Project Management Institute

When the DIPP dips

a P&L index for project decisions

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.
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