暨南大学《项目管理》chapter 2 organization strategy and project selction知识课件.pptVIP

A Portfolio Management System Design of a project portfolio system: Classification of a project Selection criteria depending upon classification Sources of proposals Evaluating proposals Managing the portfolio of projects. * Edward Tong@2014 copy reserved @Jinan University * Portfolio of Projects by Type FIGURE 2.2 * Edward Tong@2014 copy reserved @Jinan University * A Portfolio Management System Selection Criteria Financial: payback, net present value (NPV), internal rate of return (IRR) Non-financial: projects of strategic importance to the firm. Multi-Weighted Scoring Models Use several weighted selection criteria to evaluate project proposals. * Edward Tong@2014 copy reserved @Jinan University * Financial Models The Payback Model Measures the time the project will take to recover the project investment. Uses more desirable shorter paybacks. Emphasizes cash flows, a key factor in business. Limitations of Payback: Ignores the time value of money. Assumes cash inflows for the investment period (and not beyond). Does not consider profitability. * Edward Tong@2014 copy reserved @Jinan University * Financial Models (cont’d) The Net Present Value (NPV) model Uses management’s minimum desired rate-of-return (discount rate) to compute the present value of all net cash inflows. Positive NPV: project meets minimum desired rate of return and is eligible for further consideration. Negative NPV: project is rejected. * Edward Tong@2014 copy reserved @Jinan University * Example Comparing Two Projects Using Payback Method EXHIBIT 2.3a * Edward Tong@2014 copy reserved @Jinan University * Example Comparing Two Projects Using Net Present Value Method EXHIBIT 2.3b * Edward Tong@2014 copy reserved @Jinan University * Nonfinancial Strategic Criteria To capture larger market share To make it difficult for competitors to enter the market To develop an enabler product, which by its introduction will increase sales in more profitable products To develop core technology that will be