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The importance of effective project selection and management, with a focus on the project management maturity model (pmmm) for advancing project management maturity levels. The problems with managing projects, the concept of project management maturity, and the benefits and people involved in project selection. It also introduces various project selection models, including non-numeric and numeric models, and critical facts about project selection models.
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Project management is the discipline of initiating, planning, executing, controlling and closing the work of a team to achieve specific goals and meet specific criteria.
The rapid adaption of project management means
a. Delays in one project cause delays in other projects because of common resource needs and technological dependencies b. The inefficient use of corporate resources results in peaks and valleys of resource utilization. c. Lack of required technological inputs result in project delays that depend on those scarce resources or technology.
Project management maturity refers to the progressive development of an enterprise wide project management approach, methodology, strategy and decision making process. The appropriate level of maturity will vary for each organization based on its specific goals and, strategies, resource capabilities scope and needs.
Project management maturity model is a formal tool developed by PM Solutions and used as an organization’s project management maturity.
d. Level 4: Managed Process
Project selection is the process of evaluating individual projects or group of projects and then choosing to implement some set of them so that the objectives of parent organization will be achieved.
Projects are still just suggestions at this stage. So the selection is often made based on only brief descriptions of the projects. As some projects only will be on ideas there is need to write a brief description of each project before conducting the selection process.
Base of Selection Projects:
Selection of projects is based on a. Benefits: A measure of the positive outcomes of project. These are often described as “the reasons why you are undertaking the project”. The types of benefits of eradication projects include
People/Things Involved in Project Selection:
a. Agency Management:
The criteria for project selection model contain the following steps: a. Realism: The model should reflect the reality of firm’s decision situation especially the multiple objectives of the both firm and its managers. The model should also take into
b. All models however sophisticated are only partial representations of the reality they are meant to reflect. Reality is far too complex for us to capture more than a small fraction of it in any model.
a. Sacred Cow: In this case project is suggested by a senior and powerful official in the organization. b. The Operating Necessity: In this case the project is required to keep the system running. c. The Competitive Necessity: In the case of competitive necessity project is necessary to sustain a competitive position. d. The Product Line Extension: In product line extension case projects are judged on how they fit with current product line, fill a gap, strengthen a weak link, or extend the line in a new desirable way. e. Comparative Benefit Model: According to this selection model there are several projects that are being considered by the organization. Those subset of the projects are selected by the senior management of the organization can provide most benefits to the company. But comparing various projects is not an easy task.
a. Payback Period: This is one of the most basic project selection criteria. This is the time frame required for the return on an investment to repay the original cost invested.
Payback period= cost of project/average annual cash inflows
b. Discounted Cash Flow: Discounted cash flow method is also called Net Present Value (NPV) method. The net present value of all cash flows is determined by discounting them by the required rate of return in this method.
