One of the types methods you use to select a project is Benefit Measurement Methods of Project Selection. In these methods, you calculate or estimate the benefits you expect from the projects and then depending on the highest benefits, you select a project. However, these methods are more suitable to select projects that are simple and easy to calculate benefits from such projects. In big organizations, where projects are of complicated and are of a large scale, these methods might not be appropriate to select a project.
Considering the magnitude of the project, the organization has a lot on stake. Therefore, you cannot take chances to select a project based on just judgments or simple calculation. Such projects need complicated mathematical calculation before you decide on considering a project. For large and complicated projects, you can use constrained optimization methods to select a project.
In a constrained optimization method, you make complex mathematical calculations to select a project. These mathematical calculations are based on various best and worst case scenarios, and probability of the project outcome. Depending on the outcome of these calculations, you compare the candidate projects and the select a project with the best outcome.
You can use any of the following constrained optimization methods to select a project:
- Linear Programming Method of Project Selection: In this method, you look towards reducing the project cost by efficiently reducing the duration of the project. You look for running an activity in its normal time or the crash time. The crash time of the activity enables you to reduce the activity time or the project as a whole. To know more about this project selection method, refer Linear Programming Method of Project Selection.
- Integer Programming Method of Project Selection: In this method, you look towards a decision that works on integer values and not on fractional values. For example, producing a number of cars can never be fractional. To know more about this project selection method, refer Integer Programming Method of Project Selection.
- Dynamic Programming Method of Project Selection: In this method, you break a complex problem into a sequence of simpler problems. This method provides a general framework of analyzing many problem types. In this framework, you use various optimization techniques to solve a specific aspect of the problem. This method requires your creativity before you can decide if the problem needs to use dynamic programming for its solution. To know more about this project selection method, refer Dynamic Programming Method of Project Selection.
- Multi Objective Programming Method of Project Selection: In this method, you make decision for multiple problems with mathematical optimization. In case, in a multi objective programming, a single solution cannot optimize each of the problems, then the problems are said to be in conflict and there is a probability of multiple optimal solutions. A solution is called as non dominated if values of none of the problem can be optimized without degrading values of another problem. To know more about this project selection method, refer Multi Objective Programming Method of Project Selection.