...International Journal of Project Management Vol. 17, No. 4, pp. 207±216, 1999 # 1999 Published by Elsevier Science Ltd and IPMA. All rights reserved Printed in Great Britain 0263-7863/99 $ - see front matter PII: S0263-7863(98)00032-5 An integrated framework for project portfolio selection NP Archer* and F Ghasemzadeh Michael G. DeGroote School of Business, McMaster University, Hamilton, Ontario, Canada L8S 4M4 The task of selecting project portfolios is an important and recurring activity in many organizations. There are many techniques available to assist in this process, but no integrated framework for carrying it out. This paper simpli®es the project portfolio selection process by developing a framework which separates the work into distinct stages. Each stage accomplishes a particular objective and creates inputs to the next stage. At the same time, users are free to choose the techniques they ®nd the most suitable for each stage, or in some cases to omit or modify a stage if this will simplify and expedite the process. The framework may be implemented in the form of a decision support system, and a prototype system is described which supports many of the related decision making activities. # 1999 Published by Elsevier Science Ltd and IPMA. All rights reserved Keywords: Project portfolio selection, project management, integrated framework, decision support Introduction Project portfolio selection and the associated activity of managing selected projects throughout their...
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...H A P T E R 3 Project Selection and Portfolio Management Chapter Outline 70 Project Management: Achieving Competitive Advantage, Second Edition, by Jeffrey K. Pinto. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc. 000200010270649984 PROJECT PROFILE Project Selection Procedures: A Cross-Industry Sampler INTRODUCTION 3.1 PROJECT SELECTION 3.2 APPROACHES TO PROJECT SCREENING AND SELECTION Method One: Checklist Model Method Two: Simplified Scoring Models Limitations of Scoring Models Method Three: The Analytical Hierarchy Process Method Four: Profile Models 3.3 FINANCIAL MODELS Payback Period Net Present Value Discounted Payback Internal Rate of Return Options Models Choosing a Project Selection Approach PROJECT PROFILE Project Selection and Screening at GE: The Tollgate Process 3.4 PROJECT PORTFOLIO MANAGEMENT Objectives and Initiatives Developing a Proactive Portfolio Keys to Successful Project Portfolio Management Problems in Implementing Portfolio Management Summary Key Terms Solved Problems Discussion Questions Problems Case Study 3.1 Keflavik Paper Company Project Profile Case Study 3.2 Project Selection at Nova Western, Inc. Internet Exercises Notes Chapter Objectives After completing this chapter you should be able to: 1. Explain six criteria for a useful project-selection/screening model. 2. Understand how to employ checklists and simple scoring models to select projects. 3. Use more sophisticated...
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...PROJECT MANAGEMENT INDIVIDUAL ASSIGNMENT ANSWER-1 In the article “The ‘‘real’’ success factors on projects” Cooke-Davies mentions 12 factors for ensuring the success of a project. Cooke-Davies differentiates between project success and project management success. He distinguishes success criteria which he describes as the benchmark to gauge success or failure and success factors which are management inputs that lead to project successes. In addition, he puts light on the existence of a relationship between project management and operations management before showing us how a successful project aligns with corporate success. On the other hand the NTCP is a part of adaptive project management approach that helps managers classify complex projects according to four dimensions namely novelty, technology, complexity, and pace. As per Cooke-Davies, project failure happens due to inadequate knowledge on the 12 critical factors while the NTCP model shows that whenever a project fails, there is always a mismatch between the risk profile of that project and the management style used to tackle it. Unlike Cooke-Davies, the diamond model goes beyond the Iron triangle of cost, time and quality and assigns the responsibility of attaining the metrics for project success solely on the manager thereby professing a unique style of management as required by that project. So at the start a manager must ask "What are the major sources of complexity and risk on this project?" and “What are...
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...1. In “The real success factors on projects” Terry Cook-Davies presents several factors that can lead to success of individual projects, project management success and the difference between success factors and success criteria. In one page, discuss how the NTCP model presented in class affects his conclusions. In the article “The ‘‘real’’ success factors on projects” Cooke-Davies mentions 12 factors for ensuring the success of a project. Cooke-Davies differentiates between project success and project management success. He distinguishes success criteria which he describes as the benchmark to gauge success or failure and success factors which are management inputs that lead to project successes. In addition, he puts light on the existence of a relationship between project management and operations management before showing us how a successful project aligns with corporate success. On the other hand the NTCP is a part of adaptive project management approach that helps managers classify complex projects according to four dimensions namely novelty, technology, complexity, and pace. As per Cooke-Davies, project failure happens due to inadequate knowledge on the 12 critical factors while the NTCP model shows that whenever a project fails, there is always a mismatch between the risk profile of that project and the management style used to tackle it. Unlike Cooke-Davies, the diamond model goes beyond the Iron triangle of cost, time and quality and assigns the responsibility of attaining...
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...Re: Proposing a Project Portfolio Evaluation and Selection Process Executive Summary Taking into account the poor performance of our current projects due to a weak portfolio management process in place, the Operations SBU has come to the determination that if we are to move forward in accommodating new projects along with our existing ones, the current system must be reviewed and redesigned for better decision-making. This proposal defines a framework for project portfolio evaluation and a project selection for adoption and it elaborates on the two phases that involve project screening, selection, prioritizing and balancing. More emphasis is given to the project selection criteria and score model as this is the main area where the gap of knowledge has been identified. Rationale Our recent organizational determination to sustain by controlling costs and expanding our frontiers shall require much effort from all our SBUs and most importantly, it is crucial that we are able to incubate a proper process that shall boost good decision-making and mitigate conflicts when we come to screening multimillion dollar projects and implementing them as part of our operations. The said process shall be about evaluating our project portfolio and devising a methodology of selecting specific projects with the highest probability of helping our company achieve its strategic goals and fulfill our mission. From the Operations SBU perspective, the implementation of new projects without proper categorization...
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...5 3.1 Project Objective 5 3.2 Deliverables 5 3.3 Technical Requirements 5 3.3.1 Laptop Specifications 5 3.3.2 Desktop (All in one) Specifications 5 3.4 Milestones 6 3.5 Limits and Exclusions 6 3.6 Review with the Client 6 3.7 Project Accomplishment Strategies 6 4.0 Deliverables description 7 5.0 Project Schedule 13 7.0 Time Phased Budget 17 8.0 Risk Management 21 8.1 Risk Identification 21 8.1.1 Planning and initiating 21 8.1.2 Products/Services 22 8.1.3 Procurement process 22 8.1.4 Suppliers 22 8.1.4 Contracting 22 8.1.5 Delivery 22 8.1.6 Management 22 8.2 Risk Analysis and Assessment 22 8.3 Risk Mitigation Plan 25 8.4 Contingency Plan 27 9.0 Conclusion 27 10.0 References 28 1.0 Abstract This Request for proposal (RFP) has been prepared for RMIT University procurement department to facilitate procurement activities within RMIT. The procurement department of RMIT received order from College of Business to procure and deliver fifty laptops and fifty desktops for the new hundred higher degree research students. RMIT procurement has invited potential project management companies to submit request for proposal to facilitate this project. As a project management company ACBMW Consulting Group has prepared this RFP to facilitate this project. 2.0 Introduction RMIT University procurement department would like to procure new laptops and desktops for new higher degree research students. RMIT procurement has requested potential project management...
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...has to undertake certain projects which will meet the need to achieve the objective of increasing the number of students in the next 3 years. The strategies should be aligned with the project objectives before making a decision on which projects should be selected The selection process will begin with understanding the cost, strategies, objective, value & risks. In order to prioritize the project, we have to follow a structured process and consolidate a plan. We need to look into the following before we start, • Alignment with the strategic & practical plan of the educational Institute • Balance between maintenance projects & Investment projects • Allocation of R&D and right number of resources to complete the projects • Allocation of marketing expenditure & resources • Effective use of the resources in the best interest of the organizational goal • Non-Financial benefits One of the primary factors to consider on selecting the projects is the expected ROI on these projects. But the above needs to be considered too for prioritization. PRIORITIZATION & SELECTION OF CANDIDATE PROJECTS The Objective of the Educational Institution is to increase the number of students in the next three years using marketing & promotional strategies. The Projects are for the Business Development SBU which is focused on achieving the organization objectives by using appropriate strategies. To evaluate candidate projects for the 3 year plan, you...
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...: | An expert's opinion on an issue may be subjective but very accurate. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 2. | Question : | The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 0 of 5 | | Comments: | | | | Question 3. | Question : | A simplified scoring model addresses all the weakness of a checklist model for project screening. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 4. | Question : | The most important thing to remember when using project selection models is to be consistent and objective. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 5. | Question : | Personnel costs comprise one of the highest sources of project expense. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 6. | Question : | Souder's...
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...Tesla Motors Portfolio, Program and Project Management Course Project Contents Introduction 3 Organization’s Strategic Plan 3 Organization Strategic Capacity Plan 4 Portfolio Management Process 8 Project Selection Process 15 Program Management Plan 17 Risk Management Plan 20 Change Management 21 Resource Utilization Plan 24 Personnel 24 Production Line 25 Inventory 25 Charts and Graphs 26 Organizational Influence Chart 26 Project Selection Process Flowchart 27 Conclusion 27 Reference: 29 Introduction Tesla Motors designs and manufactures the most advanced electric vehicles and electric power trains in the world. Tesla Motors do not compromise on innovation, performance, or appeal. Nor does Tesla Motors compromise commitment to hiring and developing the best from around the world. Tesla Motors work in small, focused teams, which much like our products are agile, efficient, and focused on excellence. Tesla Motors are driven by work that contributes to a global impact and are passionate about our future in the automotive industry. The pace is fast, the work is stimulating, structure is limited, and innovation is expected. Tesla Motors is headquartered in Palo Alto, California, runs satellite offices in Los Angeles and Maidenhead, UK, and operates retail locations around the world. Whatever location you choose, you'll be surrounded by the best of the best, working together to impact the future of transportation. Tesla Motors is committed...
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...One Level: M Module Number: MMB026 Module Name: Project Management Credit Value: 15 Date Handed Out: Week Commencing 26th May 2014 Date Due In: Friday 18th July 2014 Section Two – Assignment Task Weighting = 100% of module mark Task: * To produce a case study report, reflecting on the development of a project plan. Learning outcomes Learning outcomes | Met in this assignment | 1. Evaluate the role of project management in a modern business environment | | 2. Demonstrate understanding of project planning, the relevance of an effective project management culture to support a successful project strategy. | | 3. Quantify and assess project parameters and resources, whether material, financial and human so as to achieve project objectives. | | 4. Evaluate the contribution of wider issues such as quality management and risk assessment in a project environment | | Re-sit: any students who fail this and as a consequence the module overall, will be asked to re-submit this element specifically addressing those areas identified as not being to the minimum pass standard required. Assessment Guidelines Applying your understanding of the theories covered in the lectures, seminars and your own research you are required to write a 3,000 word report. Your report should contain: * An evaluation of the role of project management in a modern business environment, through evaluating an existing project plan developed by the MBA students. This should include:...
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...Infrastructure Group Carl Grieser PJM 500 – Project Management Colorado State University – Global Campus Dr. Chiji Ohayia February 28th, 2016 Proposal and Analysis of the Global Infrastructure Group Introduction The Global Infrastructure Group, a subsidiary of the Global Financial Corporation, is an international conglomerate specializing in developing technologies and solutions for the Global Financial Corporation. This proposal for the Global Infrastructure Group will advise on what requirements the organization can best implement for a comprehensive project management system that can be used in a global organization that has small-, medium-, and large-scale projects. This proposal will address the following: The principal components of a project management system for a large-scale organization. These components will include: •Project Selection •Prioritizing Projects •Project Organization •Program Management •Planning and Scheduling •Estimating Cost •Monitoring and Controlling •Communication, Metrics, and Project Updates •Risk Management •Role of Information Technology Recommendations will include how Global Infrastructure Group can use project management principles to meet their goal of improving efficiency and empowering management to make better and informed decisions through the use of processes, tools, and standards in completing projects. Additionally, this proposal will discuss how an effective project management system contributes to organizational...
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...Name of the Project: Highway 407 improvement Executive summary In 2013, following 3 years of program definition, research and planning, the province of Ontario’s ministry of transportation and infrastructure launched the project to improve the existing highway 407. This highway is the busiest route and convenient to access different parts of Toronto. The proposal of highway 407 was launched in 1959 and opened to the public in June 7 1997. 407 its one of the busiest highway, the total trips in 2010 was 114.691 Million. 407 ETR is the world’s first all-electronic toll road of its kind, and from the day it was opened up to the present day it continues to fulfill its mission of relieving traffic on local highways and roads. The goal of the project “Highway 407 improvement” includes reducing congestion and travel time; improve safety; expanding networks and transportation choice for high occupancy vehicles. Given the cost of the project and other provincial priorities, a key objective was to be self-financing, paid for through ERT system. The present value cost is estimated more than $5 billion, which is calculated over the period of 35 years. Key features of the project include extending the high occupancy vehicles lanes and commercial vehicle priority access. The project will also provide the reintroduction of the public transit to a corridor that has been too crowded to support reliable service for the past few years. The request of proposal was submitted on...
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...Control of Commodity Risk Management Dimitris Papathanasiou, Coca-Cola HBC - 11 Sep 2013 Coca-ColaHellenic Bottling Company standardised its approach to risk management by transferring commodity risk management into treasury, so this central and vital business process could be managed by experts on an integrated basis with other financial risks and overseen by the financial risk management committee. This case study explains how organisational changes, combined with the introduction of risk management technology, enabled the organisation to plan and execute a consistent, cost-effective hedging strategy, with reduced counterparty risk exposure levels, improved transparency and stronger levels of control. Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is the world’s second largest bottler of the Coca-Cola Company’s products and the largest in Europe. Net sales revenue for fiscal 2012 was €6.8bn. Coca-Cola HBC is headquartered in Zug, Switzerland, and has a premium listing on the London Stock Exchange and a secondary listing on the Athens Exchange. It serves approximately 581m people in 28 countries. The company decided to concentrate its commodity market risk management within the treasury department, in response to high levels of profit and loss (P/L) volatility and the relatively high credit risk with its suppliers. The ensuing project involved change management for transfer of the company’s commodity risk hedging to treasury, the selection and implementation...
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...Risk Management in Capital Budgeting Process Introduction: Capital investment decision, like the capital budgeting process, includes series of analysis and decision making processes that have long term impact on the company. Any investment conducted for future net cash growth by company’s management, regardless of investing in intangible or tangible assets can be described as capital budgeting. Company management has obligations towards company owners to increase company wealth. Risk has been recognized as an important component in the capital budget decision making. The future is uncertain and investments techniques that fail to recognize this fact will almost certainly lead to incorrect conclusions and erroneous recommendations. In today’s uncertain and unpredictable global market, where technical, technological and economic development speed is rapidly increasing, selection of optimal process and selection of optimal project is significantly difficult. In many respects, capital budgeting defines an organization’s leadership. Capital budgeting decisions establish strategic priorities, allocate managers to assemble and communicate information across traditional organizational boundaries, for example, marketing, engineering, production, and accounting. The information is evaluated within a rational cost/benefit decision framework by analyzing cash inflows and outflows over time. In project selection process, corporate manager uses various criteria and methods in selecting...
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...HTC's Notable Projects » Environmental Risk Assessment of Proposed Agus III Hydroelectric Power Project, Lanao del Sur: Conducted the identification of major hazards due to the dam construction; quantitative characterization of risks; formulation of alternative risk-reduction measures; selection of appropriate risk reduction schemes. » Rapu Rapu Copper – Gold Project, Construction of the Tailing Storage Facility of the Lafayette Philippines, Inc. in Rapu Rapu Island, Albay. Scope of work included planning, design, construction supervision, quality control and monitoring of the repair and improvement of the tailings storage dam for the mining company; design of dam safety monitoring system. » JBIC Technical Assistance Study for Improving the Operation of Bohol Irrigation System of the National Irrigation Administration. The TA Study was aimed at assisting the NIA to effectively operate and manage three storage reservoir dams to irrigate about 10,000 hectares. The scope of work of HTC included the review of the present system of dam operations: formulation of improved irrigation water management plan to optimize the utilization of the water resources of the reservoir schemes; demonstrate and supervise the actual operation of the system adopting the improved management plan; training of irrigation personnel and farmer beneficiaries. » Liguasan Marsh Development Master Plan, Autonomous Region in Muslim Mindanao: Risk assessment of potential agricultural development infrastructure...
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