Jashore University of Science &

Technology

Department of Management

An Assignment
on
Strategic Management and Project Selection
Course Title: Project Management
Course Code: MGT-4103

Submitted By: Submitted To:

Group Name: “challengers” Ruhul Amin

Session: 2017-18
4th year 1st Semester
Department of Management
Jashore University of Science &
Technology
Jashore-7408
Assistant Professor
Department of Management
Jashore University of Science &
Technology
Jashore-7408

Date of Submission: 19/04/2022

 Group Member’s List

No. Name Designation ID No. Signature

1. Md. Saiful Islam Leader 172107

2. Akramunessa Member 172106

3. Md. Shemul Member 172108

Rahman
4. Rubina Khatun Member 172111

5. Md. Asib Hasan Member 172115

6. Farhana Akter Member 172120

Rini
7. Md. Abdul Aziz Member 172131
 Table of contents

Serial Title of Contents Page

no.
1 Common Problems in Organization with multiple Project 1
2 Project model selection criteria 1-2

3 Types of project selection model (Nonnumeric Model) 2-4

4 Advantage of Nonnumeric Model 5

5 Disadvantage of non-numeric model 5

 Contribution of group members

No. Name Area of work

1 Md. Saiful Islam Project model selection criteria

(Realism, Capability, Flexibility)

2 Akramunessa Project model selection criteria

(Ease of use, cost ,Easy computerization)

3 Md. Shemul Rahman Types of project selection model (Nonnumeric Model)

4 Rubina Khatun Advantage of Nonnumeric Model

Disadvantage of non-numeric model

5 Md. Asib Hasan Common Problems in Organization with multiple Project

6 Farhana Akter Rini Types of project selection model (Nonnumeric Model)

7 Md. Abdul Aziz Types of project selection model (Nonnumeric Model)

Abstract
The techniques for strategically analyzing and choosing projects were described in this
assignment, which kicked off our consideration of the project management process. We began
by discussing the strategic goal of using projects to assist achieve the organization's goals and
strategy, as well as a project portfolio. Strategy to assist in doing this we then went through
various criteria for project selection models and spoke about the big picture. These models'
nature the kinds were discussed throughout the assignment. This assignment describes Models
in use, as well as their benefits and drawbacks.
Common problems in organizations with multiple projects
There are three common problems in any multiple projects:

1. Delays in one project cause delays in other projects due to common resource needs or
technical dependences

 If many projects are undertaken at once, there is a possibility of delay. Many times the
same material may be required in two projects. So if you start multiple projects at once,
the probability of delay is 60%.

 Suppose, a contractor Firm has started two project at once, one is to construct a 6-storey
building in Khulna and the 10-storey academy building at Jashore University of Science
and Technology. There are many materials that can be needed in two projects at the
same time (e.g. welding machine). If the firm allocates the machine for the Khulna's
building, the work of Jashore
University of Science and Technology will be delayed.

2. The inefficient use of corporate resources result in peaks and valleys of resource
utilization.

 Resources are being wasted because many projects run together.

 According to a project manager of "Mahbub Brothers” when they work on multiple
projects, they have some permanent employees who have to be paid even if they are
not working. Then wealth is depleted.

3. Bottleneck in resource availability or luck of required technical inputs result in project

delays that depend on those scarce resources or technology.

 If you take a lot of projects together, it will be a bottleneck, that is, one project will get
resources and another project will not.

Suppose Project-1 would require three people and Project-2 would require four people but we
have a total of 6 people. This will cause bottlenecks.

Project model selection criteria

1. Realism: The model should reflect the reality of the business's decision situation,
particularly the many aims of both the firm and its management, keeping in mind that direct
comparison of different projects is impossible without a consistent measuring method. The
model should also take into consideration the realities of the firm's facility restrictions
Capital, manpower, and so on, as well as project technical and market aspects Performance,
cost, time, client rejection, and deployment are all hazards.
2. Capability: The model should be comprehensive enough to handle the important aspects,
such as different periods, internal and external to the project conditions (e.g., strikes, interest
rate fluctuations), and so on.

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3. Flexibility: The model should produce reliable findings within the spectrum of situations
that the company may face. It should be simple to adjust in reaction to changes in the firm's
environment, such as tax law changes or new technical breakthroughs that affect the firm's
environment. Changes in risk levels, and, most importantly, organizational purpose changes.

4. Ease of use: The model should be simple to use and comprehend, and should not take a
lengthy time to execute. It shouldn't necessitate complex interpretation, difficult-to-get data, a
large number of people, or inaccessible equipment.

5. Cost: The cost of data collection and modeling should be modest in comparison to the
project's total cost and lower than the project's potential benefits. All costs, including data
administration and model operation, should be assessed.

6. Easy Computerization:
Collecting and storing data in a computer database and operating data on the model should
be simple and advantageous by using widely available value computer packages like Excel.

Types of project selection model

Nonnumeric Model
This is a project selection model that selects projects based on factors other than numerical
data. The model chooses a project based on conversations and ideas. Nonnumeric models are
older and simpler. There are many subtypes of nonnumeric model. Such as:

1. The Sacred Cow

In this situation, the idea is suggested by a senior and strong figure in the company. Typically,
a project is started as a result of an evident opportunity or chance that arises from an unproven
idea for a new product, the design and embodiment of a cutting-edge information system with
a global database, the installation of a new market, or any other category of project that
requirement the organizations investment of resources. As a direct outcome of this gray conduct
to investigating whatever the boss has offered, the project is born. The projects sanctity reflects
the idea that it will be continued until is completed the boss, personality, recognizes the idea as
a failure and ends it.

2. The Operating Necessity:

If a plant is endangered by flooding, starting a project to create a protective desk is not difficult
or time consuming. This is the best example of making starting a business requirement. The
XYZ steel firm evaluates potential project using this project selection standard.
If the project in order to keep the system running, such as the project estimated cost is
appropriate for the system. If the answer to such final issue is yes, the project cost should be
examined to ensure that they are kept to a empty minimum while still being compatible with
the project success. The preliminary project will be funded.

3. The Competitive Necessity

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 ABC Steel's steel bar manufacturing facilities near Chicago were deemed a noteworthy plant
reconstruction project based on this criterion. In order to preserve its current competitive position in
the Chicago market, the company's management realized that some upgrading was essential.

Even if the project has a modern planning approach, the company's goal of maintaining a
competitive position in the market provides a basis for such a decision to continue the project.
Similarly, certain undergraduate and master's in business administration (MBA) programs are
restructured into offers from a range of colleges in order to maintain their competitive position
in the academic market.

Projects that meet competitive investment requirements are preferred over initiatives that meet
operational demands. Both of these project selection methods; however, are regarded to be
significantly more effective.

4. The Product Line Extension.

The project is evaluated based on how well it fits into the existing product line, fills a gap,
strengthens a weak link, or extends the line in a novel and attractive way.

5. Comparative Benefit Model

For this situation, assume that an organization has many projects to consider, perhaps several
dozen. Senior management would like to select a subject of the projects that would most benefit
the firm, but the projects do not seem to be easily comparable.

For example, some project concern potential new product, some required the conduct of
research and development project for government agency, some concern in changing
production method, other concern computerization of certain record etc.

The concept of comparative benefits, if not a formal model, is widely adopted for selection
decisions on all sorts of projects.

 Q- sort method
First, the projects are divided three groups good, fair, and poor ----- according to their relative
merits. If any group has more than eight members, it is subdivided two categories, such as fair
– plus and fair –minus.

When all categories have eight or fewer members, the project within each category are ordered
from best to worst. The rater may use specific to rank criteria rank each project, or may simply
use general overall judgment.

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Results at Each Stages

Original deck
1.

High level Low level

2.

High level Medium level Low level

3.

Medium level

4.

Very low
Very high level High level Low level
level

5.

Figure: The Q-sort model Source: Souder 1983

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6. Sustainability
A sustainability model is one where all stakeholders interact and participate towards a better,
greener future for all

Sustainability is focusing on long-term profitability rather than short-term payoff. The integrate
sustainability into the organization decision making required the appointment of the senior
manager with responsibility for the task.

Advantage of Nonnumeric Model

Several advantage of nonnumeric models are the following:
1. Project selection is completed easier of nonnumeric model.
2. Nonnumeric model intended for accepting or rejecting project.
3. Nonnumeric model preferred for the project team.
4. These model are obviously goal-oriented and mirror the Organizations key concerns.
5. These project is progress and distribute a new product or service.
6. Nonnumeric models as the name point toward do not procedure numbers as inputs.
7. Project is showing by a senior and influential official in the Organization.
8. The project is necessary on the road to keep the system running.
9. Project is prerequisite in order to keep up the company position in the marketplace.
10. Project are reviewer and they fit existing product line, fill a gap, build up a weak line.
11. Organization are construction sustainability into the set of criteria that project carefully
chosen for funding.

Disadvantage of non-numeric model

The main disadvantage of non- numerical model is given below:

1. Non-numeric choice inputs do not use numbers as decision inputs.

2. This model is based on personal experience
3. It is older model
4. Project is chosen based on the fact.
5. Important decision are taken based experience
6. Employees are appointed base on owner/project manager experience
7. Nonnumeric model is based on the idea that a member of higher management has
recommended a project

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Conclusion
Projects are used in today's businesses to accomplish critical tasks and goals. The words
"management by projects" and "project management maturity," which we hear and read about
on a daily basis at work and in chats with our coworkers, represent this growing tendency in
our culture. It's incredible to see how quickly such a strong instrument as project management
is being adopted to assist businesses to reach their goals and objectives. Aside from the project,
when implemented appropriately, management provides a lot of benefits, but it also has a lot
of drawbacks

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 Reference
Book: Project Management (8th edition)
By Jack R. Meredith & Samuel J. Mantel

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