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Project Valuation

Project Valuation

Although there are many different methods for selecting projects, they may be grouped into two fundamental types for the purpose of determining their value to the organization:

  1. Non-numeric.
  2. Numeric.

The former does not use numbers for valuation, but the latter does. Some process improvement or software installation projects can be hard to quantify when the project seeks to increase the satisfaction of physicians, staff, and patients.

Instructions

Discuss how you will determine the expected value of the project. Explain whether your proposed project is easily quantified or whether you will need to use some non-numeric information for calculating the value of the project.

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Include the following:

  • Examine the sources of information that can be used for budgeting.
  • Determine the probability that the information is correct. Would simulation increase the accuracy? Why or why not?

 

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