Portfolio Management in the Rolls-Royce Engineering Improvements Centre

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On Thursday 24th April the North East branch welcomed John McGregor and Dean Hall of the Rolls-Royce Engineering Improvements Centre of Competence who presented their approach to managing a mixed portfolio of engineering improvement projects and programmes.

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Portfolio Management in the Rolls-Royce Engineering Improvements Centre

  1. 1. Trusted to deliver excellence © 2013 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. Portfolio Management APM Session– April 2014 Prepared by EIC Communications John McGregor Chief Of Delivery, EIC Dean Hall EIC PMO
  2. 2. Introductions
  3. 3. Integrated Production System This session • Portfolio Management within the Engineering Improvement centre • How we govern and support our work Rolls-Royce proprietary information
  4. 4. 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. Rolls-Royce proprietary information
  5. 5. 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. Rolls-Royce proprietary information
  6. 6. Portfolio Management The continuous process of identification, prioritisation, selection and delivery management of projects that align to the corporate strategy and business objectives Rolls-Royce proprietary information
  7. 7. Portfolio and Project Management Impact UNREALISED VALUE Improve Project Management Improve Portfolio Management PortfolioManagement “Doingthecorrectthings” Programme & Project Management “Doing things correctly” 0% 100% 100% Portfolio Management acts as the commissioning body for Programmes and Projects Rolls-Royce proprietary information REALISED PROJECT VALUE
  8. 8. Rolls-Royce EIC 8 Transform Standardise Maintain Rolls-Royce proprietary information
  9. 9. The current Portfolio 9 Rolls-Royce proprietary information
  10. 10. The EIC Portfolio EIC Portfolio Delivery TransformStandardise 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 Rolls-Royce proprietary information
  11. 11. 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 Rolls-Royce proprietary information
  12. 12. EIC DATA Knowledge Management Collaboration TEDS PLM Applications APPS Virtual Engine/Product Design Automation Mech System Design Tools & Methods Performance/ Aero/Fluids High Performance Computing PROCESS Product Family Standards Engineering Process Robust Engineering Global Specs & Standards INFRASTRUCTURE Architecture Infrastructure Corporate Initiatives HPC Infrastructure STRATEGY EIC Portfolio Rolls-Royce proprietary information
  13. 13. The Engineering model 13 Central Engineering and Technology Energy Aerospace Marine Nuclear Engineering Functions Customer Develop and deploy capability Construct and deliver projects Rolls-Royce proprietary information
  14. 14. EIC Organisation Sector/function Head of Engineering Business Improvement Portfolio Operations Chief Engineer Integrated design simulation and verification Lean functional operation and maturity Enabling ITProduct, 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 Rolls-Royce proprietary information Theme Lead
  15. 15. EIC Product Data & Document Management 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 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 & MethodsTools & MethodsTools & MethodsTools & Methods Mech System Design Virtual Engine/Product Design Automation Engineering Process Robust Engineering Global Specs & Standards Knowledge Management Engineering Process Knowledge Management Rolls-Royce proprietary information
  16. 16. How we govern and track our work 16
  17. 17. 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 Rolls-Royce proprietary information
  18. 18. Active Project Governance EIC PMO Continuous Review Project status tracking Cost adherence Benefit realisation review Milestone Delivery Change Control Project Health Check Risk Rolls-Royce proprietary information
  19. 19. Supporting Tools 19 Rolls-Royce proprietary information
  20. 20. 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. Rolls-Royce proprietary information
  21. 21. 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. Rolls-Royce proprietary information
  22. 22. 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 Rolls-Royce proprietary information
  23. 23. 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 Rolls-Royce proprietary information
  24. 24. To select projects that will deliver the greatest combined effect with the least resources within defined risk constraints Portfolio Hopper Management Rolls-Royce proprietary information
  25. 25. 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. Rolls-Royce proprietary information
  26. 26. ‘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) Rolls-Royce proprietary information
  27. 27. 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 Rolls-Royce proprietary information
  28. 28. Creation of new submission Checklist Project Qualification Gate 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 Gate Statement To Deliver How to Deliver a Project in the EIC Checklist Project 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 Gate Change Request Initiated Gate Change Impact Assesment Approval Implement Changes Communicate Completion Change 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 Rolls-Royce proprietary information
  29. 29. 29 Rolls-Royce proprietary information

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