System and method for selecting projects and allocating capacity to departments to maximize incremental value gained within a desired level of execution risk
First Claim
1. A method to select the best projects among all available projects within an organization, and allocate resources to departments and groups to maximize the incremental value gained by the organization within a desired execution risk.
0 Assignments
0 Petitions
Accused Products
Abstract
The current invention is a method and system to select projects from available projects and to allocate resources to departments to maximize the incremental value gained within a desired execution risk. Probability distribution of departmental capacities is created by performing a Monte-Carlo simulation considering probabilities of future events that may increase or decrease capacity. Real options based value is calculated for all available projects at the start and end of the time period and a subset of the highest incremental value projects is selected to form a trial portfolio. Probability distribution of resource demand is created in each department through a Monte-Carlo simulation of the trial portfolio by specifying each project'"'"'s resource needs. The capacity and demand characteristics are compared and an execution risk is calculated. If the execution risk is not within a desired level, projects in the trial portfolio are added, deleted or replaced or departmental capacities are changed such that the execution risk is brought to the desired level. At the end of this iterative process, the best possible selection of projects as well as the best possible allocation of capacities to departments are obtained and reported.
-
Citations
18 Claims
- 1. A method to select the best projects among all available projects within an organization, and allocate resources to departments and groups to maximize the incremental value gained by the organization within a desired execution risk.
-
10. A system to select the best projects among all available projects within an organization, and allocate resources to departments and groups to maximize the incremental value gained by the organization within a desired execution risk, comprising of:
-
a central processing unit;
a memory;
an output device;
computer readable program code means stored in said memory, said computer readable program code in a machine-readable medium having stored thereon data representing sequences of instructions, the sequences of instructions which, when executed by a processor, cause the processor to perform the steps of selecting projects and allocating resources to departments/specialty such that the overall return to the company is maximized within a desired level of execution risk. - View Dependent Claims (11, 12, 13, 14, 15, 16, 17, 18)
-
Specification