Exercises 2.

1
Using a Scoring Model
Project

Criteria

Importance

Score

Weighted Score

Weight
Project 1
Cost
Profit Potential
Development Risk
Time to Market
Total Score

1
1
3
2

3
2
1
3

3
2
3
6
14

Cost
Profit Potential
Development Risk
Time to Market
Total Score

1
1
3
1

1
2
3
1

1
2
9
1
13

Cost
Profit Potential
Development Risk
Time to Market
Total Score

1
1
3
2

3
3
1
3

3
3
3
6
15

Project 2

Project 3

Which project seems to have the highest development risk?

Project 2 seems to have the highest development risk of 9 as compared to 3, for

the other

two projects.

Which project would make it to the market the quickest?

As given in the model, the lower the number the better, Project 2 would have
made it to the market the quickest as its weighted score is 1, as compared to 6
for projects 1 and 3.

Why would a project be concerned about the time it takes to get to the
market?

Time to showcase has turned into the most important determinant for measuring
the effective conveyance of both item/benefit advancement and inner tasks.
Diminishing it has been the center of procedure change activities and altered
venture lifecycle approaches and has been one of the contributing variables to
the critical increment in enthusiasm for nimble routines.
Naturally, it ought to bode well that organizations would need their activities to be
finished in a shorter measure of time. Doing as such would offer various focal
points including first to advertise upper hand, having the capacity to actualize
operational enhancements quicker or complying so as to diminish business
hazard with regulations in front of due dates. Past this, the open door expense of
tying up talented task assets for more than is totally vital is decreased and it
ought to be conceivable to finish more esteem include ventures over the same
length of time.

All of the projects have an importance weight of one on cost. Why do you
think this is the case?

They have kept the importance weight of 1 on cost, as in this case they are
evaluating the project's performances firstly, with respect to 'development risk',

with an importance weight of 3 and then according to the 'time to market, with an
importance weight of 2. Therefore, they are not considering cost as the key
determinant for the optimal project selection and hence the importance weight of
1.