1. Explain why goal programming is classified as a scoring model. What is the real difference between profitability and scoring models? Describe a model that could fit both categories.
Network—A group of items connected by some common mechanism.
Portfolio—A group or set of projects with varying characteristics.
Pro Forma—Projected or anticipated, usually applied to financial data such as balance sheets and income statements.
Programming—An algorithmic methodology for solving a particular type of complex problem, usually conducted on a computer.
Sensitivity Analysis—Investigation of the effect on the outcome of changing some parameters in the procedure or model.
Simulation—A technique for emulating a process, usually conducted a considerable number of times to understand the process better and measure its outcomes under different policies. Stochastic—Probabilistic, or not deterministic.
8. How does the discounted cash flow method answer some of the criticisms of the payback period and average rate of return methods?
9. What are some advantages and disadvantages of the profit/profitability numeric models?
10. How is sensitivity analysis used in project selection?
11. How does Dean's program evaluation method work?
12. What ethical issues can arise when proposing an 18 month project that you know will require 36 months to complete?
2. Can risk analysis be used for nonproject business decision making? Explain how.
3. Discuss how the following project selection models are used in real-world applications.
(a) Capital investment with discounted cash flow.
(b) Goal programming models.
(c) Simulation models.
4. Why do you think managers underutilize project selection models?
5. Would uncertainty models be classified as profitability models, scoring models, or some other type of model?
6. Contrast validity with reliability. What aspects, if any, are the same?
7. Contrast subjective and objective measures. Give examples of the proper use of each type of measure when evaluating competing projects.
8. Can a measure be reliable, yet invalid? Explain.
9. What are some possible extensions of project evaluation models for the future?
10. Are there certain types of projects that are better suited for nonnumeric selection methods as opposed to numeric ones?
11. Identify some of the ethical issues that can arise in a bid response to an RFP.
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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.