Project selection

International Series in Operations Research & Management Science, 2003

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The problem considered in this paper is that of selecting, from a larger set of project proposals, a subset of projects (a portfolio of projects) to be implemented. The set of project proposals is divided into several subsets of equivalent projects. The project proposals within these subsets may present different levels of performance, the cost for their implementation may be different and they may use resources at different levels. It is desired to find a portfolio of projects from the set of competing projects proposals which contains only one project from each subset, meets all the requirements concerning the resources constraints, maximize the performance (benefits) and minimize the risk. In second section we present several approaches to the project selection problem. In the third section we present an original zero-one mathematical programming model for project selection problem under risk and limited resources which represent a version of a previous model from (Radulescu and Radulescu, 2001). Our model includes several resources and experts’ opinions which generate the risk. The project risk is greater if experts’ opinions have a greater degree of dispersion. Several versions of the model are discussed. In the fourth section is presented a decision support system (DSS), which we have named PROSEL (PROject analysis and SELection system) to assist managers in making high quality project portfolio selections.

2016

The evaluation and selection of projects is usually referred as critical for the sustainability of the competiveness of organizations, but also as a complex process. If, on one hand, a formal and structured selection process may contribute to the clear communication of objectives and transparency, on the other hand, it may be shrouded with incomplete information and uncertainty about the real potential contribution of projects. The design and development of project selection methodologies should inevitably take into consideration organizational characteristics and constraints. Literature has provided various contributions to this topic, however, their emphasis have been on one or few requirements. This paper presents a review of the requirements for developing and implementing a project evaluation and selection methodology in organizations. This overview can support managers in fine tuning project selection practices in organizations.

South African Journal of Industrial Engineering, 2007

The topic of this paper is about project selection. Project selection is in the initial phase of project management and one of its decision making processes, and the purpose of this paper is to highlight the subjectivity in project selection after showing basic theory and models of project selection, decision making and project portfolio management since project selection is in the project portfolio management process. Approach: The methodology/approach of this paper will be qualitative. It will comprise of reviewing and evaluating the literature on this topic, in addition to some relevant literature-based case studies. Findings: The findings of this paper, although it did not include an empirical study, showed that project selection tends to be subjective yet without claiming that subjectivity is always wrong. Limitations: The limitations of this study are that the evaluation were based on the author's personal judgement, and hence could be subjective as well. Moreover, the evaluating factors could be more adequate. Moreover, the quantifying of the subjectivity was also based on a method developed by the author which by itself is limited. Implications: This paper might fill in some gaps in project selection. It sheds the light on the importance of being aware of the subjective nature of decision making in general and project selection in specific. Moreover, it proposes a systematic way to select projects that might solve some problems in project selection. Originality: This paper comprises of a literature review and a literaturebased case studies chapter. It gives an insight on the behavioural elements in project selection, which is an element embedded in decision making.

A critical part, and sometimes the whole, of any postgraduate programme is the undertaking by the students of a project. One of the most crucial phases in this undertaking is the project selection. It is also this phase where students, invariably, receive no formal training and this could delay the whole undertaking substantially; in some cases leading to premature abandonment of the project or the degree programme altogether. This paper attempts to fill this gap by providing a framework and a methodology that would enable the student to develop a greater comprehension of the problem and to make a rational choice. The framework is based on decision analysis and comprises a two-stage procedure: (a) technical uncertainty and dominance screening and (b) the application of SMART (Simple Multi-Attribute Rating Technique). A hypothetical case is considered to illustrate the methodology and the results are discussed.

2011

It is generally agreed that a project's net present value (NPV) is the most important criterion for the financial and the economic evaluation of a project from either the owner's or economic perspective.. The NPV criterion requires that a project analyst recommend only projects with positive NPV. The next step is to endeavor to maximize the NPV. The reason for trying to maximize the NPV is to extract as much value from the project as possible. Ideally, we should strive to maximize the NPV of incremental net cash flows or net economic benefits. Of course, optimization cannot be pursued blindly; there may be repercussions for other stakeholders that need to be considered in the final decision making. There are other important considerations project analysts often encounter. These considerations include changes in project parameters like the scale of investment, the date of initiation of a project, the length of project life or interdependencies of project components. Each of them is addressed in this chapter by using the criterion of a project's net present value. This chapter explains how project analysts use the criterion of a project's net present value to make such decisions.

Decision Support Systems, 2000

Project portfolio selection is a crucial decision in many organizations which must choose, from a variety of possible investments of available resources, those which can best meet organizational objectives. For example, fi rms involved in engineering, construction, or new product development, and many fi rms investing in information technology projects, often have more proposed projects than resources to support them. They must make informed decisions where the appropriate distribution of investment is complex, due to varying levels of risk, resource requirements, and interaction among the proposed projects. In previous work we have suggested a framework that builds on the strengths of existing project selection methods to help overcome the complexity of project portfolio selection, by simplifying the process through a logical series of steps. This process can be adapted to use those techniques preferred by the organization, and it lends itself to computer decision support. In this paper we discuss the implementation of the on-line portion of our framework in the form of a decision support system (DSS) which we call PASS (Project Analysis and Selection System). We describe the results of laboratory tests undertaken to measure its usability and the quality of its results, compared to manual selection processes, in typical portfolio selection problems. We also discuss the potential of PASS in supporting corporate decision making, through exposure this system has received at several interested companies.

Quality & Quantity, 2011

Information project selection is an important and recurring activity in many organizations. Establishing a systematic project selection model thus is important for organizations. However, information system project selection is made difficult by the need to consider numerous quantitative and qualitative factors, such as business goals, benefits, project risks and limitations in available resources. This study proposes a hybrid measurement model for evaluating the overall effects of information projects. The selection model generates critical, quantitative and qualitative indicators to help managers realize the advantages/disadvantages of operational conditions. This hybrid selection model not only accelerates project evaluation and selection, but also helps organizations optimize project selection and thus achieve sustainable development.

International Transactions in Operational …, 2010

Today, more and more companies are moving towards a project-oriented way of managing their businesses. It sets certain challenges to companies. How to make sure that the selected projects are implementing the strategy of the company? Are the scarce resources (financial, human capital) allocated to the right projects? Which projects to select, which projects to pursue and which to kill? Project portfolio management tackles these problems and has become an important topic in recent years. Nevertheless, different empirical studies highlighted the fact that these models are not used in practice. We propose an approach based on the generation of efficient portfolios by the metaheuristic SSPMO 1 and on an ''objective'' analysis of these portfolios in order to make good recommendation to the portfolio committee or the decision makers.