Portfolio Management in the Rolls-Royce Engineering Improvements Centre

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Portfolio Management

APM Session– April 2014

Prepared by EIC Communications

John McGregor

Chief Of Delivery, EIC

Dean Hall

EIC PMO

Introductions

Integrated Production System This session

• Portfolio

Management within

the Engineering

Improvement centre

• How we govern and

support our work

Rolls-Royce proprietary information

APM Defintion

“Portfolio management is the selection and management of all of an organisation’s projects, programmes and related business-as-usual activities taking into account resource constraints. A portfolio is a group of projects and programmes carried out under the sponsorship of an organisation.”

Portfolio management seeks to ensure that organisations:

1. Invest in the ‘right’ projects and programmes in the context of their strategic objectives and subject to the constraints of risk and affordability. 2. Manage their project and programmes ‘right’ – at a collective level, by effective management of limited resources, dependencies and the organisation’s capacity to absorb change. 3. Realise the full benefits from their investment in projects and programmes 4. Capture lessons learned and use them to inform the development of more efficient and effective management of their portfolios.


APM Defintion

“Portfolio management is the selection and management of all of an

organisation’s projects, programmes and related business-as-usual activities taking into account

resource constraints. A portfolio is a group of projects and programmes carried out under the sponsorship of an organisation.”

In summary, portfolio management seeks to ensure that organisations:

1. Invest in the ‘right’ projects and programmes in the context of their

strategic objectives and subject to the constraints of risk and affordability.

2. Manage their project and programmes ‘right’ – at a collective level, by effective management of

limited resources, dependencies and the organisation’s capacity to absorb change.

3. Realise the full benefits from their investment in projects and programmes

4. Capture lessons learned and use them to inform the development of

more efficient and effective management of their portfolios.


Portfolio Management

The continuous process of identification,

prioritisation, selection and delivery

management of projects that align to the

corporate strategy and business objectives


Portfolio and Project Management Impact

UNREALISED VALUE

Improve

Project

Management

Improve

Portfolio

Management

Po

rtfo

lio

Man

ag

em

en

t

“Doin

g the c

orr

ect

thin

gs”

Programme & Project Management

“Doing things correctly”

0%

100%

100%

Portfolio Management acts as the commissioning body for Programmes and Projects


REALISED PROJECT

VALUE

Rolls-Royce EIC 8

TransformStandardise

Maintain


The current Portfolio

9


The EIC Portfolio

EIC Portfolio Delivery

Transform Standardise Maintain

Integrated Design,

Simulation and

Verification

--

Right first time

designs throughout

the product lifecycle

in the presence of

variation

Lean Engineering

and Functional

Maturity

--

Operating a mature

efficient and effective

function across the

engineering process

lifecycle

Enabling IT

--

Modern effective and

user friendly IT

enabling the

engineering process

and people

Product, Data &

Document

Management

Systems

--

Smooth transition of

data and documents

across the product

lifecycle


EIC

Product Data & Document

Management (PLM)

Knowledge Management

Collaboration

TEDS

PLM Applications

Integrated Design Simulation & Verification

Virtual Engine/Product

Design Automation

Mech System Design

Tools & Methods

Performance/ Aero/Fluids

High Performance Computing

Lean Engineering & Functional Maturity

Product Family Standards

Engineering Process

Robust Engineering

Global Specs & Standards

Enabling IT

Architecture

Infrastructure

Corporate Initiatives

HPC Infrastructure

RRES Architecture

EIC

Portfolio


EIC

DATA


Collaboration

TEDS

PLM Applications

APPS


Design Automation

Mech System Design

Tools & Methods



PROCESS


Engineering Process

Robust Engineering


INFRASTRUCTURE

Architecture

Infrastructure


HPC Infrastructure

STRATEGY

EIC

Portfolio


The Engineering model 13

Central Engineering and Technology

Energy Aerospace Marine Nuclear

En

gin

eeri

ng

F

un

cti

on

s

Customer

Develop and deploy capability Construct and

deliver projects


EIC Organisation

Sector/function

Head of Engineering Business

Improvement

Portfolio Operations

Chief Engineer

Integrated design

simulation and

verification

Lean functional

operation and maturity Enabling IT Product, data &

doc management

systems

Chief of Delivery Chief of Strategy

Director

Chief of

Transformation

Transformation and Operations

Safety & Product Assurance

Systems Eng Development

Systems Design

Component Design

Engineering 4 Services/GTS

Controls & Electrical Eng

Test & Measurement

Manufacture

Materials

Technical Office

Portfolio

Management

Office

Finance & Quality

Business

Operations Office

Engineering Functions

Theme Lead Theme Lead Theme Lead


Theme Lead

EIC

Product Data & Document

Management


Collaboration

TEDS

PLM Applications

Integrated Design Simulation & Verification


Design Automation

Mech System Design

Tools & Methods



Lean Engineering & Functional Maturity


Engineering Process

Robust Engineering


Enabling IT

Architecture

Infrastructure


HPC Infrastructure

RRES Architecture

Governing the Portfolio

Component Design

Controls / Electrical Engineering

Engineering 4 Services / GTS

Materials

Safety

Systems Design

System Engineering Development

Test and Measurement

Transformation & Operations

Tools & Methods Tools & Methods Tools & Methods Tools & Methods

Mech System Design


Design Automation

Engineering Process

Robust Engineering



Engineering Process



How we govern and track our work

16

EIC Portfolio Gates

Prioritise

Select

Launch

Baseline

Multi-Year Assessment

Year-End Review

Qualify

Quarterly Portfolio Hopper Review

Project Close

New submission

Reject / Re -submission


Active Project Governance

EIC PMO

Continuous Review

Project status

tracking

Cost adherence

Benefit realisation

review

Milestone Delivery

Change Control

Project Health Check

Risk


Supporting Tools

19


ForumPass

• Exostar’s ForumPass is a cloud-based, collaboration platform

• Specifically for communities with high security requirements.

• Built on the Microsoft SharePoint platform

• Desktop integration with Microsoft Office and Outlook

• Integration with SharePoint Designer, InfoPath, and Visio

• Automation workflows and business processes.


ForumPass for the EIC

• To improve how information is managed

• To facilitate collaboration

• To centralise critical data and information

• To enable automation of many aspects of reporting and

information dissemination

• Requires little intervention from IT.


PMIS

• A Portfolio Management Information System (PMIS) is a

standard set of automated tools available to an organisation

and integrated into a system. For the management of a

Portfolio of Projects.

• ForumPass provides a platform onto which a PMIS for the

EIC can be created


EIC PMIS Aims

• Centralise Project / Programme / Portfolio Information

- Storage of key artefacts

- Template management

- Version control, History and roll-back capability

- Traceability

- Remove double entry and duplication

• Facilitate collaboration and communication

- Easy sharing and group working

- Availability of information

- Automation of (some) communication

• Automate project and programme processes

- Change control, risk management, escalations and authorisations

- Reporting


To select projects that will deliver the greatest combined effect with

the least resources within defined risk constraints

Portfolio Hopper Management


Portfolio Hopper Management • A collection of projects that the business would want the EIC to

fund.

• Projects provided to the EIC with core outline and requirements

• Pass through an assessment for validation, approval or rejection.

• After approval then the detailed project artefacts will be required

to generate standard RR business process documents for funding

and onward project management

• The Portfolio hopper will manage the authorisation (by EIC) of

projects and programmes to pass into the delivery model.


‘Doing the Correct Things’

Idea New and On-going

Projects (for subsequent years)

SUBMISSION

Load Project requirements into

ForumPass EIC Portfolio Hopper

QUALIFICATION

PMO Quality validation, prioritisation, alignment to Horizontals / Verticals

THEME REVIEW

Strategic review and prioritisation / shortlist

EIC EXECUTIVE REVIEW Final joint approval of project portfolio to be planned and delivered

Rejected Projects either No-Go or ‘holding’ as

reserve projects

LAUNCH

Final projects budgeted at Work Centre level and

Launch requirements created

LIVE PROJECTS

Active Projects loaded and managed for delivery

BASELINE

Detailed planning and budgeting completed

(minimum @ Work Centre level)


Key Data Hierarchy – ‘The Project’

PROJECT

All data centres around the project

RISKS

BENEFITS

Schedule Milestones

Programme Sub-

Function EIC

Portfolio Engineering

Portfolio

ISSUES

RESOURCES

Vertical Alignment

Strategic View

Function Strategy

Engineering Strategy

Benefit Area Business

Function Benefit Sector Benefit

Area Business Area

Benefit


Creation of new

submissionChecklist

Project

QualificationGate

Determine project

relationships via

QFD2

Acquire & Rank

Sector

Requirements

Sector

Importance

Determine

relationships via

QFD1

Business

Prioritisation

Ranking of new

Projects

Director

Review

Baseline Project

Prioritisation

Project Portfolio

Selection

Baseline in-year

Portfolio

How to Prioritise

EIC Projects

How to Define &

Maintain a

Portfolio in the EIC

GateStatement To

Deliver

How to Deliver a

Project in the EIC

ChecklistProject Launch /

into Discovery GateProject BaselineChecklist

Delivery &

Continuous

Review

Need for Change

Identified

Multi-Year

Project

Multi-Year Project

Ranking

Director

Review

How to Undertake

Change Control in

the EIC Portfolio

GateChange Request

InitiatedGate

Change Impact

AssesmentApproval

Implement

Changes

Communicate

CompletionChange Rejected

Re-work?

Estimate RoM

Benefits and

Strategic Fit

How to Manage

Benefits in EIC

Programmes &

Projects

Refine Benefits

Estimate Based

on Agreed Scope

& Funding

Project Close

Categorise

Benefits & Obtain

Approval from

Benefit Owner

Baseline Benefits

in EIC PMIS

Verify Benefits

Delivered and

Report

3rd

April 2014

Process Key

EIC End 2 End Process for Portfolio Management and Delivery

Start

Review

Strategy

Strategy

Manage changes

to benefits as

project evolves

Load / Capacity

Balance

How to manage

EIC strategy

How to manage

Load / Capacity

Balance

Funding

How to manage

Funding


29
