Full Version
 

Project Management:

MBS

Sensitivity Analysis and Decision Making

 

Business Systems Calculator

Adapted from Project Manager's MBA by D.J.Cohen and R.J.Graham

Project

  • Project duration (months)

  • Total project salaries

  • Total project investment

  • Project investment with capital charge

Market Demand

  • Length of time until the market for this product/service begins (months)

  • Length of time after introduction to peak of market (months)

  • Length of time after peak of market ends (months)

  • Sales volume at market maturity (units/month)

 

Revenues

  • Price ($/unit)

  • Price deterioration (%/year)

  • Expected market share if first to market (%)

  • Expected market share otherwise (%)

Costs

  • Costs of goods sold ($/unit)

  • Cost reduction (%/year)

  • Selling (variable), general and administration (% of revenues)

  • Selling (fixed), general and administration ($/month)

  • Depreciation ($/month)

  • Other expenses ($/month)

  • Tax rate (%)

  • Company weighted average cost of capital (WACC) (%/year)

Breakeven

  • Approximate time to breakeven (months)

Net Cash Flow (NCF)

  • Period of time to be considered in NCF calculation (months)

  • Net cash flow without capital charges ($)

  • Net cash flow with capital charges ($)

  • Net present value ($)

Project Management: 2 Approaches

 

Understanding of business systems can help you in making project management decisions by evaluating them based on their effect on economic value. You can use the business systems calculator for three purposes:

  1. to develop a better understanding of the interactions among the variables in business systems that work to produce economic value

  2. to discover which project variables, or factors, are most important for producing economic value and which factors cause the biggest change in that value.

  3. to analyze and evaluate the effects of various decisions made during the execution of the project.

Project Management: Business Synergies Approach

5 Factors that Make a Project Successful

By: Eric Verzuh, author of The Fast Forward MBA in Project Management

To be successful, a project must have:

  1. Agreement among the project stakeholders – the team, customer, and management  – on the goals of the project... More

    2.

GREAT ModelProject Management: PROJECT PLANNING and MANAGEMENT - Business Spreadsheets

By: Michael S. Dobson

To make your project team function effectively, the first thing you need to know is the GREAT model: Goals; Results; Expectations / Performance; Accountabilities / Abilities; Timing.

The GREAT model specifies what people must know before they can work together effectively... More

10 Key Project Leader Skills

50 Rules of Project Management

The project would not have been started if the truth had been told about the cost and timescale.

The person who says it will take the longest and cost the most is the only one with a clue how to do the job... More

Murphy's Law in Project Management

Firmness of delivery dates is inversely proportional to the tightness of the schedule.... More