Study the project evaluation and selection form below:

Question

PROJECT EVALUATION AND SELECTION
Evaluation criteria PROJECT A PROJECT B PROJECT C
Investment R950 000 R1 200 000 R1 220 000
Return on investment 9.1% 18.3% 11.5%
Time to market 10 months 16 months 12 months
Increase in market share 2% 5% 3%
Risk Low High Medium
Chance of success High Medium High
Comments Major competitor already has similar product and may reduce price. New technology may not work as expected. Product features may not

Apply what you have learned about project identification and selection, compare and evaluate the three projects against the evaluation criteria and select the most viable project of the three.
Indicate which project you would select, in the Subject-field;
Motivate why you would select this specific project;
Briefly describe how the PMBOK® approach can be applied to managethe project;
Briefly describe how the agile approach can be applied to manage the project.

Answer 1

Subject: Project Selection - PROJECT B

Selection Justification:

Upon evaluating the three projects using the provided criteria, I would select PROJECT B. Here are the reasons for this decision:

1. Return on Investment (ROI): PROJECT B offers the highest ROI at 18.3%, significantly more than PROJECT A (9.1%) and PROJECT C (11.5%). Higher returns contribute directly to profitability.

2. Market Share Increase: PROJECT B boasts a 5% increase in market share, the highest among the options. This positions the company for better competitive advantage and long-term growth.

3. Risk Assessment: Although PROJECT B has a high-risk rating, the potential high rewards justify this level of risk. Effective risk management strategies can mitigate potential issues.

4. Chance of Success: Despite its high-risk designation, PROJECT B has a medium chance of success, which indicates that there is a reasonable likelihood of achieving the project goals.

5. Time to Market: Although it has the longest time to market (16 months), the expected financial and competitive benefits outweigh the delayed timeline.

PMBOK® Application:

The PMBOK® (Project Management Body of Knowledge) approach can be applied to manage PROJECT B through the following phases:

1. Initiating: Clearly define the project scope, objectives, stakeholders, and obtain necessary approvals.

2. Planning: Develop a comprehensive project management plan that includes defining all project requirements, creating a work breakdown structure (WBS), scheduling tasks, estimating costs, and identifying risks. This phase is crucial for addressing the anticipated high risk associated with the project.

3. Executing: Implement the project according to the plan, coordinating resources, and ensuring adherence to the project schedule and quality standards.

4. Monitoring and Controlling: Regularly track project performance using key performance indicators (KPIs) to ensure it remains on schedule and within budget. Adjust plans as necessary to address any issues or risks that arise.

5. Closing: Conduct a final project review to assess outcomes against objectives, document lessons learned, and formally close the project to facilitate knowledge transfer to future initiatives.

Agile Approach Application:

The agile approach can be applied to manage PROJECT B as follows:

1. Iterative Development: Instead of a linear approach, the project can be divided into smaller, manageable iterations (sprints). This allows for portions of the product to be developed and reviewed frequently, ensuring that any breakthroughs or failures can be addressed in real time.

2. Cross-Functional Teams: Bring together diverse team members from different functions (development, marketing, sales, etc.) to facilitate collaboration, ensuring that all perspectives are considered throughout the project.

3. Frequent Feedback: Establish regular check-ins with stakeholders and end-users to gather feedback on features, usability, and market relevance. This can help refine the project and better align it with user needs and market demands.

4. Flexibility in Scope: The agile methodology emphasizes responding to change over following a fixed plan. Lessons learned or feedback can lead to adjustments in features or timelines based on real-time market reactions or technology changes.

5. Continuous Improvement: At the end of each sprint, conduct retrospectives to discuss what went well, what can improve, and make adjustments for future sprints. This ensures a continuous cycle of improvement and innovation.

In summary, the combination of PROJECT B's high ROI potential and market share growth, together with robust management practices through both PMBOK® and Agile methodologies, makes it the most viable project choice.