Manuel, Michael Brian D.

BSEE IV 3
BSEE Elective 1 (EE-ELEC1)
Prof. Engr. Daniel P. Durias
Assignment # 1
1) Relationship between Project management, Program management and Portfolio
Management.
- Project, program and portfolio management is not just the same, it seen in mature and
well established organization where conduct multiple project. As a project manager,
you should know the basic concepts of program and portfolio and how they are related
to each other and to projects.
Project management is undertaken to realize one or more deliverables,
with which it contributes to realization of benefits. It is the application of
knowledge, skills, tools and technique to project activities to meet project
requirements. Project manager must not only to strive to meet scope,
time, cost and quality of project but also facilitate the entire process to
meet the need and expectations of the people involve or affected by the
project activities.
Function of Project Management
1) Collect and analyze reports.
2) Communicate information to program management and make
sure that the information is correct.
3) Identify the changes that are required in the project by giving
reasons and its expected outcome.
Program management is manage by a program manager, who oversees
the project and provides high-level guidance to the project managers. In
other words, a program manager oversees projects and coordinates efforts
between projects but does not manage the projects. Also program
managers are managing things themselves and, are a communication
channel between the project managers and portfolio managers.
Function of Program management
1) Collecting performance report from projects and submitting
performance report of programs and projects to portfolio
managers.
2) Analyzing requests of changes in projects or programs and
submitting it to the portfolio managers.
Portfolio management is the centralized management of one or more
portfolios, and includes identifying, prioritizing, authorizing, managing
and controlling projects, programs and other related work in order to
obtain specific strategic business objectives of the organization. Portfolio
management is managed by the portfolio manager.
Function of portfolio management
1) Strategies and priority areas are defined and communicated.
2) During the course of implementation, the strategies and
priorities are further elaborated on the lower level.
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3) The governing methodology of the organization is

communication.
4) Take decision on changes that are requested from programs
and projects during the course of projects and programs.
5) Communicate the impacts if any due to the changes made in
one project or program to other projects or programs.
Relationships between Project, Program and portfolio management.

- Comparison between Project, Program and portfolio management.

Characteristic
Project Management
Program Management Portfolio Management
Definition
A limited set of effort
A group of related
A collection of
(work) to create a unique projects and possibly
projects, programs,
product, service or
some related work
and other related
results.
that does not belong
works.
to any project.
Change
Project manager expects Program manager
Portfolio manager
change and implements
must expect changes
continually monitors
process to manage and
from both inside and
changes in the broader
control it.
outside the program
context of the strategic
and thrive on them if
plan of the
they help maximize
organization.
the strategic benefits
and objectives of the
program.
Management Project manager
Program manager
Portfolio manager
manages or coordinates
manage the program
may coordinate or
the project to its success. staff and the project
manage the portfolio
managers and provide management staff.
overall leadership,
including vision.

Monitoring

Planning

Scope

Success

Project manager
monitors and controls
the project activities
(tasks) undertaken to
produce the planned
products, results, or
services of the project.

Project manager
develops, monitors and
control project plans
from high-level
information throughout
the project lifecycle by
using progressive
elaboration.
At a given time, a
project has a scope
limited to meeting its
objectives, including
delivering the planned
product. The scope is
developed and
monitored and controlled
throughout the life cycle
of the program by using
progressive elaboration.
Success relates to the
project and is measured
generally by the criteria
of completing the project
within the planned
budget, cost and scope.
The degree of customer
satisfaction is another
parameter to measure
success.

Program manager
monitors the progress
of program
components,
including projects and
program-related and
non-project work, to
lead the program to
success, which means
overall goals and
benefits will be
achieved within the
planned budget and
schedule.
Program manager
develops the program
plan and performs
high level planning to
provide guidance at
component level
planning such as
project planning
A program has a
wider scope dedicated
to meeting the
benefits in context of
the strategic goals of
the organization.

Portfolio manager
manages the
aggregated portfolio
performance and value
indicators.

Success relates to the

overall program and is
measured in terms of
benefit delivery
expected from the
program.

Success relates to
overall portfolio
performance, which is
an aggregated
performance of all of
its components:
programs and projects.

Portfolio manager
performs planning at
the portfolio level,
which includes
developing and
executing necessary
processes, including
communication.
A portfolio has a
business scope that
changes with the
change in the strategic
plan and goals of the
organization.

2) Project Management Office Structure.

3) Project Management and Operational Management.

- Project management is considered one of the most important functions of an
operations manager. A project can be of three types: materials management,
service management or both. While materials management is the primary form of
project management, service management is a recent addition to the project
management portfolio. Increased competition among companies in the recent
times has resulted in additional responsibilities being added to just about every
PM portfolio. Services management is one of the areas an operations manager is
usually expected to look after. It is not unusual for Operations manager to have
both service and material elements in one project. The scope of operations in
both areas is indeed widethe operations manager needs to ensure smooth
processes and also make sure that the products and services under his control
generate profits.
- responsibilities of an operations manager in each area of project management:
1) Project initiation stage.
2) Project Planning and Design stage.
3) Project execution and Construction stage.
4) Project monitoring, evaluation and controlling systems.
5) Project completion (if not continuous).
6) Project execution stage (if continuous) with input from evaluation stage.
7) Requirements gathering - The firm understands client expectations from the
client at this stage. This stage is critical, as the operations manager needs to
understand the requirements clearly so that the deliverable clearly fulfill
client requirements. You need to know deadline, project details, time table for
the project, and how success or failure will be measured of the ongoing
project.
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8) Supply chain management - The operations manager needs to get in touch

with the suppliers and inform them about the exact nature of supplies that are
needed to fulfill the client requirements. The operations manager needs to
constantly ensure that the supplies are ready for the project on time. It is
especially important to find out where the problems might occur, what could
be the bottlenecks of the project. Since encountering a significant bottleneck
problem without anticipating it can take days or even weeks and months for
the larger projects.
9) Inventory management - The operations manager needs to develop a sound
inventory management system keeping the assignment in mind. The
inventory must be in a position to store the supplies well, and the firm must
be able to retrieve the raw materials as and when required. Often project gets
hold up and fall behind the schedule because the inventory wasnt properly
prepared.
10) Quality management - The operations manager needs to be constantly in
touch with the quality assurance personnel so that the qualities of the
deliverables fulfill the agreed quality criteria. The operations manager plays
an important role in formulating the quality and compliance standards for the
deliverables. The operations manager needs to maintain a checklist and needs
to evaluate, with the help of the assurance personnel, whether the deliverable
is fit to be delivered. This might not affect time table of project, but it can
certainly affect longevity of it. If new project is manufacturing of car part,
and the qualities of materials are low, project might be on time, but still will
fail in the long run due to returns and need to re manufacture.