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.

1. Trusted to deliver excellence
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Portfolio Management
APM Session– April 2014
Prepared by EIC Communications
John McGregor
Chief Of Delivery, EIC
Dean Hall
EIC PMO

2. Introductions

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. 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. 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. 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. 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
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REALISED PROJECT
VALUE

8. Rolls-Royce EIC
8
Transform
Standardise
Maintain
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9. The current Portfolio
9
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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
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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. 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. The Engineering model
13
Central Engineering
and Technology
Energy Aerospace Marine Nuclear
Engineering
Functions
Customer
Develop and deploy capability
Construct and
deliver projects
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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
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Theme Lead

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
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16. How we govern and
track our work
16

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
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18. Active Project Governance
EIC PMO
Continuous
Review
Project
status
tracking
Cost
adherence
Benefit
realisation
review
Milestone
Delivery
Change
Control
Project
Health
Check
Risk
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19. Supporting Tools
19
Rolls-Royce proprietary information

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. 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. 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. 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
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24. To select projects that will deliver the greatest combined effect with
the least resources within defined risk constraints
Portfolio Hopper Management
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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.
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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)
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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. 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
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29. 29
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