PROJ6000 Project Selection Methods and Initial Documents Assessment 2 Answer
PROJ6000 Principles of Project Management
Assessment 2: Project Selection Methods and Initial Documents
The essay studies and examines that various project selection method that can be applied by an organization while selecting a project. It also studies the project initiation process and its importance in the success of the project. It has been commonly observed that project management is considered to be the science and art of applying certain management practices, principles, processes, tools and techniques by the project managers in their projects so as to result in the output and deliverables that satisfy the customers. With complex operating environments and large projects, project management got the recognition as a profession (PMI, 2017, pp 1). However in all this project management principles and processes, the process of selection of project is ignored. While the selection of the right project is the first step towards its success. The essay studies and researches the various project selection methods and the project initiation process. The selection of project is a very important part of project management because it helps the organization in evaluating the various project proposals and select the project. The project selection process is followed by the project initiation process which involves detailed outline of the project requirements and deliverables.
The process of project selection and initiation is studied, observed and reported in context to the case study of APM Corporate Accreditation. Amec Foster Wheeler is a leading project management and consultancy in UK. The customers of the company range from industries. The company provides services by designing, delivering and maintaining strategic assets for its customers. The essay focuses on the selection process that Amec Foster Wheeler should apply while selecting the IT (information technology) projects and the initiation process for these types of projects. The organization has recently selected and IT project for development of in house accounting and management information system (A&MIS). The project is to be developed by the company and installed at the intranet of the client. The project selection process is based upon SMART objectives of projects management and help the employees in identifying the right project for the organization.
The project A&MIS is selected by the company using the following process:
1. Business case: The project problem is a business case. The client has outsourced the accounting and management information reporting process. However, the client is facing delay in management reporting and hence wants to have an in-house ERP software that will help it in accounting and management information system reporting on a timely manner (Herman, B. and Siegelaub, J., 2009).
2. OPM and strategies: Another factor that affects the selection of project is the organizational strategies. The project management strategies and the organizational strategies should be aligned so that the strategic goals can be achieved. OPM ensures that the organization accepts the right project so that the critical resources can be utilized appropriately. Amec Foster Wheeler has signed up to a call for action in the UK government’s campaign promoting diversity through a greater participation in science, technology, engineering, and maths (STEM), especially among women. This project gves the orgnisation anopportunity to explore the IT filed.
Source: (PMI, 2017, pp.16)
3. Financial considerations: the project is also elected because it proved to be economically beneficial to the company. The cash inflows and outflows from the project are calculated and it is observed that the net cash inflows are more than net cash outflows. The project is profitable as it is adding to the net worth of the organization.
The Price of Project = $75,000
Duration = 6 months
The cost of project = $65,000
Net worth added by the project in short term is $10,000 (75,000 – 65,000).
Since the project is short duration project the present value of cash flows is not considered. The various methods that are used for long term projects are:
Source: (Monnappa, A.,2020)
Non- Financial consideration - Sometimes the organization selects the projects not only because of financial benefits but for achievement of the organizational goals. The organizational strategy plays an important role in this selection process. An organization might accept a project to be the pioneer in a particular field, or to maintain its status in a desired area or even to diversify the business. Customer relationship and service is also another major factor which results in selection of projects. Some other factors could be political reasons where a project is desired by the government of the state, due to change of management or special request by the shareholders. The A&MIS project is the project which will help the organization in fulfilling the UK government campaign it has signed. Thus even though the financial benefit for the project is not very high the project is selected.
Thus the project selection by Amec Foster Wheeler was done following the process as below:
- Observe the presence of a business case
- The project is acceptable on legal, social and regulatory grounds and aligns with the organizational goals (PMI, 2017, pp.7).
- Evaluate the project on monetary grounds if it is profitable.
- In case it is not profitable, evaluate it on the basis of nonmonetary factors, if the project should be accepted, like a project by existing customer or from shareholders or with political backing or can help the organization to diversify.
- Evaluate the technical expertise require to complete the project and its availability within the organization or outside which can be procured or arranged by the organization.
In case the above criterion are met accept the project
Once the project is accepted the initiation of the project is the first and most important task to be completed. PMBOK presents some activities and documents that needs to be prepared at the initiation of the project. The initiate the project in a well-defined manner the following documents are prepared:
- Develop a business case to be presented to the management. This should have the objectives of the project, the purpose and the deliverables as desired by the customer
- The Project Charter should be prepared which formally authorizes the project manager as in charge of the project and gives him the authority to use the resources of the organization for the project activities (PMI 2017, pp. 70).
- The initial project plan which will include the activities required by the project, the high level budget and schedule for the project, the resources requires for the project and the tools and techniques required to implement the project, the stakeholders of the project (Pulmanis, E. & Bruna, S., 2011).
Project initiation should be well managed and thorough because it forms the base of future project management plan and also acts as the guide for the project activities.
The project Charter prepared at initiation of the A&MIS project is as follows:
|Project Title:||A&MIS project (Accounting and Management Information System) project. |
|Project Aim:||The project aims at performing the accounting and management information activities in house and provide the relevant information to the management on a timely manner. |
|Project Background:||ABC Ltd is a client of Amec Foster Wheeler who wants to enhance the reporting time of the A & MIS of their organisation. The work currently outsourced but cause delay in reporting. Thus they want an in-house A&MIS. |
|Project Objectives:||The project objectives are: |
|Project Scope||The project will include:|
|The following resources will be used:|
Project manager: Mr. Allen swaroski
IT expert : Ms. Helen Goody
Finance/accounting expert : Ms Riya clark
|Project development Methodology:||The IT software project will be developed using the hybrid system of the waterfall and the agile technique. The accounting part will be developed using the accounting standards and hence will follow the waterfall technique.|
The MIS being the customized portion of the software will be developed using the agile technique. The management will be shown the prototype and the changes will be made according to their need.
|Budget of the Project:||The budget of the project is $65,000|
Time Frame & Milestones:
|The progress of the project will be reviewed every fortnight i.e. two weeks by the project manager with the project team. The status report will be shared with the stakeholders every 4 weeks |
|Stakeholders of the project:|
|Start Date:||1/08/2020||Completion Date:||31/01/2021|
Project selection is an important task as the success and completion of the project largely depends upon the project selected in the given conditions. However, there cannot be a strict selection process as it will not allow the organization to diversify and take business risks which is important for growth and expansion. Thus there are various factors which should be considered while selecting a project.
Once selected the project needs an initiation which serves as the guide for future project plan and is important for its success.