This chapter contains instructions for implementing Oracle Project Portfolio Analysis.
This chapter covers the following topics:
Oracle Project Portfolio Analysis is an integrated application to help you maximize your company’s return on project spending by aligning the portfolios of project investments with the financial and strategic goals of the company. Oracle Project Portfolio Analysis enables you to connect your operational decisions with your strategic and financial goals.
Note: To find out how to access a window, refer to the Navigation Paths index, Oracle Projects Fundamentals.
The following checklist shows the steps required to implement each Oracle Project Portfolio Analysis feature. The list is organized by feature. The Required/Optional column indicates if the step is required or optional for use of the product.
To implement Oracle Project Portfolio Analysis, complete the steps in the following order:
| Step | Description | Required /Optional | Setup Level | Responsibility |
|---|---|---|---|---|
| PJP-P1.1 | Set the profile option PJP: Licensed to Use Project Portfolio Analysis | Required | Site | System Administrator |
| PJP-P1.2 | Set the profile option PA: Licensed to Use Project Management | Required | Site | System Administrator |
The following checklist shows the steps required to implement each Oracle Project Portfolio Analysis feature. The list is organized by feature. The Required/Optional column indicates if the step is required or optional for use of each feature. The Optional column indicates if the step is optional for use of each feature.
To implement Oracle Project Portfolio Analysis features, complete the steps in the following order:
| Step | Description | Required /Optional | Setup Level | Responsibility |
|---|---|---|---|---|
| PJP-F1.1 | Define the portfolio analysis organization hierarchy | Optional | Site | Projects Implementation Super User |
| PJP-F1.2 | Define portfolio analysis calendars | Required | Site | Defined in General Ledger |
| PJP-F1.3 | Define additional period types for use in portfolio analysis calendars | Optional | Site | Defined in General Ledger |
| PJP-F1.4 | Define the financial plan types for cost and benefit | Required | Site | System Administrator |
| PJP-F1.5 | Define the portfolio selection class category | Required | Site | System Administrator |
| PJP-F1.6 | Define additional investment class categories for portfolio analysis | Required | Site | System Administrator |
| PJP-F1.7 | Define investment criteria | Optional | Site | Project Portfolio Analysis |
| PJP-F1.8 | Configure Project Roles | Optional | Site | Projects Implementation Super User |
| PJP-F1.9 | Set Profile Options | Required | Site | System Administrator |
The following instructions give details about the Licensing steps in the Oracle Project Portfolio Analysis Product Implementation Checklist.
To indicate to the system that Oracle Project Portfolio Analysis is licensed, set the profile option PJP: Licensed to Use Project Portfolio Analysis to Yes.
Related Topics
PJP: Licensed to Use Project Portfolio Analysis, Oracle Projects Implementation Guide
The following instructions give details about the portfolio analysis steps in the Oracle Project Portfolio Analysis Feature Implementation Checklist.
This is an optional step. You need to set this profile option only if you want to restrict the projects that can be in portfolios by project owning organization.
In the profile option PJP: Portfolio Organization Hierarchy, you specify an organization hierarchy. Only projects that fall within a portfolio’s start organization or below it in the specified organization hierarchy can be a part of that portfolio.
You can optionally define a specific organization hierarchy for portfolio analysis.
Related Topics
Defining Organization Hierarchies
In Oracle Project Portfolio Analysis, you assign a calendar to each planning cycle.
You can optionally define calendars specifically for portfolio analysis. For example, your portfolio analysis calendar can include annual periods, and be open for the next ten years.
Calendars are defined in Oracle General Ledger.
Related Topics
Period and Calendar Definition
In Oracle Project Portfolio Analysis, you assign a GL calendar and a period type to each planning cycle. You can use different calendar and period type combinations for each planning cycle, even for the same portfolio.
You can optionally define period types specifically for portfolio analysis.
The system copies periods from the calendar defined in General Ledger to Oracle Project Portfolio Analysis, according to the period type you select for the planning cycle.
Related Topics
Period Types, Oracle General Ledger Implementation Guide
Oracle Project Portfolio Analysis uses financial plans to collect cost and benefit information for projects. You define the project financial plan types that are used for this information, and then use the following profile options to specify that they are used for Oracle Project Portfolio Analysis:
PJP: Financial Plan Type for Project Benefit
PJP: Financial Plan Type for Project Cost
You can use the same financial plan type for both the project cost and the project benefit. You can collect project cost and benefit from the current baselined budgets or forecasts to Oracle Project Portfolio Analysis, according to the financial plan types you select for the system.
Related Topics
You set up an investment class category to group classes of projects for analysis of cost and benefit for a scenario. You can analyze and balance the distribution of cost and benefit for a scenario among the investment class codes for that category. In addition, Oracle Project Portfolio Analysis calculates the aggregate net present value (NPV), return on investment (ROI), internal return on investment (IRR), and payback period for each investment class code.
Note: You may associate only one investment class category at a time to a project. To enforce this, select the Allow 1 Code Only box in the Class Categories and Codes window for each investment class category that you define.
Related Topics
Project Classifications (Class Categories and Class Codes)
You can define a class category specifically for the PJP: Portfolio Selection Class Category profile option, or you can use an existing class category.
Note: You may associate only one portfolio selection class category at a time to a project. To enforce this, select the Allow 1 Code Only box for each portfolio selection class category that you plan to use for Oracle Project Portfolio Analysis.
Related Topics
Project Classifications (Class Categories and Class Codes)
The Investment criteria that you define determine how your business evaluates all investments across organizations. You use investment criteria to evaluate and select projects into project portfolios.
Oracle Project Portfolio Analysis enables you to define non-financial criteria and enter weighting values for both financial and non-financial criteria. The non-financial criteria are organized into strategic groups, which reflect the organizational or strategic structure.
Your implementation team defines the investment criteria centrally for all of the project portfolios in your organization. It defines strategic groups and the strategic objectives that make up each group and shares them across all project portfolios and planning cycles. For each portfolio, you can select a subset of the criteria, such as strategic criteria or financial criteria.
Your implementation team can also define weighting percentages for both strategic groups and the strategic objectives within each group. The system uses weighting percentages when it creates financial investment criteria for a planning cycle.
To define non-financial investment criteria, navigate to the Investment Criteria page. You can reach this page by selecting Setup from the Oracle Project Portfolio Analysis menu.
To define a new strategic group:
Click in the Add column for the Non-Financial Category row.
In the Add Strategic Group page, enter a Name and Description for the new strategic group.
Click Apply.
To define a new strategic objective:
Click in the Add column for the strategic group that will contain the new strategic objective.
In the Add Strategic Objective page, enter a Name and Description for the new strategic objective.
Click Apply.
A role can be associated with one or more predefined privileges. The Oracle Project Portfolio Analysis roles are delivered with the privileges shown in the following table:
| Privilege | Portfolio Owner | Portfolio Analyst | Portfolio Approver |
|---|---|---|---|
| View Portfolio | Yes | Yes | Yes |
| Update Portfolio | Yes | Yes | |
| Maintain Planning Cycle | Yes | Yes | |
| Collect Projects | Yes | Yes | |
| Develop Scenarios | Yes | Yes | |
| Approve Plan | Yes | Yes |
The implementation team or security administrator can configure role/function associations if the predefined one do not satisfy the organization’s needs.
Related Topics
Security In Oracle Projects, Oracle Projects Fundamentals
Appendix D: Menus and Responsibilities
Before you can use Oracle Project Portfolio Analysis, you have to set a series of profile options for your system. These options include the:
PJP: Financial Plan Type for Project Benefit
PJP: Financial Plan Type for Project Cost
PJP: Portfolio Selection Class Category
PJP: Portfolio Organization Hierarchy
PJP: Nominate Risk from Investment Criteria
PJP: Default Discount Rate
Related Topics
Setting User Profile Options, Oracle Applications System Administrator's Guide
You use the profile options PJP: Financial Plan Type for Project Benefit and PJP: Financial Plan Type for Project Cost to specify the project financial plan types that are used to collect benefit and cost information.
Related Topics
PJP: Financial Plan Type for Project Benefit
PJP: Financial Plan Type for Project Cost
You use this profile option to specify a class category that will control which projects can be included in a portfolio. Projects whose code for the selected class category match the code chosen for a portfolio can be part of that portfolio.
You can choose any class category that allows entry of only one class code for a project.
Note: You can associate only one portfolio selection class category at a time to a project. To enforce this, make sure that you use portfolio selection class categories which have the Allow 1 Code Only box selected for their definition in the Class Categories and Codes window.
You should not change the Portfolio Selection Class Category profile option after you start using the Oracle Project Portfolio Analysis application, because such changes can affect the project portfolios that you have created.
Related Topics
PJP: Portfolio Selection Class Category
You can optionally specify an organization hierarchy that controls how projects are pulled into a portfolio.
If you specify an organization hierarchy, the system includes in a portfolio projects that belong to all subordinate organizations of the organization for the portfolio, as set up in the specified organization hierarchy.
If you do not set up this profile option, all project owning organizations are considered as independent organization units, and only projects directly owned by the project organization specified for a portfolio are included in the portfolio.
Related Topics
PJP: Portfolio Organization Hierarchy
You must specify which strategic objective group is used to evaluate risk. You can choose from any strategic objective group defined in the investment criteria setup.
Related Topics
PJP: Nominate Risk from Investment Criteria
You can optionally specify a default annual discount rate. The discount rate is used to calculate net present value and payback period for portfolios.
Related Topics