Project Management: Selection Methods and Case Study Analysis

This report delves into the critical aspects of project selection and management, providing a comprehensive overview of various methods and their applications. It begins by emphasizing the importance of choosing projects wisely to avoid potential difficulties in project succession. The report explores diverse project selection techniques, including the cost-benefit model, payback period method, and net present value, demonstrating how these tools can be utilized effectively. A case study of MAXIMA LT, a Baltic retail trade operator, is used to illustrate the practical application of these methods. The report also covers the project management body of knowledge, outlining the phases of a project (inputs, tools and techniques, and outputs), process groups (initiating, planning, executing, monitoring and controlling, and closing), and knowledge areas (project schedule, quality, risk, and stakeholder management). By examining these elements, the report aims to assess and enhance understanding of the project selection process and its significance in achieving project success.

PRINCIPLE OF
PROJECT
MANGEMENT

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
This is important to choose project wisely because in the absence of it, project managers
may face difficulties in the aspect of succession of project. There are a vital range of project
selection techniques which can be applied in order to select project effectively (Hwang and Ng,
2013). The project report covers about various kinds of methods for selection of project as well
as about project management body of knowledge. In addition, the tasks of project report are
based on the given case study. So overall the objective of project report is to assessing
knowledge about selection process of projects.
MAIN BODY
Overview of case study:
The MAXIMA LT is biggest retail trade operator in the aspect of Baltic states. This
company is growing continuously and expected to have 20 % growth in upcoming year 2007.
Mainly, there shops are at three locations which are Lithuania, Latvia and Estonia. In these
locations, the mangers are responsible for assessing current trends of market and on the basis of
it they send proposal for better enhancement of projects. In addition, the MAXIMA LT is
planning to add on some new services in own portfolios and for this appropriate project selection
is necessary. Their proposed project is to add on new services in their existing portfolio. In
addition, the company’s new services are air ticket voucher service, better payment services for
customers.
Project selection methods:
There are different kind of tools and techniques in order to choose a project. It depends
on managers of projects that how well they assess available alternatives and select effectively.
Such as in the aspect of MAXIMA LT, they have their branches in various kind of locations and
managers of those locations conduct own research for sending proposal of projects to main
branch of MAXIMA LT. Herein, below some types of project selection methods ate mentioned
which can be used by project managers of above business entity. Description of project selection
methods ins demonstrated below that is as follows:
 Cost to benefit model – This can be defined as a kind of method of selection of any
project in which possible amount of cost is related with expected amount of revenues
(Ofori, 2013). Such as in the aspect of above company’s case they are required to choose

one project among alternative and this can be done by help of this method. This is so
because if they will implement this model then their estimated revenue from different
projects can be evaluated effectively. Such as efficiency of their new services can be
assessed by help of this method and on the basis of can be chosen those services which
can be beneficial for them to meet the expected growth by 20 %.
 Payback period method – This can be defined as a kind of model that is related to
estimating total time period which can be taken for recovering total cost of project. Like
in the aspect of above MAXIMA LT, their project about choosing new services in their
exist portfolio can be evaluated by help of this methodology.
 Net present value – It can be defined as a kind of project selection method in which net
present value of a particular project is assessed effectively (Morris, 2013). Basically under
this method, difference between external and internal cash flows is assessed so that
project’s efficiency can be evaluated. Such as in the context of above respective
organization MAXIMA LT, their project of adding new services in their current portfolio
or not can be assessed by use of this method. It is so because by help of this, they can
compute the variance between cash in and outflows in order to assess effectiveness of
their services.
So, these are some method of choosing projects that can be applied by project managers of above
respective organization mentioned in the case study. In addition, among these mentioned
methods cost to benefit model is suitable for analyzing of projects.
Project management body of knowledge –
This can be defined as a set of guidelines in order to management of projects. By help of
these guidelines, the manager of project can easily manage various kinds of aspects of projects.
Basically, a project has below mentioned phases which are as follows such as:
 Inputs – Under this, basic design and plan of project is included. Such as for above
MAXIMA LT, company their input for project can be financial assessment of their new
services which they are going to include in their existing portfolio.
 Tools and techniques – In this, mechanisms which can be applied as accordance of inputs
(Chou and Yang, 2012). Like in the above company of case study, their project manager
may implement cost to benefit model for assessment of their initial project’s efficiency.
 Outputs – This is the last phase of any kind of project in which output of project is
assessed. For above company, the output can be their project’s efficiency in order to meet
the estimated growth in their annual turnover by 20 % through involvement of new
services in their current portfolio of services.
Thus, these are the phases of above company’s project of involving new services in their
portfolio.

Process groups:
There are mainly five process groups of any kind of project which are as follows such as :
 Initiating – This is the first process of project that is associated with the defining new
project in order to start. Such as in the given case study, their project is about to choose
one service among different new services.
 Planning – Under this stage of process, effective planning is done in order to meet the
objective of project. Like in the context of above MAXIMA LT, they are required to
make effective planning before choosing the project.
 Executing – After making planning of project management, next move is to execute the
prepared plan into the action in order to get outcome (Martinsuo and Killen, 2014).
 Monitoring and controlling – In addition, the monitoring and controlling is very useful
for better management of project. This is so because by help of monitoring, project
managers can make suitable changes as per the need of project. Such as in the aspect of
above chosen organization they can apply this phase in order to evaluate effectiveness of
their new services.
 Closing – This is the final step for any kind of project process in which project is closed
as after compilation of goals and objectives (Ahlemann, Kaiser and Heck, 2013). Like in the
aspect of above MAXIMA LT, they may close their project when their estimated target
of gaining 20 % growth in their total profit of year 2007.
Project knowledge area:
There are some knowledge areas of project management area that as follows such as:
 Project schedule management – This is related with effectively management of total time
to be taken in order to complete the project (Jonas and Gemünden, 2012). Such as for
above company’s project time period is of one year starts from year 2006 to 2007 in
which their estimated growth can be evaluated.
 Project quality management – It is related with management of quality of projects by help
of different kind of techniques. Basically, this is necessary for project managers’ to
manage the quality of project so that goals and objective of project can be achieved.
 Project risk management – In the projects, there can be risk of financial and non financial
lose which should be addressed. Like for above company’s project the risk is regarding to
financial lose because they are planning to expand new services that can be costly if
expected outcome not achieved.
 Project stakeholder management – There can be both internal and external stakeholders
with project (Lechler, Edington and Gao, 2012). Such as in the MAXIMA LT company’ s

project there are different kind of stakeholders like customers, suppliers, managers and
many more. .
CONCLUSION
On the basis of above project report it can be concluded that management of project is
necessary. This is role of managers that they should choose the projects effectively. Under the
project report various kinds of methods of selection of project are mentioned and cost to profit
model is chosen. As well as project management body of knowledge and phases of projects are
mentioned. In addition, knowledge area of project is elaborated that consists risk and stakeholder
management.

REFERENCES
Books and journals:
Hwang, B .G. and Ng, W .J., 2013. Project management knowledge and skills for green construction:
Overcoming challenges. International Journal of Project Management. 31(2). pp.272-284.
Ofori, D .F., 2013. Project management practices and critical success factors–a developing country
perspective.
Morris, P., 2013. Reconstructing project management reprised: A knowledge perspective. Project
Management Journal. 44(5). pp.6-23.
Chou, J. S. and Yang, J. G., 2012. Project management knowledge and effects on construction project
outcomes: An empirical study. Project Management Journal. 43(5). pp.47-67.
Martinsuo, M. and Killen, C. P., 2014. Value management in project portfolios: Identifying and assessing
strategic value. Project Management Journal. 45(5). pp.56-70.
Ahlemann, F., El Arbi, F., Kaiser, M. G. and Heck, A., 2013. A process framework for theoretically
grounded prescriptive research in the project management field. International Journal of Project
Management. 31(1). pp.43-56.
Jonas, D., Kock, A. and Gemünden, H .G., 2012. Predicting project portfolio success by measuring
management quality—a longitudinal study. IEEE Transactions on Engineering Management.
60(2). pp.215-226.
Lechler, T .G., Edington, B .H. and Gao, T., 2012. Challenging classic project management: Turning project
uncertainties into business opportunities. Project Management Journal. 43(6). pp.59-69.