OptFolio

OptFolio® is an optimization engine that can be embedded in Project Portfolio Management (PPM) software. It enables a significant improvement in portfolio performance compared to traditional methods of selection. Users can include categories of projects, (strategic, tactical, mandatory, etc), can examine multiple types of resources, can vary starting dates, can deal with mutual exclusivity and dependencies, and can address risk and uncertainty (increasing importance in today's corporate governance environment). It allows users to include uncertainty in their forecasts as well as define a variety of portfolio performance measures from hard metrics to "gut feel."

OptFolio is distinguished by its ability to construct or augment a portfolio that maximizes performance while addressing a wide range of scheduling and resource constraints. The OptFolio optimization technology is a significant improvement over ranking methods and traditional mathematical programming approaches.

The quality of OptFolio's results has been demonstrated using data drawn from a real portfolio planning exercise, in a test comparing its outcomes to those of a sophisticated traditional ranking and selection approach. In two separate cases, one using net present value (NPV) as a performance measure and the other using internal rate of return (IRR), the portfolios selected using OptFolio outperformed the traditional approach by more than 20%.

OptFolio is distributed as part of the OptQuest Engine. Additional classes and optimization techniques were implemented within the OptQuest Engine structure to build upon the capabilities of the OptQuest Engine. The combination of the OptFolio and OptQuest Engines provide a full featured optimization offering that includes the strengths and flexibilities of both products.

For additional information read Simulation Optimization: Applications In Risk Management. If you would like a demonstration copy of any of our software, please email us at OptInfo@OptTek.com. Please tell us a little about your optimization problem and tell us what programming language and platform you are using for your development.