Project Portfolio Selection Model Development Using Project Portfolio Management (ppm) Approach With Special Reference To Djenna Endowment

The general objective of the thesis is to develop a model that assists companies’ for the selectionrnand management of an optimal project portfolio that maximizes the benefits using projectrnportfolio management (PPM) approach.rnIn this thesis two models are developed. The first model is a general Project PortfoliornManagement (PPM) model that describes the whole process and steps of PPM. In this model thernPPM process is divided in to six steps. The relationships between the steps, the processes andrnactivities of each step are discussed in detail.rnThe second model developed in this thesis is the portfolio selection step of the PPM process. Inrnthe portfolio selection model project evaluation criteria and sub-criteria are identified, andrnprojects that are screened in the individual project evaluation step are arranged in AnalyticalrnHierarchy Process (AHP) structure to prioritize and give relative weights of each componentrnagainst to the next higher level components. At the most lower level the candidate projects forrnportfolio selection are arranged. These projects are going to be prioritized and scored inrnaccordance with their contribution to the total sub-criteria, which are placed on the next higherrnlevel in the structure. The score or weights of the projects are used as a coefficient of thernoptimization problem. A zero-one integer linear programming is proposed to find the solutionrnof the optimization problem.rnThe developed model is tested and validated by considering one local multi-project ownerrncorporate office. The corporate office vision, mission, objectives, criteria, sub-criteria, ongoingrnand candidate projects are considered and the objective function of the corporate office isrnformulated with an inclusion of the Endowment constraints and interdependence of projects.rnThen considering three probable demand scenarios and using a zero-one integer linearrnprogramming two portfolios of projects are generated. The portfolios’ risk and objectivernfunction values are calculated thereafter. The selection of one out of the two portfolios by takingrninto account the trade-offs of the risk and objective function value is left unto management forrntheir decision.

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