Unit Project

This unit project discusses project management, portfolio management, and program management. It includes a case study of Rolls Royce Company and discusses challenges and solutions in portfolio management. Resource allocation, risk management, and prioritization of projects are some of the challenges faced by portfolio management teams.

Running Head: UNIT PROJECT 1
Unit Project
Institutional affiliation
Date

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Table of Contents
Case study........................................................................................................................................3
PROJECT MANAGEMENT...........................................................................................................3
Introduction and characteristics of projects.................................................................................3
Project management Process........................................................................................................5
Tools in project management.......................................................................................................6
PORTFOLIO MANAGEMENT.....................................................................................................9
Introduction..................................................................................................................................9
Objectives of portfolio management..........................................................................................10
Challenges and solutions faced in portfolio management.........................................................11
PROGRAM MANAGEMENT......................................................................................................13
Introduction and phases of program management.....................................................................13
Program management objectives...............................................................................................15

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Case study
In this paper am using an example of a company known as Rolls Royce Company. Rolls
Royce is a company that was founded in the year 1904 by Charles Rolls and Henry Royce. It
first began in producing luxury cars in the British market and later on it developed into
manufacturing aero engines. Rolls Royce aimed at producing the best cars in the world,
therefore, it had to establish and build its reputation. In this way, Rolls Royce prevailed in the
market and was able to start manufacturing aero engines (Kazda & Caves, 2010). The company
has produced and manufactured engines that have been used in the defense sector and civil
aircraft. Rolls Royce headquarters are in Derby, England, United Kingdom (Foden & Berends,
2010).
PROJECT MANAGEMENT
Introduction and characteristics of projects
A project is a type of investment where inputs such as raw resources are used to create
assets that are to be beneficial to an organization or an individual after the project is completed.
Projects are characterized complex and can fail to lead to great loss if they are not managed in
the right way. Therefore projects needed to be planned for and managed accordingly to produce
the unique products in which they are intended to manufacture. Project management is, therefore,
the process in which a team working on a project comes together and sets up a plan in which it
will execute and control a project to achieve a specific outcome within a given duration of period
(Azim et al., 2010). For the project to be in a good management position, it needs a project
manager. The project manager oversees the projects on behalf of the stakeholders and ensures
that the project runs efficiently. Project managers therefore are required to direct all activities so

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as to meet the goal and objections of the project, manage any kind of risk through solving
potential issues in the project before they develop and become problems, keep track of all
records and report and give reports on how the project is doing and act as a channel of
communication (Azim et al., 2010).
Projects have different characterizes and to manage them in the right way managers have
to understand their projects. Some of the characteristics include a definition of the objective of
the project regarding the cost schedule and duration, a project uses different inputs to come up
with a unique output, a project has a fixed duration of time and that a project as a direct or
indirect consumer. Projects are intended to be achieved and to meet a particular goal when they
are completed (Schulenkorf, 2012).But in some cases, they are not completed failing. Some
causes in the failure of the project include lack of project management discipline, wrong
members of the team, poor communication channel, lack of risk management channel, and
inability in change management and inadequate funds to see the project come to completion
(Schulenkor, 2012).
When the company Rolls Royce was established in the year 1904, the owners Charles
Rolls and Henry Royce had a plan of making the company the best when it comes to producing
cars. This initiative gave then a great reputation, and therefore they were able to venture into
manufacturing aero engines which were used in the First World War. To make sure that the
company achieves such great goal and objectives it has project managers. The project managers
have a diverse set of skills in leadership, conflict and technical management and a good
relationship with their clients and other third parties (Cheung, Scanlan, Wong, Forrester, Eres,
Collopy & Briceno, 2012). Charles and Henry planned and executed their ideas on making Rolls
Royce the best and controlled their objectives very closely to ensure that it delivered the best

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outcome. This was through close monitoring of the project. Rolls Royce limited has managers
that ensure that each task in a project runs efficiently and that any potential issues and risks are
solved and eliminated very fast to deliver on time. The manager act as a channel of
communication in such a way that they make sure everyone involved in the project knows what
is happening and that the project comes to completion through the available budget and that the
quality is as required. Rolls Royce has become the best car producing company in the world
because of the quality of the output compared to other cars (Smith, 2013).
Project management Process
Rolls Royce limited has a project management process in such that it has an aerospace
group known as the Rolls-Royce Aerospace Group (RRAG) which supports the company’s
Integrated Product Development (IPD) which has a goal of reducing the cost and time so has to
bring engines of the most appropriate quantity to the market at the most suitable and most
appropriate time (Kazda & Caves, 2010). The Operating Excellence Initiative (OEI) and the
Integrated Product Development (IPD) work together and ensure that they what Rolls Royce
produces is of a high standard, and the process of production is most effective. The Rolls Royce
Limited has guidelines on their practices which are known as the Project Derwent which divides
the product beginning practice into different stages. The first stage is the preliminary concept/
Assess capability where their concept of the project is reviewed. The full concept definition stage
is where changes are made. The product realization stage includes the manufacture and analytical
verification, the product verification and validation. The monitor operation stage is the last stage
(Hass & PMP, 2010).

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In other projects there is also a management process which includes different stages;
initiating the process, the setting up process, executing process, the monitor, and control process
and the final process. The first process which is the initiating process is the process in which
activities, dreams and skills are combined so that a project begins. This includes the set up of all
permits, work orders, and authorization. In this process, the initial budget is produced, and the
quality of output is stated. The planning process is where ideas and strategies to maximum output
are tabled. In this process, the goal is set at the different stages of the project. The executing
process Is the stage where teams are managed effectively with timeline expectation and the
benchmarking of the goals. The monitoring and controlling process is the stage where the budget
is adjusted, and unforeseen risk are carted for before any type of risk affects the projects (David,
2011). Project managers at the different stages of the project make sure that the project is
running effectively. The closing process group this is the successful closure of the project over
the specified period. In this group, the task and objectives of the project have been met
(Danilovic &Browning, 2009).
Tools in project management
For better management of projects managers running the projects must be very skilled
and have the ability and power to run the projects effectively. Projects need dedication,
persistence, and hard effort. To management projects, definite attention has to be directed to the
map of the project, the development and the kind of solution to be offered. Tools used in
management consist of analyzing the project and coming up with disincentives and incentives.
After Rolls Royce made a poor set of results in two consecutive years 2015 and 2016 it had to
make incentives (Turner, 2014). The poor set of results had led to a drop in the number of sales
and the number of profits slashing the company’s dividends bolstering its finances. Rolls Royce

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had to make very fast incentives. Therefore, the chief executive officer, Mr. East had to fire one
in five managers of the company. Incentives define the goals, and objectives of each party in a
project. Each party is responsible of achieving its targets this is important because the
management team is able to control and monitor the performance of the project closely (Hass &
PMP, 2010). The incentives and disincentives should be put into practice with an immediate
effect if need to use them comes by like in the case of Rolls Royce.
The management should have an arrangement when it comes to solving conflicts and
disputes in the project. The management of a project can facilitate fro minimum disputes and
conflicts by coming up with an agreement in the form of a memorandum that will indicates on
how all kinds of disputes will should come to an end without affecting any party. This
memorandum should be of low cost (Highsmith, 2013). In a project the management team should
create a panel which the main function will be to empower the mission of the project and the
agenda of the organization. The leadership team and the general management are responsible of
solving risk before they occur (Thamhain, 2013). For an instant, at the Rolls Royce Company,
there is a policy that manages conflict of interest. It applies to all the employees in the company
and any other representative of the company. If there is a conflict of interest, then a report of
conflict of interest has to be made stating the nature of the conflict in interest and the resolutions
available for such a conflict.
Rolls Royce has been a company that produces a large number of engines; it needs to
work with the clients to know what to work on as per the consumer complains. In this way, the
company can increase its engine production efficiency (Kazda & Caves, 2010). Due to the large
production of engines that cost approximately 41 billion Rolls Royce has come up with strategies
that will share the losses within case some risks occur (Brown, 2012). The company has

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developed a risk and revenue sharing partnership with other leading companies and
organizations. This way the company can minimize the number of losses, it will bear in case of
risks occur. In very project the management must make sure that it has some amount saved for
unexpected risks and uncertainties which may arise in the course of the working period of the
project (Nota & Gregorio, 2010). This can be done by ensuring that in every sub project there is
a workshop chamber. These project workshop chambers will facilitate for efficiency and
effectiveness in running the sub project. The workshop chambers will focus on eliminating any
forms of risks and uncertainties in ach sub project. The chambers are also to come up with
solutions to certain projects affecting the subprojects. If an organization takes into place this
consideration then it will reduce the amount of losses from undetected risks and uncertainties
(Dalkir, 2013). Strategies and reforms to deal with permit problems and issues should b put into
place. The strategies should be flexible such that they do not take long to solve permit issues.
This facilitates for consumer satisfaction when it comes to delivering products to them. This
therefore ensures the general success of the project (Gomes,Yasin & Small, 2012).
Organization management should be very flexible when it comes to adapting to both
internal and external changes. Adapting to changes ensures that projects run efficiently. For
instance the Rolls Royce Company adapts to changes in technology even now and then. This
ensure that the company product better products to their clients which improves their reputation
worldwide (Çetindamar, Phaal & Probert, 2016). Collaboration with both the external and
internal teams is very important. Collaboration can facilitates for effective transmission of
information through the sub projects fixing the issue of poor communication. Collaboration with
externals teams and institution can facilitate for the transfer of ideas and information. This leads
to new innovations in the project thus bringing benefit to the organization (De Reyck, Grushka-

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Cockayne, Lockett, Calderini, Moura & Sloper, 2015). Rolls Royce has come up with a
specialist academy in which the main purpose of the academy is to investigate the usage of
smart, adaptive and adaptable fixtures. After the investigation, the academy then reports and
gives back recommendations.
PORTFOLIO MANAGEMENT
Introduction
This is the process through which project managers and officials come up with
technologies and strategies which help them analyze a project by observing the key
characteristics of the project. The portfolio managements main fuction is to determine what raw
resources are to be put into place to make sure an organization delivers both its operational goals
and its financial objective. The operation goals and financial objectives have to be met according
to the consumers’ expectations, the main purpose of the objective and other factors and standards
which are required internationally (Jeffer & Leliveld, 2004). For an organization to make sure
that it achieves such a target it has to have a portfolio manager. A portfolio manager is a
specialized person who has the right and responsibility to make investment decisions at the same
time make sure the investment activities run smoothly on behalf of another party. The portfolio
manager works with a team of other specialized members of analysts and researchers to come up
with the best investment strategies which will be profitable after they become functional. A
portfolio is a set or group of programs and projects. These projects and programs are under the
sponsorship of an institution or an organization and are carried out as per the rules and
organizations of the organization (Turner, 2014).

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Rolls Royce is doing very good in world’s most advanced engineering technology. The
company has portfolio management that ensures that the company invests in research and
innovation. This is because the company sets up more than 2billion us dollars to engage in the
research, innovation and most current technology (Woodcock, Larsen, Bicarregui & Fitzgerald,
2009). This facilitates for that it meets consumers’ needs and expectations currently and in the
future. The company focuses on improving its services by coming up with high-performance
solutions, having the complete industrial knowledge and a global research program. For instance,
the Rolls Royce Company collaborated with the Agency for Science, Technology, and Research
and the Singapore Aero Engine Services Private Limited to come up with the Smart
Manufacturing Joint Lab (Granstrand, Patel & Pavitt, 2013). This joint project lab will play the
role of developing and manufacturing the next generation of aerospace. The joint lab will also
function as a repair and maintenance facility. The lab will run advanced processes in the
automation section and the offer of digital technologies services (Gomes, Yasin & Small, 2012).
Objectives of portfolio management
Portfolio management is put in place to ensure that the organizations meet certain
objectives. These objectives can be derived from the Rolls Royce portfolio management
objectives which include; the portfolio management team ensures that all resources allocated to a
certain project in the company are invested in the right projects and programs to meet their
strategic goals and objectives with the risk involved and the available limited budget. Portfolio
management ensures that the managers run the projects by the plan of the company. Rolls Royce
expects its portfolio managers to run a project efficiently with the limited available resources and
that the project can easily adapt to any change that may occur to produce better engines and cars
to their consumers (Reilly &Brown, 2012). At Rolls Royce company portfolio management is

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essential to ensure that the intended project meets the full benefits from the investment in certain
projects and programs concerning technology used in engines. In the year 2013 Rolls Royce
launched a corporate laboratory with the Nanyang Technological University and the National
Research Foundation of the Prime Minister office Singapore. The Corporate lab is one of its
kinds on the planet, and it focuses on research. The lab focuses on the research in electrical
power and control system, computational engineering and repair and manufacture of any
technology (Ruggles, 2009).
Rolls Royce manages its portfolios to ensure that the projects come up with information
which is used in the development of more effective and efficient services to its consumers. At the
end of the portfolios, Rolls Royce expects a positive change in the transformation,
standardization, and maintenance of the services and products it offers to the clients (Cooper,
Edgett & Kleinschmidt, 2011). To ensure that there is standardized, transformed and maintained
services Rolls Royce facilitates for a smooth transmission of documents and data across the
lifecycle of a product, that the very first designs of a product are of the right quantity and value
and generally increase through the lifecycle of a product, and it ensures that it uses the modern
and postmodern IT technology which is user effective for an efficient engineering process
(Danilovic &Browning, 2007).
Challenges and solutions faced in portfolio management
Managing portfolios can come with its challenges which cab at times affect the quality of
output a project comes up with challenges (Jeffery & Leliveld, 2014). Some of the key
challenges faced by the Rolls Royce Company include; the management at times does not know
what to expect from the project. This makes it difficult to group the project under specific
management. Portfolio management involves constant monitoring which can seem to be a

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micromanagement to most people, therefore, having a negative effect on culture of work,
portfolio management can lead to dynamic changes which result to resistance to adoption in case
of improper staff, the portfolio can be faced by the challenge of lack of senior management
commitment, the budget to run a project portfolio can be limited and some of the risks involved
in the portfolio are not identified early. These challenges affect nearly all of the portfolio
management including the Rolls Royce Company (Ruggles, 2009).
The Rolls Royce Company has come up with standards and measures to cope with the
above-mentioned challenges. Some of the solutions include; the knowledge of its capabilities.
When the Rolls Royce Company wants to set up a portfolio, it has to weigh if it is capable of
running the portfolio. In this way, it reduces unnecessary costs, therefore, maximizing its profits.
Rolls Royce has a good channel of communication in which there is transparency in the
information provided (Kazda & Caves, 2010). The makes sure that the portfolio managers are
effective and accurate when transmitting information from one channel to another. This also
allows close monitoring of the portfolio. Rolls Royce top management has come up with
measures that ensure that similar protocols are observed throughout the projects. This ensures
that there are order and plan in the projects (Meskendahl, 2010). Rolls Royce has come up with
an open platform for dialogues. Ideas are shared, and the best ideas are put into practice. External
consulting is also done and benchmarking of other portfolios is done. Rolls Royce has policies
that ensure that there is proper documentation of all the activities been overseen. Rolls Royce has
ensured that its work is divided into different phases. Innovations can also be made easily as
each phase specializes in its project. These solutions have ensured that the Rolls Royce Company
remains very productive in the competitive market (Danilovic & Browning, 2012).

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PROGRAM MANAGEMENT
Introduction and phases of program management
This is the process by which several similar projects are managed. This is done with the
aim of improving the performance of an organization thus resulting in a beneficial change.
(Meglecz et al., 2009).The program management comprises of the following; Central Computer
and Telecommunication Agency which is responsible in the coordination of a portfolio to
achieve a set of objectives in business. It mainly focuses on establishing the long-term purpose of
a business. The organization, therefore, identifies the projects that will help the organization to
achieve the objects and implements them (Voss, 2010). The Program Management Group this
concerns with the planning of allocation of resources across a project portfolio. This group also
monitors the tasks of the project and makes sure that the objectives are they are met. It also
focuses on the limitations of available resources due to methodologies which cannot be solved by
the traditional techniques in project management. Organizations that highly benefit from
program management have the following characteristics; the organizations have multiple projects
taking place simultaneously, the projects are complex, projects in an organization are
geographically dispersed, the presence of conflicts in priorities and change in objectives and
deadlines (Moon, 2013).The Interactive Project Workout this focuses on managing the project
into its main objection for a brighter future of the organization. Association for Project
Management in this part the organization should have a baseline on the management of the
different projects which will result in benefits from the investments (Pant & Baroudi, 2010).
For the management to run smoothly, then the organization has to come up with a project
manager. The project manager acts as a watchdog and oversees the activities of the project. The
manager ensures that the intended purpose and the goals of all the projects are met(Cooper,

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Edgett & Kleinschmidt, 2011). The program manager has the following duties and
responsibilities; governs the program through its life cycle, makes sure that the cost of the
program does not exceed the provided budget, makes sure that the limited available resources
are fully utilized, the project manager also, manages risks and comes up with solutions to risks
and uncertainties, creating a channel of communication throughout the different levels of parties
in the project and monitoring the process to make sure it achieves its goals once it is completed
(Zheng, Yang & McLean, 2010). Program management aims at bringing the best groups of a
project together and coordinating them, in an appropriate manner th know they meet the goals
and the mission of the program. Each program is set to bring a certain improvement to its related
projects (Ludwick & Doucette, 2009).
The Rolls Royce Company aims at maximizing the performance, reliability, and
effectiveness of their services. To ensure that this happens, Rolls Royce Company has been able
to create employment for 16,500 engineers who are aimed at delivering products which are more
effective and efficient. The company also invests heavily in development and research programs.
In the past 25 years, Rolls Royce has been able to coordinate research with leading institutions
all over the world. This has helped the company gain the best value from their investment in the
different institutions (Turner, 2014). Rolls Royce invests a total of 1.3 billion us dollars each
year in research and development programs. The company has collaborated with a total of thirty
one University Technology Centers. Six hundred and seventy-two patents were failed in the year
2016, and seven advanced manufacturing Types of research centers were also recorded. Rolls
Royce facilitates for a 60% graduate intake on engineering programs. The Rolls Royce Company
has come up with Art program known as the Rolls Royce Art Program which aims at creating the
spirit of creativity. The program is set to bring new works, perspectives, and innovations that do

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not know existence into existence. Rolls Royce has collaborated with the International Art
community, prominent institutions and artists to make this come to a reality (Voss, 2010).
Program management objectives
Program management is a way of coordinating and controlling project management
which is mainly focused on delivering the required output (Alavi & Leidner, 2011). This ensures
that projects do not fail and that they meet their intended purposes. Managing related projects at
the same time can be quite a difficulty. Therefore, program management is put in place to
concentrate on delivering the objectives of the projects to bring certain benefits to an
organization. In program management projects are divided into sub-projects that are easier to run
and manage, and a post for a program manager is created (Walker & Avant, 2011). Some of the
activities take place during program management includes; the setting of the baseline the
program manager and its team can set baselines on what is expected of each subproject, parties
in the projects agree on their roles and responsibilities to the project this ensures that there is a
minimum conflict of the limited available resources. It also facilitates close monitoring of each
subproject making work more effective and efficient. Through program management, the general
management can identify and solve risks before they spread this help solve the problem of
unplanned losses and uncertainties (Kerzner & Kerzner, 2017).
Program management facilitates progressive reporting. This is because the channels of
communications have been subdivided into small channels. Information and decisions are
therefore easy to flow throughout the cycle (Dear & Staden, 2011). Due to the good
communication channel reports are made easier and challenges solved within a short duration of
time. Program management also facilitates managing benefits and issue management. Program

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management also facilitates the closure of the projects one they are completed. The project must
be completed as per the requirements of the organization (Danilovic & Browning, 2007).

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