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PFMP · Question #167

A new component that will deliver an enhanced product manufacturing system has been presented for addition to the portfolio. The system is expected to significantly reduce costs by reducing the amount

The correct answer is A. performance plan.. The scenario describes a benefits realization risk: cost savings may be eroded over time due to usability issues. A portfolio performance plan defines how benefits and returns from components will be tracked, measured, and managed over time - directly addressing whether expected

Portfolio Performance

Question

A new component that will deliver an enhanced product manufacturing system has been presented for addition to the portfolio. The system is expected to significantly reduce costs by reducing the amount of time it takes to create product parts. However, the user interface will be difficult to work with, so any cost savings may be lost over time. To ensure that the portfolio remains balanced and expected returns are managed, the governance board should use a portfolio:

Options

  • Aperformance plan.
  • Brisk management plan.
  • Cfinancial plan.
  • Dstrategic plan.

How the community answered

(52 responses)
  • A
    77% (40)
  • B
    4% (2)
  • C
    8% (4)
  • D
    12% (6)

Explanation

The scenario describes a benefits realization risk: cost savings may be eroded over time due to usability issues. A portfolio performance plan defines how benefits and returns from components will be tracked, measured, and managed over time - directly addressing whether expected returns are actually being realized. A risk management plan (B) addresses risk identification and mitigation, not return tracking. A financial plan (C) covers budgets and costs, but not ongoing benefit performance measurement. A strategic plan (D) sets direction but does not manage ongoing component performance against expected returns.

Topics

#Portfolio Performance Management#Benefit Realization#Portfolio Governance#Value Management

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