Norwegian defence 19. October 2007 Investment Management Project Portfolio Management Petter Eik-Andresen Commander Senior grade PMO Manager

Transcription

1 Norwegian defence 19. October 2007 Investment Management Project Portfolio Management Petter Eik-Andresen Commander Senior grade PMO Manager

2 Agenda Part 1 Development of the Investment Management system and its context History Total project scope Organisation Principles Rules and regulations Project management phase model Part 2 Portfolio Management Management challenges in military organisations How to deal with the challenges - (today) Applications

3 Project management - history Norwegian Ministry of Defence Norwegian defence has own system for Project Management called PRINSIX. It is developed since 1990, based on best practice Project Risk Management system development by No defence and DNV E-learning with certification within the Norwegian university system and PMI standards 2001 New database - CA Superproject was followed by ARTEMIS applications (Visual Cost, Track View, MSP Client, FID) 2004 New project model

4 The situation. Many large projects are delivering and many new are in process

5 Large investments - AIRFORCE F-16 updates Naval helicopters (NH-90) F-16 air-to-ground munitions New Fighter Aircraft involvement (Eurofighter, JSF, JAS Gripen) Air transport MPA updates (limited) Ground based air defence updates

6 Large investments - LAND Norwegian Ministry of Defence Armoured vehicles (incl. Leopard 2A4, M-113 updates, light armoured vehicles of different types) Soldier modernisation, incl. a variety of weapons Medium range anti-tank weapons (Javelin) Communication related equipment ISTAR related equipment Long range artillery

7 Large investments - NAVAL Frigates Fast Patrol Boats Naval Strike Missile (NSM) Upgrade of submarines Norwegian Ministry of Defence

8 Extent of investments Approx 350 Running projects Approx 200 Planned projects Every year 800 million are invested in new projects How do we deal with this? Organisation Principles Process model applications of course

9 Investment planning And economic steering

10 Investment programmes Sj FDIV-2/3, SjFDV4 Long term planning section Investment secretariat LAND Buldings etc AIR NAVAL LOGISTICS SOF C4IRS Integrated processes - MoD and HQ Defence Command Norway integrated August 2003 Bjørn Ryen 6455 Rolf Magne Stein Hedvig Haaland 6562 Beate Lubeck Øivind Petersen Andre Sørli 6564 Ylva Fredriksen Defence staff ++ Approx 40 Letitia Athanasiu Tore Kvalvik 6573 Jan Ronny Fagereng Christian Wessel Heidi Nordås Petter Eik-Andresen Even Eid 6479 Arne Omdahl Øivind Petersen Defence Tormod Johannesen Log Org approx 300/6000 Rolf Magne Stein 6574 Kjersti Mostue Arild Arnesen 6449 Bjørn Tore Sagmoen Martin Holmemo Heidi Nordås Bente Linderud

11 Investments Management - principles Focus on alternative solutions (0 1 2) Focus on early phases, procurement strategy and Life Cycle Cost Continuous risk management Strategic management and a strong link to operational requirements Multinational collaboration ensure interoperability Competitive bidding Strategic management of total investment portfolio

12 Rules and regulations 2000 Ministry of finance introduces External Quality Assurance and rules for calculating the buffer (50/50-85/15) 2005 Ministry of finance decides External Quality Assurance 1 and 2 ( 1.Concept phase 2.Definition phase) Public law of acquisition and military acquisition regulation Both regulations promote competitive bidding Exceptions may be given: industrial/political Export regulations

13 Phase model mandatory for investments > 60 mill. Concept Definition Acquisition Implementation and operations Disposal Ideas and long term plans MoD DS DLO ICS EQ1 CS IDS EQ2 DS GO

14 Part 2 Portfolio Management What is there to manage? System The process model itself internal quality, improving procedures, lessons learned etc Configuration management of the education system Applications Portfolio Capability driven long term planning processes Choose the right projects top down- and bottom up processes Stop and terminate projects Ensure that every project has the right quality and updated information

15 Challenges military organisations Yearly budget decided by parliament with constrains to how much money that can be transferred from one year to the next Strategic level management of projects Management of delays be proactive accelerate new Management of risks and possibilities Manage the economic portfolio Project level Manage internal resources (people) Manage requirement changes Perform within time, quality and cost

16 Investeringsdata: Grunndata Rammer Tildelinger Historikk FID (investeingsmodul ( investeingsmodul) PerformanceView Styringsinformasjon: Prosjekt/portefølje Fremdriftsoversikt Ressursoversikt Kostnadsoversikt ProjectManagement Enkel prosjektstyring: Prosjekter/Aktiviteter/Oppgaver Risk/Issues Planlegging og oppfølging Fremdriftsstyring Ressursstyring Artemis Database MSPClient Avansert prosjektstyring: Prosjekter/Oppgaver/Aktiviteter Planlegging og oppfølging Fremdriftsstyring Ressursstyring Timeregistrering: Aktiviteter og oppgaver Timeregistrering Godkjenning Rapportering TrackView VisualCost Kostnadsstyring: Budsjettering Periodisering Endringskontroll Kostnadsoversikt

17 Strategic management of total investment portfolio GP +P P A bsol ut t Mill The management challenge is: Budgets are more or less fixed to the current year. Increasing nr of projects increases the probability for delays and changes Budsjett 2006 Budsjett 2007 Budsjett 2008 Budsjett 2009 Budsjett 2010 Budsjett 2011 MNOK i godkjente pr osjekter MNOK i godkjente pr osj men ikke f or pliktet MNOK i planlagte pr osjekter (MP/ PP) Mater iellplan Effective contracts Waiting for contracts Planned

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19 What do we miss? Ability to attach pdf documents to each project in the database Simulation Simple reporting tool GP + P P A bsol ut t Budsjett 2006 Budsjett 2007 Budsjett 2008 Budsjett 2009 Budsjett 2010 Budsjett 2011 Questions? MNOK i godkjente pr osjekter MNOK i godkjente pr osj men ikke f or pliktet MNOK i planlagte pr osjekter (MP/ PP) Mater iellplan