ppm presentation

PROJECT PORTFOLIO MANAGEMENT

Prepared by: Reza Masoumi

Nov. 2014

Project Hierarchy

2

Project 2

Project 1Program 1

Program ProjectPortfolio 1

Portfolio

Projects

Programs

Portfolio

Portfolios Projects

Project Hierarchy

3

massDOT

Bridge 2 Project

Transit Portfolio Airport PortfolioHighway Portfolio

Accelerated Bridge Program

Bridge 1 Project

Highway Program

...

State Rail Program

Green Line Extension Project

MBTA Projects

Characteristics of Projects

• Temporary• Unique and unrepeatable• Restrictions • Definitive objective

5

What is a Program?

6

A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

Reference: PMI (2008), A Guide to Project Management Body of Knowledge, 4th Edition

Program

Project 1 Project 2 Project 3 Project 4Program 1

Project 5 Project 6

What is a Project Portfolio ?

7

Portfolio

Portfolio 1 Program 1 Project 1Program 2

Program 3 Project 2 Project 3 Project 6 Project 7 Project 8

Project 5Project 4

Project 9 Program 4

Project 10 Project 11 Project 12

A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Reference: PMI (2008), A Guide to Project Management Body of Knowledge, 4th Edition

8

Common Career Path

Technical – Leadership – Management – Communication

Portfolio Manager

Reference: 2014 CII annual conference – RT 303 implementation session

Research Title

9

Managing a Portfolio of Projects – Metrics for Measure

Supported by:

Research Team

10

No. Owners

1 Charlie O’Hanlon (Chair) Architect of the Capitol

2 Frederick Delie Georgia Pacific LLC

3 Roger Haynes ConocoPhillips

4 Roger Holtzclaw BP Alternative Energy

5 Richard Ikasalo SABIC

6 John Logan Irving Oil Limited

7 Shaun Tatum Southern Company

8 Timothy Wolf Anheuser-Busch InBev

9 David Wilson BP Project Performance

No. Contractors

1 Marie Robinson (Vice Chair) Jacobs

2 Scott Bergoon Hargrove Engineers

3 James Dyer WorleyParsons

4 Mohamed El-Mehalawi Faithful+Gould

5 Robert Bailey Fluor Corporation

6 Vincent Huang Parsons

7 Gary Lanier URS Corporation

8 Sandra MacGillivray Coreworx, Inc.

Research Goals

11

• Understand the portfolio management problems

• Identify techniques, tools, metrics and processes recommended for portfolio management

• Recommend practices to help improve overall portfolio management

Research Methodology

12

Collect Data

• Survey

• Interviews

• Case Studies

Analyze Data

• Identify Business Drivers

• Identify Recommended Practices

Develop Tool

• Portfolio Management Playbook

Recommended Process for Portfolio Performance Management

13

1. Determine Key

Results Areas (KRAs)

2. Establish Key

Performance Indicators

(KPIs)

3. Collecting Data

and Reporting

Results

4. Evaluating the Portfolio

Performance

Management Process

Key Result Areas (KRAs) for PPM

14

• Schedule

• Cost / Cash Flow

• Safety and Environment

• Change Management / Scope

• Resource Allocation

• Procurement and Supply-Chain Management

• Quality

• Risk Management

• Client Satisfaction

Proposed KPIs for KRAs

15

Sample Dashboard

16

CURRENT YEAR

BaseLine Forecast #### #### #### ### ### ### ### ### ### ### ### ###

Actual Re-Forecast #### #### #### ### ### ### ### ### ### ### ### ###

Cumulative Base Forecast #### #### #### ### ### ### ### ### ### ### ### ###

Cumulative Base Re-Forecast #### #### #### ### ### ### ### ### ### ### ### ###

Next 12 Months

Actual Base Forecast

Actual Re-Forecast

Cumulative Base Forecast

Cumulative Base Re-Forecast

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

1 1 1 1 1 2 2 2 2 2 2 2

2 2 2 2 2 2 2 3 3 3 3 3

2 2 2 2 3 3 3 3 3 3 3 3

3 4 4 4 4 4 4 4 4

2 2 2 2 2 2 2 2 2 2 3 3

2 2 2 2 3 3 3 3 3 3 3 4

2 2 2 2 2 2 2 2 2 3 3 3

1

4 4 4

2 2 2 2 2 2 2 2 2 2 2 2

2 2 3 3 3 3 4 4 4 4 4 4

1 1 1 1 1 2 2 2 2 2 2 2

1 1 2 2 2 2 2 2 2 3 3 3

1 1 1 1 2 2 2 2 2 2 2 3

1 1 1 1 1 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1 2

1 1 1 1 1 1 1 1 1 2 2 2

Potential High Consequence Risks (D+) (Held by Projects)ID

1 D 4

2 D 4

3 D 3

4 D 3

5 D 4

6 D 4

7 C 3

8 D 3

9 D 3

10 D 4

11 D 2

12 C 2

13 D 4

14 D 4

15 C 3

16 D 4

PDRI PDRI 1PDRI 2PDRI 2iPDRI 3

Target 550 450 300 150

Actual 700 625 330 180

Risk Table

Stage 1 Stage 2 Stage 3 Stage 4Legend

Cost Performance (Current Month - Cumulative)

Cost ($m)

Planned Actual Variance

Cost Performance (Year End - Cumulative)

Planned Forecast Variance

Seve

rity

Severi

ty

Fre

q'y Project

Stage

Freq'y 5 6

Stage 2

F

G

HFailure of Personnel Transfer System

Active

Active

Active

Active

Stage 2

Stage 2

Stage 2

Stage 2

Stage 2

Stage 2

Active

Active

Active

Active

Active

Active

Active

Active

Active

Active

Cost Performance0

D

E

Stage 2

Stage 2

Stage 2

Active

Project Title

Baku Cond Lines

Schedule Performance

Risk Management

NH500 QD Project

HCFC ReplacementTiger DecommissioningBaku Cond LinesTimber Gas LiftBeachfield Flare

Project Listing

Enhanced Power Upgrade

Insecure HLV anchoring

HLV Loss of Stability: HLV Capsize

Incident occurring during Hot Work

Collision: Vessel Operations

West crane removal: Dropped objects

PAU Collision with live plant

Loss of control over live plant

Incident occurring during Hot Work

HLV proximity to platform

Dropped module/collision - HLV lifting operations

Active

$211.4 $217.7 2.98%

A

B

CStage 2

Risk

Status

11 16%9

Act

ual /

Re-

fore

cast

No

of

Var

iati

on

Sche

dule

Inde

x

Stage 4

Stage 2

Stage 2

Stage 2

Stage 2

Leading Indicators

Front End Loading (Stage 2 & Stage 3)

Overall Cycle Time (Stage 2 to Stage 4)

Project Stage

Stage 4

Stage 3

Stage 1

13

-11%

7

17%

1 2 3 4

GH Platform Removal

GH Platform Removal

GH Platform Removal

Prep for wells (BD50)

Sun Decommissioning

Sun Decommissioning

5%

1.15

0.87

8%

-20% 0.80

46

51

20

41

54

19

26 21

7 10%

Plan

ned

No

of

Mon

ths

Overall Cycle Time (Stage 1 to end Stage 4)

Stage 2 11

Cost Performance (Current Month)

Cost ($m)

Planned Actual Variance

-16.92%$16.2$19.5

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

$147.6 $141.0 -4.47%

Cost ($m)

Jun-

14

May

-14

Jul-1

4

Aug

-14

Sep-

14

Leading Indicators

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Mar

-14

Apr

-14

BW Gas SeparationGS Fire & Gas ProjectXP900 AccommodationsQuad 205 Polymer ProjectDRAMP

GH Platform RemovalMarine Vapour ManagementNE DecommissioningSun DecommissioningPrep for wells (BD50)


7 8


HCFC Replacement

HCFC Replacement

HCFC Replacement

Beachfield Flare

Beachfield Flare

Beachfield Flare

Timber Gas Lift

Risk Title

Primary barrier against gas-lift pressure failure: Casing Bursts

Dredging: Platform stability compromised

HLV Loss of Stability: HLV Capsize

Failure of Personnel Transfer System

E-W Crane move: DroppedObjects

$211

$218

$ m

$5 m

$10 m

$15 m

$20 m

$25 m

$30 m

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

BaseLine Forecast $ 14.6 m $ 14.6 m $ 14.6 m $ 15.1 m $ 15.1 m $ 15.1 m $ 19.5 m $ 19.5 m $ 19.5 m $ 21.3 m $ 21.3 m $ 21.3 m

Actual/Re-Forecast $ 15.6 m $ 13.4 m $ 12.1 m $ 16.5 m $ 15.3 m $ 19.4 m $ 15.9 m $ 16.6 m $ 16.2 m $ 24.0 m $ 25.1 m $ 27.6 m

Cumulative Base Forecast $ 14.6 m $ 29.2 m $ 43.8 m $ 58.9 m $ 74.0 m $ 89.2 m $ 108.6 m $ 128.1 m $ 147.6 m $ 168.9 m $ 190.1 m $ 211.4 m

Cumulative Actual/Re-Forecast $ 15.6 m $ 29.0 m $ 41.1 m $ 57.5 m $ 72.9 m $ 92.2 m $ 108.2 m $ 124.8 m $ 141.0 m $ 165.0 m $ 190.1 m $ 217.7 m

Cost

($m

) Gro

ss

Planned vs Actual / Reforecast (Current Year)

PDRI 1 PDRI 2 PDRI 2i PDRI 3

Actual 700 625 330 180

Target 550 450 300 150

0

100

200

300

400

500

600

700

800

Scor

e

Project Definition Rating Index (PDRI)

1 24

5 6

7

8

911

3

10

12

13 1416

15

17

Implementation Report-Final Products

Reference: https://www.construction-institute.org/scriptcontent/index.cfm

Three documents:• IR - Implementation Report• RS - Research Summary• RR - Research Report

18

Dissertation

Goals:• Alignment with organizational goals

• Portfolio Balance (project types, risks, and markets)

• Maximize the value of portfolio• Choose the optimal next project

Project Portfolio Formation

19

Decision-Making Methods

Decision Analysis Methods

Single Criterion Decision Making

Decision Making Groups

Multi-Criteria Decision Making

(MCDM)

Influence Diagram(ID)

Decision Tree(DT)

Multiple Objective Decision Making (MODM)

Multiple Attribute Decision Making (MADM)

PROMETHEE ELECTREAnalytical Hierarchy

Process (AHP)

Multiple Attribute Utility Theory (MAUT)

Benefit-Cost Analysis

Elementary Methods

Pros and Cons Analysis

Maximin and Maximax Methods

Conjunctive and Disjunctive

Methods

Lexicographic Method

Outranking Methods

Simple Multi-Attribute Rating

Technique (SMART)

20

PROMETHEE

Preference Ranking Organization METHod for the

Enrichment of Evaluations

http://www.promethee-gaia.net/software.html

21

Example

1 2 3 4 5 6

Price

($)

Fuel

Consumption

(mpg)

Power

(hp)

Guarantee

Period

(yrs)

Trunk

Volume

(ft3)

Finance

Rate

(%)

1 Ford Focus 18,615 27 160 3 13.2 2.90

2 Toyota Corolla 19,700 29 132 3 13 3.86

3 Honda Civic 19,190 30 143 3 12.5 1.90

4 Hyundai Elantra 18,200 28 145 5 14.8 3.90

22

Example

23

Example Result

24

Ex-PROMETHEE

25

Ex-PROMETHEE

Questions