cost of quality

any activity that helps you find, prevent or fix defects in your products is included in the cost of quality

stakeholder

stakeholder
someone who has invested money into something, or who has some important connection with it, and therefore is affected by its success or failure
http://www.ldoceonline.com/dictionary/stakeholder

a stakeholder is anyone who is affected by the cost, time or scope of your project.

Project Selection Methods

Project Selection Methods
a project can be selected by using one or more project selection methods that fall into three categories:

1. Benefit measurement methods
2. Constrained optimization methods
3. Expert Judgment

Benefit Measurement Methods

These methods use comparative approaches to compare the benefits obtained from the candidate projects so that the project with the maximum benefit will be selected. These methods fall into three categories:

1. Scoring models
2. Benefit contributions and
3. Economic models.

Scoring Models
A scoring model evaluates projects by using a set of criteria with a weight or score assigned to each criterion.
Benefit Contributions
These methods are based on comparing the benefit contributions from different projects.
Economic Models
An economic model is used to estimate the economic efficiency of a project, and it involves a set of calculations to provide overall financial data about the project.

The common terms involved in economic models are explained in the following list.
Benefit Cost Ratio (BCR)
- This is the value obtained by dividing the benefit by the cost.
Cash flow
- Whereas cash refers to money, cash flow refers to both the money coming in and the money going out of an organization
Internal Return Rate (IRR)
- This is just another way of interpreting the benefit from the project
Present Value (PV) and Net Present Value (NPV)
- To understand these two concepts, understand that one rupee today can buy you more than what one rupee can buy next year. (Inflation)
Opportunity cost
- This refers to selecting a project over another due to the scarcity of resources
Discounted Cash Flow (DCF)
- The discounted cash flow refers to the amount that someone is willing to pay today in anticipation of receiving the cash flow in the future.
Return on Investment (ROI)
- The ROI is the percentage profit from the project.


Constrained Optimization Methods
Constrained optimization methods are concerned with predicting the success of the project. These methods are based on complex mathematical models that use formulae and algorithms to predict the success of a project

These models use the following kinds of algorithms:
• Linear
• Nonlinear
• Dynamic
• Integer
• Multiple objective programming




Expert Judgment (take a look)

Expert judgment is one of the techniques used in project management to accomplish various tasks, including project selection. It refers to making a decision by relying on expert advice from one or more of the following sources:

• Senior management
• An appropriate unit within the organization
• The project stakeholders, including customers and sponsors
• Consultants
• Professional and technical associations
• Industry groups
• Subject matter experts from within or outside of the performing organization
• Project management office (PMO)

The use of expert judgment is not limited to the project selection. It can be and is used in many processes, such as developing a project charter. Expert judgment can be obtained by using a suitable method, such as individual consultation, interview, survey, and panel group discussion.

http://pmpkiriakidis.wikidot.com/project-selection-methods