PROJ6000 - Principles of Project Management: Project Selection Report

This report delves into the crucial aspects of project selection methods, focusing on the benefit measurement approach and its application, particularly the Net Present Value (NPV) technique. The report uses a case study of SingularLogic to illustrate the practical implementation of these methods, emphasizing the importance of project management knowledge in successful project execution. It explores the two main project selection methodologies: benefit measurement and constrained optimization methods, highlighting the significance of the benefit measurement method in selecting and executing projects within an organization. The report details the implementation of NPV, outlining the necessary steps such as goal identification, project scheduling, stakeholder identification, and risk assessment. Furthermore, it discusses the initiation process group and the essential project documents, emphasizing their roles in developing a comprehensive project management plan and ensuring project success. The report concludes by underscoring the significance of proper research, analysis, and the application of project management knowledge in achieving desired project outcomes.

Running head: PROJECT MANAGEMENT
PROJECT MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
About the case study........................................................................................................................2
Project selection method..................................................................................................................3
Implementation of net present value in Signularlogic.....................................................................4
Initiation process group and project documents..............................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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Introduction
The report aims at demonstrating the knowledge that is used for the purpose of this
selecting a project. For the purpose of developing a project efficiently it is important to ensure
that proper selection method is used. In this report the main concern is to identify the project
selection method through which the project has been selected. In order to have successful project
development, it is important to have proper project management knowledge. Singular logic is the
leading software and integrated IT solution group in Greece. This case study is the selected for
the purpose of analyzing the project management methodologies. The two different types of
project selection methodology are benefit measurement methods and constrained optimization
methods.
About the case study
Singular logic was established in the year of 1984 and he is one of the leading software
and integrated IT solution group. The business is divided into three divisions that targets
different segments of the market. The organization employs a total number of around 740 skilled
professional with 300 certified IT consultants and 140 top-class developers. The aim of the
organization is to offer better services towards the clients. The organization manages huge
operations with the help of skilled employees. However it is important for the organization to
implement proper project management processes so that it becomes easy to carry out a project
successfully (Takagi & Varajão, 2019). In order to evaluate the different factors impacting the
project associated with the singular logic it is important to identify proper method that will help
in overall execution of the project.

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Method selection for the project
Project management is the knowledge that helps in successfully executing a project. This
ensures that with the use of efficient communication skills and project management knowledge
of the project managers it becomes easy to organize the project. Project selection method is
referred to the process that is used for the purpose of analyzing the project opportunities so that it
becomes easy to offer better profits (Jaziri, El-Mahjoub & Boussaffa, 2018). The project
selection method is divided into two parts that are benefit measurement methods and constrained
optimization method. In order to select the case study the method that has been used in these is
projects benefit measurement method. This is a selection technique that helps in implementing
proper project within an organization. This is used on the basis of present value of estimated
cash outflow and inflow. The project carried out within the organization SingularLogic is to
enhance the way services are offered towards the customers. The R&D function has been
designed within the organization for providing better external funding and budget resources
towards the organization. R&D processes are executed in the incremental improvements phase.
The main aim behind using the process within the project is to save the costs and also helps in
aligning the budget. Hence it can be stated that R&D process will help in managing the overall
business activities and will ensure that better service is offered towards the organizational
activities. Benefit measurement method within the project for the purpose of providing a better
way of controlling the flow of cash within the organization (Jamali & Oveisi, 2016). Hence it can
be stated that with the use of proper management and implementation process it will become
easy to organize the project.
The organization has integrated R&D project for the purpose of saving the overall project
cost. This also helps in improving the way project manager can manage the other activities

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(Siegelaub, 2017). The selected methodology benefit measurement method has a wide range of
features these include the cost benefit ratio, economic model, payback period, scoring model, net
present value, opportunity cost and discounted cash flow. Cost benefit ratio is considered to be
one of the most efficient ways of managing the overall cost associated with the project (Joslin,
2019). This also helps in determining the actual investment that is made over the project. On the
other hand economic model is used for the purpose of measuring the overall profit that can be
obtained with the implementation of a project in an organization. This shows the exact amount of
profit that can be obtained after the project completion. Apart from this, the discounted cash flow
analysis is a technique that is used for the purposes of handling the issues that may come along
with the on the amount (Baptista et al., 2016). Discounted cash flow evolution is a method that is
used for the purpose of estimating the overall investment based on the future cash flow. Net
present value is a part of benefit measurement method that helps in managing the project with a
huge current value. Thus it can be stated that in order to organize the data in a large project it is
important to select the net present value.
After evaluating the factors and the different benefits that are offered with the method, it
can be stated that net present value is the most suitable methodology for single logic case study.
The main reason behind stating these as the efficient measure is that it helps in identifying the
invested amount and also organizes the resources (Karasakal & Aker, 2017).
Implementation of net present value in Signularlogic
Project management knowledge is very much essential as this ensures that every factor
associated with the project are organized and managed properly. With the help of efficient
project selection method it becomes easy to organize the benefits. The selected approach is the

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benefit measurement method for evaluating the essential project components. There are certain
steps that are essential for successfully conducting a NPV project selection method within the
singular logic case study (Hopkinson, 2016). With the help of this method it will become easy to
understand the role of R &D project. The steps that are associated with net present value are
discussed below:
1. Goal identification: It is important to determine the objectives that are associated with the
organization so that it becomes easy to execute the project. Once the goal is determined
successfully then it becomes easy to calculate the value.
2. Developing project schedule: it is important to develop the schedule based on which the
project will be carried out (Yilmaz & Antmen, 2019).
3. Identification of stakeholders: it is important to identify the stakeholders that are
associated with the project.
4. Performing risk assessment: it is important to perform proper risk assessment
methodology so that it becomes easy to manage the overall project performance.
Apart from these the NPV is calculated for the initial investment. In order to gain the
knowledge about initial investment it is important to calculate the following components
(Nguyen, Cook & Gunawan, 2018). The help of this method it will become easy to calculate the
overall project components. This includes:
 Identifying the number of periods
 Identifying the overall discounted rate

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Initiation process group and project documents
Initiation process is referred to the faces that are executed while completing the project.
There are several faces associated with the project that needs to be managed efficiently. The
initiation phase that gets executed with the project helps in developing a proper project
management plan. Once the project plan is a determined successfully done it becomes easy to
identify the key deliverable and budget that will be associated with the project. Thus at the time
of initiation it is important to identify the factors that are going to hamper the overall project
performance. Once all the components are organized and managed properly then it becomes easy
to execute the project (Rehacek, 2017). The initiation project group will be responsible for
executing the project successfully with all the necessary requirements. The initiation process
group will also design a document that will have all the details regarding the stakeholders and
their inputs. This will help in evaluating the factors that are going to impact the project positively
as well as negatively. Once the issues are determined effectively then it becomes easy to achieve
the project deliverable (Saltz & Crowston, 2017). The documents that are going to be present it
will have all the necessary details including the timeline and the resource requirements. Hence it
can be stated that with an efficient project document and initiation group it will become easy to
execute the project
Conclusion
Project execution and initiation are considered to be essential component for every
project. Therefore it becomes very important to ensure that proper methods are selected for
initiating a project. The report has a discussed all the essential components that are needed for
selecting an appropriate project for an organization. Thus it can be stated that with the use of

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proper project selection method it becomes easy to organize the different components associated
with the project. Apart from these it has been also observed that proper research and analysis can
lead to successful execution of our project. Thus it can be stated that with the use of proper
knowledge of project management it becomes easy to execute the project successfully. The
report has also developed and discussed all the necessary components for successful execution of
a project.

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References
Baptista, A., Santos, F., Páscoa, J., & Sändig, N. (2016). Project management methodologies as
main tool for current challenges in global economy driving historical changes. Journal of
Advanced Management Science, 4(2).
Hopkinson, M. (2016). The Case for Project Net Present Value (NPV) and NPV Risk
Models. PM World Journal.
Jamali, G., & Oveisi, M. (2016). A study on project management based on PMBOK and
PRINCE2. Modern Applied Science, 10(6), 142-146.
Jaziri, R., El-Mahjoub, O., & Boussaffa, A. (2018). Proposition of A Hybrid Methodology of
Project Management. American Journal of Engineering Research, 7(4), 113-127.
Joslin, R. (2019). Project Management Methodologies, Governance and Success: Insight from
Traditional and Transformative Research. CRC Press.
Karasakal, E., & Aker, P. (2017). A multicriteria sorting approach based on data envelopment
analysis for R&D project selection problem. Omega, 73, 79-92.
Nguyen, T., Cook, S., & Gunawan, I. (2018, April). A functional design of a cost benefit analysis
methodology for transport infrastructure projects. In 2018 5th International Conference
on Industrial Engineering and Applications (ICIEA) (pp. 54-59). IEEE.
Rehacek, P. (2017). Application and usage of the standards for project management and their
comparison. Journal of Engineering and Applied Sciences, 12(4), 994-1002.

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Saltz, J., & Crowston, K. (2017). Comparing data science project management methodologies
via a controlled experiment.
Siegelaub, J. M. (2017). How PRINCE2® Can Complement the PMBOK® Guide and Your
PMP®. APMG International.
Takagi, N., & Varajão, J. (2019). Integration of success management into project management
guides and methodologies-position paper. Procedia Computer Science, 164, 366-372.
Yilmaz, D. E., & Antmen, F. (2019). Project Selection Method Based on Balanced Scorecard
Framework. Business and Economics Research Journal, 10(5), 1179-1187.