requirment Analysis

C H A P T E R

3
Project Selection and Portfolio
Management
Chapter Outline

70
Project Management: Achieving Competitive Advantage, Second Edition, by Jeffrey K. Pinto. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc.

000200010270649984

PROJECT PROFILE
Project Selection Procedures: A Cross-Industry Sampler
INTRODUCTION
3.1 PROJECT SELECTION
3.2 APPROACHES TO PROJECT SCREENING AND SELECTION
Method One: Checklist Model
Method Two: Simplified Scoring Models
Limitations of Scoring Models
Method Three: The Analytical Hierarchy Process
Method Four: Profile Models
3.3 FINANCIAL MODELS
Payback Period
Net Present Value
Discounted Payback
Internal Rate of Return
Options Models
Choosing a Project Selection Approach
PROJECT PROFILE
Project Selection and Screening at GE: The Tollgate Process
3.4 PROJECT PORTFOLIO MANAGEMENT
Objectives and Initiatives
Developing a Proactive Portfolio
Keys to Successful Project Portfolio Management
Problems in Implementing Portfolio Management
Summary
Key Terms
Solved Problems
Discussion Questions
Problems
Case Study 3.1 Keflavik Paper Company

Project Profile

Case Study 3.2 Project Selection at Nova Western, Inc.
Internet Exercises
Notes

Chapter Objectives
After completing this chapter you should be able to:
1. Explain six criteria for a useful project-selection/screening model.
2. Understand how to employ checklists and simple scoring models to select projects.
3. Use more sophisticated scoring models, such as the Analytical Hierarchy Process.
4. Learn how to use financial concepts, such as the efficient frontier and risk/return models.
5. Employ financial analyses and options analysis to evaluate the potential for new project investments.
6. Recognize the challenges that arise in maintaining an optimal project portfolio for an organization.
7. Understand the three keys to successful project portfolio management.

PROJECT PROFILE
Project Selection