When the DIPP dips

a P&L index for project decisions

Article Decision Making September 1992

Project Management Journal

Devaux, Stephen A.

How to cite this article:

Devaux, S. A. (1992). When the DIPP dips: a P&L index for project decisions. Project Management Journal, 23(3), 45–49.
There are times in the project life cycle when it must be determined if the economics of the project will require termination of the project, or if the project can feasibly continue.Some methodologies for making these decisions for troubled projects take many factors into account, including subjective factors such as media fall out.A different methodology, the Devaux's Index of Reject Performance (DIPP) isolates economic considerations from other modifiers to keep finances at the focal point of the decision process.Using a hypothetical project to illustrate the methodology, the DIPP method is outlined in detail, using Opportunity Cost, Cannibalization Worth, Project Termination Cost, and Computing Total Project Revenue (TPR) to demonstrate the continued viability of a troubled project.
member content locked

Become a PMI member to gain access

or Join

Advertisement

Advertisement

Related Content

  • Article Decision Making, PM in Academia 1 December 2021

    Project Management Journal

    Top Ten Behavioral Biases in Project Management member content locked

    By Flyvbjerg, Bent This article identifies the 10 most important behavioral biases for project management.

  • Article Complexity, Decision Making, PM in Academia 1 October 2021

    Project Management Journal

    Perceived Complexity of a Project’s Optimal Work Plan Influences Its Likelihood of Adoption by Project Managers member content locked

    By Brokman-Meltzer, Mor | Perez, Dikla | Gelbard, Roy Perceived complexity is a factor when project managers adopt suboptimal work plans, even when optimal plans are readily accessible.

  • Article Decision Making, PM in Academia, Energy & Utilities 1 April 2021

    Project Management Journal

    Executives' Decision Processes at the Front End of Major Projects member content locked

    By Chenger, Denise | Woiceshyn, Jaana This article reports on an inductive multiple-case study of how executives made such decisions in major upstream oil and gas projects.

  • Article Decision Making, Governance, PM in Academia 1 February 2021

    Project Management Journal

    The Missing Link in Project Governance member content locked

    By Ferrer, Paulo Sergio Scoleze | Araújo Galvão, Graziela Darla | de Carvalho, Marly Monteiro This study aims to understand how the information about corporate governance permeates the the project environment and influences decisions.

  • Article Decision Making, PM in Academia 1 December 2020

    Project Management Journal

    Project-As-Practice member content locked

    By Kalogeropoulos, Theodoros | Leopoulos, Vrassidas | Kirytopoulos, Konstantinos | Ventoura, Zoe This article applies Bourdieu’s practice theory within the field of project management through a qualitative study into 17 successful and experienced Greek project managers.

Advertisement