Analysis required to decide on whether to accept or reject a project
According to Fleming and Koppelman (2016), before accepting or rejecting a project, it is important to consider some factors that may affect the final decision made in the given scenario. The following are some of the aspects that must be examined before accepting or rejecting a new project:
Initial Investment required
According to Fleming and Koppelman, (2016), the original value of an investment that is required for the project is an essential aspect that must be considered. The investment may be regarding monetary resources, the human resources, the raw materials and other elements that may be useful in ensuring the project is successful in the process of preparation, planning, and execution of the same. The investment must be considered because they are essential elements in the vital processes of the project and if some are not availed in due time for the project, there may be delays, and hence the project may suffer from the same. Before acceptance or rejection of any project, it is important to examine where these resources may be obtained, the obstacles for achieving the same and how sustainable these resources may be to the project along its lifeline.
Operational cash flow for the life of the project
Operational cash flow is the costs incurred by the project during its lifeline. According to Kerzner, (2013), these values are vital in the project because they are continually utilized in the process of engaging all activities of the project and linking them to obtaining the given objectives. The availability of this resource, therefore, results in the project being implemented and run smoothly. However, the lack of the same may lead to various challenges and delays in the implementation of the project. In this regard, examining these costs, their range and their positive effect on the project before the acceptance or rejection of the plan is vital.
Benefits and demerits of the project
The various projects proposed always have both the demerits and the merits of the same. It is important that these aspects of the project be examined before the project is accepted or rejected since they affect, to a large extent, the need of the same. According to Fleming, and Koppelman, (2016), if the demerits exceed the merits of the project, then there may not be any need of accepting the project due to the risks involved in the same. Alternatively, if the benefits exceed the demerits, then taking the project would, therefore, mean some improvement in a given area or element will be noticeable with the implementation of the project.
Lifetime of the Project
Different projects exhibit different lifetimes depending on the objectives to be achieved, the resources to be used in achieving these aims, the challenges encountered in the project phases and the complexity of the project. Additionally, different projects may have different timelines based on the needs of the project and the mechanisms that should be employed in given areas of the project itself. Fleming and Koppelman, (2016) acknowledges that it is important to consider the lifetime of a proposed project idea and the various factors that may either lengthen or shorten this life before rejecting or accepting the project altogether.
Performance Criteria used to Assess and Achieve a Positive Outcome and Impact on the Global Supply Chain
The global supply chain is vital for the companies engaging in international business activities and measuring the performance of this aspect is important as it depicts the networking of the organization and how the customers and potential clients interact and engage with this group. The following metrics may be used when measuring the performance of the global supply chain and the underlying impacts of the same.
On time shipping rates
With the global business interactions, the shipping of goods and products is imminent. This is because the firm operates globally and the global supply chains are thus responsible for ensuring the transportation of goods to the clients is done in a compressive manner, which thus results in proper timeliness of shipping these products. According to Qrunfleh, and Tarafdar, (2014), the high performing global supply chains are those whose schedule of shipping is least, and thus the company ensures they are more profitable and their customers are satisfied with the shipping schedules. In this regard, the time takes to ship the products to the given destination of the clients is necessary and may thus be used in examining the performance of the global supply chains.
Based on the global supply chains, the inventory levels depict the performance of the sales as well as the market demands of given products. According to Ahi, and Searcy, (2015), with the higher performance of the global supply chain, the inventory levels should depict how the same is reflected in the market showing the rate of sales and value of items stored awaiting client’s purchases. This is helpful as it can be used to measure how productive and competitive the global supply chain is since it reflects on the selling power of the firm and the stock left for the same.
There are a large number of resources that may be utilized in the global supply chains. These funds may be used in different aspects including communication with the clients and marketing of the products offered by a company. These resources, when fully utilized, may result in improved performance of the global supply chains, resulting in improved sales of the company and hence increased revenues for the same. According to Fawcett, Ellram, and Ogden, (2013), one of the resources that may be utilized is the technology. Technology may be used in improving the communication between the clients and the firm, increasing the delivery times of the projects and even securing the payment methods of the customer and hence increasing this performance. Therefore, the level of utilization of these resources reflects on the general performance of the global supply chains.
With high performing firms, the supply chain has a vast network of companies that engage with the same over time. The working capital reflects the same since the enterprise sells most of their products within the global market, thereby increasing the working capital of this business and hence resulting in improved performance of the global supply chain. According to Qrunfleh and Tarafdar, (2014), working capital is an element of the global supply chain and hence reflects on the overall performance of the same in the market.
Ahi, P., & Searcy, C. (2015). An analysis of metrics used to measure performance in green and sustainable supply chains. Journal of Cleaner Production, 86, 360-377.
Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2013). Supply Chain Management: Pearson New International Edition: From Vision to Implementation. Pearson Higher Ed.
Fleming, Q. W., & Koppelman, J. M. (2016). Earned value project management. Project Management Institute. From http://www.crosstalkonline.org/storage/issue-archives/1998/199807/199807-fleming.pdf
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. From http://www.academia.edu/download/21360035/enma604-syllabus.pdf
Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350.