ASSIGNMENT 1-3

Selection Process
Discussion Question 16
Frieda Jefferis 1/4/2012 AMGT390-E1WW (WI12) Professor Charlotte Carlstrom

Assignment 1-3 Selection Process

16A. Manufacturing Firm

Manufacturing firms are most likely to use a nonnumeric selection method during their project selection process. The more precise method would be Operating/Competitive Necessity because the most common circumstances manufacturing firms face is necessity and competitive markets. This method selects any project that is necessary for continued operation. Factors a manufacturing firm may face are projects of necessity due to age or expansion and competitive with the firms field of manufacturing. If a products life cycle has aged or become unprofitable then a manufacturing firm will have to make a decision to cut the production or enhance the product line to appeal to the customer. The cost and profit are areas of concerns during the planning process. The PM and senior management should research and review the cost to determine if the ROI is profitable and feasible. The product market and competition would be a strong area of concern in the selection and planning process. The product must be competitive in price and structure. During the project selection process, PM and senior management must consider the facility, manpower and funding conditions of the firms position. During the project selection, the firm may decide that a numeric selection method would be appropriate as well because it will help define an economic positioning for the firm. Payback period might be considered because with

Assignment 1-3 Selection Process

would offer a financial assessment of the project and a measure of risk to the firm.

16B. Computer Repair Shop

Computer repair shops can be affected by the economy, fast moving technology, and competition which could create multiple circumstances and conditions that would affect any project. Computer repair shops are most likely to use a numeric selection method during their project selection process. Scoring Method would be an effect suit for the repair shop. The more precise method would be the weighted factor scoring method because most computer repair shops are small businesses facing continuous change and many competitors. Since they are a small business, financial positioning would be a strong concern. The weighted factor scoring method would allow them to score the projects by necessity and by financially effective. This method can be based on quantitative or qualitative data which would allow the inclusion of financial and other hard/soft data.