The following illustrations present conceptually how those calculations are performed. First, the system must define the total number of possible solutions. As each project has two potential states (Included, Not Included), the total number of solutions is represented by the equation n2, where n = the total number of projects in the analysis. For illustration purposes, this calculation yields a total of 32 potential solutions for a sample of 5 projects: 25 or 32 possible solutions. Each of those solutions will be depicted as a string of Y’s and N’s, where YNNYN means the solution includes Projects 1 and 4, but not 2, 3 or 5, the solution set in total will then appear as follows: Figure : Defining the Solution Set Each of those solution sets may then be translated into cost figures using the cost estimate for each project. For example, the solution YNYYN (Column 3, Row 7) includes Projects 1, 3 and 4. The costs for those projects were estimated using either top down estimating in project-level fields or rolled up from bottom-up estimating methods. Figure : Project Cost and Value Referencing those costs, the system will calculate that the estimated cost for each of those projects is $850,000, $1,130,000, and $850,000, or a total estimated cost for the portfolio of Projects 1, 3, and 4 of $2,830,000. Each of those solutions may be represented by a total cost as in the following table: Figure : Translating the Solution Set to Cost Values The same approach is used to convert each solution into an aggregated strategic value score. Figure : Translating the Solution Set to Strategic Values Each solution may then be mapped to two data points: Figure : Identifying Solution Set X and Y Axes
The following illustrations present conceptually how those calculations are performed. First, the system must define the total number of possible solutions. As each project has two potential states (Included, Not Included), the total number of solutions is represented by the equation n2, where n = the total number of projects in the analysis. For illustration purposes, this calculation yields a total of 32 potential solutions for a sample of 5 projects: 25 or 32 possible solutions. Each of those solutions will be depicted as a string of Y’s and N’s, where YNNYN means the solution includes Projects 1 and 4, but not 2, 3 or 5, the solution set in total will then appear as follows: Figure : Defining the Solution Set Each of those solution sets may then be translated into cost figures using the cost estimate for each project. For example, the solution YNYYN (Column 3, Row 7) includes Projects 1, 3 and 4. The costs for those projects were estimated using either top down estimating in project-level fields or rolled up from bottom-up estimating methods. Figure : Project Cost and Value Referencing those costs, the system will calculate that the estimated cost for each of those projects is $850,000, $1,130,000, and $850,000, or a total estimated cost for the portfolio of Projects 1, 3, and 4 of $2,830,000. Each of those solutions may be represented by a total cost as in the following table: Figure : Translating the Solution Set to Cost Values The same approach is used to convert each solution into an aggregated strategic value score. Figure : Translating the Solution Set to Strategic Values Each solution may then be mapped to two data points: Figure : Identifying Solution Set X and Y Axes
Portfolio%20Analysis%20with%20Microsoft%20Project%20Server%202010.docx