Screening Model. Assume that the following criteria relevant to the process of screening various project opportunities are weighted in importance as follows:
Quality (5)
Cost (3)
Speed to market (7)
Visibility (5)
Reliability (1)
The correct answer and explanation is :
The screening model helps evaluate and compare different project opportunities based on criteria relevant to the business context. In your case, the criteria are quality, cost, speed to market, visibility, and reliability, with corresponding weights reflecting their relative importance. The formula to calculate the total weighted score for each project would be:
Total Weighted Score = (Quality × Weight for Quality) + (Cost × Weight for Cost) + (Speed to market × Weight for Speed to Market) + (Visibility × Weight for Visibility) + (Reliability × Weight for Reliability)
Explanation:
- Quality (Weight 5): Quality is the most significant factor in this screening model, so projects with higher quality scores will contribute the most to the total score. This could refer to factors like product durability, effectiveness, or customer satisfaction.
- Cost (Weight 3): While cost is an important factor, it has a lower weight than quality. Projects with lower costs could be more attractive, but the quality is considered more important overall.
- Speed to Market (Weight 7): This is a high-priority factor. If a project can be completed and launched more quickly, it will gain a higher score. Time-to-market is a crucial consideration, particularly in industries where trends change rapidly.
- Visibility (Weight 5): Projects that gain visibility, either through brand recognition or market presence, can be very valuable. This factor is weighted the same as quality, showing its importance in market perception and customer reach.
- Reliability (Weight 1): Reliability is the least important factor in this model, with a weight of 1. Projects that are highly reliable but perhaps not the fastest to market or with lower visibility may still be successful but will contribute less to the overall score.
To calculate the total score for any given project, you would score each of these criteria (for example, on a scale from 1 to 10) and multiply the score by the respective weight. The total weighted score will help prioritize projects based on their alignment with the business goals.
However, I can still help you visualize the process of the screening model using a simple explanation. Here’s how it works:
- Score each project on each criterion (e.g., Quality, Cost, etc.) on a scale of 1 to 10.
- Multiply each score by the respective weight (Quality by 5, Cost by 3, etc.).
- Sum the weighted scores to get a total score for each project.
- The project with the highest total score is typically the best option to pursue.
This model helps prioritize projects that best align with your strategic goals (e.g., faster time-to-market, higher quality, etc.).