Steve's Blog

Project portfolio management when based on a valid method for measuring project value produces four types of benefits:

Continue reading "PPM - Four Types of Benefits " »

Maximizing the benefits of the investment portfolio requires, among other things, measuring all of the benefits of each project. PPM based on multi-attribute utility analysis (MUA) provides a sound foundation for the measuring value of projects and for maximizing the value of the portfolio of projects. MUA based project portfolio management provides real benefits. The question is how much benefit can reasonably be expected?

Continue reading "PPM - How Much Benefit Can ... »

The benefits of PPM to an electric power organization can be significant (in the range of 5 to 20 percent). However realization of the benefits depend upon two factors: (1) using a valid approach for measuring project value and (2) implementing the system at a high level in the organization so that their is “enterprise-wide” optimization of project and portfolio decisions. These two factors are discussed here.

Continue reading "PPM - Two Factors That ... »

Under Construction

Most tools for project portfolio management have shortcomings that make them incapable of accurately prioritizing projects. One source of error is the lack of proper algorithms for correctly valuing risk. This Interactive Risk Demo illustrates the importance of this omission.

Continue reading "PPM - An Interactive Risk Demo" »

Measuring project value requires estimating what an organization is willing to pay in order to obtain the changes that the project will produce.

Continue reading "PPM - Measuring Project Value" »

For a system to provide a valid solution to the PPM problem, the system must address four issues:

Continue reading "PPM - Solution Requirements" »

Project Portfolio Management Is Important because of three factors: (1) Asset Intensive Business, (2) Pressure to Reduce Costs, (3) Hundreds of Competing Project Options. Continue reading "PPM - Problem Setting" »

About This Blog

The purpose of this blog is two fold

1. to promote active discussion of using decision science methods to improve electric utility asset management decisions
2. to increase awareness of sound scientific methods that can aid electric utility decision making.

This blog currently addresses three areas:

1. Project Portfolio Management,
2. Repair / Replace Decision Making as it applies to existing assets,
3. Utility Fuel Inventory Management.

About Steve Chapel

Industry: Consulting
Occupation: Economic Analyst - Utility Infrastructure Investment Planning
Location: Palo Alto : CA : United States

I manage S.Chapel Associates a private consulting firm that specializes in utility planning and asset management. I have more than 25 years experience in electric utility planning and asset management and specialize in the application of analytic tools to aid engineering - economic decision making, financial valuation, and capital budgeting.

My current focus is on transmission and distribution business planning and asset management with specific emphasis on problems associated with (1) aging electric infrastructure (2) project portfolio management and (3) electric system reliability. I am also a co-author (with Mukund Thapa) of a soon to be published book on programming using C and C++ Pointers.

My training is applied mathematics and economics. In recent years I have done extensive software development producing analytic tools to aid asset management decision making (using Java, C++, and VB .NET).