PRINCE2 Project Portfolio Management

programing

The management of the resources and assets within an organization for a specific project.  This is distinct from the simpler task of resource allocation and the scope of the project.  A project is a temporary endeavor – such undertaking requires additional resources to complete the basic steps in the project.  In relation to the scope of the project, it is a set of activities or processes, which are related in some way to the goal of the project, designed to achieve something specific.  A project can be designed for internal or external customers, or both.  Some jobs for a project are more core than other jobs. as outlined on a PRINCE 2 practitioner Courses and training.

Planning

Planning is typically done as a separate activity in one part of the project, and as a separate activity in another part – either for the entire project, or part of the project.  A project plan can be as simple as a Gantt Chart, which covers all the activities in the project, or it can be very detailed.  In many large projects, project plans are likely to be drawn up step by step, in a document in a system, such as Microsoft Project.  There may be numerous sub-plans within these documents, each with its own schedule and objectives.  For complex projects, the plan may be broken down into tasks, each with its own objectives and milestones, and which may need to be managed somehow to ensure that they are all on time.

Resource Management

Resource management provides a mechanism to ensure that resources are used efficiently.  A specific task or resource must have a fixed cost of money, manpower or energy and is available only to the person who can make that resource available.  There are a number of identified resources that need to be managed, however, if they are only consumed, then the resource is non-productive.  Resources that can be made available are resources that can be consumed – as the resources that can be consumed are resources that are not normally in use by the project.  Resources that are scarce are therefore difficult to create and expensive.

Project Portfolio Management

Project portfolio management is about matching a set of projects to obtain best value within the constraints of resource needs and project timelines.  A portfolio plan contains projects, which can be organized into portfolios based will each one of the portfolio’s activities, budgets, and resources.  Global projects that involve the entire organization work best with portfolio management.  Selecting the “best fit” projects for portfolio plans is critical and not an easy task.

Resource Allocation

Resource allocation provides a mechanism, so that when the resource is consumed, it makes sense to say “not used” to the task that it is doing.  “Not used” means “not used as a expected resource”.  Unused, but productive tasks carry with them no cost to the organization – the pay-for-use of the resource.  For example, if a company has extra machines that it turns down for maintenance, it is catching the cost of turning it down.  You can also identify the activities that use and never use the resource.

Resource Monitoring

Resource monitoring, allows the resource and management team to monitor the accuracy of the appropriate accounting data.  The monitoring, of resources, is an easy way of ensuring resources are used as appropriately as possible.  Resources that are not being used, are resources that are being under-utilized.  Resources significance also Health – usage of the appropriate resources really matters.  This means, that if we are using resources and we are not really needed (used), then it is net money wasted on resources.  If this occurs, the performance of the project will not be as good as it could be.  It is important to de-utilize resources after certain critical tasks.

In many organizations, there are management processes that apply to project Portfolio, Allocations, Resource Allocation, Resource Allocation, and Resource Monitoring.  To understand project Portfolio management more clearly we must closely look at resources.  If we manage resources, we track the allocating of resources to important projects while they are in progress.  A better idea is to first create all the resources before the project starts, BEFORE spending money to buy more resources.  The resources are then allocated to the expense of the projects based on their expected use.  Then, after the project, we can look at the cost of resources employed to determine how much more those resources have cost the organization.  “buying” additional resources when we need it may be costly, while if allocating it only once the cost is only the value to the project.

Project Portfolio Management

With the use of resources, project portfolio management provides a way to handle all resources in a way that is meaningful and objective.  Did you realize that most of the activities in a project are wasteful?  Do your project activities take longer than they should?  Do you spend more time and money than expected on the project?