Problem 1

Suppose that you are trying to choose which of two IT projects to accept. Your company employs three prim
One option, Project Demeter, is evaluated as:

The second option, Project Cairo, is evaluated as:

Construct a table identifying the projects, their evaluative criteria, and ratings. Based on your analys

Performance on criteria
Project Criteria High
Technology x
Project Demeter Ease of transition
Projected cost savings x

Technology
Project Cairo Ease of transition x
Projected cost savings x
jects to accept. Your company employs three primary selection criteria for evaluating all IT projects: (1) proven technology, (2) ease of tran

Technology high
Ease of transition low
Projected cost savings high

Technology medium
Ease of transition high
Projected cost savings high

ive criteria, and ratings. Based on your analysis, which project would you argue in favor of adopting? Why?

Performance on criteria
Medium Low

x
hnology, (2) ease of transition, and (3) projected cost savings.
Q 2 Consider the following information in choosing among the four project alternatives below (labeled A, B, C, and D
• Payoff potential
• Lack of risk
• Safety
• Competitive advantage

Project A is rated:
Payoff potential high Safety high
Lack of risk low Competitive advantage medium

Project B is rated:
Payoff potential low Safety medium
Lack of risk medium Competitive advantage medium
Project C is rated:
Payoff potential medium Safety low
Lack of risk medium Competitive advantage low
Project D is rated:
Payoff potential high Safety medium
Lack of risk high Competitive advantage medium

Construct a project checklist model for screening these four alternatives. Based on your model, which project is the best choic

Performance on criteria
Project Criteria High Medium
Payoff potential x
Lack of risk
A
Safety x
Competitive advantage x
Payoff potential
Lack of risk x
B
Safety x
Competitive advantage x
Payoff potential x
Lack of risk x
C
Safety
Competitive advantage
Payoff potential x
Lack of risk x
D
Safety x
Competitive advantage x
below (labeled A, B, C, and D). Each has been assessed according to four criteria:

el, which project is the best choice for selection? Why? Which is the worst? Why?

teria
Low

x
x
Problem 3
Q3 Suppose the information in Problem 2 was supplemented by importance weights for each of the four
Assessment criteria Importance Weights
1. Payoff potential 4
2. Lack of risk 3
3. Safety 1
4. Competitive advantage 3

Assume, too, that evaluations of high receive a score of 3, medium 2, and low 1. Recreate your project scoring m
Project A
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 4 3 12
2. Lack of risk 3 1 3
3. Safety 1 3 3
4. Competitive advantage 3 2 6

Project B
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 4 1 4
2. Lack of risk 3 2 6
3. Safety 1 2 2
4. Competitive advantage 3 2 6

Project C
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 4 2 8
2. Lack of risk 3 2 6
3. Safety 1 1 1
4. Competitive advantage 3 1 3

Project D
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 4 3 12
2. Lack of risk 3 3 9
3. Safety 1 2 2
4. Competitive advantage 3 2 6
e weights for each of the four assessment criteria, where 1 = low importance and 4 = high importance

Recreate your project scoring model and reassess the four project choices (A, B, C, and D). Now which project alternative is the best? Wh

High 3
Medium 2
Low 1
ect alternative is the best? Why
Q4 Now assume that for Problem 3, the importance weights are altered as follows:
Assessment criteria Importance Weights
1. Payoff potential 1
2. Lack of risk 1
3. Safety 4
4. Competitive advantage 2

Project A
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 1 3 3
2. Lack of risk 1 1 1
3. Safety 4 3 12
4. Competitive advantage 2 2 4

Project B
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 1 1 1
2. Lack of risk 1 2 2
3. Safety 4 2 8
4. Competitive advantage 2 2 4

Project C
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 1 2 2
2. Lack of risk 1 2 2
3. Safety 4 1 4
4. Competitive advantage 2 1 2

Project D
Assessment criteria Importance Weights (A) Score (B) A*B
1. Payoff potential 1 3 3
2. Lack of risk 1 3 3
3. Safety 4 2 8
4. Competitive advantage 2 2 4
Problem 5
Q5 Assume that the following criteria relevant to the process of screening various project opportunities are
Quality (7)
Cost (3)
Speed to market (5)
Visibility (1)
Reliability (7)
Our company has four project alternatives that satisfy these key features as follows:

Alpha Beta Gamma Delta

Quality 1 3 3 5
Cost 7 7 5 3
Speed to market 5 5 3 5
Visibility 3 1 5 1
Reliability 5 5 7 7

Construct a project screening matrix to identify among these four projects the most likely candidate to be

Project Alpha
Assessment criteria Importance Weights (A) Scores (B) A*B
Quality 7 1 7
Cost 3 7 21
Speed to market 5 5 25
Visibility 1 3 3
Reliability 7 5 35
Total 91

Project Beta
Assessment criteria Importance Weights (A) Scores (B) A*B
Quality 7 3 21
Cost 3 7 21
Speed to market 5 5 25
Visibility 1 1 1
Reliability 7 5 35
Total 103

Project Gamma
Assessment criteria Importance Weights (A) Scores (B) A*B
Quality 7 3 21
Cost 3 5 15
Speed to market 5 3 15
Visibility 1 5 5
Reliability 7 7 49
Total 105
Project Delta
Assessment criteria Importance Weights (A) Scores (B) A*B
Quality 7 5 35
Cost 3 3 9
Speed to market 5 5 25
Visibility 1 1 1
Reliability 7 7 49
Total 119

Among all the projects project Delta has high value hence it is choosed
us project opportunities are weighted in importance as follows:

most likely candidate to be implemented.

Problem 6
Q6 Assume that the following criteria relevant to the process of screening various construction project opportun
Safety (10)
Speed to completion (5)
Sustainable development (4)
Infrastructure modifications (3)
Traffic congestion (5)
Cost (8)
Our company has four project alternatives that satisfy these key features as follows:

Construct a project screening matrix to identify among these four projects the most likely candidate to be imple

Project Midtown
Assessment criteria Importance Weights (A) Scores (B) A*B
Saftey 10 6 60
Speed 5 3 15
Sustainable 4 7 28
Infrastructure 3 4 12
Traffic 5 2 10
Cost 8 5 40
Total 165
Project Uptown
Assessment criteria Importance Weights (A) Scores (B) A*B
Saftey 10 5 50
Speed 5 4 20
Sustainable 4 7 28
Infrastructure 3 5 15
Traffic 5 4 20
Cost 8 5 40
Total 173
Project Downtown
Assessment criteria Importance Weights (A) Scores (B) A*B
Saftey 10 3 30
Speed 5 2 10
Sustainable 4 5 20
Infrastructure 3 4 12
Traffic 5 1 5
Cost 8 3 24
Total 101
Project Suburb
Assessment criteria Importance Weights (A) Scores (B) A*B
Saftey 10 8 80
Speed 5 5 25
Sustainable 4 4 16
Infrastructure 3 1 3
Traffic 5 8 40
Cost 8 6 48
Total 212

Among all the projects project Suburb has high value hence it is choosed
ous construction project opportunities are weighted in importance as follows:

most likely candidate to be implemented.

Q 7 Assume the project profile model shown in Figure 3.10. Define the efficient frontier. The dotted lines represent

efficient fron means min risk for any invest and max risk
er. The dotted lines represent the minimum return and the maximum risk that the company will accept. Which projects would be suitable
ich projects would be suitable for retaining and which should be dropped from the company’s portfolio? Why?
Problem 8
Q8 Using the information from the profile model in Problem 7, construct an argument as to why project B is pre
t as to why project B is preferable to project C.
Problem 9
Q 9 Alpha Associates , The criteria on which the machine is to be evaluated are as listed below
·         Price
·         Safety
·         Maintainability
·         Useful Life

A careful pairwise comparison of the criteria in terms of their relative importance in the scale 1 to 9 with odd
Matrix of Pairwise Comparison of Criteria
Price Safety Maintainability Useful Life
Price 1 3 1-Mar 5
Safety 0.33 1 1-May 3
Maintainability 3 5 1 9
Useful Life 1-May 1-Mar 1-Sep 1

Find the Priority vector for the criteria using AHP and check whether there is consistency among the values in t
s listed below

ce in the scale 1 to 9 with odd numbers by assuming 1 as the indifferent value (both criteria are equal) give the data as shown below

sistency among the values in the priority vector

the data as shown below