This chapter describes project configuration, how to collect projects, and planning cycle exceptions.
This chapter covers the following topics:
Integration with Oracle Project Management enables Oracle Project Portfolio Analysis to determine the costs and benefits of the projects that are included in a planning cycle. Project owners submit projects to planning cycles by configuring the projects to meet planning cycle requirements. Projects that qualify to be included in a planning cycle can be automatically collected by Oracle Project Portfolio Analysis, or manually collected by a portfolio analyst.
After the portfolio analyst initiates a planning cycle, Oracle Workflow sends notifications to the Oracle Projects users defined on the distribution list, asking them to submit projects to the planning cycle. Project managers perform the following actions to make a project eligible to be included in a planning cycle:
Select a project-owning organization.
Enter the portfolio selection class category and class code.
Enter the investment class category and class code.
Enter a project manager for the project.
Create and approve baseline versions of the cost and revenue financial plan types that are used by Oracle Project Portfolio Analysis.
Set the project funding approval status to Proposed.
Optionally complete the project scorecard.
This section provides more information about these actions.
Related Topics
Organizations, Oracle Projects Fundamentals
Project Team Definition, Oracle Projects Fundamentals
To be included in a planning cycle, a project must contain the portfolio selection class category and class code that were selected for the portfolio. Project managers assign this class category and class code to projects in order for the projects to be eligible for collection in the planning cycle. Oracle Workflow sends a notification to project managers when the planning cycle is initiated that contains the name of the portfolio selection class category and class code.
Related Topics
Portfolio Selection Class Category
When configuring projects for a planning cycle, project managers must assign the investment class category that is used for the planning cycle to their projects. The name of the investment class category is included in the workflow notification that is sent to project managers after the portfolio analyst initiates the planning cycle.
Related Topics
Oracle Project Portfolio Analysis collects cost and benefit information from the approved baseline versions of cost and revenue financial plans of portfolio projects. Your implementation team specifies financial plan types that are used for portfolios, and project managers are responsible for completing those financial plans on the projects that they plan to submit to a planning cycle.
Oracle Project Portfolio Analysis uses the financial plan information to calculate the net present value, return on investment, internal rate of return, and payback period. The following table lists the planning cycle metrics and their calculations:
| Name of Metric | Description |
|---|---|
| Total Cost | The sum of Estimate to Complete and Sunk Costs. The total cost does not include any costs that occur after the planning cycle funding period. |
| Sunk Cost | The sum of costs that occurred prior to the planning cycle funding period. Sunk cost includes both actual costs and committed costs of projects. |
| Planned Benefit | The estimated revenue amount of a project when the project is complete. This amount is calculated at the project level, and is rolled up to the investment class code and scenario levels for approved projects in a scenario. Planned benefit amounts do not include estimated revenue from outside of the funding period. |
| Funds Required | The pool of money that is required in the planning cycle funding period. Funds required for a project is the sum of project costs scheduled to occur during the funding period. Oracle Project Portfolio Analysis calculates Funds Required for scenarios and investment class codes in scenarios. |
Project managers frequently make changes or updates to financial plans during the life of a project. If new baseline versions of financial plans are approved after a project is collected into a planning cycle, portfolio analysts can refresh the project data in Oracle Project Portfolio Analysis to ensure that the planning cycle contains current and accurate financial data.
Related Topics
Implementing Oracle Project Portfolio Analysis, Oracle Projects Implementation Guide
Budgeting and Forecasting, Oracle Project Management User Guide
Refreshing Financial Information
The project funding approval status is a system-defined project status that indicates the decision that has been made about funding a project. The following table shows the available project funding approval statuses:
| Project Funding Approval Status | Description |
|---|---|
| Proposed | The project is under consideration for approval in the current planning cycle. |
| Approved | The project was approved for funding in the previous planning cycle. |
| On Hold | The project was placed on hold in the previous planning cycle. |
| Rejected | The project was rejected for funding in the previous planning cycle. |
Only projects with a funding approval status of Proposed or Approved can be collected into a planning cycle.
The project scorecard enables project managers to evaluate and score projects based on the company's strategic criteria. You can access the project scorecard from the Project Setup page in Oracle Project Management if the project meets the following criteria:
The project funding approval status is Proposed or Approved
A portfolio selection class category and class code are assigned to the project
A planning cycle is initiated for the portfolio that contains the portfolio selection class code that is assigned to the project
The value of the score you enter is dependent on the target scores assigned to the planning cycle. The portfolio analyst can override the scores entered by the project manager after the project is collected into a planning cycle.
You can view and change the scores on the Project Details page in a planning cycle, but any changed values are not updated on the project scorecard in Oracle Project Management.
After the project manager enters data on the project scorecard, Oracle Project Portfolio Analysis automatically calculates new weighted scores for each strategic group and strategic objective.
To enter or change a score on the project scorecard:
Verify that the project funding approval status of your project is Proposed or Approved.
Enter a score for the strategic objective. If required, you can enter comments for the score.
You can recalculate to obtain the weighted scores for the project.
Note: Oracle Project Portfolio Analysis can collect a project into a planning cycle if data is not entered on the scorecard, provided that it qualifies to be included in the planning cycle.
After the portfolio analyst initiates a planning cycle, qualified projects are collected into the initial scenario of a planning cycle. The initial scenario contains a set of projects that meet the criteria for the planning cycle.
The methods of collecting qualified projects into the initial scenario are:
Projects are collected automatically when all users defined in the distribution list submit their projects and respond to the workflow notification that was sent when the planning cycle was initiated.
Projects are collected automatically on the planning cycle due date.
The portfolio analyst manually forces project collection.
There are two approaches used for automatic project collection. Oracle Project Portfolio Analysis automatically collects qualified projects into the initial scenario when all of the Oracle Projects users who received a workflow notification when the planning cycle was initiated respond to the notification or submit projects to the planning cycle.
Oracle Project Portfolio Analysis also automatically collects projects that meet the requirements for the planning cycle on the planning cycle due date that is entered on the Distribution List page. After the system collects projects into the initial scenario, you can begin the analysis and comparison of projects, and build additional scenarios to determine the best projects to fund for your company.
You can manually force project collection into the initial scenario while the planning cycle status is In Collection. To collect projects manually into the initial scenario:
Navigate to the Checklist page of the planning cycle.
Select Collect Projects to open the Monitor Collection Status page.
Select Force Project Collection, and select Yes to collect projects.
You can use this method to manually collect projects prior to the planning cycle due date while the planning cycle status is "In Collection."
From the Monitor Collection Status page, you can review the project collection status for a planning cycle. This page also provides a list of Oracle Projects users that were notified that the planning cycle was initiated.
You can view exceptions in a planning cycle to review the projects that were accepted and rejected in a planning cycle. The Validations: Collect Projects page informs you of each project that was successfully submitted to the planning cycle, or supplies warning messages for projects that were rejected, with the reason for rejection.
To view planning cycle exceptions:
Open the planning cycle.
Select Exceptions to open the Validations: Collect Projects page.
Review the list of collected and rejected projects.
If a planning cycle rejects a project, the portfolio analyst can communicate the reason for rejection to the project manager. After the exception has been resolved, the portfolio analyst can add the project to the planning cycle.
Related Topics