MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions...
Transcript of MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions...
![Page 1: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/1.jpg)
MIS5102: Process Improvement and Innovation
Project ManagementProject Planning
Steve [email protected]
http://community.mis.temple.edu/ssclarow
![Page 2: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/2.jpg)
Why is the distinction between what a project is and what it is not important?
What is a project?
![Page 3: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/3.jpg)
The Triple Constraint
Scope
Describe a scenario where changing one affects the others.
![Page 4: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/4.jpg)
Role of the project manager?
In writing the spec?
In managing the triple constraint?
In navigating the organization?
![Page 5: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/5.jpg)
What is Project Portfolio Management (PPM)?
Five Questions(Pennypacker and Retna)
• Are we investing in the right things?
• Are we optimizing our capacity?• How well are we executing?• Can we absorb all the changes?• Are we realizing the promised benefits?
Are we talking about “singular” or “comparative” evaluations?
What’s the difference?
![Page 6: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/6.jpg)
Risk Analysis: Two broad approaches
Quantitative Qualitative
There are pros and cons of each approach…
![Page 7: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/7.jpg)
Quantifying Options Using a Decision Tree
https://en.wikipedia.org/wiki/File:Project_Investment_Portfolio_Occam_s_Tree.gifhttp://en.wikipedia.org/wiki/Project_portfolio_management
Each project has an associated
• Cost• Revenue• Risk
![Page 8: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/8.jpg)
Project Investment #1‐$3,500,000
Project Revenues$4,275,000
Opt. 50%$4,750,000
50%$1,250,000
Pess. 50%$3,800,000
50%$300,000
Project Investment #2‐$2,800,000
Project Revenues$3,250,000
Opt. 50%$3,900,000
0%$1,100,000
Pess. 50%$2,600,000
0%‐$200,000
A Closer Look
TRUE
FALSE
= $4,750,000 * .5 + $3,800,000 * .5
= ‐$3,500,000 + $4,750,000
= ‐$3,500,000 + $3,800,000
= ‐$2,800,000+ $3,900,000
= ‐$2,800,000+ $2,600,000
Expected value of this part of the project portfolio:
$1,250,000 * .5 + $300,000 * .5 + $1,100,000 * .0 + ‐$200,000 * .0 = $775,000
What are the pitfalls of this approach?
= $3,900,000 * .5 + $2,600,000 * .5
![Page 9: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/9.jpg)
A more qualitative approach
Decision Points for PPM
• The criteria for filtering and ranking
• Which criteria are most important• Which project ideas are worth developing
• Which projects should be considered as part of the portfolio
• Which projects to fund
http://en.wikipedia.org/wiki/Project_portfolio_management
But how do you prioritize?
![Page 10: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/10.jpg)
Some of the Big Questions
How can you blend quantitative and qualitative approaches? Should you?
How can a “do nothing” option help?
When doesn’t any of this matter?
![Page 11: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/11.jpg)
Project Planning
Recall our party planning exercise from the beginning of
the semester…
What do you do?
When do you do it?
Who does what?
![Page 12: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/12.jpg)
Elements of a Project Plan
What do you do?
When do you do it?
Who does what?
• Process decomposition• Swim lane diagrams• RACI charts
We already have some tools we can use
You may not use these specific tools, but many of the
concepts are the same!
![Page 13: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/13.jpg)
Work Breakdown Structure (WBS)
Aircraft System
Air Vehicle
Receiver Fire Control Communication
Training
Equipment Services
Peculiar Support Equipment
Depot
How is this like process
decomposition?
How is it different?
What do you learn from this?
http://en.wikipedia.org/wiki/Work_breakdown_structure
![Page 14: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/14.jpg)
WBS Design principles• 100% rule• Mutual exclusivity
• Outcomes, not actions
• Level of detail
http://workbreakdownstructure.com/
Why is each principle important in building a useful WBS?
How far should you break down a project?
What is the “problem” with estimation?
![Page 15: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/15.jpg)
Understanding Dependencies
What are task dependencies?
Why is it important to understand them?
How are they usedto turn a WBS into
a project plan?
![Page 16: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/16.jpg)
Critical Path Analysisusing PERT (Program Evaluation and Review Technique)
Design
Create module 1
Createmodule 2
Buy hardware
SoftwareUnit Testing
Software Unit Testing
Hardware Config.
SystemTest
WriteManual
15 days
10 days
15 days
7 days
36 days
15 days
5 days
30 days
15 days
Hardware Testing
3 days
The work units on the longest path through the diagram are on the critical
path.
What does it mean for the task to be on the
critical path?
![Page 17: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/17.jpg)
Allocating Work
Assigning people to tasks
Build off of the work breakdown structure
What can a RACI chart tell you about allocation?
What can a Swim Lane Diagram tell you about allocation?
![Page 18: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/18.jpg)
Communications
Hardware Team
Allocating Work and the Critical Path
Design
Create module 1
Createmodule 2
Buy hardware
SoftwareUnit Testing
Software Unit Testing
Hardware Config.
SystemTest
WriteManual
15 days
10 days
15 days
7 days
36 days
15 days
5 days
30 days
15 days
Hardware Testing
3 days
How does adding this information help the planning process?
Software Team 2
Software Team 1
Entire Team
![Page 19: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/19.jpg)
Some moreabout estimating
“Few people enjoy estimating complex things that they will be accountable for.” (Berkun, Chapter 2.4.3.1)
What can go wrong with estimation?
• For the triple constraint?• For allocating resources?
What are the implications for project planning?
![Page 20: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/20.jpg)
In‐Class Exercise for Session 5: Project Planning and the Critical Path
![Page 21: MIS5102: Process and Management...What is Project Portfolio Management (PPM)? Five Questions (Pennypacker and Retna) •Are we investing in the right things? •Are we optimizing our](https://reader031.fdocuments.net/reader031/viewer/2022013022/5f6de4af3a3d3d380137e3cf/html5/thumbnails/21.jpg)
CGI and the Hubble ProjectCase Study