MGT4312 Chap2

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2

Iden%fying and Selec%ng Projects

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Concepts

•  How projects are iden3fied and selected


•  A project charter
•  Outsourcing projects using a request for proposal
(RFP)
•  The proposal solicita3on process

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Project Iden3fica3on
•  Start of Ini3a3ng phase
•  Recognize need, problem, or
opportunity
•  Various ways for project
iden3fica3on
•  Organiza3ons strategic planning
•  Response to unexpected events
•  Group organized to address a
need
•  Important to clearly iden3fy need
to determine if worth pursuing
•  Use decision making process to
priori3ze and select project with
greatest benefit

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Project Selec3on

•  Evaluate needs, costs,


benefits
•  Project selec3on process
1.  Develop set of criteria
2.  List assump3ons
3.  Gather data
4.  Evaluate each project
•  Combine “gut” feelings and
quan3ta3ve informa3on to
make decision

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Describe the posi%ves
Student Discussion and nega%ves for this
development project.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Possible responses to •  Posi3ves
•  All projects will be evaluated on
Student Discussion common criteria
•  Describe the posi3ves •  Project A gets to market in the least
3me
and nega3ves for this •  Project B gains the greatest market
development project. share
•  Project B has highest ROI
•  Projects A and C have high chance of
success
•  Nega3ves
•  Prices for each project have great
differences; implying that each has a
different level of effort for the
project solu3on
•  Project B has high risk and medium
chance of success
•  Project C may not be accepted
globally
•  Project B may put the company
reputa3on at risk if the technology
does not work as expected
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Project Charter

Purpose Possible Elements


Project 3tle •  Milestone
•  Provides sponsor approval • 
schedule
•  Purpose
•  Commits funding for the •  Descrip3on •  Key assump3ons
project •  Objec3ve •  Constraints
•  Success criteria •  Major risks
•  Summarizes key condi3ons or expected •  Approval
and parameters benefits requirements
•  Funding •  Project manager
•  Establishes framework to •  Major •  Repor3ng
develop baseline plan deliverables requirements
•  Acceptance •  Sponsor designee
criteria •  Approval
signature

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Preparing a Request for Proposal

•  Decision made to outsource to external resource


•  Comprehensively describe project requirements
•  Includes need, problem, or opportunity descrip3on
•  Allows contractors to develop a thorough proposal
•  Facilitates the development of evalua3on criteria
•  May be communicated informally or formally, in
wri3ng or verbally

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Guidelines for Developing an RFP
•  State project objec3ve or •  State type of contract
purpose •  State payment terms
•  Provide a statement of work •  State schedule and key
•  State deliverables the milestones
customer expects •  List format and content
•  Include customer instruc3ons
requirements •  Indicate due date
•  State acceptance criteria •  Include evalua3on criteria
•  List customer supplied items •  Include level of effort or funds
•  State approvals required available

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Solici3ng Proposals

•  No3fy poten3al contractors


•  Iden3fy selected group in advance to send
copy
•  Adver3se in selected journals, newspapers,
or websites
•  Maintain compe33ve situa3on
•  Provide equal informa3on to all bidders
•  Hold bidders’ mee3ng to answer ques3ons

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cri3cal Success Factors
•  The need is clearly defined
•  The project selected must provide the greatest overall
benefits.
•  Having a well-understood evalua3on and selec3on process.
•  Good understanding of customer’s needs and requirements.
•  A request for proposal should include a statement of work,
customer requirements, expected deliverables, and the
criteria by which the customer will evaluate proposals.
•  An RFP should provide instruc3ons for the format and
content of contractor proposals.
•  Treat all the contractors equally to prevent any unfair
compe33ve advantage in preparing their proposals.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Midsize Pharmaceu%cal
Case Study Company
(page 58)

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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