For example, an anonymous automobile company manufactures different types of cars. The design and manufacturing of one particular type of car would be called a program and of the parts like bonnet, panel, or engine would be a project. The integration of all the parts projects would make a complete automobile program. The objective of a program is to offer central management and control over a set of underlying projects that are set to deliver a common solution.
It allows an organization to achieve the benefits individual projects cannot achieve alone.
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To understand the concept better, take help of diagram given below. In this, a program is divided into two projects and a subprogram outside of the scope of both the projects:. A portfolio contains both projects and programs and is managed by a portfolio manager. The portfolio is directly drawn from the strategic business plan of the organization.
Big decisions like investment are made at the portfolio level. For example, take the case of an automobile company. The unique designs of different cars will represent programs, and the design of cars, in general, will represent portfolio. In this, a portfolio is divided into one project and two programs and a sub-portfolio outside of the scope of both the projects:.
Perspectives on research in project management: the nine schools
Given below are some difference between a portfolio, program, and project for a better understanding of the three terms:. Projects are temporary endeavors to create one or more deliverables. Programs are larger initiatives that are broken up into a set of smaller projects and subprograms and then coordinated centrally. The projects in a program are related to each other. Portfolios are collections of work projects, programs, or sub-portfolios and are a way to plan and manage the projects from an organization perspective.
The projects may or may not be related. In the figure given below, you can see the relationship between portfolio, program, and project.
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Stay Connected. Follow 1, Follow Subscribe to Our Newsletter. Related Articles. Estimate Activity Resources October 01, Dependency Determination in Project Management September 21, In program management, you only manage the interrelated or interdependent projects as a group to accomplish the desired result. Portfolio refers to a group of related or non-related projects or programs. A portfolio can consist of multiple programs or multiple projects without having a single program.
A portfolio can have multiple non-similar projects without having a program because portfolio management deals with two or more non-related projects.
Conversely, in program management, only related projects are managed. For instance, assuming, you have three projects: the first project is to construct a building, the second project is to conduct research to find the impact of motor pollution on the environment, and the third project is to set up a call center. You will manage these projects by keeping them under a portfolio because all three projects are neither related nor similar to each other.
There is centralized management in portfolio management, whose job is to identify, prioritize, and authorize the projects or programs. Please note that, although portfolio management sets the priority of the projects or programs in a group, it does not oversee any individual project or program.
As you move from project management towards portfolio management, scope and objective will become larger and larger. In project management, you perform micromanagement, and in portfolio management, high-level macro management is required.
Difference between Portfolios, Programs, and Projects
Program management and portfolio management facilitate better communication and coordination among projects and programs, resulting in enormous benefits in economies of scale and lesser risks. The project manager is the one responsible for projects, program manager for programs, and portfolio manager for portfolios.
The success criteria are different for projects, programs, and portfolios. For projects, it is a timely completion, under budget, and the quality of output of the project; for programs, it is the degree to which it satisfies the objective it was undertaken; and for portfolios, it is the combined performance of its components. How can one be a project manager. Am a graduate of physics and astronomy from University of Nigeria Nsukka. Pls i need your help. To become a PMP, graduation is enough. Second condition is to have three years of experience in leading and directing the project.
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If you have this much of experience then you can go for the training and apply for the exam. I guess you are a teacher M. In your above post you mention the 4th ed. Is this information still accurate? Thank you for your posts — they are very helpful in breaking down concepts and making analogies. Kudos to you for the great work of knowledge shearing via your blog posts. Very informative publications indeed. Pls could you send me a one-in-all study material i can use wholly for the pmp exam via my email add?
Hello Etu, all reference books are is in hard format that can not be shared through email, and the rest is copyrighted material, that is also can not be shared. You can not get real PMP exam questions from anywhere. If you get it, it is illegal and please report to the PMI. However, if you want to practice PMP exam sample questions, the below link will help you such sources:.
However, to check whether my knowledge is correct or not, an example would help me, obtain a complete understanding of project, portfolio and an OPM model. Can you please assist? You will manage these two projects under program management because both are of similar type. This will be managed under portfolio management because both projects are entirely different. So, is this program or portfolio?
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Hello Anjum, I am updating this blog post in two or three days. I hope it will answer your query as well. I am confused in Program and Portfolio in below example. Please clear me. They will construct a luxury villas, small family houses, and condos, with a small hospital 10 beds, kinder-garden school, recreational parks, and shopping mall in it. They will also open a zoo in the community project. Is this a Program or a Portfolio? They call it Project. Please clarify my confusion. I just wanna associate with you not till the completion of my MS but as long as possible.
Can i read your other relevant stuff on PM, give me one link brother. I do appreciate your effort. You can reach m at shakaib. This is a nice, simple explanation. Thank you.
In practice, the definitions can sometimes overlap a little depending on how you choose to break up the effort. Some large projects, with many moving parts, could be considered either a project or a program. Some large programs contain projects that are less interconnected than others, and therefore might be thought of as a portfolio, rather than a program. The term Program Management Office is also used in a variety of different ways.