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Project Rating Index

The Project Rating Index (PRI) tool provides a method for measuring the completeness of a project's scope definition using critical elements from the scope definition package. It provides a checklist that project team members can use to determine the level of definition for a project during analysis. The PRI can then be used to predict future project success or failure in terms of cost, schedule, and changes. It allows teams to focus on problem areas or scope definitions. The PRI involves identifying relevant factors, assigning weights, rating projects on factors, and calculating a total index score.

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2K views

Project Rating Index

The Project Rating Index (PRI) tool provides a method for measuring the completeness of a project's scope definition using critical elements from the scope definition package. It provides a checklist that project team members can use to determine the level of definition for a project during analysis. The PRI can then be used to predict future project success or failure in terms of cost, schedule, and changes. It allows teams to focus on problem areas or scope definitions. The PRI involves identifying relevant factors, assigning weights, rating projects on factors, and calculating a total index score.

Uploaded by

gebretsadkan abrha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Project 

Rating Index (PRI) tool offers a method to measure the project scope definition for
completeness. Critical elements within a scope definition package are described in detail. This
provides project team members a checklist or tool for determining the definition of a project at
the time of analysis. The tool could then be used in predicting future project success or failure in
terms of cost, schedule, and changes. It allows project teams to focus on problem areas or scopes.
It is used at multiple stages in the front-end planning process. PRI provides a means for an
individual or a team to estimate the position of industrial development during pre-project
preparation and to find out a score that corresponds to its level of definition.

It is a tool used for evaluating large number of project ideas. It helps in streamlining the process
of preliminary screening. Hence a preliminary evaluation may be converted in project rating
index.

Steps to calculate project rating index→

 Identifying the factors relevant for project rating


 Assigning weights to these factors according to their relative importance (FW)
 Rate the project proposal on various factors using suitable rating scale (FR) (5point scale or
7point scale)
 For each factor multiply the factor rating with factor weight to get factor scores
 All the factor scores are added to get the overall project rating index.
Organization determines a cut off value and the project below this cut off value are rejected.
Opportunity/Product Identification:

LED Manufacturing Project

Rating
Factor Factor
Factor Weight Score
VG G A P VP
5 4 3 2 1
Input Availability
Technical know how
Reasonableness of cost
Adequacy of market
Consistency with
government priorities
Rating Index

Mining Project
Rating
Factor Factor Factor
Weight Score
VG G A P VP
5 4 3 2 1
Entrepreneur’s vision ana firm’s 0.25 √ 1.25
strength
Input requirements-Capital need 0.15 √ 0.45
and Know-how access
Size of market-present and future 0.20 √ 0.80
potentials Technical know how
Cost structure of product and its 0.20 √ 0.60
profit potentials
Consistency with government 0.10 √ 0.30
priorities
Risk quotient in the project’s 0.10 √ 0.40
sustainability
Rating Index 3.75

Education Institution
Rating
Factor Factor Factor
Weight Score
VG G A P VP
5 4 3 2 1
Input Availability 0.20 √ 1
Technical Know-how access 0.1 √ 0.40
Adequacy of market 0.2 √ 0.80
Reasonableness of Cost 0.05 √ 0.15
Complementary relationship with other 0.05 √ 0.20
products
Stability 0.05 √ 0.15
Dependence on firm’s strength 0.15 √ 0.45
Consistency with government priorities 0.1 √ 0.50
Risk quotient in the project’s 0.1 √ 0.40
sustainability
Rating Index
Photocopying Service Based Industry
Rating
Factor Factor
Factor Weight Score
VG G A P VP
5 4 3 2 1
Input Availability 0.30 √
Technical know how 0.25 √
Reasonableness of cost 0.15 √
Adequacy of market 0.25 √
Consistency with 0.05 √
government priorities
Rating Index

Online Money Transactions


Rating
Factor Factor
Factor Weight Score
VG G A P VP
5 4 3 2 1
Input Availability
Technical know how
Reasonableness of cost
Adequacy of market
Consistency with
government priorities
Rating Index

Research and Electronics Equipment Supplier


Rating
Factor Factor Factor
Weight Score
VG G A P VP
5 4 3 2 1
Input Availability 0.25
Technical Know-how access 0.1
Adequacy of market 0.2
Reasonableness of Cost 0.05
Complementary relationship with other 0.05
products
Stability 0.1
Dependence on firm’s strength 0.15
Consistency with government priorities 0.1
Risk quotient in the project’s 0.1
sustainability
Rating Index

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