Portfolio Prioritization
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'''Quantitative methods:''' | '''Quantitative methods:''' | ||
These approaches focus on numerical information and ignore tacit knowledge and qualitative information. There are several dimensions of quantitative methods, the most common of them being mathematical programming. | These approaches focus on numerical information and ignore tacit knowledge and qualitative information. There are several dimensions of quantitative methods, the most common of them being mathematical programming. | ||
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'''Qualitative methods:''' | '''Qualitative methods:''' | ||
The focus of qualitative is to take into account factors that quantitative methods cannot. Some of the most used are bubble diagrams, sensitivity analysis and benchmarking. | The focus of qualitative is to take into account factors that quantitative methods cannot. Some of the most used are bubble diagrams, sensitivity analysis and benchmarking. | ||
| − | '''Hybrid methods:''' | + | |
| − | These are the most common methods for evaluating and selecting projects and portfolios today. In essence, these are a mix of quantitative and qualitative methods. | + | ---- |
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| + | '''Hybrid methods:''' These are the most common methods for evaluating and selecting projects and portfolios today. In essence, these are a mix of quantitative and qualitative methods. | ||
Revision as of 20:22, 2 March 2020
This Wiki-page is currently under construction, and therefore may important information be missing. In case of any conflicts, please contact, Andy M Filipovic, s153501@student.dtu.dk
| Andy Mattulat | Filipovic | s153501 |
| Casper Scheel | Nielsen | s193273 |
| Lucas | Gunnersen | s161812 |
| Magnus Thor | Gunnarsson | s193154 |
| Mohammad Sadeq Nateqi | Nateqi | s143376 |
| Morten Aarkrogh | Christensen | s193382 |
Contents |
Introduction
This Wiki page is a collection of tools and methods that we find relevant, in the development of a portfolio prioritization method/toolbox, in close collaboration with FL. Smidth.
Tools
This chapter contains the different tool we intent to use during the portfolio prioritization process. The different tools will have short description of the tool and how it's intended use.
Tool 1: Scoring Method (Casper)
Definition
Practical guidelines /how to
Benefits and limitations
Tool 2: Bubble Diagram (Casper)
Definition
The bubble diagram is a very simple, yet useful tool to map preferential values of a project. The values are mapped on an X-Y matrix, where each axis determine the desired value. The name bubble comes from the actual representation of the values in the matrix.
Practical guidelines /how to
Benefits and limitations
Tool 3: Portfolio selection (Magnus)
Definition
Due to increasing competition and development of technology, more innovative products are being developed by companies. It is a risky path to take, due to uncertainty in its feasibility and future commercial success, which makes each selection and evaluation crucial. Each project selection thus has a high correlation with the survival of a company. The most common methods used to select projects or portfolios are quantitative, qualitative and hybrid methods.
Practical guidelines /how to
Quantitative methods: These approaches focus on numerical information and ignore tacit knowledge and qualitative information. There are several dimensions of quantitative methods, the most common of them being mathematical programming.
Qualitative methods: The focus of qualitative is to take into account factors that quantitative methods cannot. Some of the most used are bubble diagrams, sensitivity analysis and benchmarking.
Hybrid methods: These are the most common methods for evaluating and selecting projects and portfolios today. In essence, these are a mix of quantitative and qualitative methods.
Further explanation of these methods can be found via: [1]
Tool 4: The Analytic Hierarchy Process (AHP) (Morten)
Definition
The analytic hierarchy process is used to help decision making when working with projects, programs or portfolios, where multiple criteria needs to be considered. The process keeps the decision unbiased and objective by the use of eigenvectors. The functions that are considered in AHP are structuring complexity, measurements and synthesis.
Practical guidelines /how to
When AHP is used in decision making, one will need to go through the 6 steps that is: 1. Define scope 2. Hierarchy 3. Pair wise comparison 4. Scoring and consistency 5. Evaluation of the alternatives 6. Make the decision
Benefits and limitations
The benefit of AHP is its ability to handle more criteria than the human mind can, which will increase the amount of correct decisions made. Furthermore AHP decreases the amount of subjectivity used to make decisions as it leaves out biases. AHP is a time-consuming process the first time it is used, however after several uses it is more easily applied.
