Manage Your Health Inc
Manage Your Health Inc.
Assuming we are planning to construct a facility that will boost the efficiency of our business; the options that we have could be as follows. We have four different projects: A, B, C and D.
Criteria used Project A Project B Project C Project D
Compatible with business objectives 20% 85 95 60 50
Has many internal donors 20% 70 85 40 30
Strong customer influence 10% 55 95 55 30
Favorable level of technology 15% 20 90 45 60
Takes shorter time to implement 10% 25 25 60 80
NPV greater than zero 15% 45 75 60 60
Fairly low risks associated with it 10% 30 60 55 9
Weighted Project Scores 100% 51.25 78.75 52.75 54.5
Project management is the discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals. This essay is mainly concerned about project selection, development of a business case and preparation of a project charter for a potential project.
A variety of project selection criteria can be used to determine the viability of a project. These techniques include traditional and modern methods. In this regard, traditional methods include payback period and return on investment. On the other hand, modern methods include net present value, internal rate of return and profitability index method (David, I, C. & Roland, G., 2006).
Besides, the essay shall discuss different aspects of a project rather than the ones cited above. The research shall majorly focus on project comparison, weighted scoring model, business case and project charter.
In this case, it is imperative for us to choose a case study for us to be able to apply these concepts in real life situations according to the stipulations of the question. We can choose a couple of similar projects like buying business vehicles (Martin, S. 2002). This may sound a little inappropriate but it is a project and it will serve the basic purpose of giving an example. The purpose is application of different selection criteria to determine the best project.
The Weighted Scoring Model for Manage Your Health Inc
Weighted scoring model can be defined as a method of scoring options against a requirements list to determine which option best fits the selection criteria. However, according to Zimmer, weighted scoring refers to a technique for putting a semblance of objectivity into a subjective process. Zimmer explained this technique as using a list of criteria to analyze the appropriateness of a particular project. It involves assigning numerical values to the list of projects. These numerical values can also be called weights (Phillips, J., 2003).
The activity can be best carried out by using Microsoft excel. The ability of a project to meet the required specifications or standards can easily be determined by summing the weighted values. The weights must add up to a hundred. The merits of using the weighted scoring model are many. Different individuals can assign weights to the list of potential projects and therefore average scores are used. The viability of scores is determined by a range of values. A variety of criteria from probabilities assigned to ability of a project to meet business objectives can be used.
A business case is a document that is formerly written to explore all the feasible approaches to a problem for the purpose of selecting the option that best suits an organization.
If we were to apply business case in the Manage Your Health Inc scenario, by assuming that the name of the project B above is “From Trash to Capital”. This project could be the best idea compared to constructing new premises to manufacture our products. This kind of a project would use recycling as an alternative to buying new products or constructing premises to manufacture the required products.
In this case, the business case document will look like this:
Manage Your Health Inc
Sponsored by New York city council
Project manager: Joshua M. Kariithi.
The project scope
The project will cover two major geographical locations: the New York City damping sites and recycling will take place within our business headquarters (Jubilee Manufacturers Ltd).This project entails collecting of aluminium tins and other aluminium material from the damping sites for recycling. This will help the business to cut down on its expenses of buying or manufacturing new aluminium products.
The enterprise will employ people and mostly street boys to collect aluminium made wastes from the dumping sites and this will be another way of creating employment for these boys. The tins and cans will be washed through acid and purified before they are melted to create new useful products. In other words, the project will both be important in cleaning the environment and creating jobs.
Objectives of the Manage Your Health Inc Project
To cut down costs of buying or manufacturing new aluminum products.
To create new employment opportunities
To reduce non-biodegradable material from the city’s dumping sites.
To enable the business to manage increases in demand with ease
To set a good example to other companies to help in conserving the environment through recycling other non-biodegradable materials like plastics.
Financial Benefits of Manage Your Health Inc
This project will have great financial benefits. The raw material- aluminum wastes are very cheap to obtain. Selling our finished goods (aluminium products) will earn the business a lot of money. Therefore, the project will enjoy economy of scale by reducing its expenses on raw materials and maximizing its gains. This will make it enjoy a competitive advantage over others.
Apart from financial and direct non-financial benefits, the project will also benefit the communities by creating new employment for them. Since corporate social responsibility is our priority, we will be able to help to conserve the environment, though indirectly, but for the benefit of the community.
In the service charter for the Manage Your Health Inc, the following will be included:
List of stakeholders,
Role and responsibility matrix,
List of Stake holders
The stake holders involved in this project will include the following:
The key resources needed for the project to be complete are as follows:-
Food and other supplies for fulltime workers,
Building material like ballast, cement and sand,
Human resource including supervisors, the technical team and labor force,
Wood and land resource for expansion of business area.
This project is supposed to take three years and two months for it to be completely implemented. Several arrangements have to be made with the New York City Council. This arrangement together with acquisition and leveling of the land is expected to take approximately two months.
Construction of all the required premises is expected to take two and a half years. This includes the factory buildings and all the necessary links to supply of raw material. The key milestone in achieving this goal is the nature of the terrain around the site where the factory is to be located. Leveling the ragged terrain will increase both time and cost estimates (Sebastian, N., 2007).
The project will require construction of a recycling factory which will cost an approximate of 42343562 $. Apart from construction of the factory, the project will incur transportation costs of approximately 635664$ per year. Payment for the aliminium collectors will amount to an approximate of 342784$ per financial year. In total, the cost estimate will be 43322010$.
The following are some of the major risks that the project may face:
Lack of proper utilities to support the high level of technical complexity.
Not many people like working at the damping sites and this may result to inadequacy in labor.
People working at the damping sites may contract infections and thus slowing the work down. This may also force us to provide medical support to them and hence increasing the overall cost expected.
Leveling of the terrain may be a risky affair. Workers may suffer lots of injuries if not so cautious.
David, I, C. & Roland, G. (2006). Global Project Management Handbook. The evolution
Project management”. McGraw-Hill Professional.Lewis, R. I. (2006) Project Management. McGraw-Hill Professional.
Lock, D. (2007) Project Management (9th Ed.) Gower Publishing, Ltd.
Martin, S. (2002). Project Management Pathways. Association for Project Management. APM
Phillips, J. (2003). Project Management Professional Study Guide. McGraw-Hill Professional.Sebastian, N. (2007) 2nd Ed The Definitive Guide to Project Management. London.