Engage
calculates a total value for each project and plots it against an ease of
completion number to determine which projects have the most value for the
effort expended.
The
Project Prioritization Matrix
answers the following questions.
- What effects do proposed
projects have on company metrics such as, cash flow, cycle time, cost savings,
inventory turns, capacity, environmental benefits, and customer satisfaction?
- Which projects yield high
benefits and are easy to complete?
- Are project priorities
dependent on the weighting of the company metrics?
How-to
- Develop a list of all
project selection criteria you want to improve. For example, consider savings,
cash flow, and cycle time reduction.
- Develop a list of potential
projects.
- Enter the projects along the
left side of the matrix and the selection criteria across the top.
- Apply a weighting factor to
all the selection criteria. Usually, a scale of 1 to 10 is used to weight the
selection criteria. For example, you may set cash flow to 9 and capacity to 2.
- With your team, determine
the score for each project relative to each selection criteria. Usually, a
scale of 1 to 10 is used for the scores.
- Cross-multiply and sum the
products to get the weighted value by project.
- Assign an ease-of-completion
value for each project, then examine the graphs.
After you complete a
Project Prioritization Matrix,
you can update it by adding new potential projects and changing the weighting
of the project values to reflect changes in organizational priorities.
For more information, go to
Add and complete a form.
