Project, Program, Portfolio and Operation Management: In this module, you will learn about Project Management, Program Management, Portfolio Management, Operation Management, Organizational Project Management (OPM) and interrelationship with each other.

Project, Program, Portfolio and Operation Management

What is Project?

A project is a temporary endeavor undertaken to create a unique product, service, or result.

Unique product, service, or result - Projects are undertaken to fulfill objectives by producing deliverables.

Temporary endeavor - The temporary nature of projects indicates that a project has a definite beginning and end.

Few examples of projects are:

Developing a new pharmaceutical compound for market,
Merging two organizations,
Improving a business process within an organization,
Acquiring and installing a new computer hardware system for use in an organization,
Modifying a computer software program used in an organization,
Exploring for oil in a region,
Conducting research to develop a new manufacturing process, and
Constructing a building.

Project exists because of:

Market Demand
Social Needs
Strategic and Business needs
Customer Requests
Technological Advancement
Legal Requirements
Environmental Requirements

Results of Project are:

New Product
Product Enhancement
Improved Service
New Business Asset
New Services

What is Project Management?

Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Project Management is accomplished through the appropriate application and integration of the project management processes which are grouped into 5 process groups:

1. Initiating

2. Planning

3. Executing

4. Monitoring & Controlling

5. Closing

Project Management enables organizations to execute projects effectively & efficiently.

Due to nature of change, managing project is iterative and goes through progressive elaboration throughout the life cycle of the project.

What is Program?

A program is a group of related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually.

Programs are managed by program managers who ensure that program benefits are delivered as expected, by coordinating the activities of a program’s components.

An example of a program is a new communications satellite system with projects for the design and construction of the satellite and the ground stations, the launch of the satellite, and the integration of the system.

What is Program Management?

Program Management is defined as the application of knowledge, skills, and principles to a program to achieve the program objectives and to obtain benefits and control not available by managing program components individually.

What is Portfolio?

Portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Portfolios have an organizational scope that changes with the strategic objectives of the organization.

Portfolio managers create and maintain necessary processes and communication relative to the aggregate portfolio.

What is Portfolio Management?

Portfolio management is defined as the centralized management of one or more portfolios to achieve strategic objectives. The programs or projects of the portfolio may not necessarily be interdependent or directly related.

The purpose of portfolio management is to:

· Provide decision-making transparency.

· Guide organizational investment decisions.

· Select the optimal mix of programs and projects to meet strategic objectives.

What is an Organizational project management (OPM)?

Framework which is used to align project, program, and portfolio management with organizational strategy and customizing these practices within the organization’s context, situation, or structure is called as Organizational project management (OPM).

The main purpose of OPM is to ensure that the organization undertakes the right projects and allocates critical resources appropriately.

This standard is one of PMI’s latest standards and it is aligned with A Guide to the Project Management Body Knowledge (PMBOK^® Guide) – Sixth Edition and other PMI standards.

OPM helps organizations deliver value through the following principles:

Alignment with organizational strategy
Integration with organizational enablers
Consistency of education and delivery
Organizational integration
Value to the organization
Continuous development

· What are Operations?

Operations are ongoing and permanent with repetitive output. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross.

Projects can intersect with operations at various points during the product life cycle, such as:

· When developing a new product, upgrading a product, or expanding outputs;

· While improving operations or the product development process;

· At the end of the product life cycle; and

· At each closeout phase.

What are Operations Management?

Operations management is concerned with the ongoing production of goods and/or services. It ensures that business operations continue efficiently by using the optimal resources needed to meet customer demands.

It is concerned with managing processes that transform inputs (e.g., materials, components, energy, and labor) into outputs (e.g., products, goods, and/or services).

Project Vs Operation

Project	Operation
Temporary	Ongoing
Unique	Repetitive
Ends when objectives are met	Does not end when objectives are met
Concludes when its specific objectives have been attained	Adopts a new set of objectives and the work continues
Has to stick with a definite budget	Maintain a specific profit margin

Conclusion

Most hopefully, you would like this information, and this is more useful for you.

The information provided above about project. project management. program. Program Management. Portfolio. Portfolio management. Organizational project management. Operations. Operations management are very much important for every Project team members as these are basic terms.

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Project management and Program management