PRESENTATION ON PROJECT MANAGEMENT

Presentation Topics:

Porter 5 Factor Model; The Experience Curve; Project Rating Index; Triple Constraint of Project .

Porter 5 Factor Model

5 Factor Model:

Bargaining Power of Buyers:

BUYER

COMPANY

Bargaining Power of Supplier:

Paid More

Deliver Less

Threat of Substitutes:

New Entries:

Existing Rivals:

Summary of Porter Model:

The Experience Curve

Experience Curve: The experience curve show how the cost per unit

behaves with respect to the accumulated volume of production .

Graph of Experience Curve:

Using Learning Curves :Learning curves can be used in a variety of ways. Bid Preparation Financial Planning Labor Requirement Estimation

Effects of Experience Curve:

Improved productivity of labor. Increase specialization. Innovation in production method. Value engineering and fine tuning. Balancing production line.

What is Project Rating Index?

Project Rating Index – The Definition

Is an evaluation method that helps management to carry out the process of preliminary screening.

In these method, management assign a score for the project.

If the project gets the score below the desired value, the project is rejected.

Steps of Project Rating Index(PRI):

Identify factors relevant for project rating; Assign weights to these factors; Rate the project proposal on various factors; Factor rating × factor weight = factor score; Add all the factor scores to get the overall project

rating index.

Construction of Rating Index:Factor

Factor Weigh

tRating Factor

Score

VG5

G4

A3

P2

VP1

Input availability 0.25 0.75Technical know-how 0.10 0.40Reasonableness of cost 0.05 0.20Adequacy of market 0.15 0.75Complementary relationship with other products

0.05 0.20

Stability 0.10 0.40 Dependence on firm’s strength 0.20 1.00 Consistency with governmental priorities

0.10 0.30

Rating Index 4.00

Triple Constraint of Project

Scope , Time and Cost – Managing the Triple Constraint

The End