At the beginning of a project, the project manager should produce a document (PID) that
The PID should also include the following:
We shall look at each in turn
What the project includes
What the project does not include
How everyone will know when the project is completed, e.g.
Question: How do we decide whether to proceed with a project?
Question: If there are several ways of running a project, how do we decide which option to choose?
(Also known as financial appraisal)
Add up all the costs and benefits in each year for the duration of the system's likely use (eg. 5 or 7 years)
Apply a "discount factor" to each year's cost or benefit
Add up the discounted costs and benefits
Choose the option with the greatest benefit
|Discounted Cash Flow||-1200||377||355||335||316|
|Net Present Value||186|
If this ^ is positive, project will save money
Victoria University of Wellington, NZ have some detailed notes on discounted cash flows.
Follow these for discussions about investment appraisal:
Organisation of project
Risk is a function of
Risk management tackles these by
Identify the risks
Devise a list of possible precautions
Select from list those that you consider cost effective
"Danger makes men devout" W.Baldwin (in "Beware the cat"), 1584
Link to lecture notes specifically on Risk Management
This will be discussed in more detail in other notes, however...
It is important to state at the beginning of the project how you will ensure the products will be assessed
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