TAILIEUCHUNG - A DYNAMIC CRASHING METHOD FOR PROJECT MANAGEMENT USING SIMULATION-BASED OPTIMIZATION

While managers designed traditional methodologies in an effort to control projects, the technical community gave birth to agile methodologies in response to their frustrations with traditional management (or lack thereof) and the resulting impact on their products and morale. For example, the principles of XP are focused almost entirely on the development process. While the technical community has championed these principles, very little has been written about the management side of agile development projects. The implication is that there is little need for a project manager since XP teams develop and monitor their own. | Proceedings of the 2008 Winter Simulation Conference S. J. Mason R. R. Hill L. Mõnch O. Rose T. Jefferson J. W. Fowler eds. A DYNAMIC CRASHING METHOD FOR PROJECT MANAGEMENT USING SIMULATION-BASED OPTIMIZATION Michael E. Kuhl Radhamés A. Tolentino-Pena Industrial Systems Engineering Department Rochester Institute of Technology Rochester NY 14623 USA ABSTRACT A dynamic simulation-based crashing method is introduced in this research to evaluate project networks and determine the optimum crashing configuration that minimizes the average project cost due to lateness penalties and crashing costs. This dynamic approach will let the user evaluate the project network to determine a crashing strategy at the beginning of the project and also during the life of the project. By reevaluating the project network possible adjustments to the crashing strategy may be identified and implemented. The output of the method includes a distribution of the project completion time a distribution of the project total cost and the project cost savings. 1 INTRODUCTION Project management is a tool that is used by many companies to help improve performance and competitiveness. Projects and their execution in general require resources. Project management which is characterized by techniques intended to provide a better use of project resources Kerz-ner 2003 can positively impact the profitability of a company. An important aspect of project management is risk management. Different types of risk are present in any given project but the emphasis of this research will be focused on schedule time risk and associated costs. The schedule time risk essentially implies not completing project activities on time resulting in a late completion of the project. Late project completion generally has negative effects for the company such as penalty costs and customer dissatisfaction. If a project is running late project managers might be able to bring the project back on track by incorporating additional .

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