Running a New Scenario Optimization

Note: When an optimization is run for any particular scenario, the results overwrite any previous manual specification (using check boxes) as to which lifecycle entities in the scenario comparison are to be included and excluded in that scenario. If you want to preserve the original scenario you plan to optimize, copy the scenario comparison and rename that scenario. See Copying a Scenario Comparison and Changing the Name of a Scenario.

To run a new scenario optimization:

  1. Open the scenario comparison that includes the set of lifecycle entities you want to make available for the optimization. See Listing and Viewing Scenario Comparisons.

  2. Click View Scenario Comparison. The scenario comparison appears again, with optimization results available.

You can review the following optimization results:

  • In the Scenario Content section of the Scenario Comparison page, all the check boxes for all the lifecycle entities of the optimized scenarios are replaced by read-only check marks or blank areas. These indicate, respectively, the optimizer's inclusion or exclusion of each lifecycle entity in the optimized scenarios, in keeping with the optimization criteria (including required lifecycle entities) you specified in step 3 and any previously specified dependencies among the lifecycle entities in the scenario comparison. The order of the lifecycle entities (rows) is not changed. See Figure 5-13. Scenario Content for an optimized scenario.

    Figure 5-13. Scenario Content for an optimized scenario

  • The data for the optimized scenarios are changed in the graphs on all the tabs of the Scenario Comparison page to reflect the lifecycle entities chosen by the optimizer according to your criteria.

    In particular, if you have previously generated the efficient frontier graph on the Efficient Frontier tab (see Efficient Frontier Tab), the graph shows data points for all three scenarios of the scenario comparison, regardless of whether you optimized all the scenarios. (The graph also shows the criteria you specified to generate the efficient frontier.)

    If the criteria for generating the efficient frontier and the optimized scenario were the same, the optimized scenario's data point should be on the efficient frontier curve. For more information about the positions of the scenario data points relative to the efficient frontier curve, see Efficient Frontier Tab.

  • For each optimized scenario, wherever you allowed the optimizer to delay lifecycle entity start dates, the Timeline tab of the Scenario Details page is changed to reflect any such delays, as indicated by orange outlines around those lifecycle entities. (As with any scenario comparison, the start dates in the lifecycle entities themselves must be updated manually.)

  • Lifecycle entities that the optimization excludes from the scenario are shown in the Timeline tab in the same manner as lifecycle entities excluded in manually specified scenario comparisons.

  • Data on the Role Availability tab of the Scenario Details page for each optimized scenario changes to reflect the optimization results.

  • On the Optimization Details tab of the Scenario Details page, the list of lifecycle entities is changed to include only the lifecycle entities identified by the optimization. The entities are sorted from highest to lowest value of the optimization objective, such as NPV, indicating their relative leverage in the optimization toward maximizing your objective. The list also shows which lifecycle entities you specified as being required in the optimization. See Figure 5-14. Optimization Details tab after scenario optimization.

    The Optimization Details tab displays the criteria you specified in step b through step j. It also displays the optimizer's "actual" (calculated) percentages for all the defined types of business objectives, project classes, and asset classes. These percentages adhere to any minimum values you specified in step h through step j.

    Figure 5-14. Optimization Details tab after scenario optimization

You can change the optimization criteria for this scenario (see Changing an Existing Optimization).