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Strategic Project Resource AllocationProcess Improvement ProjectsUpgrade ProjectsNew Product Development ProjectsAllocation (Target): $14MAllocation (Target): $10MAllocation (Target): $24MProjectBudget Required ($M)ProjectBudget Required ($M)ProjectBudget Required ($M)G2.1B2.9F6.8A3.4E6.4C2.9D1.9I2.4J5.8H0.5 K4.2L1.3 TOTAL:9.2TOTAL:11.7TOTAL:19.7

Figure 6 Strategic Project Resource Allocation Table (FY 20XX)

Orthex Inc. has adopted a resource bucket approach to plan their project investments. The results of their planning efforts are presented in Figure 6. The projects in each bucket have been prioritized using a scoring model and are listed in priority from first to last in each bucket. Consider the information in Figure 6. Which of the following is a valid observation or conclusion regarding this project portfolio?

a.Based on the current resource allocation, all 12 of the projects in this portfolio can be funded. b.If the allocation made to the Process Improvement bucket was reduced by $4M, then project G should be cut from the project portfolio. c.Based on the current allocation, Project K will not be funded. d.Based on the current allocation, Project I will not be funded.

Project AProject BProject CProject DFactorsWeight %EWEEWEEWEEWESpeed10959.50808.00858.50808.50Range157010.508012.007511.259013.50Efficiency207515.007515.008517.009519.00Comfort157010.508512.758512.758512.75Capacity207014.009018.009519.009519.00Loaded Mass159013.50609.007010.509013.50Maintainability5753.75854.25804.00804.00Total WE 76.75 79.00 83.00 88.25Cost 1.9M 2.0M 3.0M 2.5M

Figure 7 Effectiveness Analysis Data

Consider the effectiveness analysis data presented in Figure 7 above. If your organizations budget was $8.0M, which projects would you select to include in the project portfolio?

a.Project A only b.Project B and Project C c.Project B, Project C and Project D d.Project D only

Contemporary organizations can realize several significant benefits by integrating portfolio management with their stage-gate project life cycles. Which of the following items is a benefit derived by integrating portfolio management with the gating process?

a.It enables the organization to address and compare all projects at the same time. b.It enables projects to progress unconstrained by the company financial budgets. c.It enables projects to progress independent of the priorities of senior management. d.It enables projects to progress unbridled by company resource constraints

Boeing Commercial Airplane Division is the principal designer, systems integrator, and assembler for the Boeing 787 commercial aircraft. Contract suppliers in several countries including Japan, Canada, Spain and Italy perform virtually all of the design and manufacture for the planes major components and subsystems. Which of the following items is illustrated by this contemporary example?

a.International project b.International trade agreement c.Domestic project d.Bilateral trade agreement