Subtitles of the Movie

In this movie, we'll pick up where the last movie left off, which was a review of the workbook questions relating to the Develop Project Charter process. Specifically, we ended at question ten, which says what are the two types of selection methods and their sub-methods. The two types that it's referring to is benefit measurement and constrained optimization and yes, you'll want to remember what these are along with their sub-methods. Benefit measurement has five sub-methods: benefit contribution, which includes selection projects based on benefit-cost ratio as a criteria and remember that you always select the highest positive number. The second is scoring models. Scoring models is where you evaluate each project based on a set of pre-determined criteria that has a weight rating assigned to it. Each project is then scored and then the weighted average is taken overall. The third is economic models. This includes net present value, internal rate of return and payback period. You always select the project with the highest net present value if utilizing that method, the highest internal rate of return and the lowest payback period. So the quicker the payback period, the quicker profits begin to come in. The fourth is peer review, which is self explanatory. And lastly, murder board, where the project is justified in front of a panel. Constrained optimization has four sub-methods and for these items all you need to do is recognize that they belong under constrained optimization. They are more technical in nature and you aren't expected to calculate them. These include linear programming, non-linear programming, dynamic programming and multi-objective programming algorithms. Moving on to question eleven, it says of project A has a benefit-cost ratio of five, project B has a benefit-cost ratio of 5.2 and project C has a benefit-cost ratio of 3, which project would you choose. Now you can put what we just reviewed to work. The correct choice is project B because it has the highest benefit-cost ratio. Question twelve also tests you on your understanding of project selection methods. It says based on the following scoring model of projects A, B and C, which project would you recommend that the company move forward with? As you can see in the chart, there are three projects with three different criterias being measured for each. A weight has been assigned to each criteria and your task is to come up with the overall score for each project. And then you would select the project with the highest score. To do this you multiply the rating that was given to the project by the rating assigned to the criteria. For example, in project A, you would multiply three time three for criteria one and then you do the same for the other two criteria ratings and then you add up the column. The score for project A results in 19. Project B is 17 and project C is 15. Therefore, the correct choice is project A. Question thirteen states project A has a net present value of 24,000 dollars, project B has a net present value of 32,000 dollars and project C has a net present value of 25,000 dollars. Which project would you recommend? Remember that you always select the project with the highest net present value. This would make project B the correct choice. Question fourteen states project A has a payback period of 32 months, project B has a payback period of 24 months and project C has a payback period of 60 months. Which project would you choose? For payback period, you select the project with the shortest payback period because that signifies a quicker return on investment and once again, project B is the winner. And that wraps up our review of the Develop Project Charter workbook questions.