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Homework answers / question archive / In terms of accuracy compare the four methods

or personal example? Have would you use the technique in your line of work?

Please help with the question, here are the four methods explain below.

Ø Method One, Checklist Model - The simplest model of project screening and it is just creating a checklist of criteria that pertains to a choice of projects and then applying them to different possible projects. First, a selection of different criteria must be examined. For example, cost of development, potential return on investment, riskiness of the new venture, stability of the development process, governmental or stakeholder interference, product durability and future market potential. Once the certain criteria are selected based on company strategy, the list of projects will be ranked and the best are then selected. This method has disadvantages such as the subjective nature of the ratings of each criterion and it is difficult to place value on the trade-offs of each criteria (Pinto 2016).

Ø Method Two, Scoring Model - A list of criteria is ranked according to its relative importance. The choice of projects will reflect the desire to maximize the impact of certain criteria on the decision. The way this is accomplished is by assigning importance weights to each criterion, assign score values to each criterion in terms of its rating, multiply importance weights by scores to arrive at a weighted score for each criterion, add the weighted scores to arrive at an overall project score. This method has some disadvantages such as the ease of use may blind some to the false assumptions due to the scoring, the poor relevance and accuracy of the weight of the scores and it is easy to overcount some criteria due to overlapping values (Pinto 2016).

Ø Method Three, The Analytical Hierarchy Process - This method addresses the many technical and managerial problems associated with the decision-making process related to the scoring model, which consists of four steps. Step one, construct a hierarchy of criteria and sub criteria. This allows for clearly defining and developing the criteria for evaluating projects and provides a more coherent and unified vision of organizational strategy. Step two, consists of allocating weights to the criteria developed in step one and where necessary you can split the overall criteria weight among the sub criteria. This helps resolve the problem of double counting which occurs in the scoring model. Step three, consists of assigning numerical values to evaluation dimensions. By definitions means that you provide a grading scale to apply to the criteria, which can be altered to provide either more or less value between grades. The fourth and final step is you multiply the numeric evaluation of the project by the weights assigned to the evaluation criteria and then add the results for all criteria. Overall, this methodology can dramatically improve the process of developing a project proposal (Pinto 2016).

Ø Method Four, Profile Model - Allows managers to plot risk/return options for various alternatives and then select the project that maximizes return while staying within a certain range of minimum acceptable risk. An advantage of this method is that it offers another way to compare project alternatives (risk/return) trade-offs. Some disadvantages include the limit of just the two criteria fields (risk/return), and it is difficult to quantitatively apply a value to the risk (Pinto 2016)