Efficient project management includes various tasks that are tracked, reviewed, and managed simultaneously. Selecting the right project and planning its roadmap beforehand makes it easier for project managers to define deliverables, allocate resources, and delegate tasks. There are several project planning best practices that can help you optimize your project selection process and optimize resource management. In one of his articles for Project Management Training Institute, Yad Senapathy talks about the importance of project planning best practices. In addition, he also shares some effective methods to select your projects and optimize their productivity.
How Project Planning Best Practices Help
Senapathy mentions that selecting and planning your projects can reduce your business costs, time duration, and project scope significantly. If your project selection process is effective, it can bring more clarity to your business goals and deliverables. Many project managers’ decisions about selecting a project are intuitive. There are several methods that can help you select a project based on research and data.
Benefit Measurement-Based Project Selection Methods
Here are some project selection methods that are considered ideal for smaller projects and do not involve complex business calculations:
- The Cost-Benefit Ratio is one of the simplest methods to calculate the potential value of a project. It measures the costs of a project investment against the value of the return.
- The Economic Model is quite similar to the Cost-Benefit Ratio technique.
- The Payback Period technique measures the time duration your firm will take to reimburse its expenses spent on a project.
- The Discounted Cash Flow analysis calculates the current value of future profits.
- With the help of discounted cash flow, the Net Present Value aligns the lifecycle of a project with its overall earnings.
- Scoring Models measure the qualities of a project that are important for your team’s and business growth.
- The Internal Rate of Return includes Net Present Value in its calculation by using it as a constant (zero).
- The Opportunity Cost focuses on what your team is missing out on if it chooses one project over the other.
Complex Project Selection Methods
Here are some constrained optimization methods used by big firms to select a project:
- Linear programming
- Nonlinear programming
- Integer programming
- Dynamic programming
- Multiple objective programming
Click on the link to read the original article: https://www.4pmti.com/learn/project-selection-methods/