Improvement Portfolio Management
Program, Portfolio or an Initiative
According to ISO 21503, a program is a collection of related projects and activities managed in a coordinated manner to obtain benefits and control not available from managing them individually. A project is a temporary endeavor undertaken to create a unique product, service, or result, characterized by specific objectives and constraints like time, cost, and quality. A portfolio, on the other hand, encompasses a complete set of projects and programs, prioritized and managed together to achieve strategic objectives and optimize resource allocation. An activity, on the other hand, often refers to a discrete task or action that contributes to the completion of a project or an initiative.
Project Charter
Starting a project with a project charter is crucial because it formally authorizes the project and establishes a clear foundation for the project manager and sponsor's relationship, ensuring alignment on objectives and expectations. The charter defines the current situation and explicitly outlines what is included in the project scope (in-scope) and what is excluded (out-of-scope), helping to prevent scope creep and misunderstandings as the project progresses. Additionally, it identifies the cross-functional team, articulates financial benefits such as ROI, sets SMART goals, lists stakeholders, assesses risks, outlines the schedule, and specifies the methodology to be used, providing a comprehensive framework for successful project execution and governance.
Project Phases and Methodologies
Structure, phasing, and methodology are essential in industrial CAPEX and OPEX projects because they provide a systematic approach to planning, executing, and controlling project activities, ensuring efficient resource allocation, risk management, and alignment with strategic objectives throughout the project lifecycle. On one side, CAPEX projects encompass phases such as engineering, procurement, construction, commissioning, start-up, and handover; on the other side, OPEX improvement projects utilize methodologies like DMAIC, DMADV, Lean, Agile, Value Stream Mapping, Total Productive Maintenance (TPM), and Digital Transformation, among others. Selecting the appropriate methodology and phasing for a project is critical to enhancing its success rate and achieving desired outcomes.
Performance Sustainability
Preparing stakeholders and conducting high-quality training during the handover to process owners and performers after an improvement project is vital for ensuring that all parties are equipped with the necessary knowledge and skills to sustain the changes made. This preparation fosters ownership among process owners and participants, encouraging them to take responsibility for the improved performance while facilitating better adherence to new processes. Furthermore, by incorporating control mechanisms to monitor sustainability, alongside systems for rewarding and recognizing the contributions of process owners and participants, organizations can reinforce commitment to continuous improvement and ensure that the benefits of the project are maintained over time.