|
|
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:
-
to develop a better understanding of the
interactions among the variables in business systems that work to
produce economic value
-
to discover which project variables, or factors, are most important for
producing economic value and which factors cause the biggest change in
that value.
-
to analyze and evaluate the effects of various decisions made during the
execution of the project.
Project
Management: 2 Approaches
10 Key Project Leader Skills
Project: Business Synergies |
|
|
Business Systems
Calculator
Adapted from
Project Manager's MBA
by D.J.Cohen and R.J.Graham |
|
Project
-
Project duration (months)
-
Total project salaries ($)
-
Total project investment ($, including
all expenses)
-
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
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 ($)
 |
|
