Title: Module 2 Introduction
Course: MAN 2582 Intro to Project Management > Section: Module 2

Introduction

Since the goal of business is to make money, projects should be selected on the basis of their ability to make money also. When an organization looks at adopting a project, it must judge that project in light of the company’s mission statement, its vision statement, and the core values of the organization in addition to the financial aspects of the project. A project must fall within the strategic plan and the financials must show a profit for the company.

One of the tools to analyze the viability of the project to an organization is called an SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.

Most organizations at some point will perform a financial analysis of the project. If an organization can invest its money at a certain percentage in the market, the proposed project needs to exceed that investment and, thus, pay for itself. Projects are not cost centers they should be profit centers. We will be looking at net present value (NPV), return on investment (ROI), and payback analysis as three methods of looking at the financial aspects of the project.

Objectives

Upon completion of this module, the student will be able to:

- Discuss the importance of aligning projects with business strategy, the strategic planning process, and using a SWOT analysis
- Explain the four-stage planning process for project selection and provide examples of applying this model to ensure the strategic alignment of projects
- Summarize the various methods for selecting projects and demonstrate how to calculate net present value, return on investment, payback, and the weighted score for a project
- Explain the program selection process and distinguish the differences between programs and projects
- Describe the project portfolio selection process and the five levels of project portfolio management

Readings & Video Resources

An Introduction to Project Management, 4th Edition

- Chapter 2

The following videos are also available in the MAN 2582 Course Resources folder.

- The Basics of Microsoft Project
  - Entering Work Resources
  - Entering Material Resources
  - Entering Cost Resources
  - Assigning Resources to Tasks