Project Management: Nestle's Project Selection and PMBOK Framework

This report analyzes project selection methods for Nestle, focusing on introducing a chocolate drink. It explores various selection methods such as benefit measurement, economic models, scoring models, net present value, payback period, and constrained optimization. The report then delves into the Project Management Body of Knowledge (PMBOK), outlining the five process groups: initiating, planning, executing, monitoring and controlling, and closing. It also highlights the ten key knowledge areas within PMBOK, including integration, scope, time, cost, quality, human resources, communication, risk, procurement, and stakeholder management. The report concludes by summarizing the key methods and PMBOK applications relevant to Nestle's project management processes.

PROJECT MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Project Selection is a process to assess each project idea and select the project with the highest
priority. Nestle is a Swiss Multinational food and drink processing cooperation headquartered in
Vevey, Vaud, Switzerland. It is the largest food company in the world. This report highlights
different selection method which can be used by the company to select the project for the
company. After that the report goes on to highlights the concept of PMBOK and the area which
need to be looked by the Nestle. In the end report highlights the different Project management
knowledge which need to be looked by the Nestle.
MAIN BODY
As Nestle is looking to Introduce Chocolate drink in the market as there is good trend of the
same there are many project selection method which is in front of the Nestle. Project Selection is
a process to assess each project idea and select the project with the highest priority. Some of the
common selection method which can be used by the Nestle is Benefit Measurement Method,
As every organization which used to select the project always select the project which can give
the maximum amount of written to the organization (Kaiser, El Arbi and Ahlemann, 2015). This
selection method used to take the present value of cash outflow and inflow as a basis to select the
type of selection method. This method used to look the variety of the aspect of the organization
such as Cost Ratio, In which present value of inflow or can be said cost invested in present value
of outflow. In simple word return from the project. Generally project with higher benefit is
selected by the organization. Economical Model is the another aspect in which performance
metric which calculate worth creation for the organization. Nestle has to pic the highest
economical model. Scoring model is the another aspect in which Nestle has to create list of the
prospect project and has to weigh them according on the basis of the importance and their
priorities, then adds the weighted value (Nonino, 2017) . The project which used to score the
highest number is can be selected as the project for the Nestle. Net present value is the another
aspect which can be looked by the Nestle in which difference between the project’s current value
of cash inflow and the current value of cash outflow. As NPV always need to be positive
organization has to make sure that the project which has the highest NPV is selected by the
organization. Payback period is the another aspect which need to be looked by the nestle before
selecting the type of the project which need to be implemented for chocolate drink project in
which Nestle has to find out the expenses related to the project and how long it will take for the
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company to cover up all the expenses. Project which used to take the minimum payback time
need to be selected by the organization.
Constrained optimization is the another selection method which can be used by the
Nestle to select the project for the chocolate drink. This selection method generally used to
conduct the variety of the mathematics calculation to find out the best available project for the
organization. Generally the technique which can be used by the Nestle in Constrained
optimizing technique are Linear programming in which Nestle has to make sure that the project
that they select takes less time to be implemented in the Nestle as it will reduce the cost of the
company. Non Linear Programming aims that solving optimization problems within projects
wherein some of the constraints or functions are nonlinear. Dynamic Programming is the
technique in which Nestle has to differentiate the different aspect of different project and on the
basis of same has to select the simplest project out of all (Pangsri, 2015).
Project Management Body of Knowledge (PMBOK)
PMBOK guides used to define a process or can be said the interrelated action and the activity
which used to be performed in the NESTLE for the process of implementing the new project
“Big Milo Tin” in the organization. In simple words PMBOK is simply a way of transforming
an input into an output using proven tools and techniques that can help drive progress from start
to finish. Processes serves as a road map for keeping the project going in the right direction.
PMBOK is a process which is based on the different principles and different proven practices.
This is generally help in minimizing confusion and uncertainty among the Nestle.
As Per PMBOK every project requires a 5 process group to implement the project in better way
in the organization. The groups are Initiating, It is the process group which need to define the
starting stage or the beginning of the project for the This is the process group which used to
decide or set the logical progression of initial project phases. NHS also has to decide the budget
of the project and has to follow the same which can be formed as a basis to implement the
project in nestle.
Planning Process group, is the process group which used to look at the scope of the
project which has been chosen by the organization. This is the process group which will be
setting the plan in front of the organization and on the basis of that will try to procure the
different resources to implement the project in the Nestle. This group is relevant as it will help
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the company in getting the best available resources from the market. This group will also help
the nestle in having more narrow goal and expectation.
Executing process group, is the group which will concern about managing team
effectively in the organization and also keeping the timeline expectation and benchmark goal in
the mind. Generally this will help the Nestle in maintaining the good amount and quality of
workforce in Nestle (Haass and Azizi, 2019).
Monitoring and control process group, it the process group which looks at addressing on-
going budget considerations, and mitigating unforeseen circumstances that may affect a team’s
ability to meet initial project expectations. This process is relevant for Nestle as it will help the
company in monitoring the future unforeseen issue.
Closing Process Group, This is the process group used to see the different management
skill demonstrated throughout the other interrelated process that guide the project.
PMBOK used to guide 10 knowledge which is very important for the nestle in implementing the
new project namely Integration management, which focuses on looking that all the element are
properly coordinated. Scope management, is the another knowledge in which nestle has to make
sure that project include all the work require. Time management is the next type of knowledge in
which organization has to make sure that project which nestle is looking to implement is
completed on time which will help the company in saving the cost of company. Cost
management information is the next type of the knowledge area in which Nestle has to make
sure that the project which has been completed need to finished in the prescribed budget.
Quality management, it is the knowledge which educate that Nestle has to make sure that
the project which has been completed is able to satisfy the purpose of implementing it. Human
resources management used to make sure that Nestle uses the Human resource in more proficient
way in the organization. Communication management is the another type of the knowledge
which ensure the timely and appropriate generation, collection, dissemination, storage, and
ultimate disposition of project knowledge. Risk management knowledge is the another type of
the knowledge which educate that the Nestle has to evaluate all the risk factor on regular basis so
that the organization is able to find out the solution of the same very easily. Procurement
management is the knowledge related to the different sources through which nestle has to
procure the resources in the organization, so that the efficiency can be increased. Stakeholder
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management knowledge will help nestle in building a relationship with the people and different
organization which are impacted by the new project “Big Milo Tin” of Nestle (Ovadia, 2018).
CONCLUSION
After going through the report it has been summarized that there are two broad method which
can be used by the nestle to select the best project which can suits the type of the project which
company is looking to launch. After that the report summarized that Their are 5 field of the area
which is described by the PMBOK and 10 area of the Knowledge and which can be relevant for
the organization to implement the project in the organization.
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REFERENCES
Books and Journal
Kaiser, M. G., El Arbi, F. and Ahlemann, F., 2015. Successful project portfolio management
beyond project selection techniques: Understanding the role of structural alignment.
International Journal of Project Management. 33(1). pp.126-139.
Nonino, F., 2017. Project Selection Frameworks and Methodologies for Reducing Risks in
Project Portfolio Management. In Project Portfolio Management Strategies for
Effective Organizational Operations (pp. 245-263). IGI Global.
Pangsri, P., 2015. Application of the multi criteria decision making methods for project selection.
Universal Journal of Management. 3(1). pp.15-20.
Nonino, F.,and et.al., 2018. Project Management: Driving Complexity. PMI® Italian Academic
Workshop (Vol. 43). Sapienza Università Editrice.
Haass, O. and Azizi, N., 2019. Knowledge sharing practice in project-oriented organisations: a
practical framework based on project life cycle and project management body of
knowledge. International Journal of Project Organisation and Management. 11(2).
pp.171-197.
Ovadia, S., 2018. Shadow Project Management: Using the Project Management Body of
Knowledge to Informally Manage Library Projects. In Project Management in the
Library Workplace (pp. 115-131). Emerald Publishing Limited.
Varajão, J., Colomo-Palacios, R. and Silva, H., 2017. ISO 21500: 2012 and PMBoK 5 processes
in information systems project management. Computer Standards & Interfaces, 50,
pp.216-222.
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