Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9781259666094
Author: Erik W. Larson, Clifford F. Gray
Publisher: McGraw-Hill Education
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Chapter 2, Problem 7E
The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration.
a. Using the scoring matrix in the following chart, which project would you rate highest? Lowest?
b. If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection change? What are the three highest weighted project scores with this new weight?
c. Why is it important that the weights mirror critical strategic factors?
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Students have asked these similar questions
The ABC Manufacturing Company has set up a weighted scoring matrix for evaluating some potential projects. Following are five projects under consideration.
Using the scoring matrix below which project would you rate highest? Lowest?
If the weight for “Sponsor Support” is changed from 2.0 to 5.0, will the project selection change? What are the three highest-weighted project scores with this new weight?
Why is it important that the weights mirror critical strategic factors?
Project Screening Matrix
Criteria
Weight
Project 1
Project 2
Project 3
Project 4
Project 5
Sponsor Support
2
9
3
6
1
3
Strategic Alliance
5
5
7
8
0
10
Urgency
4
2
2
2
5
10
Fills a market gap
3
0
0
3
10
1
Sales
3
2
5
6
6
8
Competition
1
5
1
8
9
0
The Quantum Leap Company has set up a weighted scoring matrix for evaluation of potential projects. Below are five projects under consideration. 1. Using the scoring matrix below, which project would you rate highest? Lowest?
2. If the weight for "Strong Sponsor'. is changed from 2.0 to 5.0. will the project selection change? what are the three highest weighted project scores with this new weight? 3. Why is it important that the weights mirror critical strategic factors?
4. Two new software projects are proposed to a young, start-up cornpany. The Alpha project vvill cost $150.000 to develop and is expect. to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of S50,000. The company is ve, concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? a. Assume that the rate of inflation is 644, use the Net Present Value (NM, aPProach to calculate PaYback…
7. The Custom Bike Company has set up a weighted scoring matrix for evaluation of
potential projects. Below are five projects under consideration.
a. Using the scoring matrix in the following chart, which project would you rate
highest? Lowest?
b. If the weight for "Strong Sponsor" is changed from 2.0 to 5.0, will the project
selection change? What are the three highest weighted project scores with this
new weight?
c. Why is it important that the weights mirror critical strategic factors?
Chapter 2 Solutions
Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 2 - Describe the major components of the strategic...Ch. 2 - Explain the role projects play in the strategic...Ch. 2 - How are projects linked to the strategic plan?Ch. 2 - The portfolio of projects is typically represented...Ch. 2 - Why does the priority system described in this...Ch. 2 - Why should an organization not rely only on ROI to...Ch. 2 - Discuss the pros and cons of the checklist versus...Ch. 2 - You manage a hotel resort located on the South...Ch. 2 - Two new software projects are proposed to a young,...Ch. 2 - A five-year project has a projected net cash flow...
Ch. 2 - You work for the 3T company, which expects to earn...Ch. 2 - You are the head of the project selection team at...Ch. 2 - You are the head of the project selection team at...Ch. 2 - The Custom Bike Company has set up a weighted...Ch. 2 - What is our major problem?Ch. 2 - Identify some symptoms of the problem.Ch. 2 - What is the major cause of the problem?
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
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- ScenarioImagine that you are a project manager responsible for a medical health services project which will benefit low-income earners, the unemployed, and the homeless. The project is quite large and consists of the sourcing and acquisition of medical professionals, medical supplies, and medical establishments to provide the services stipulated by the project charter. The sponsor of the project is the Ministry of Health of the local government of the country that you live in. Where should you begin? How do you decide which medical professionals to choose? What medical supplies are needed and where will you conduct your medical service checks? Take a look at the medical services project. What selection criteria based on the list of various criteria would you consider to be important for a project of this magnitude?arrow_forwardYou are the head of the project selection team at Broken Arrow Records. Your team is considering two different recording projects. Based on past history, Broken Arrow expects at least a rate of return of 20 percent. Given the follwoing information for each project, which one should be Broken Arrow's first priority? Should Broken Arrow fund any of the other projects? If so, what should be the order of priority based on return on investment?arrow_forward2. Assume the founders weigh a project ’ s NPV twice as much as both obtaining/retaining a leadership position and making use of the Internet. Use the weighted factor scoring method to rank these projects. Which projects would you recommend Handstar pursue?arrow_forward
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