Detail the Project Screening Process as it is applied to an organisation of your choice, describe the role of
those involved and explain how the Multi-Weighted Scoring Models operates
I will now apply the Project screening
process to IKEA. Recently within IKEA they have undertaken some major projects.
The first step of every project begins with the proposed idea. In IKEAs situation the idea generation which
was proposed was the “aisle width project”.
The situation was taken to not only
widen the aisle but to also go higher with them. The idea was put forward after
some research was conducted by way of root cause analysis on aisles which had
forklift damage occurring regularly to some of the stock within the warehouse.
Additional factors such as Brexit and capacity issues which IKEA have been
experiencing due to growth resulted in the decision to also higher the aisles
in order to allow for greater capacity. In both cases the ROI and strategic fit
where assessed. IKEA have long had a strategy of “serving the many people”.
This has resulted in 10% growth year on year within the Dublin store resulted
in capacity issues. The aisle width project worked alongside IKEAs
strategy. At the same time IKEA also
wanted to create more inspiration within the store and completely revamp the
IKEA showroom.
Both projects are needed and
work alongside the strategic fit of the organistion. However both projects
would not be able to be under taken at the same time as this would cause too
much of a disruption to the everyday business. This is where the prioritizing
of projects are crucial. This can be an uncomfortable process for managers. It
is vitally important to remain unbiased to project you feel more passionate
about as opposed to what makes a better business decision. Once the decision
was taken which project to lead with then top level management where presented
with the proposal and the green light given if they were happy with the project
proposal. The main decision in this case was we would more sales location and stock
locations in the warehouse if IKEA created a new inspirational showroom. As it
stood IKEA where tight on space. The decision was taken to increase capacity
and driver efficiency and then create a new inspirational showroom. Some
organization use a project priority system to help them priorities projects.
Once the top level management have said
the project can be implemented, the budget is set after having a minimum of
three contractors price the job. Once the budget has been set IKEA then create
a project team. The project team consists of Individuals who are deemed as
experts in the field being undertaken. In this case the logistics manager was
removed from his role and given the project managers rolled and his position
was filled temporarily. This allows the project manager give their full
attention to the job at hand. IKEAmust also evaluate what resources can be
allocated to the project.
“Management of a portfolio system
requires two major inputs from senior management. First, senior management must
provide guidance in establishing selection criteria that strongly align with
the current organization strategies. Second, senior management must annually
decide how they wish to balance the available organizational resources (people
and capital) among the different types of projects”
Multi-Weighted
Scoring models.
Weighted Scoring. A weighted scoring model is a tool that
provides a systematic process for selecting projects based on many criteria.
Apply the scoring rubric to assign
raw scores for each criterion to
each project. Multiply the raw scores
by the weights to get the weighted
scores for each criterion on each project.
Above is an
example of the weighted scoring model. The total weight of the weighted score
must add to 100%. After this you list all of the requirements deemed applicable
to the project in question. For example these may include time frame, budgets
and other important criteria. In order to get the final weighted score of each
project a simple calculation is required. Please see below example.
The project
with the highest weighted score is deemed the project to choose. An example can
be seen below
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