Page 38 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 2: Project Analysis and Selection

Oregon has implemented an innovative health plan that rations health care by developing Notes
a prioritized list of treatments.
Forecast is an estimate of future events and trends and is arrived at by systematically
combining past data and projecting it forward in a predetermine a manner.
Market and demand analysis of various types are undertaken to meet specific requirements
of planning and decision-making.
Demand forecasting is the estimate of future demand.
Demand forecasting can be at the level of a firm or an industry or at the national or
national or international level.
Accuracy in forecast is measured in terms of past forecasts against current sales and by the
percentage of deviation form actual demand.

Forecasts of demand must be reasonable, consistent and plausible.
2.10 Keywords

Healthcare Rationing: Rationing refers to the conscious decision to exclude certain people from
a service or treatment that they need. Rationing takes many forms.
Mineral Products: In assessing mineral raw materials, information is required on the quantum
of exploitable deposits and the properties of the raw materials.
Oregon Health Plan: Oregon has implemented an innovative health plan that rations health
care by developing a prioritized list of treatments.
Project Initiation: The purpose of Project Initiation is to begin to define the overall parameters
of a project and establish the appropriate project management and quality environment required
to complete the project.

Resource Allocation: Resource allocation is the distribution of resources – usually financial–
among competing groups of people or programs.

2.11 Review Questions

1. Describe in brief, the project initiation and resource allocation.
2. Why is resource allocation needed?
3. What do you mean by healthcare rationing?

4. Explain te market analysis and demand analysis.
5. Describe, in detail the time horizon of demand forecasting.

6. Describe the need for demand forecasting.
7. What are the levels of demand forecasting.
8. Discuss the criteria for a good forecasting method.

9. What are the methods of forecasting demand?
10. Discuss the Delphi method of demand forecasting.

LOVELY PROFESSIONAL UNIVERSITY 33