PMO Exercise
Consider a medium-sized company that has been serving theircustomer using project management for one year. Sometimes,customers feel that they are poorly informed about the on-goings ofthe project. Their perception is that they are investing time,money and hope into the project without detailed information. Aspart of company’s operational shift, they have to adopt to aproject management office that supports their customer. Make anargument for the type of PMO it now has to adopt (weather station,control tower, or resource pool). What are some of the key concernsthat PMO is going to answer?
Scoring Model Simplified Scoring Model: Suppose the information in Question 5 was supplemented by importance weights for each of the four assessment criteria as follows, where 1 = low importance and 4 = high importance: Importance Weights Assessment Criteria Payoff potential Safety Lack of risk Competitive advantage 3 2 3 Assume, too, that evaluations of high receive a score of 3, medium 2, and low 1. Recreate your project scoring using simplified screening model and reassess the four project choices (A, B, C, and D). Now which project alternative is the best? Why?
NPV Question • A project manager is using the net present value method to make the final decision on which project to undertake. • The company has a 12% required rate of return and expects a 3% rate of inflation for the following four years. • What is the NPV of a project that has cash flows as shown in the table? Show calculations that were done to get your answer Year Cash Flow 0 1 2 3 4 -$250,000 $50,000 $60.000 $70,000 $80,000
Scoring Model Simplified Scoring Model: Suppose the information in Question 5 was supplemented by importance weights for
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