimes called weighted scoring models) are models that use a common set of values for all of the projects up for selection. For example, values can be profitability, complexity, customer demand, and so on. Each of these values has a weight assigned to them—values of high importance have a high weight, while values of lesser importance have a lesser weight. The projects are measured against these values and assigned scores by how well they match to the predefined values. The projects with high scores take priority over projects will lesser scores.

Benefit/Cost Ratios benefit/cost ratio (BCR) models examine the cost-to-benefit ratio. For example, a typical measurement is the cost to complete the project, and the cost of ongoing operations of the project product compared against the expected benefits of the project. For example, consider a project that will use $575,000 to create a new product, market the product, and provide ongoing support for the product for one year. The expected gross return on the product, however, is $980,000 in year one. The benefit of completing the project is greater than the cost to create the product.

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