Management Degree Level: PhD Abstract ID# 332 Reza Masoumi ...
Graduate Category: Management Degree Level: PhD Abstract ID# 332
Managing a Portfolio of Projects – Metrics for Improvement Reza Masoumi, PhD candidate
&
Ali Touran, PhD, PE, F.ASCE
Department of Civil & Environmental Engineering
Research Team
Portfolio C
The primary purpose of this research is on three management areas: • Financial management • Risk management
Contractors 1. Jacobs 2. Hargrove Engineers 3. WorleyParsons 4. Faithful+Gould 5. Fluor Corporation 6. Parsons 7. URS Corporation 8. Coreworx, Inc.
Suggested KPIs for KRAs:
Firms responding to the on-line survey: According to definition of Project Portfolio Management (PPM) by PMI:
To identify, analyze and recommend definitive practices for effectively managing a portfolio of projects.
Start Date: Sep. 2012 End date: Sep. 2014 The final results should be presented in the CII annual conference in July 2014, Indiana.
Owner
Contractor
CII
Non-CII
Government
Non-government
Infrastructure
Building
Heavy
Light
In this research, the formation of the portfolio even though Characteristics of firms selected for the interviews: important was ignored. The projects are intended to be managed using the recommended practices, tools, techniques, and metrics.
Research Duration
Number/ Percent of Milestones Completed (or Missed) vs. Planned Number/ Percent of Projects on (or behind) Schedule Total/ Average Days ahead of (or behind) Schedule Schedule Durations Compared to Benchmarks (average for portfolio) Number/ Percent of Projects with Schedule Durations Longer (or Shorter) than Benchmarks
Actual Cost-to-Date and Revised Forecast vs. Planned (Monthly and Cumulative) Cost Variation (Monthly and Cumulative) – at project and portfolio level Estimated Completion Cost vs. Original/ Current Budget Number/ Percent Projects within (or over) Budget Total Portfolio Cost vs. Budget Project Cost Estimates vs. Benchmarks (average for portfolio) Number/ Percent Projects with Costs Higher (or Lower) than Benchmarks
Safety and Environmental Incidents (First Aids, Recordable Injuries, Days-Away-From-Work Injuries, Spills, Releases, etc.) Incident Frequency Rates 12-Month Rolling Average of Incident Rates Number of Environmental Permits Outstanding Near Misses Proactive Safety Activities (Documented Audits, Job Safety Analyses, Hazard Identifications, etc.)
Number of Requests for Information (RFIs) Total Number of Scope Changes Total Cost of Scope Changes/ Change Orders Total Changes as Percent of Original Approved Budget Total Value or Percentage of Estimate Omissions
Project Team Member Turn-Over Planned vs. Actual Engineering/ Construction Hours Planned vs. Actual Resources (human resources (Full-Time Employees), equipment, etc.) Capital Efficiency (Value of Projects Managed) per project manager Percent Utilization of resources (e.g., Project Team Members, equipment)
Actual vs. Planned Number of Purchase Orders/ Contracts Issued Number/ Percent of Late Deliveries Bid Amounts as Percentage of Engineering Estimates Locally-Sourced (High Value Offshore, Minority Participation, etc.) as Percentage of Total Procurement
Average PDRI Score at Project Funding (or Earlier Stage Gates) (as a potential leading indicator of project quality) Number of Defects (Welds, Test Failures, etc.) Percentage of Rework Number/ Percent of Projects Completed with (or without) Significant Issues Number of Deficiencies Open for More than Target Resolution Period
Summary/ Status of Known Risk Issues and Mitigation Plans Risks Mitigation Actions Completed for Reporting Period Risks Eliminated (or Unrealized) during Reporting Period New or Emerging Risks Identified during Reporting Period
Research Results
• Resource management
Performance
Schedule
Portfolio B
Portfolio
Cost/ Cash Flow
Portfolio A
Owners 1. Architect of the Capitol 2. Georgia-Pacific LLC 3. ConocoPhillips 4. BP Amoco Corporation 5. SABIC 6. Irving Oil Limited 7. Southern Company 8. Anheuser-Busch InBev 9. BP Project Performance
Safety and Environment
Goals and Objectives
Enhancing the performance of an organization requires to consider all the capable projects simultaneously. The selected projects are those that best match with the organizational objectives. Finally, the projects form the portfolios based on criteria such as business line, geographical location, or technology.
for
KRAs that were considered important: • Schedule • Cost / Cash Flow • Safety and Environment • Change Management / Scope • Resource Allocation • Procurement and Supply-Chain Management • Quality • Risk Management • Client Satisfaction
12
3
12
3
4
11
3
4
10
4
CII tools that can be tailored for portfolio management: • The Front End Planning (FEP) • Scope Definition Assessment Tools • Alignment Thermometer • Shutdown Turnaround Alignment Review (STAR) • Construction Input Assessment Tool (CIAT)
Client Satisfaction, Other
It is required to enhance the industry understanding regarding which perceived practices have/have not been successful for managing multiple projects. Major issues and challenges related to the implementation of project-level metrics into the Portfolio-level decision-making are identified. The findings result in improved applications of the best practices (techniques, technology, tools, metrics and processes) to the Portfolio of projects to achieve enhanced Portfolio performance.
Process
Change Mgmt./ Scope
The Construction Industry Institute (CII) researches on project management were focused on how to manage projects using practices, tools, and metrics. The outcome of those researches are not completely applicable to manage a Portfolio of projects.; however, some of them can be tailored for portfolio management.
Recommended Management:
Resource Allocation
Projects in an organization can not be managed autonomously like separate islands. A governance model is required to manage all the projects uniformly. The limited available resources should be used efficiently to increase the overall performance of the organization.
Research Results
Research Steps
Proc./ SupplyChain
In this research, a portfolio is defined as a group of projects and/or programs managed by an individual named diversely in different organizations such as project manager, portfolio manager, or project director.
&
Quality
Introduction and Background
Risk Mgmt.
Abstract
Customer Satisfaction Index Training and Development Status Number (or Percentage) of Projects in Each Project Stage Overall Portfolio Performance Index = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑆𝑢𝑐𝑐𝑒𝑠𝑠𝑓𝑢𝑙 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑒𝑑 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑠∗ 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡 𝑃𝑙𝑎𝑛𝑛𝑒𝑑 𝑡𝑜 𝑏𝑒 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑒𝑑 *Success is defined by meeting predetermined Schedule, Cost, Safety, and/or Operability targets Number or percent of projects in each project phase
Acknowledgment This research is sponsored by the CII which is based at the University of Texas at Austin.
Managing a Portfolio of Projects – Metrics for Improvement Reza Masoumi, PhD candidate
&
Ali Touran, PhD, PE, F.ASCE
Department of Civil & Environmental Engineering
Research Team
Portfolio C
The primary purpose of this research is on three management areas: • Financial management • Risk management
Contractors 1. Jacobs 2. Hargrove Engineers 3. WorleyParsons 4. Faithful+Gould 5. Fluor Corporation 6. Parsons 7. URS Corporation 8. Coreworx, Inc.
Suggested KPIs for KRAs:
Firms responding to the on-line survey: According to definition of Project Portfolio Management (PPM) by PMI:
To identify, analyze and recommend definitive practices for effectively managing a portfolio of projects.
Start Date: Sep. 2012 End date: Sep. 2014 The final results should be presented in the CII annual conference in July 2014, Indiana.
Owner
Contractor
CII
Non-CII
Government
Non-government
Infrastructure
Building
Heavy
Light
In this research, the formation of the portfolio even though Characteristics of firms selected for the interviews: important was ignored. The projects are intended to be managed using the recommended practices, tools, techniques, and metrics.
Research Duration
Number/ Percent of Milestones Completed (or Missed) vs. Planned Number/ Percent of Projects on (or behind) Schedule Total/ Average Days ahead of (or behind) Schedule Schedule Durations Compared to Benchmarks (average for portfolio) Number/ Percent of Projects with Schedule Durations Longer (or Shorter) than Benchmarks
Actual Cost-to-Date and Revised Forecast vs. Planned (Monthly and Cumulative) Cost Variation (Monthly and Cumulative) – at project and portfolio level Estimated Completion Cost vs. Original/ Current Budget Number/ Percent Projects within (or over) Budget Total Portfolio Cost vs. Budget Project Cost Estimates vs. Benchmarks (average for portfolio) Number/ Percent Projects with Costs Higher (or Lower) than Benchmarks
Safety and Environmental Incidents (First Aids, Recordable Injuries, Days-Away-From-Work Injuries, Spills, Releases, etc.) Incident Frequency Rates 12-Month Rolling Average of Incident Rates Number of Environmental Permits Outstanding Near Misses Proactive Safety Activities (Documented Audits, Job Safety Analyses, Hazard Identifications, etc.)
Number of Requests for Information (RFIs) Total Number of Scope Changes Total Cost of Scope Changes/ Change Orders Total Changes as Percent of Original Approved Budget Total Value or Percentage of Estimate Omissions
Project Team Member Turn-Over Planned vs. Actual Engineering/ Construction Hours Planned vs. Actual Resources (human resources (Full-Time Employees), equipment, etc.) Capital Efficiency (Value of Projects Managed) per project manager Percent Utilization of resources (e.g., Project Team Members, equipment)
Actual vs. Planned Number of Purchase Orders/ Contracts Issued Number/ Percent of Late Deliveries Bid Amounts as Percentage of Engineering Estimates Locally-Sourced (High Value Offshore, Minority Participation, etc.) as Percentage of Total Procurement
Average PDRI Score at Project Funding (or Earlier Stage Gates) (as a potential leading indicator of project quality) Number of Defects (Welds, Test Failures, etc.) Percentage of Rework Number/ Percent of Projects Completed with (or without) Significant Issues Number of Deficiencies Open for More than Target Resolution Period
Summary/ Status of Known Risk Issues and Mitigation Plans Risks Mitigation Actions Completed for Reporting Period Risks Eliminated (or Unrealized) during Reporting Period New or Emerging Risks Identified during Reporting Period
Research Results
• Resource management
Performance
Schedule
Portfolio B
Portfolio
Cost/ Cash Flow
Portfolio A
Owners 1. Architect of the Capitol 2. Georgia-Pacific LLC 3. ConocoPhillips 4. BP Amoco Corporation 5. SABIC 6. Irving Oil Limited 7. Southern Company 8. Anheuser-Busch InBev 9. BP Project Performance
Safety and Environment
Goals and Objectives
Enhancing the performance of an organization requires to consider all the capable projects simultaneously. The selected projects are those that best match with the organizational objectives. Finally, the projects form the portfolios based on criteria such as business line, geographical location, or technology.
for
KRAs that were considered important: • Schedule • Cost / Cash Flow • Safety and Environment • Change Management / Scope • Resource Allocation • Procurement and Supply-Chain Management • Quality • Risk Management • Client Satisfaction
12
3
12
3
4
11
3
4
10
4
CII tools that can be tailored for portfolio management: • The Front End Planning (FEP) • Scope Definition Assessment Tools • Alignment Thermometer • Shutdown Turnaround Alignment Review (STAR) • Construction Input Assessment Tool (CIAT)
Client Satisfaction, Other
It is required to enhance the industry understanding regarding which perceived practices have/have not been successful for managing multiple projects. Major issues and challenges related to the implementation of project-level metrics into the Portfolio-level decision-making are identified. The findings result in improved applications of the best practices (techniques, technology, tools, metrics and processes) to the Portfolio of projects to achieve enhanced Portfolio performance.
Process
Change Mgmt./ Scope
The Construction Industry Institute (CII) researches on project management were focused on how to manage projects using practices, tools, and metrics. The outcome of those researches are not completely applicable to manage a Portfolio of projects.; however, some of them can be tailored for portfolio management.
Recommended Management:
Resource Allocation
Projects in an organization can not be managed autonomously like separate islands. A governance model is required to manage all the projects uniformly. The limited available resources should be used efficiently to increase the overall performance of the organization.
Research Results
Research Steps
Proc./ SupplyChain
In this research, a portfolio is defined as a group of projects and/or programs managed by an individual named diversely in different organizations such as project manager, portfolio manager, or project director.
&
Quality
Introduction and Background
Risk Mgmt.
Abstract
Customer Satisfaction Index Training and Development Status Number (or Percentage) of Projects in Each Project Stage Overall Portfolio Performance Index = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑆𝑢𝑐𝑐𝑒𝑠𝑠𝑓𝑢𝑙 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑒𝑑 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑠∗ 𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑟𝑜𝑗𝑒𝑐𝑡 𝑃𝑙𝑎𝑛𝑛𝑒𝑑 𝑡𝑜 𝑏𝑒 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑒𝑑 *Success is defined by meeting predetermined Schedule, Cost, Safety, and/or Operability targets Number or percent of projects in each project phase
Acknowledgment This research is sponsored by the CII which is based at the University of Texas at Austin.
