PROJECT (PPM) AND CORPORATE PORTFOLIO MANAGEMENT (CPM)

Abstract

The portfolio concept is suitable for both formal and project organisations, as well as competitors, clients and environment to be presented in a connected form. The project portfolio management is oriented toward three specially interesting value entities –future events, project environment and investments. Different levels of completeness of certain projects make it harder to compare the estimated investment values and real measurable organizational values. The key parameters of the dynamic process of decision making are: time, risk, value, engineering project type and implementation which determine the strategic significance of the portfolio management for evaluation and selection of engineering projects within the corporate portfolio management (CPM). In most cases, CPM consists of many mini portfolios (for business lines, regional or geographic markets, product groups, information technologies, advertising or promotion, innovations, research and development, and capital asset), which, individually optimized, can optimize the total company portfolio or the portfolio of project organization. In this work is given a clear analysis of engineering projects and project portfolio in engineering organizations.