Project Prioritization Matrix

Summary

Used by the leadership team to logically select the optimal projects. It is essentially a C&E matrix of potential projects versus weighted project values based on company metrics that you want to influence. A total value for each project is calculated and plotted against an ease of completion number to determine which projects have the most value for the effort expended.

Answers the questions:
  • What effects do proposed projects have on company metrics (for example, cash flow, cycle time, cost savings, inventory turns, capacity, environmental benefits, and customer satisfaction)?
  • Which projects are most attractive from the combined perspective of both the benefits obtained and their ease of completion?
  • What is the effect on project priorities due to a change in the weighting of the company metrics?
When to Use Purpose
Pre-project Rank potential projects by both their weighted benefits and their relative ease of completion.
Pre-project Reorder the ranking of projects if the weighting of the company’s strategic goals changes (for example, for the next quarter, capacity is critical, so assign a capacity weight of 9 and reduce the weight of all other goals by 2 ).

Data

No data requirements exist because you only use this tool to collect and organize data.

How-To

  1. Develop a list of all project selection criteria you want to improve (for example, savings, cash flow, and cycle time reduction).
  2. Develop a list of potential projects.
  3. Enter the projects along the left side of the matrix and the selection criteria across the top.
  4. Apply a weighting factor to all the selection criteria (for example, cash flow might be critical so you set it to 9 while capacity may not be a current need so you set it to 2). Commonly, a scale of 1 to 10 is used to weight the selection criteria.
  5. Using a team, determine the score for each project relative to each selection criteria. Commonly, a scale of 1 to 10 is used for the scores.
  6. Cross-multiply and sum the products to get the weighted value by project.
  7. Assign an ease-of-completion value for each project and plot each project's ease of completion versus weighted value by project on the two axes of a scatterplot. Note that the project prioritization tool in Quality Companion produces this graph automatically.

Guidelines

After a project prioritization matrix is created, you can easily update it by adding new potential projects and changing the weighting of the project values to reflect changes in organizational priorities.

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