There are two types of project selection methods. These are

• Benefits Measurement Models


• Constrained Optimization Models (Mathematical)

Benefits Measurement project selection methods involve comparing the values of one project against another. There are the following types of Benefit Measurement project selection techniques -

1. Murder Boards - This involves a committee asking tough questions from each project


2. Scoring Models - Different projects are given scores based on certain defined criteria. Project with higher score is selected.


3. Benefits Cost Ratio - This technique involves computing benefits to cost ratio (BCR) for a project. Project with higher BCR is selected.


4. Payback period - This technique involves considering how long it takes back to "pay back" the cost of the project. Inflation or interest earned in not considered in this technique. A project with lower pay back period is better.


5. Discounted Cash Flow - This technique takes into account the interest earned on the money. The Future Value (FV) of projects is compared.

FV=PV(1+i)n
PV is the present value of the project. A project with higher present value is better.

6. Internal Rate of Return (IRR) - A project that has higher IRR is better, as it is giving higher return on money.

Constrained Optimization Project selection methods are used for large projects. These are techniques based on mathematical models. The Constrained Optimization techniques are -

1. Linear Programming


2. Non-Linear Programming


3. Integer Algorithm


4. Dynamic Programming


5. Multi-objective Programming

Detailed information on various selection methods are available from this Powerpoint presentation, I got from google.
20051011costben.ppt

Project_Management_Shravan_2.ppt

This tech animation walks through the process of creating a jasper report from an XML report definition, step by step and with clear navigation.

JasperReports.swf