Use Optimization to Select Projects for a Budget Planning Scenario

Use the Optimization tool to simulate different project selection scenarios. Specify project and cost constraints, choose primary and secondary objective fields, and run the analysis to generate the optimal selection of projects.

To select projects using Optimization:

  1. In the object selector, select Portfolio, and then select View Portfolios List.
  2. Select a portfolio name.
  3. From the Main Menu, select Cost and Funds, and then select Budget Planning.
  4. Select Scenario Optimization to display the Optimization panel.

    Note: In the Optimization panel, select Expand to view the panel in full-screen mode.

  5. Specify Optimization parameters. In the Constraints section, configure cost constraints manually or, if fund data has been entered, select Switch to Funds Constraints to specify your method of input.
    • To configure manual cost constraints:
      1. Select Edit to configure total and time-phased cost constraints.
      2. In the Constraints dialog box, choose a Constraint Field value, add a Total Cost value, and add time-phased cost values at a yearly level.
    • If you selected Funds Constraints:

      In the Funds Constraints field list, select a field against which you want to allocate your funds. Cost constraints amounts are determined using fund availability values.

      Notes:

      • Select the Context menu, and then select Copy from Target Budget to copy the values from the Target Budget row into the Total Cost and time-phased yearly cost fields. Select Clear Values to clear all numeric values in the dialog box.
      • Time-phased constraint values can be entered for the Planned Budget, Proposed Budget, Proposed Fund, and Forecast fields.
      • Fund data must exist to see the Switch to Funds Constraints option.
      1. Select Save.
  6. In the Primary Objective section, select the objective field that you want to maximize.
  7. (Optional) In the Secondary Objective section, select Maximize or Minimize, and then select a secondary objective field.

    Note: If you do not want to include a secondary objective in the optimization, select None to disable the field.

  8. Select Optimize.

    The optimization process runs in the background. The scenario on which the optimization is being done is read-only while the optimization process runs.

    Note: You can only rename or duplicate the scenario while the optimization is in progress.

  9. You receive a notification in the Notifications panel when the process is complete. Select View Scenario from the notification to view the optimized scenario.
  10. Review optimization results.
    • The Efficient Frontier chart displays results for the most recent optimization:
      • Hover over the Current Selection data point to view the optimal objective values based on the specified constraints.
      • The selection of projects in the table is the suggested selection based on the optimization results.
      • If you selected Switch to Funds Constraints for your constraint input, you can also view the funds and fund values automatically allocated to your projects.
    • In the table, the State field is highlighted green for projects that have been selected, red for projects that have been deselected, and not highlighted for projects whose state did not change.
  11. Select Apply Optimization to apply the optimized project selection on the scenario.
  12. Make any necessary adjustments to the project selection.
  13. Select Save.

Tips