If you aspire to be a project manager, you will realize many different project types exist. You will need to know all the project selection factors so you find good projects for your company. We are sure you will want to choose from a diverse range of projects. To do that, you must have the proper certifications for the job. Out of the many certifications, the PMP certification is vital for your project management career success. If you are already not PMP Certified, you must look out for the best PMP exam prep course, which will enable you to clear the exam at the earliest and be PMP Certified.
However, once you are PMP certified and also gather experience in project management, you will find a diverse range of projects will emerge for you to choose from. At that time, you should know precisely how to choose the right one. If you are not too sure, the following are some simple tips to help your cause.
There are 4 broad categories of project selection methods:
1.Benefit Measurement methods
What is the Benefit Measurement Method about?
You need to note that the Benefit Measurement is a project selection technique based on the present value of estimated cash outflow and inflow. To begin with in this method the Cost benefits are calculated. Once this is done, they are then compared to other projects for arriving at the right a decision. Some of the techniques that are used for this are as follows:
2. Cost optimization methods
It is true that these methods are pretty time-consuming, but employing these methods is vital for developing an ideal business plan. Many documented methods for selecting a project exist. However, the basic thumb rule is: for small projects that aren’t very complex, the Benefit Measurement Model is useful. On the other hand, a large, complex project, the Constrained Optimization Method is a better fit. Lest us explore these further.
3.Cost Benefit Ratio
It is the ratio which the Present Value of Inflow or the cost invested in a project to the Present Value of Outflow, which is the value of return from the project. In this method you need to note that the Projects having a higher Benefit-Cost Ratio or lower Cost-Benefit Ratio are usually opted for over others.
4. Economic Model
It is another project selection method wherein; calculation is made of the worth-creation of the organization while defining the return on capital. It can in some ways be defined as the net profit after the deduction of taxes and capital expenditure. The projects with the highest Economic Value Added or EVA are usually chosen. Other methods of calculation include the Scoring Model Method, Pay back model and so on.
Conclusion
To conclude we can say that when it comes to project management, choosing the right projects for the benefit of the organization as well as the project manager is important. So, it is a vital process in which you must invest sufficient time. With the right project selection and its handling, we are sure you will be a super successful project manager, so go for it!!