Project Selection Methods & Initiation Documents - Uber Driver App

This article discusses the project selection methods and initiation documents for Uber Driver App. It covers Benefit/Cost Ratio, Scoring Model, Payback Period, Net Present Value (NPV) & Internal Rate of Return (IRR). PMBoK methodology is used for initiation and planning phase. Project Charter & Project Plan are also explained.

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Project Selection Methods & Initiation Documents
Uber Driver App
3/28/2019

Uber Driver App
Table of Contents
Introduction...........................................................................................................................................2
Project Selection Methods.....................................................................................................................2
Benefit/Cost Ratio.............................................................................................................................2
Scoring Model...................................................................................................................................2
Payback Period..................................................................................................................................3
Net Present Value (NPV) & Internal Rate of Return (IRR)...............................................................3
Initial Process Groups and Initiation Documents...................................................................................4
Initiation & Planning Phase...............................................................................................................4
Initial Project Document – Project Charter & Project Plan................................................................5
Conclusion.............................................................................................................................................5
References.............................................................................................................................................7
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Uber Driver App
Introduction
The adequate selection of the project for an organization is significant so that the organization
may earn value through the projects and the rate of success of the projects is high. There are a
number of methods that have been defined for the purpose of project selection. The use of
these methods shall be done to determine and prioritize the projects.
Once the project is selected, there is a defined process for the initiation of these projects.
Project Management Body of Knowledge (PMBoK) is a methodology that defines the
initiation documents and process groups that shall be used.
The case study of Uber driver app is selected to determine the project selection methods and
initial process groups & initiation documents1.
Project Selection Methods
Benefit/Cost Ratio
The benefit cost ratio in the project is the ratio between the inflow and outflow of the project.
There will be a number of costs that will be associated with the Uber driver app, such as cost
of designing the app, development costs, cost of application deployment, cost of resources,
and several others2. There will also be numerous benefits that the successful implementation
of the app will provide. The revenues and profits for the company will increase with the
deployment of the app.
The ratio between the cost invested in the application and the benefits earned in return
provide the idea on the selection of the project for the organization. The project with higher
ratio shall be selected and given preference over the other projects.
Scoring Model
It is not always the financial benefits and returns that are considered during the selection of
the application. There are also other parameters and factors that are considered and identified
to make the decision regarding the selection or rejection of the application3.
1 Uber, "The New Driver App | Case Studies | Design At Uber", Uber Design(Webpage, 2019)
<https://www.uber.design/case-studies/driver-app>.
2 Jan Rouwendal, "Indirect Effects In Cost-Benefit Analysis" (2012) 3(01) Journal of Benefit-Cost
Analysis.
3 Jan Vecer, "Dynamic Scoring: Probabilistic Model Selection Based On Utility Maximization"
[2018] SSRN Electronic Journal.
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Uber Driver App
In this case, the criteria such as customer satisfaction level may be kept high on priority. Uber
driver app will promise enhanced customer satisfaction level. Similarly, the implementation
& technical success/compatibility may also be included as one of the criteria. The cost and
budget constraints may also be applied. There shall be a weight assigned to each of these
objectives and a final score shall be assigned by multiplying all these weights. The project
with the highest score shall be assigned with a higher priority over the rest of the projects.
Payback Period
It is not immediately that the projects begin to give returns after their implementation. There
is a certain period of time that the projects take before they begin to give returns. The time
that passes by in between is termed as the payback period. The payback period for some
projects may be high while it may be low for the others4.
In the case of Uber Driver App, the application will be deployed and it will quickly begin to
showcase its impact on the end-users and the overall revenue earned by the organization. The
payback period in this case will be low. Thus, the project shall be given a high priority and
must be selected.
Net Present Value (NPV) & Internal Rate of Return (IRR)
The Net Present Value of a project is the difference between the cash inflow and cash outflow
of the project. NPV is always calculated on the basis of the current value and for a project,
this value shall always be positive.
In the case of the Uber Driver App, the NPV will be positive as the revenues will start early
due to the lower payback period of the project. On the basis of the NPV, Internal Rate of
Return is calculated. It is the rate of interest at which the value of NPV is zero. The value of
cash inflow becomes equal to the cash outflow in such a case. The IRR for the Uber Driver
app will be higher which indicates that the project shall be given priority over the rest of the
projects and applications5.
Apart, from these methods and techniques, there are also some of the other measures that
have been defined. These are termed as the mathematical methods or statistical methods for
determining the projects to be selected. Some of the methods under this technique include
linear programming method, non-linear programming method, integer programming method,
4 Hong-Jen Lin, "Why Should Managers Like Payback Period?" [2010] SSRN Electronic Journal.
5 Jacques Saint-Pierre, "Integration Of Net Present Value (NPV), Economic Value Added (EVA), And
Free Cash Flows (FCF)" [2009] SSRN Electronic Journal.
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Uber Driver App
and dynamic programming method. These mathematical models are also termed as
constrained optimization method. The ones that are described above are the benefit
measurement method. These methods may also be used and applied for the purpose of project
selection in the case of Uber Driver App.
Initial Process Groups and Initiation Documents
Project Management Body of Knowledge (PMBoK) is a methodology that provides the
guidelines for managing the projects. There are a number of different knowledge areas that
are defined under PMBoK that may be applied and utilized in the projects.
The PMBoK guidelines in the project are defined under various process groups. These
include the initiation phase, planning phase, execution phase, control phase, and closure
phase.
Initiation & Planning Phase
The two initial process groups in the PMBoK methodology are initiation and planning
process groups. The same may be applied for the management of the project of Uber Driver
App. In the initiation phase, the business case of the Uber Driver App shall be analysed. The
business case will provide an insight to the requirements and specifications associated with
the app. The process group will also include the other initiation activities, such as kick-off
meeting among the Project Management and the identified resources. Feasibility
determination is another major activity that is conducted under this process group6. The Uber
Driver App shall be determined from the feasibility point of view. The technical, operational,
environmental, and economic feasibility of the application will be determined in this phase
and the results will be presented in a document.
Once the initiation process is completed, there is a planning process group that is carried out.
All the project knowledge areas are planned in this process group. In the case of the Uber
Driver App, the methodology for the application will be determined first. The requirements
of the application in terms of the functional, non-functional, and user requirements will then
be determined7. The scope of the project will be planned and defined in this phase. On the
basis of the project scope, methodology, and requirements, there will be estimations done for
6 Kenneth H. Rose and Greg Indelicato, "Book Review: A Guide To The Project Management Body Of
Knowledge (PMBOK® Guide), Fourth Edition" (2009) 40(2) Project Management Journal.
7 Sandra Matos and Eurico Lopes, "Prince2 Or PMBOK – A Question Of Choice" (2013) 9 Procedia
Technology.
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Uber Driver App
the project in terms of schedule, budget, and effort. There are different estimation techniques
that have been defined and can be used under this process group. The estimations for the
Uber driver App will be done followed by the planning on different project areas. There may
be a number of risks that may emerge during the project and planning of these risks will be
essential. Similarly, the communication among the members of the project team will be
required to be streamlined and planning of the communication guidelines will be required.
The management of changes, quality planning, stakeholder analysis & planning, and resource
planning will be done in this process group.
Initial Project Document – Project Charter & Project Plan
The Project Charter will be prepared in the initiation phase of the project. The charter will
include the initiation details, such as highlights of the business case, high-level requirements
of the project, results of the feasibility studies, project risks that may occur during the project,
summary of the project budget and costs, and details of the project resources. All of this
information will be documented and delivered to the stakeholders for their approval. The
approval of the stakeholders on the Project Charter will mark the formal execution of the
project8.
The information and activities carried out in the planning phase will be documented in the
Project Plan. It will be a detailed document that will cover the project planning information.
The project overview will objectives, goals, and scope will be covered. A detailed account of
the project schedule with duration and dates of each activity will be included. The detailed
project budget along with the roles & responsibilities of the stakeholders and resources will
be covered. The risks associated with the project will be included in the form of a risk
register. The communication plan and guidelines along with the process for the management
of the project changes will be included in the project plan. It will also provide information on
the management of the project quality along with the details of the overall integration of the
Uber Driver App.
Conclusion
Project management is one of the necessary disciplines that need to be streamlined and
organized properly. There are several guidelines that are defined under the project
management methodologies defined. PMBoK is a methodology that includes the information
8 Aurora Díaz Cuevas et al, "Feasibility Study Using The PMBOK® Methodology" (2018)
4(8) International Journal of Advanced Engineering, Management and Science.
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Uber Driver App
on the management of different project areas. There are also numerous methods defined that
may be applied for the selection and prioritization of the projects for the organization. The
use of these methods and the application of the guidelines defined under the PMBoK
methodology shall be done for the management of the Uber Driver App.
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Uber Driver App
References
Cuevas, Aurora DÃaz et al, "Feasibility Study Using The PMBOK® Methodology" (2018)
4(8) International Journal of Advanced Engineering, Management and Science
Lin, Hong-Jen, "Why Should Managers Like Payback Period?" [2010] SSRN Electronic
Journal
Matos, Sandra and Eurico Lopes, "Prince2 Or PMBOK – A Question Of Choice" (2013) 9
Procedia Technology
Rose, Kenneth H. and Greg Indelicato, "Book Review: A Guide To The Project Management
Body Of Knowledge (PMBOK® Guide), Fourth Edition" (2009) 40(2) Project
Management Journal
Rouwendal, Jan, "Indirect Effects In Cost-Benefit Analysis" (2012) 3(01) Journal of Benefit-
Cost Analysis
Saint-Pierre, Jacques, "Integration Of Net Present Value (NPV), Economic Value Added
(EVA), And Free Cash Flows (FCF)" [2009] SSRN Electronic Journal
Vecer, Jan, "Dynamic Scoring: Probabilistic Model Selection Based On Utility
Maximization" [2018] SSRN Electronic Journal
Uber, "The New Driver App | Case Studies | Design At Uber", Uber Design (Webpage, 2019)
<https://www.uber.design/case-studies/driver-app>
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