FIGURE 11-6. Illustration of a checklist for three projects. Source: William Souder, Project Selection and Economic Appraisal, p. 68.

a checklist rating system to evaluate three projects at once. Figure 11-7 shows a scoring model for multiple projects using weighted averages.

If the project is deemed feasible and a good fit with the strategic plan, then the project is prioritized for development along with other projects. Once feasibility is determined, a benefit-to-cost analysis is performed to validate that the project will, if executed correctly, provide the required financial and nonfinancial benefits. Benefit-to-cost analyses require significantly more information to be scrutinized than is usually available during a feasibility study. This can be an expensive proposition.

Estimating benefits and costs in a timely manner is very difficult. Benefits are often defined as:

• Tangible benefits for which dollars may be reasonably quantified and measured.

• Intangible benefits that may be quantified in units other than dollars or may be identified and described subjectively.

Costs are significantly more difficult to quantify. The minimum costs that must be determined are those that specifically are used for comparison to the benefits. These include:

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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