Methods For Project Selection - Research Paper Example

Project Selection using an integrated AHP In this study we propose a method which is much innovative for the project selection. THE proposed method is the one which is untouched by many due to the certain misbeliefs and the comparison with the alternates available. The main aim and the objectives in the study are to analyze the AHP methods and to identify the themes, ideas and the areas being investigated in the study. The AHP is the one content which is much trendy in current era so the idea and the areas of investigation plays a significant role. The Analytic Hierarchy Process (AHP) make use of many hierarchical structures to position compare criteria and option in categorize to give maintain in decision making responsibilities. The comparisons are to comprehend using pair wise matrix which suits the criterion of the study. This model is competent of implement ting the AHP values and the consistency in the study and the time taken. The boundary of the study deals with the AHP as the process itself with much preferences given to the hierarchy models and the sub hierarchy models associated and the criteria and the sub criteria related.The predetermined scale of the process are to be taken into consideration and the pairwise matrix of the study and the numerical preference value of the same are to be considered. The methodology of the study mainly deal with the strategic objective, they include the qualitative and the quantitative method in the selection of the process. The main methods incorporated are the cost of the money, cost benefit analysis, pay back period, rate of return etc. The result of the AHp process are the rapidness in the operations, easy to understand and the easiness in the decision making in the process. As per the conclusion assessment and collection of projects before venture resolution is normally done using, technological and monetary information. In this study a new methodology is proposed and the easy decision making is done by selecting the best one. The research limitations using the AHP model are: The factors that are needed in project evaluation are numerous. There are both independent as well as inter dependent factors which needs to be employed in project selection. The AHP analysis of projects consists of the evaluation of only independent factors in multicriteria decision making. Using the AHP model appropriate comparisons between the factors of evaluation are not possible. Therefore this method does not evaluate the factors individually. The AHP is considered as a very soft model for evaluation of projects because it does not estimate the actual difficulties accurately. Using the AHP model the main priorities are usually in the analysis of the stakeholders. Thus the appropriation of priorities using the AHP model is not appropriate. The AHP analysis is done mainly by the use of questionnaires but the preparation of the questionnaire is very time consuming and difficult business. Thus the AHP model is very time consuming. Recommendations for using the AHP model are: The AHP model is a very appropriate model for project selection but all the dependent as well as independent factors should be correctly evaluated and measured. Each of the other alternative should be properly measured especially the project’s cost. Each of the alternative decisions needed in the AHP analysis should be measured through the cost incurred in the criteria and also the value generated through the decisive factor using the AHP analysis. The prioritization of projects should be done together by the group of stakeholders so that the prioritization matrix can be easily prepared. The combined viewpoint provided by the stakeholders provides a more accurate data in the AHP analysis. Preparation of interview: Some of the interview questions needed in the AHP analysis is: How have the Pair wise comparisons of projects being made using the AHP analysis in project selection? On what basis has been the priority ranking created for AHP analysis of project selection? Is the questionnaire that has been prepared suitable for project evaluation and will it provide reliable results for the project. Has the sample size been checked which is needed for the AHP analysis? How have been the non participants rated in the sample size in AHP analysis. Are the weights that are taken for evaluation of projects using the AHP analysis sufficient? Have the weights been properly rated accordingly for the purpose of using in the AHP analysis? Conclusion: The research aim is of the particular study is to develop a new framework for project selection using an integrated Analytic Hierarchy Process and also to evaluate a simulation model with Expert Choice Software. Various project techniques models are used to carry out the project. Each of the method has been their own advantages and disadvantages. So that, most suitable project selection method is to be find to carry out the project. And also at the same time most important thing is that the research objectives of the study should be fulfill all the essential requirements. “AHP project is based on one of most popular MCDA method - AHP (Analytic Hierarchy Process). AHP it is easy-understandable and comfortable in use, AHP project will cause that within 20 minutes you learn how to support any multi-criteria decisions. And also AHP project performs all required calculations.” (Manager’s toolkit for making important decisions, n.d). In the study we have identified the various theories and the key concepts which are useful in the project selection and how the priority in the each of them are identified,” The Analytic Hierarchy Process (AHP) is due to Saaty (1980) and is often referred to,eponymously, as the Saaty method. It is popular and widely used, especially in military analysis, though it is not, by any stretch of the imagination, restricted to military problems.” (The analytical hierarchy process, 2004). All the objectives associated with the marketing plan are measurable, achievable, time-specific, non ambiguous and flexible. SMART objectives of the new project are easy and faster to learn. The marketing objective is the commencing point of the any of the marketing plan of the new product launch. Once ecological studies of the new project such as SWOT and PEST are completed the next main task is too carried out the audit for the marketing, their consequence will notify SMART objectives of the particular study. “SMART Objectives” refers to an acronym built around the five leading measures of a strong program. This acronym can be very helpful in writing objects that can be employed to evaluate the quality of programs proposed and carried out.” (Smart: Objectives, 2004). The SMART objectives comprises of various advantages to smoothly completing the projects. The assessment and selection of manufacturing plans previous to investment judgment is usually complete by means of marketing, technological and monetary information. Consequently, environmental impact appraisal and communal impact appraisal are carried out mostly to assure the constitutional agencies. Present day’s globe is characterized by vast alteration in marketplace and monetary conditions, coupled by means of quick advances in know-how. “Consequently, companies are forced to develop new products for current markets, especially in technology-driven or high-tech markets. The changing economic conditions and technologies, combined with increased domestic and global competition, changing customer needs, rapid product obsolescence and the emergence of new markets, necessitate a very fast innovation process. The innovation process can be divided into three main areas: (i) the fuzzy front end or project planning; (ii) the New Product Development (NPD) process; and (iii) commercialization.” (Ayag 2005). The projection selection method are much important and the main method for the selection include the qualitative and the quantitative technique for the identification and for the retreiving of the information,the various methods that are done for the selection are the identification of the investment and how the methods are useful, “The economic and financial analysis of the project is based on the comparison of the cash flow of all costs and benefits resulting from the projects activities. There are four common methods of comparing alternative investments: (1) net present value, (2) Rate of Return, (3)Benefit-Cost analysis, and (4) Pay Back Period. Each of these is dependent on a selected interest rate or discount rate to adjust cash flows at different points in time.” (Mahmoodzadesh, et al 2007, p.2) The main methods used is the decision making approach by determining the value of the money,NPV,rate of return and the cost benefit analysis. The time value of the money include the various kinds of the catastrophic occurring or the happenings in the current era like the inflation and the other natural calamities that are involved in the study. The net present value is important in knowing the present value of the AHP in the value selection and how they are useful in determing the profit incurred at the year,the rate of return help in finding out whether the project has been a success as the rate of return is much feasible or not for the firm,The decision making is the final approach that has to be taken as they are the final result from the analysis of the certain investment decisions. “The subcontractor selection operation includes the determination of evaluation criteria and their weights. This is the most difficult operation to conduct effectively and fairly in the procurement phase.” (Shiau, et al n.d, p.2). The selection criteria is followed by the various methods like the weighing and the scoring of the method by the evaluation and the analysis of the same by using proper assessment and the evaluation. The main aim of the study is to implement the hierarchy structure and to identify the subcontract and to understand how they are useful, to evaluate the certain criteria of the study and to analyse by the weights and to see the various weights that are associated with the same. To develop and implement the system for the managemnt benefits and for the finding out the databases related to the study and the selection module that re useful for the study. The research objectives identified was the models of the financial and the non financial models which are found very useful for the study and the decision making criteria by the method of MCDC for the selection and the identification of the best factors from the different possible alternatives of the study. The frame work was developed and the project was developed using the AHP process.”The Analytic Hierarchy Process is a method for formalizing decision making where there are a limited number of choices but each has a number of attributes and it is difficult to formalize some of those attributes. Note in this example, we did not collect any data (like miles from a preferred point or salary numbers). Instead, we use phrases like “much more important than” to extract the decision makers preferences.” (Analytic hierarchy process (AHP) example, n.d). The certain discussions were conducted by understanding the achievements of the research and how they became effective to the study, the literature review was also analyzed and viability of the research was identified. The choices was made has to be cleared once and how the same was treated is to be considered, Customary project management is inclined to focus mainly on the procedures of controlling projects to successful achievement. To administer projects from their setting up all the way through to actual deliverance of the dealing enabling aims, a diverse project organization approach is wanted. Project management wants to turn out to be ingredient of the business and, with the intention of accomplish that; firms require arriving to terms by means of the company of project management. As businesses require changing their strategies into actuality all the way through programmes and schemes, they have to make sure that projects are professionally distributed and efficiently incorporated into the company. “A business focused project management approach can bridge this gap between strategy and detail action plans. Project management must be equally at home in the boardroom, where projects are often initiated to deliver strategy, as it is at the coal face, where the work is done to realize strategic and business objectives.” (Comninos & Frigenti 2002). The function of a Project Management procedure is to offer businesses and project directors by means of an arrangement and set-up that is ordinary and repeatable, the Project Management process is not exact to a company component or business division. The Project Management procedure should be used by each and every one division for projects precise to them or for schemes that arrive at across numerous business components. Project is carrying out to fulfill various research aims and objectives. “Not every project deserves to exist. Unfortunately, less-deserving projects may be taking up valuable resources anyway. The cure is an organized approach to Project Selection. This bundle provides templates and guidelines to explain the benefits and provide tools for proposing project ideas with a business focus, evaluating ideas using different strategic criteria, and selecting the projects that really should make the cut.” (Project selection: Multi user license, 2010). The various research objectives will be presented to the get together research plan and questions. Most important objectives are, To analyze present financial and non-financial Project selection processes, To assess Multiple Criteria Decision Making (MCDM) for project choice, To recognize most excellent features in project selection and prioritization, To build up a new structure for project selection using an incorporated Analytic Hierarchy Procedure, To simulate and appraise a programme by means of Expert choice software inside this structure etc. “ The project selection process should be designed to ensure that project proposals are evaluated fairly and objectively, with a focus on business value and project viability. Every project begins with a proposal, but not every proposal can or should become a project. In a world of limited resources, choices have to be made. Not every project has viability. And, amongst those that do, limited resources (people, time, money and equipment), and must be applied judiciously. Consider the risks if resources are misapplied” (Managing the project selection process from Pome by Gautham Koppala VT, 2010). The recommendations for the future improvement are to be considered and how they effect the AHP process are identified and the success of the business operations are considered. The analytical hierarchy process have to be considered in such a manner so as to be a success, profitable and fruitful one for the overall operations and actions in the project selection. Reference List Analytic hierarchy process (AHP) example, n.d. [Online] Available at: http://courses.washington.edu/samcrs/ahpexample.pdf [Accessed 22 August 2010]. Ayag, Z., 2005. A fuzzy AHP-based simulation approach to concept evaluation in a NPD environment. [Online] BNet. Available at: http://findarticles.com/p/articles/mi_hb6670/is_9_37/ai_n29204511/ [Accessed 22 August 2010]. Comninos, D. & Frigenti, E., 2002. Business focused project management. [Online] Alusani. Available at: http://www.alusani.co.za/web_files/bfpm.pdf [Accessed 22 August 2010]. Mahmoodzadesh, S. et al., 2007. Project selection by using fuzzy AHP and TOPSIS techniques. [Online] World Academy of Science. Available at: http://docs.google.com/viewer?a=v&q=cache:ddc732PJSmsJ:www.waset.org/journals/waset/v30/v30-64.pdf+selection+of+AHP+projects&hl=en&gl=in&pid=bl&srcid=ADGEESgkrL5l2QJZxPeEjIhrbjHbp5QQ1zxDQz8U9zLRxNnqKvsFib4wViJtjrTQ2HDOPMPai-P-iXgbez5SnqikWu1IesDXPcLqvCKrxVvWu3bZROI49RJF1JNx1nKeLoBjFepFQsHu&sig=AHIEtbRWk_0Upyd1iVO6LRn48wSnQzFXoQ [Accessed 22 August 2010]. Manager’s toolkit for making important decisions, n.d. [Online] AHP Project. Available at: http://www.ahpproject.com/ [Accessed 22 August 2010]. Managing the project selection process from Pome by Gautham Koppala VT, 2010. [Online] Articles base. Available at: http://www.articlesbase.com/management-articles/managing-the-project-selection-process-from-pome-by-gautam-koppala-vt-2266437.html [Accessed 22 August 2010]. Project selection: Multi user license, 2010. [Online] Project Connections. Available at: http://www.projectconnections.com/bundles/project-selection.html [Accessed 22 August 2010]. Shiau, Y. et al., n.d. USE questionnaire and AHP techniques to develop subcontractor selection system. [Online] Google Docs. Available at: http://docs.google.com/viewer?a=v&q=cache:Cu1hg9zTAJoJ:fire.nist.gov/bfrlpubs/build02/PDF/b02143.pdf+ahp+selection+criteria&hl=en&gl=in&pid=bl&srcid=ADGEESh5X35M-wls5UB9kMeviMtkaSgscEIuqS7leWK6y5fAErDDMzOH5dD-g0_whtd4gBA5PQR0YknfIIyPip4cqr8X-N4Ck2KCkZ2kFsZtVLhS3oMkutzTtGXUYuV-uj1qVXNgnITx&sig=AHIEtbTCbqHe1i0-n8_8T7IB9Rxlah3J_A [Accessed 22 August 2010]. Smart: Objectives, 2004. [Online] March of DimesHawali Chapter. Available at: http://docs.google.com/viewer?a=v&q=cache:YMZHbmQoLF4J:www.marchofdimes.com/HI_SMART_objectives.pdf+smart+objectives&hl=en&gl=in&pid=bl&srcid=ADGEESgWSFzPvENEYlSFb-ST-bfDlZTu_12AuPNIBnFaxLapPo0iYUqLrLvlNLyHOipdH0RbeqGf9JXu039ZcQFmon0XJ4iKbARYCY2kq_QQjAsZ4iSpZOBRDksFmFCu-fOx3Uq3Yr3z&sig=AHIEtbRVr481BaN0Lz3lN7abXMWjiFmQ2g [Accessed 22 August 2010]. The analytical hierarchy process, 2004. [Online] Pearson Education Limited. Available at: http://docs.google.com/viewer?a=v&q=cache:bhkOPlAViYsJ:www.booksites.net/download/coyle/student_files/AHP_Technique.pdf+pdf+on+ahp+theory&hl=en&gl=in&pid=bl&srcid=ADGEEShYsC1MuROnCPNy8pWGB0uCDgnrBfYCUWgbKccJC8f8RF414ksHfK0tlQekodTvNtRB_738Kvg6xYFgGZs-VDbm7Jx75kl9jdrzMB0sKI9-IES7Cy4I_UiYfGavWBxjXt3qWs6L&sig=AHIEtbRU-wEim8Zmg8S4qo7j43iqbvJT6Q [Accessed 22 August 2010]. Read More