Wednesday, March 29, 2006

Project Management Ch.2

Project selection

The steps and project selection are:

Develop a set of criteria against which the opportunity will be evaluated. These criteria will probably include the quantitative and qualitative factors.
List assumptions that will be used as the basis for each opportunity.
Gather data and information for each opportunity to help ensure an intelligent decision regarding project selection.
Evaluate each opportunity against the criteria. Once all the data and information has been collected, analyze, and summarized for each opportunity, it should be given to all the individuals who are responsible for performing the evaluation.

Preparing a request for proposal

A request for proposal (RFP) must provide a statement of work (SOW). An SOW deals with the scope of the project, outlining the tassels or work elements the customer wants the contractor or project team to perform.
The RFP must include the customer requirements, which defined specifications and attributes. Requirements cover size, quantity, color, wait, speed, and other physical or operational parameters the contractor's proposed solution must satisfy.
"The RFP should state what deliverables the customer expects the contractor or project team to provide. Deliverables are the tangible items that the contractor is to supply.
The RFP should list any customer supplied items.
The RFP might state the approvals required by the customer.
Some RFP's mention the type of contract the customer intends to use. It could be fixed price, in which case the customer will pay the contractor a fixed amount regardless of how much work actually cost the contractor. Or the contract might be for time and materials.
On RFP might state the payment terms the customer intends to use.
The RFP should state the required schedule for completion of the project.
The RFP should provide instructions for the format and content of the contractor proposals. If the customer is going to compare in a value a proposals from several contractors, it is important that they be consistent and format and content so that a fairy evaluation can be made.
The RFP should indicate the due date by which the customer expects potential contractors to submit proposals.
On RFP may include the evaluation criteria. These other criteria that the customer were used for valuing proposals from competing contractors in order to select the one to perform the project.
Criteria may include:
contractors experience with similar projects
quality of previously completed projects
technical approach proposed by the contractor
what equipment will be used
does the schedule sound reasonable
to the costs sound reasonable
have any items been left out
in rare cases on RFP will indicate the funds the customer has available to spend on the project. Usually, the customer expects contractors to submit a proposal that meets the requirements in the RFP at the most reasonable cost. In some situations, however, it may be helpful for the customer to indicate a ballpark amount to be spent.

Critical success factors

The need must be clearly defined before preparing a request for proposal (RFP)
when selecting a project from among several needs or opportunities, the decision should be based on which project will provide the greatest overall benefits compared to its costs and possible consequences
having a well understood in evaluation and selection process and a well-rounded committee will increase the chances of making the best project selection decision
a good RFP allows contractors or a project team to understand what the customer expects so they can prepare a thorough proposal that is responsive to the customer's needs and requirements
a request for proposal should include a statement of work, customer requirements, expected deliverables, and the criteria by which the customer will evaluate proposals.
On RFP should provide instructions for the format and content of contractor proposals so the customer will be able to make a consistent and fair comparison in evaluation of all the proposals.
Customers must be careful not to provide information to only some of the contractors because it would give these contractors an unfair come tentative advantage in preparing their proposals

Summary

Needs identification is the initial phase of the project lifecycle. The customer identifies a need, a problem, or an opportunity for a better way of doing something. The need and associated requirements are usually written down by the customer in a document called a request for proposal (RFP).

Before a request for proposals prepared, the customer clearly defines a problem or need. This may mean gathering data about the magnitude of the problem. It is important at the customer try to quantify the problem so as to determine whether the expected benefits from implementing a solution outweigh the costs are consequences of conducting the project.

There will be situations where several needs or opportunities have been identified but there are limited funds or resource available to pursue all of them. Project selection involves evaluating and selecting very needs and opportunities, and then deciding which of these should move forward as a project to be implemented. The steps of project selection are: developing a set of criteria against which the opportunity will be of value weighted; listing assumptions about each opportunity; gathering data and information about each opportunity; and evaluating each opportunity against the criteria. Having a well understood evaluation process at a well-rounded evaluation and selection committee will increase the chances of making the best decision that will result in the greatest overall benefit.

The purpose of preparing a request for proposal is to say, comprehensively and in detail, what is required, from the customer's point of view, to address identified need. A good RFP allows contractors or he project team to understand what the customer expect said that they can prepare a thorough proposal that will satisfy the customer's requirement and a realistic price.

RFPs may contain a statement of work; customer requirements for physical or operational parameters, such as size, quantity, color, wait, and speed; deliverables and customer expects the contractor to provide; a list of any customer supplied items; any approvals required by the customer; the type of contract the customer intends to use; the payment terms; the required schedule for completion of the project; instructions for the format and content of the contractor proposals; the Day date by which the customer expects potential contractors to submit proposals; and criteria by which the proposals will be evaluated.

Once the RFP has been prepared, the customer solicits proposals by notifying potential contractors that the RFP is available. Business customers and contractors consider the RFP/proposal process to be a competitive situation. Customers should be careful not to provide one or more contractors with information that is not provided to all interested contractors.

Not all project lifecycles include the preparation of a written request for proposal and subsequent proposals from contractors. Some endeavors move right from defining the need into the project phase of the lifecycle.