Project Selection and Management Report for Maxima LT Business

This report provides a comprehensive analysis of project selection methods, specifically focusing on their application to Maxima LT, a business operating in the Baltics. The report begins by outlining the importance of project selection and its role in ensuring project success, particularly in the context of Maxima LT's expansion strategy. It then delves into the process of initiating project groups, detailing the key activities involved, such as defining project scope, securing project authorization, and establishing communication processes. The report further explores the development of a project charter, emphasizing its role in clarifying project objectives, expectations, and long-term goals. It outlines the essential inputs for the Maxima LT project charter, including project title, background, business proposition, goals, scope, stakeholders, roles, milestones, budget, and risk assessment. The report then examines various project selection methods, categorizing them into quantitative and qualitative approaches. It highlights the advantages of using Cost Benefit Analysis (CBA) for Maxima LT, emphasizing its simplicity, objectivity, and ability to facilitate comparisons between different projects. The report concludes by summarizing the key findings and reiterating the significance of proper project selection methods and initiation processes for Maxima LT's business development.

Running head: MAXIMA PROJECT MANAGEMENT
MAXIMA PROJECT MANAGEMENT
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction..........................................................................................................................2
Background..........................................................................................................................2
Initiating project groups.......................................................................................................2
Developing a proper charter................................................................................................3
Project selection methods....................................................................................................4
Conclusion...........................................................................................................................6
References............................................................................................................................7

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Introduction
Project selection methods acts important in completion of all kind of projects. The main
reason that project selection method is important is the proper analysis of the projects that will be
undertaken can be executed. This also supports in proper understanding of the success factor of
the project. This report discusses about the different research methods that are used for
performing selection of the project. Description of different project selection methods are also
made. Project initiation process is also well described in the report.
Background
Maxima LT organization is based in Baltics. This organization is highly dependent in the
employees who work for the organization. Maxima focusses on the loyalty of the employees of
the organization. The projects that are undertaken by the business or organization ensures that
the quality of the products are maintained. They have been opening stores in locations where
there are population of around 12,000 to 30,000. Expanding of business have been one of the
major focus of the organization. However the issue that is faced in the process is that there is no
dedicated research and development. They mainly believe in customer loyalty for expanding
their business and hence wise maintaining quality of the project acts as an important aspect.
Hence proper selection of the project acts important.
Initiating project groups
Initiating project groups are one of the major aspect that has to be known and
performed in a proper manner that will be affecting the project completion process. The
processes that acts important in the initiating project groups are namely the skill sets that are
required for starting the project. These are namely setting of permits, gain authorization from the

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different hierarchy of the organization. Setting up of a proper budget is also a major activity that
is to be performed. These are the major activities that act important during starting of the project.
These section includes proper defining of the project (Brioso 2015). Securing of the project in an
effective manner is also one of the major aspect that is considered in the initiating project group.
Establishing proper communication process in between the stakeholders also acts important. The
most important factors that are included in the process are namely developing of a project
charter. Proper identifying of the stakeholders are also important.
Developing a proper charter
The main job role of a project charter is to define the boundaries so that all the
expectations as well as the objectives of the projects are clear form the starting of the project.
These will be also helping in developing a proper long term goal. This is the main reason that
proper assessment of the project can be performed in the initial stages of the project (Wu,
Toussaint & Messer 2017). The inputs of project charter that will be important for the Maxima
LT are namely developing of the title of the project. Developing of the background of the project
will also be described in the section. After proper description of the business proposition the
undertaken project might provide, goals and deliverables that are to be provided will be
described as well (Chaves et al., 2016). This will ensure that the process by which the project
needs to be performed will also be clear. After defining of the goal, proper description of the
scope of the project will also be made. This description of the scope also ensures that proper
understanding of the product that is being considered is decided. Overview of the services will be
well stated as well in the project as well. In scope as well as out scope of the project will be
stated as well in the project charter (Oueslati 2016). Hence this will ensure that proper impact of
the business system as well as the units will be stated as well. After this process, defining of the

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stakeholders will be stated as well. This will help in proper assessment of the resources who will
be taking active part in the process. Hence wise proper development of the roles and
responsibilities of the stakeholder will be provided as well. After this process, the milestones of
the project will be provided as well. This setting of the milestones will ensure that the activities
that are required to be performed by Maxima LT will be stated. After this process the budget that
might be required for completion of the project will be stated as well (Kaiser, El Arbi &
Ahlemann 2015). After deciding the budget of the project, the main aspect that is considered is
that constraints that are present in the operational process are decided in the process. This
deciding of constrains will ensure that proper proposing of the risks that might be present will be
stated. This will act beneficial in execution of the project. After deciding of the constraints,
proper development of the ROI are performed. This is the main reason that proper development
of project charter will be developed (Costantino, Di Gravio & Nonino 2015). The strategic
measurements are also performed. With the help of the strategic measurement better
implementation of strategies can be made. After this process approval of the project is
considered.
Methods for project selection
In this aspect 2 different kinds of project measurement methods are available. The project
measurement methods are namely quantitative method and qualitative method. In the
quantitative method the major options that are available are methods of benefits measurement
and constrained optimization methods.
In case the Benefits measurement methods are chosen the main aspects that are chosen
are namely performing of Cost Benefit Analysis. Another method that can be performed is
Payback period method. Utilization of Net Present value method can be utilized as well (Özcan

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et al., 2018). Calculation of Internal Rate of Return is also considered in this section. Scoring
model is another method that is selected in the process. Economic value added process can also
be used in the process. Opportunity cost is another method that can be used for performing the
project selection method.
Again in case of the Constrained optimization method, the project selection methods that
are available are namely Linear programming, Non Linear method, Integer programming,
Dynamic programming and Multiple objective programming.
However, in case of the qualitative method the main aspect that is chosen is completely
based on the non-financial considerations. These sections are mainly bothered with proper
assessing of the political reasons, security and safety and requests of customer. It can be stated
that external factors are the main aspects that are to be considered for proper assessing of the
project selection.
As per the chosen case study of Maxima LT, the project selection process that can be
selected is usage of the Cost Benefit Analysis. There are several reasons due to which usage of
Cost Benefit Analysis can be performed for the Maxima project execution of project selection.
With the help of CBA, clarity can be gained in sections which was not accepted. Simplicity is
also one of the major aspect that is needed to be considered as a benefit (Tuzkaya & Yolver
2015). With the help of CBA, the complex decisions that are to be taken by Maxima LT gets
easier. CBA also helps in performing proper comparison in between different projects, despite
the dissimilarities that are present in the operational process. Hence this process also benefits the
project selection process. Objectivity of the projects are also well defined in the process. With
the assistance of CBA the main benefit that is received is that proper comparison in between
different projects can be made. This section ensures that proper development of financial

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analysis is performed. The emotional elements were separated in the process as well. Proper goal
setting is also performed with the help of CBA. With the help of CBA Maxima LT will be
capable of understanding the net profit that can be made from the project. The major benefit that
CBA provides is that it helps in understanding the lowest value that can be invested in a
particular project so that the breakeven point is received in the lowest time period. This helps in
performing proper comparison in between different projects (Huang, Zhao & Kudratova 2016).
The accuracy that is maintained during the operational process of CBA is very high. This will
help Maxima LT in proper selection of the project. With the help of CBA proper consideration of
discount rates that can be provided can also be stated (Ghorabaee et al., 2015). Sensitivity
analysis is also performed with the help of CBA. NPV is also calculated with the data that are
gathered with the help of the data that are collected via CBA. Hence it can be stated that CBA is
one of the best process that can be used in the Maxima LT case study.
Conclusion
From the above description, it can be stated that Maxima LT will be requiring the
proper project selection methods that will be helping in proper undertaking of the project.
Another aspect that is considered is that initiating project process is also important. CBA can be
selected for this project selection technique as this provides an accurate understanding of the
financial analysis.

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References
Brioso, X. (2015). Integrating ISO 21500 guidance on project management, lean construction
and PMBOK. Procedia Engineering, 123, 76-84.
Chaves, M. S., Araújo, C. D., Teixeira, L., Rosa, D., Júnior, I., & Nogueira, C. (2016). A new
approach to managing Lessons Learned in PMBoK process groups: the Ballistic 2.0
Model. International journal of information systems and project management, 4(1), 27-
45.
Costantino, F., Di Gravio, G., & Nonino, F. (2015). Project selection in project portfolio
management: An artificial neural network model based on critical success
factors. International Journal of Project Management, 33(8), 1744-1754.
Ghorabaee, M. K., Amiri, M., Sadaghiani, J. S., & Zavadskas, E. K. (2015). Multi-criteria
project selection using an extended VIKOR method with interval type-2 fuzzy
sets. International Journal of Information Technology & Decision Making, 14(05), 993-
1016.
Huang, X., Zhao, T., & Kudratova, S. (2016). Uncertain mean-variance and mean-semivariance
models for optimal project selection and scheduling. Knowledge-Based Systems, 93, 1-11.
Kaiser, M. G., El Arbi, F., & Ahlemann, F. (2015). Successful project portfolio management
beyond project selection techniques: Understanding the role of structural
alignment. International Journal of Project Management, 33(1), 126-139.
Oueslati, A. (2016). The added value of the project selection process. Journal of Defense
Resources Management (JoDRM), 7(1), 75-84.

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Özcan, E., Hamurcu, M., Alakaş, H. M., & Eren, T. (2018). Project selection by using constraint
programming. Journal of Trends in the Development of Machinery and Associated
Technology, 21(1), 89-92.
Tuzkaya, U. R., & Yolver, E. (2015). R&D project selection by integrated grey analytic network
process and grey relational analysis: an implementation for home appliances
company. Journal of Aeronautics and Space Technologies, 8(2), 35-41.
Wu, S., Toussaint, J., & Messer, K. D. (2017). Maximizing benefits in project selection: a hybrid
approach. Applied Economics, 49(40), 4071-4082.