Presentation is loading. Please wait.

Presentation is loading. Please wait.

PPM Training Project Portfolio Management Process Janssen Supply Chain Enterprise Portfolio Management Team Trainer: First Name, Last Name Date: dd/mm/yyyy.

Similar presentations


Presentation on theme: "PPM Training Project Portfolio Management Process Janssen Supply Chain Enterprise Portfolio Management Team Trainer: First Name, Last Name Date: dd/mm/yyyy."— Presentation transcript:

1 PPM Training Project Portfolio Management Process Janssen Supply Chain Enterprise Portfolio Management Team Trainer: First Name, Last Name Date: dd/mm/yyyy

2 Training Objectives Understanding the WHAT, WHY, WHO and HOW of the PPM Process WhatWhyHowWho What is the PPM process that is utilized by Janssen Supply Chain? How does it link to our ability to achieve our strategic goals? What is the critical role that you play in the process? What steps and process flow does the process consist of?

3 What is the PPM Process? A portfolio decision support tool for Janssen Supply Chain Governances & Leadership Team Prioritize/rank projects within their portfolios based on a set of criteria Decide on a portfolio that delivers maximum value to the organization over a specific time horizon

4 Why do we do the PPM Process? PPM helps us achieve our strategic goals PPM enables fact-based decisions on GLOBAL priorities in a structured process. Before PPMYTD with PPM Capital decisions were taken from ‘history’ No formal process to make global investment decisions based upon strategic importance No link between projects and CAPEX Budget exercise The PPM Process has established: Global project inventory Integration of financial & project processes All project linked & scored to strategic priorities Alignment of Capital & Resources capacity Facilitated active portfolio management Strengthening of project management practices Global leaders & decision-makers now: Save time in data collection from sites Have a transparent strategic & financial overview Have a clear view on implications Have a timely understanding of portfolio expend progress Usually we have more ideas for project initiatives & improvements than money and resources. Projects must therefore compete for resources.

5 Who is involved in the PPM Process? All PPM roles are inter-connected and crucial to success PROGRAMS PROJECTS Highest Level Governance: Oversight of all project types Business transformation PMO Portfolio Governance: Calibrate priority Decide which projects go in portfolio Escalate conflicts to LT Holds PM accountable Includes: Functional Mgmt (resources & oversight PMs) Budget Ownership: Ensure actuals = targeted spend Work with Governances Project Management & Resource Management: Ensure flawless project execution Ensure resource availability to deliver project on time Accountable to: Functional Mgmt Budget Owners Governance Unit Financial Unit Business Unit LT

6 Governance Model created to mirror JSC organizational Business Model Who is involved in the PPM Process? Governance Unit JSC LT PPM Council Resource Intense ProjectsCapital Intense Projects LCM AssetsFunctional Teams PDMS NPI Platform Small Molecules Platform Parenterals Platform Liquids, Creams & Transdermals Platform Solids Procurement Customer Management Product Management Global Quality CLS IT Site governances Platform V&AT

7 Project CaseAccepted Project Case Approved Project ExecuteProject Closing Project in BP - Plan Project in BP - In Queue Idea/Need Archived How does the PPM Process work? PPM Prioritization and Approval Flow CAR Approval (when applicable) Project Approval Confirmation of Project Finalization Closing Activities Complete Resource Approval Project Case Approval in Governance Project Prioritized by Governance Prioritized by LT (BP Approval) Project Prioritized by Governance: trade-off vs. other LT approved project or conversion of placeholder into project (2 steps at same time) Detail

8 Project Attractiveness Project Ease of Implementation Strategic Importance Risk Business Impact/Value Capabilities Time to Complete Resources Required How does the PPM Process work? Projects are prioritized via a scoring system and criteria weighting 6 weighted Portfolio Drivers are used to score each project on 2 scales

9 How does the PPM Process work? Portfolio is determined based on the JSC Strategic Prioritization Hierarchy Model High risk – EHS, Quality/Compliance, IT, Supply Continuity Reliability: Site and Small & Unidentified Maint & Dist, & Fact Maint NPI Reliability: SCRM, Growth & Capacity, Track & Trace JnJ Factory, Systems Harmonization, Planning, Procurement/Supplier, Network, Cost Reduction, LEAN, LCM, LMA, DTV, Quality Systems SECONDARY PRIMARY “MAKE THE MEDICINES” Includes investments to launch new products and cover SCRM/BCP programs TRANSFORMATIONAL All other strategic programs designed to transform the way JSC does business fall into secondary priority BASE BUSINESS Investments to safely maintain Reliability & Supply

10 Financial Management Monthly financial forecasting Actuals entry Aligned financial template TM1 budget alignment Portfolio Management Simplified & stage-gated portfolio flow managed by Portfolio Managers Updated prioritization matrix Real time reporting All Projects in Resource Management Named Resource Management Resource role updates Resource Managers responsibilities Base Business buckets Project Management Every project with a managed project plan All projects in Project Managers must update projects in system Can I complete the projects in my forecast? Will I hit my spending targets? Are my resources working on the right projects? What is the status of the projects in the portfolio? How does the PPM Process work? Process Changes with the STEP Deployment to Answer the Key Questions

11 Deep-Dive Slides

12 How does the PPM Process work? In-Depth View: Portfolio Phases Approved Project ExecuteProject Closing Project in BP - Plan Project goes through intake process & is entered into Instantis If Governance accepts project, it becomes an “Accepted Project Case” Project included in budget. Decision is made on “do now” or “do later” Project is given green light for resources & CAR funding is approved Project is carried out & performance tracked via updates and reports Project comes to an end & closing activities are completed Project CaseAccepted Project Case Approved Project ExecuteProject Closing Project in BP - Plan Project in BP - In Queue Idea/Need Archived

13 How does the PPM Process work? In-Depth View: Key Steps per Phase Approved Project ExecuteProject Closing Project Case Charter created in Instantis Charter promoted to “Project” Presentation slot booked at Governance Review Meeting Insight in role demands for Project Intake presentation at Governance Review Meeting Decision “Go/NoGo” Project promoted to “Accepted Project Case” in Instantis Accepted Project Case Projects parameters reviewed for prioritization Project list determined for: Projects to be proposed for BP (during regular working cycle) BP budget approval for following year (during BP cycle) Project promoted to “Proposed for BP” Project list reviewed in another prioritization exercise Decision on which Projects to commit to next year Confirmation of Project List as Final Business Plan for next year Project promoted to “Project in BP – In Queue” Project in BP - In Queue Completion of Project Plan Project moved to “do later” list, or; “do now”  Proceed to next Phase Continuous Work in Progress (CONWIP) review of Projects Selection of Projects to start in next three months Addition of those Projects to CONWIP GO Start of resource name assignments Project promoted to “Project in BP – Plan” Project in BP - Plan Confirmation of named resources in line with start date CAR process initiated (when applicable) Completion of resource name assignment Project promoted to “Approved Project Execute” Approved Project Execute Monthly updates in line with financial calendar Reporting of project status e.g. Latest forecasting Four up reporting Change notification process Performance to plan Determination of completion of project activities Project promoted to “Project Closing” Project Closing Completion of Financial Closure Documentation Completion of Lessons Learned & PPM feedback Realisation & confirmation of savings benefits

14 How does the PPM Process work? In-Depth View: Role of Project Manager Project Mgr Portfolio Mgr Resource Mgr Finance Mgr Gov Lead

15 Approved Project ExecuteProject Closing Project Case How does the PPM Process work? In-Depth View: Role of Project Manager Project Mgr Portfolio Mgr Resource Mgr 1. Create Charter & draft Project Case 2. Promote Charter to Project 3. Determine resource roles needed for project, with Resource Mgr input 4. Alert Portfolio Mgr to put Project on agenda of Governance Review Meeting Project Mgr Accepted Project Case Project in BP - In Queue 1. On cue of Portfolio Mgr, adjust dates of Projects that will start now (‘do now’). Project Mgr Portfolio Mgr 1. Confirm named resources with Resource Mgr 2. Update 'To Be Named' Resources to the confirmed name/role Project in BP - Plan Project Mgr Resource Mgr Finance Mgr 3. Initiate CAR process (when applicable) with input from Finance Mgr 1. Update Project status until Project Closure Approved Project Execute Project Mgr Portfolio Mgr 2. When Project activities are done, ask Portfolio Mgr to Promote Project to “Project Closing” 1. Initiate Financial Closure Project Closing Project Mgr

16 Portfolio Mgr Approved Project ExecuteProject Closing Project Case How does the PPM Process work? In-Depth View: Role of Portfolio Manager Portfolio Mgr 1. On cue of Project Mgr, place Project on agenda of Governance Review Meeting 2. Promote Project to “Accepted Project Case” if approved Project Mgr Accepted Project Case Portfolio Mgr 1. Promote Projects to “Proposed for BP”, so that BP list can be made & reviewed 2. After PPM LT approves final list, Flip Flags to “Project in BP – In Queue” Gov Lead Project in BP - In Queue 2. Promote the 'do now' Project to “Project in BP – Plan” Portfolio Mgr Project Mgr 1. Direct Project Mgr that his/her Project is ‘do now’ & that Project dates must be adjusted 1. Promote Project to “Approved Project Execute” Project in BP - Plan Portfolio Mgr 1. On cue of Project Mgr, promote Project to “Project Closing” Approved Project Execute Portfolio Mgr Project Closing Project Mgr

17 Gov Lead Approved Project ExecuteProject Closing Project Case How does the PPM Process work? In-Depth View: Role of Governance Lead Accepted Project Case 1. Review Projects, calibrate & prioritize within Site/BU 2. Work with & direct Portfolio Mgr to Flip Flags of Projects to be reviewed by PPM LT Gov Lead Portfolio Mgr Project in BP - In Queue 1. Review Projects at Governance Review Meeting (“do now” vs. “do later”) Gov Lead 2. Alert Portfolio Mgr to direct Project Mgr that his/her Project is “do now” & that Project dates must be adjusted Portfolio Mgr 1. Approve Project to proceed once Resources & CAR are approved Project in BP - Plan Gov Lead Approved Project ExecuteProject Closing

18 Finance Mgr Approved Project ExecuteProject Closing Project Case How does the PPM Process work? In-Depth View: Role of Finance Manager Accepted Project Case Project in BP - In Queue 1. Assist Project Mgr with validating financial information & CAR/NPV preparation Project in BP - Plan Project Mgr Finance Mgr Approved Project ExecuteProject Closing

19 Resource Mgr Approved Project ExecuteProject Closing Project Case How does the PPM Process work? In-Depth View: Role of Resource Manager Resource Mgr Project Mgr 1. Provide input to Project Mgr to determine resource roles needed for Project Accepted Project Case Project in BP - In Queue 1. Provide Project Mgr with confirmation of named resources Project in BP - Plan Resource Mgr Project Mgr Approved Project ExecuteProject Closing

20 Governance Model created to mirror JSC organizational Business Model Who is involved in the PPM Process? LCM NPI Additional product driven capacity All product/product family optimization Product Tech Transfers related to LCM optimization (not network strategy) Product Driven SCRM (Safety Stock, additional/Alternative MFG site, material supplier validation Projects requiring PDMS support charged back to JSC Launch Management Portfolio – Must Do

21 Governance Model created to mirror JSC organizational Business Model Who is involved in the PPM Process? Replacement/Upgrade of all assets & infrastructure Introduction of new platform technologies Manufacturing site and platform related optimizations Tech Transfers driven by network strategy projects SCRM at site level Assets Platform Small Molecules Platform Parenterals Platform Liquids, Creams & Transdermals Platform Solids Platform V & AT

22 Functional Teams Procurement Customer management Product management Global quantity CLS IT Governance Model created to mirror JSC organizational Business Model Who is involved in the PPM Process? Product Management Focuses on product focused activities (SCRM, Planning, Reliability, Launch Management, Value Stream Management) Customer Management Focuses on relationship with commercial companies and external customers (Demand Planning, RADs, Graphics, Office Strategy & Execution, Business Excellence) Manufacturing & Technical Operations Focuses on technology, production, site network optimization for internal and external sites (GTS, Platforms, Facilities, Procurement) Global Quality Focuses on quality and compliance (Quality, Analytics, DTV) IT, Finance & HR Provide critical support to the organization Better definition for Product Management – not high level enough

23 RISK Related to the business if ‘not doing’ the project (external risk) (e.g. business continuity plans) 3 risk categories are defined: Environmental, Health or Safety risk QA/Compliance risk Continuity of Supply risk External Risk calculated as Severity x Likelihood Severity: judgment of expected consequence Likelihood: judgment of probability Portfolio Drivers Risk Strategic Importance Risk Business Impact/Value Capabilities Time to Complete Resources Required 6 weighted Portfolio Drivers are used to score each project on 2 scales

24 RESOURCE CONSTRAINTS Resources PEOPLE & MONEY BUSINESS BENEFITS Deploy STRATEGY Ensure Financial Return (NPV/CIP) Address RISK to: −Quality; Regulatory −Security of Supply −Environmental; Health & Safety Portfolio Drivers Money Money is key business driver of PPM Strategic Importance Risk Business Impact/Value Capabilities Time to Complete Resources Required 6 weighted Portfolio Drivers are used to score each project on 2 scales

25 Portfolio Drivers PPM Resource Management Rationale Strategic Importance Risk Business Impact/Value Capabilities Time to Complete Resources Required 6 weighted Portfolio Drivers are used to score each project on 2 scales Resource CAPACITY Resource SUPPLY Resource DEMAND - Resource PoolProject InformationVariance =

26 26 Assets – Platform/Site LCM/NPI Functional MTO HO IT HO Function (i.e.; Home office – product management) GTS Procurement Site Eng/Maint VSL PM PDMS (etc) Project Controls & Execution – Where is my primary work location? What budget does my project roll up under? Prioritization & Approvals: Portfolio Manager determines a project’s correct Governance PPM Process Three Decisions GOVERNANCEBUDGET OWNERSITE Please advise on where this belongs?


Download ppt "PPM Training Project Portfolio Management Process Janssen Supply Chain Enterprise Portfolio Management Team Trainer: First Name, Last Name Date: dd/mm/yyyy."

Similar presentations


Ads by Google