Project management is the discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals (Mc Graw-hill 2006). On the other hand, Mc Graw defined a project as a temporary endeavor with a defined beginning and end; usually time-constrained, and often constrained by funding or deliverables. However, in this essay the main concern is project selection, development of a business case and preparation of a project charter for a potential project.
Several project selection criteria can be use to determine the viability of a project. These techniques include the traditional and the modern methods. Traditional methods include payback period and return on investment. Modern methods include: net present value, internal rate of return and profitability index method (David 2006). However, in this essay we shall discuss different aspects of a project than the ones mentioned above. We shall majorly focus on project comparison, weighted scoring model, business case and project charter.
In this case, it is imperative for us to choose a case study for us to be able to apply these concepts in real life situations according to the stipulations of the question. We can choose a couple of similar projects like buying business vehicles (Martin 2002). This may sound a little inappropriate but it is a project and it will serve the basic purpose of giving an example. The purpose is application of different selection criteria to determine the best project. Project Comparison Project comparison is done using the techniques mentioned above and many other criteria.
Comparison is made to enable planners to come up with the best alternative that will serve their interests at the lowest cost, shortest time and high degree of efficiency. Various organizations have long-term and short-term business strategies. Setting up strategies enables an organization to attain its vision with a fair degree of accuracy (Lewis 2006). There are several financial benefits that accrue to a business organization due to performing proper initial assessments before setting up a project.
Saving money through costs reduction is the major one. Other benefits could be: increasing accuracy in production, minimization of wastes, utilization of local resources and many others (lock, 2007). The Weighted Scoring Model Weighted scoring model can be defined as a method of scoring options against a requirements list to determine which option best fits the selection criteria (Zimmer, 2011). Zimmer also explained the weighted scoring as a technique for putting a semblance of objectivity into a subjective process.
Zimmer explained this technique as using a list of criteria to analyze the appropriateness of a particular project. It involves assigning numerical values to the list of projects. These numerical values can also be called weights. The activity can be best carried out by using Microsoft excel. The ability of a project to meet the required specifications or standards can easily be determined by summing the weighted values. The weights must add up to a hundred. The merits of using the weighted scoring model are many.
Different individuals can assign weights to the list of potential projects and therefore average scores are used. The viability of scores is determined by a range of values. A variety of criteria from probabilities assigned to ability of a project to meet business objectives can be used. Assuming we are planning to construct a facility that will boost the efficiency of our business; the options that we have could be as follows. We have four different projects.