Project Selection
Abdul Rashed Barakzai
PROJECT SELECTION AND CRITERIA OF CHOICE
• Project selection is the process of evaluating proposed projects or groups of projects, and
then choosing to implement some set of them so that the objectives of the parent
organization will be achieved.
• Systematic process can be applied to any area of the organization’s business in which
choices must be made between competing alternatives.
Example: TV station can select which of comedy shows to run in 7:30 p.m. to 9:00.
Hospital Choose the right Supplier, Doctor, Asset
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• Project Mangers are rarely involved in project selection
• Project Mangers needs to fully understand organization
Objective in undertaking a project that PM is expected to
lead
• Project Mangers decision can effect the project or in
project Selection
Project Selection Model, based on Souder (1973)
1. Realism
2. Capability
3. Flexibility
4. Ease of use
5. Cost
6. Easy computerization
1- Realism
The model should reflect the reality of the firm’s decision
Specific measurement system should be available for different
project comparison
Limitation of the company should be consider
Strength of Company
Cost, Time, Market Competition, Customer Reaction, Implementatin
of Project
2- Capability:
The model should be sophisticated enough to deal with
the relevant factors: multiple time periods, situations both
internal and external to the project (e.g., strikes, interest
rate changes), and so on.
3- Flexibility
1. Project Selection should be according the ability of the
Firm
2. If change is required in Company should be adoptable
Example: tax law changes, New Technology in the Market
4- Ease of use
Model should be reasonable or convention
Model should not take longer time to execute.
Model should be more understandable
It should not need longer interpretation
Should not include unavailable equipment, Technology, Human Resource
Example: 4G internet, Learning English in 6 month
5- Cost
Data-gathering and modeling costs should be
low relative to the cost of the project and less
than the potential benefits of the project. All
costs should be considered, including the costs
of data management and of running the model.
6- Easy computerization
This is recently Added:
It should be easy and convenient to gather and store the
Information in a computer database, and to manipulate
data in the model through use of a widely available,
standard computer package such as Excel
Factors for Project Selection Process
• External Factors
• Internal Factors
• Quotative Factors
• Qualitative Factors