1. Prepared by Scott M. Shafer, Updated by William E. Matthews and Thomas G. Roberts, William Patterson University Copyright 2007 John Wiley & Sons, Inc.1-1 Mantel, Meredith, Shafer, and Sutton John Wiley and Sons, Inc.

2.  Many tasks do not fit neatly into business-as- usual.  Need to assign responsibility and authority for achievement of organizational goals. Copyright 2007 John Wiley & Sons, Inc.1-2

3.  Unique  Specific Deliverable  Specific Due Date Copyright 2007 John Wiley & Sons, Inc.1-3

4.  Multidisciplinary  Complex  Conflict  Part of Programs Copyright 2007 John Wiley & Sons, Inc.1-4

5. “ A project is a unique temporary endeavor, with a set beginning and end ” PMI defines project management as “ the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of a particular project “ Project Management Institute, 2007 Copyright 2007 John Wiley & Sons, Inc.1-5

6.  Conflict Resolution  Creativity and Flexibility  Ability to Adjust to Change  Good Planning  Negotiation  win-win versus win-lose Copyright 2007 John Wiley & Sons, Inc.1-6

7.  The Sacred Cow- Special pet project advocated by President or Supervising Manager of Firm.  The Operating/Competitive Necessity  Comparative Benefits Copyright 2007 John Wiley & Sons, Inc.1-7

8. Copyright 2007 John Wiley & Sons, Inc.1-8

9.  Financial Assessment Methods  payback period  discounted cash flow  Scoring Methods  unweighted 0-1 factor method  weighted factor scoring method Copyright 2007 John Wiley & Sons, Inc.1-9

10. Copyright 2007 John Wiley & Sons, Inc.1-10

11. Copyright 2007 John Wiley & Sons, Inc.1-11 where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

12. Copyright 2007 John Wiley & Sons, Inc.1-12 where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

13.  Time required to complete a project  Availability of key resources  Cost of resources  Timing of solutions to technological problems  Actions taken by competitors  Uncertainty cannot be eliminated, but if managed properly, it can be minimized. Copyright 2007 John Wiley & Sons, Inc.1-13

14.  Estimate probabilities or distributions associated with key parameters  Develop analytic or simulation model  Analyze distribution of outcomes generated by model Copyright 2007 John Wiley & Sons, Inc.1-14

15.  Assumption Cells  Distribution Gallery  Forecast Cells Copyright 2007 John Wiley & Sons, Inc.1-15

16.  Establish a Project Council  Identify Project Categories and Criteria  Collect Project Data  Assess Resource Availability  Reduce the Project and Criteria Set  Prioritize the Projects within Categories  Select the Projects to be Funded and Held in Reserve  Implement the Process Copyright 2007 John Wiley & Sons, Inc.1-16

17. Copyright  John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein. Copyright 2007 John Wiley & Sons, Inc.1-17