The organizations that can’t handle all the projects at once, decide which proje

Question

The organizations that can’t handle all the projects at once, decide which projects will maximize profitability. One of the biggest decisions that any organization would have to make is related to the projects they would undertake. Once a proposal has been received, there are numerous factors that need to be considered before an organization decides to take it up. The most feasible option needs to be chosen, keeping in mind the goals and requirements of the organization. This is where project selection methods come into play. A couple of criterions are discussed below:

1.Benefit Measurement Methods

Benefit Measurement is a project selection practice based on the current value of approximate cash outflow and inflow. The aim is to ensure that included projects are implemented and managed with a sustained focus on benefits realization. Benefits reviews assess the amount of benefit that has been realized to date, update estimates of future benefits and, where necessary, suggest corrective action to address deficit in the expected levels of benefits realization.

2.       Constrained Optimization Methods

Constrained Optimization Methods are used for larger projects that require complex and comprehensive mathematical calculations. The following constrained optimization methods are used to select a project:

Explanation / Answer

Each year, many organizations have so many proposals for projects that they can not do all of them. So they have decide which ones to select. What criteria could be used to select projects. Limit your post to discussion of just one or two criteria that could be used.

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