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1.0 - Intro To Project Management 3

The document outlines various uncertainties in project management, such as time, resource availability, and costs, emphasizing that while these uncertainties cannot be eliminated, they can be minimized through proper management. It details the Project Portfolio Process (PPP), which aligns projects with organizational goals and involves steps like establishing a project council, assessing resource availability, and prioritizing projects. Additionally, it categorizes projects into four types: derivative, platform, breakthrough, and R&D, highlighting their significance in maintaining a competitive strategy.

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13 views18 pages

1.0 - Intro To Project Management 3

The document outlines various uncertainties in project management, such as time, resource availability, and costs, emphasizing that while these uncertainties cannot be eliminated, they can be minimized through proper management. It details the Project Portfolio Process (PPP), which aligns projects with organizational goals and involves steps like establishing a project council, assessing resource availability, and prioritizing projects. Additionally, it categorizes projects into four types: derivative, platform, breakthrough, and R&D, highlighting their significance in maintaining a competitive strategy.

Uploaded by

xena.jocel.buera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

What uncertainties are

encountered in project
management? Can they be
eliminated?
 Time required to complete a project
 Availability of key resources
 Cost of resources
 Timing of solutions to technological problems
 Actions taken by competitors
 Uncertainty cannot be eliminated, but if
managed properly, it can be minimized.
Risk Analysis
 Estimate probabilities or distributions associated
with key parameters
 Develop analytic or simulation model
 Analyze distribution of outcomes generated by
model
The Project Portfolio Process
• The PPP attempts to link the organization’s projects
directly to the goals and strategy of the organization.
• This occurs not only in the project’s initiation and
planning phases but also throughout the life cycles of
the projects as they are managed and eventually
brought to completion.
• PPP is also a mean for monitoring and controlling the
project
Steps In The Project Portfolio
Process
 Establish a Project Council
 Identify Project Categories and Criteria
 Collect Project Data
 Assess Resource Availability
 Reduce the Project and Criteria Set
 Prioritize the Projects within Categories
 Select the Projects to be Funded and Held in
Reserve
 Implement the Process
STEP 1 : Establish a Project Council

• The main purpose of the project council is to


establish and articulate a strategic direction for
projects.
• The council will also be responsible for allocating
funds to those projects that support the
organization’s goals and controlling the allocation of
resources and skills to do the projects.
Step 2 : Identify Project Categories and
Criteria
• In this step, various project categories are
identified so the mix of projects funded by the
organization will be spread appropriately
across those areas making major contributions
to the organization’s goals.
• Within each category, criteria are established
to discriminate between very good and even
better project. The criteria are also weighted to
reflect their relative importance.
Step 3 : Collect Project Data
• For each existing and proposed project, assemble
the data appropriate to that category’s criteria.
Include the timing, both date and duration, for
expected benefits and resource needs.
• Use project plan, a schedule of project activities,
past experience, expert opinion, whatever is
available to get a good estimate of these data.
Step 4 : Assess Resource Availability

• Next, assess the availability of both internal and


external resources, by type, department, and timing.
• Note that labor availability should be estimated
conservatively.
• Timing is particularly important, since project
resource needs by type typically vary up to 100
percent over the life cycle of projects.
Step 5 : Reduce the Project and Criteria Set

• In this step, multiple screens are employed to reduce the


number of competing projects.
• The first screen is each project’s support of the organization’s
goals.
• Other possible screens might be criteria such as
- Whether the required competence exists in the organization
- Whether there is market for the offering
- The likely profitability of the offering
- How risky is the project
- If there is a potential partner to help with the project
- If the right resources are available at the right times
- If the project is a good technological / knowledge fit within
the organization
- If the project uses the organization’s strengths, or depends on
its weaknesses
- If the project has slipped in its desirability since the last
evaluation
STEP 6 : Prioritize the Projects within
Categories
• Apply the scores and criterion weights to rank the
projects within each category.
• It is the acceptable to hold some hard-to-measure
criteria out for subjective evaluation, such as
riskiness, or development of new knowledge.
STEP 7 : Select the Projects to be Funded
and Held in Reserve
• The focus should be on committing to fewer
projects but with sufficient funding to allow
project completion.
• Document why late projects were delayed
and why any were defunded
STEP 8 : Implement the Process

• The first task in this final step is to make the


results of the PPP widely known, including the
documented reasons for project cancellations,
deferrals, and non-selection.
• Top management must now take their
commitment to this project portfolio process
totally clear by supporting the process and its
results.
• Projects are often subdivisions of major
programs.
• Long run success is determined by the
organization’s portfolio of projects.
• Classified by the extent of innovation in
product and process, there are four types of
projects : derivative, breakthrough, platform
and R & D projects.
• The actual mix of projects is a direct
expression of the organization’s competitive
strategy.
• A proper mix of project categories can help
ensure it’s long run competitive position
(1) Derivative Projects
• These are the projects with objectives or deliverables
that are only incrementally different in both product
and process from existing offerings
• They are often meant to replace current offerings
(lower priced version, upscale version)
(2) Platform Projects
• The planned outputs of these projects represent
major department from existing offerings in
terms of either the product / service itself or the
process used to make and deliver it, or both.
• As such, they become “platforms” for the next
generations of organizational offerings, such as a
new model of automobile or a new type of
insurance plan. They form the basis for follow-on
derivative projects that attempt to extend the
platform in various dimension.
(3) Breakthrough Projects
• Are typically involve a newer technology than platform
projects
• It may be a “disruptive” technology that is known to
the industry or something proprietary that the
organization has been developing over time.
• Ex : use of fiber optics cables for data transmission,
cash balance pension plans, and hybrid gasoline-
electric automobiles
(4) R & D projects
• These projects are “blue-sky”, visionary
endeavors, oriented toward using a newly
developed technologies, or existing technologies
in a new manner. They may also be for acquiring
new knowledge, or developing new technologies
themselves.

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