PROJECT SELECTION

1. Develop awareness to potential

   Products

   Operations

   Planning

   Investments

2. Selection methods

   Intuitive

   Scientific

3. Considerations

   Noncompetitive product

   Low volume

   High warranty

   Quality problems

   Vendor problems

   Manufacturing difficulties

   Capital investments

   High manpower requirements

   Bottlenecks

   Potential market

   Government regulations

4. SIVE analysis

   List potential projects

   Potential saving	S
   Implementation cost	C
   Confidence factor	F
   Project priority	R
   R = S/C — F
   Confidence factor	F
   Poor		1
   Questionable		2
   Fair		3
   Good		4
   Very good		5

5. Example	1	2	3
   S =	$60,000	$20,000	$2000
   C =	$10,000	$10,000	$500
   F =	1	5	4
   R =	6	10	16