An Introduction to Project Modeling and Planning

Preface
Acknowledgement
Contents
1: Introduction to Project Modeling and Planning
	1.1 What Is a Project?
	1.2 Project Management in Today´s World
	1.3 Challenges in Keeping to Scope, Cost, and Schedule Targets
	1.4 A Life Cycle Concept for Projects
		1.4.1 Conceptual Design and Project Definition
		1.4.2 Planning
		1.4.3 Implementation, Monitoring, and Control
		1.4.4 Evaluation and Termination
	1.5 Post-Project Analysis
	1.6 Uncertainty and Risks in Projects
	1.7 Project Modeling and Planning Tools
	1.8 Resource Constrained Modeling
	1.9 Agile Project Management
	Exercises
	References
2: Organizing and Managing Projects
	2.1 Projects and Organizational Structure
		2.1.1 Functional Organizations
		2.1.2 Project Organizations
		2.1.3 Matrix Organizations
	2.2 How to Choose the Project Management Structure?
	2.3 Stakeholder Management
	2.4 Project Management Culture
	2.5 Organizing Projects
		2.5.1 Steering Committee
		2.5.2 Project Sponsor
		2.5.3 Project Manager
		2.5.4 Project Team and Team Members
			2.5.4.1 Desirable Skills and Characteristics of Team Members
			2.5.4.2 Geographically Distributed Project Teams
		2.5.5 Project Meetings
	2.6 Project Management Office
	2.7 Program Management
	2.8 Project Portfolio Management
	2.9 Agile Project Management
	2.10 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
3: Planning and Network Modeling of Projects
	3.1 Project Scope
		3.1.1 Project Charter
	3.2 Work Breakdown Structure
		3.2.1 Decomposition of WBS into Work Packages
		3.2.2 Types of WBS Representation
		3.2.3 Gantt Chart Representation of Work Packages
		3.2.4 Organizational Breakdown Structure
		3.2.5 Cost Breakdown Structure
			3.2.5.1 Bottom-Up Costing - Cost Aggregation
			3.2.5.2 Cost Accounts
	3.3 Network Modeling of Projects
		3.3.1 Types of Models
		3.3.2 Network Modeling of Projects
			3.3.2.1 Hammock Activities
		3.3.3 Activity on Arc Type Representation
			3.3.3.1 Network Construction Rules
			3.3.3.2 Checking for Cyclic Project Networks
		3.3.4 Activity on Node Type Representation
		3.3.5 Generalized Precedence Relationships
		3.3.6 Level of Aggregation in Project Networks
			3.3.6.1 Milestones
			3.3.6.2 Summary Activities
		3.3.7 Network Modeling of Multiple Projects
	3.4 Estimating Activity Durations
		3.4.1 Tools for Estimating Activity Durations
	3.5 Cost Management
		3.5.1 Tools for Estimating Activity Cost
		3.5.2 Types of Project Costs
		3.5.3 Activity-Based Costing
	3.6 Data, Information, and Knowledge Management
		3.6.1 Which Data to Collect?
		3.6.2 With Which Frequency to Collect Data?
		3.6.3 With Which Tools to Collect and Integrate Data?
		3.6.4 With Which Tools and How to Analyze Data?
	3.7 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
4: Deterministic Project Scheduling with No Resource Constraints
	4.1 Introduction
	4.2 Critical Path and Its Determination
		4.2.1 Critical Path Method
			4.2.1.1 Critical Path Method on Activity-on-Arc Type Project Networks
			4.2.1.2 Critical Path Method on Activity-on-Node Type Project Networks
			4.2.1.3 Criticality and Slacks for the Case of Generalized Precedence Relationships
			4.2.1.4 Sensitivity Analysis
	4.3 Linear Programming Formulation
	4.4 Maximizing the Net Present Value of a Project Under No Resource Constraints
		4.4.1 A Zero-One Mathematical Programming Formulation
		4.4.2 Time Dependent Cash Flows
	4.5 Keeping the Project Plan Current
	4.6 Conclusions, Recent Developments, and Some Future Research Directions
	4.7 Case Study: Installation of a Plant Biotechnology Lab
	Exercises
	References
5: The Time/Cost Trade-off Problems
	5.1 Problem Definition
	5.2 Time/Cost Trade-Off in Projects
		5.2.1 Project Crashing
		5.2.2 An Algorithm for Project Crashing
			5.2.2.1 Determining the Minimum Total Project Cost
			5.2.2.2 Generalized Precedence Relationships
	5.3 Continuous Time/Cost Trade-off Problems
		5.3.1 Activity-on-Arc Representation
		5.3.2 Activity-on-Node Representation
			5.3.2.1 Model Solution
	5.4 Discrete Time-Cost Trade-off Problems
		5.4.1 The Deadline Problem
		5.4.2 The Budget Problem
	5.5 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
6: Stochastic Project Scheduling with No Resource Constraints
	6.1 Introduction
	6.2 Representation of the Randomness of Activity Durations
	6.3 Determining the Critical Path
	6.4 Shortcomings of the PERT Method
	6.5 A Model for Managing Uncertainty in Activity Costs
	6.6 Monte Carlo Simulation Approach to Handle Uncertainty
	6.7 Conclusions, Recent Developments, and Some Future Research Directions
	6.8 Case Study: Constructing an Earthquake Resistant Residential House
	Exercises
	Appendix 6A: Area Under the Normal Curve
	References
7: Resource Constrained Project Scheduling
	7.1 Introduction
		7.1.1 Categories of Resources
		7.1.2 Resource Parameters
	7.2 Objective Functions
		7.2.1 Regular and Non-regular Objective Functions
		7.2.2 Time-Based Objectives
			7.2.2.1 The Case of Multiple Projects
		7.2.3 Financial Objectives
		7.2.4 Quality Based Objectives
		7.2.5 Resource Based Objectives
	7.3 A Mathematical Programming Formulation of the Resource Constrained Project Scheduling Problem
	7.4 Exact Solution Procedures Using Branch and Bound
	7.5 Heuristic Solution Procedures
		7.5.1 Types of Schedules
		7.5.2 Priority Rules
			7.5.2.1 A Representative List of Priority Rules
		7.5.3 Serial Schedule Generation
		7.5.4 Parallel Schedule Generation Scheme
		7.5.5 A Brief Assessment of Serial and Parallel Schedule Generation Schemes
	7.6 A Mathematical Programming Formulation with Multiple Modes
	7.7 A Mathematical Programming Formulation for Maximizing the Net Present Value of a Project Under No Budgetary Constraint
	7.8 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	Appendixes
		Appendix 7A: Computational Complexity
		Appendix 7B: Branch and Bound
	References
8: Resource Leveling and Other Resource Management Problems
	8.1 Introduction
	8.2 Resource Leveling
		8.2.1 The Burgess and Killebrew Algorithm
		8.2.2 Other Solution Approaches
		8.2.3 The Total Adjustment Cost Problem
	8.3 Resource Availability Cost Problem
	8.4 Resource Management Policies
	8.5 The Resource Portfolio Management Problem
	8.6 Conclusions, Recent Developments, and Some Future Research Directions
	8.7 Case Study: Conducting Annual Audit for Celik Company
	Exercises
	References
9: Project Contract Types and Payment Schedules
	9.1 Introduction
	9.2 Contract Types
		9.2.1 Fixed Price Contracts
		9.2.2 Variable Price Contracts
		9.2.3 Cost of Managing Contracts
	9.3 Payment Scheduling Models
	9.4 Change and Control Issues in Contracts
		9.4.1 Managing Change Issues in Contracts
		9.4.2 Control Issues in Contracts
	9.5 Identification and Allocation of Risk in Contracts
	9.6 Bidding
		9.6.1 Estimating the Total Cost of the Project
		9.6.2 Front-loaded Bidding Strategy
		9.6.3 A Bidding Model for Determining the Bidding Price
	9.7 Mathematical Models for Negotiation in Project Management
		9.7.1 Preparation for a Bid
		9.7.2 Client-Contractor Bargaining Problem
		9.7.3 Equitable Payment Schedule Problem
	9.8 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
10: Progress and Cost Control
	10.1 Introduction
	10.2 Cost/Schedule Control System Measures
	10.3 Estimating the Percent Complete
	10.4 Cost/Schedule Control Performance Indicators
		10.4.1 The Impact of Inflation
	10.5 Time and Cost Predictions Using EVM
	10.6 Limitations of Earned Value Management
	10.7 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
11: Project Risk Management
	11.1 Introduction
	11.2 Processes in Project Risk Management
		11.2.1 Risk Identification
		11.2.2 Risk Analysis
			11.2.2.1 Qualitative Methods
			11.2.2.2 Quantitative Methods
		11.2.3 Risk Response Planning
		11.2.4 Risk Monitoring and Control
	11.3 Project Risk Analysis: A Team Discussion Case
	11.4 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
12: Project Scheduling Under Uncertainty
	12.1 Introduction
	12.2 Robust Scheduling
		12.2.1 Critical Chain Project Management
		12.2.2 A Robust Optimization Model for Project Scheduling
		12.2.3 Robustness Measures and Project Scheduling
	12.3 Stochastic Scheduling
	12.4 Sensitivity, Scenario, and Simulation Analysis
		12.4.1 Sensitivity Analysis
		12.4.2 Scenario Analysis
		12.4.3 Monte Carlo Simulation
	12.5 Conclusions, Recent Developments, and Some Future Research Directions
	Exercises
	References
13: Planning and Scheduling of Repetitive Projects
	13.1 Introduction
		13.1.1 An Analogy to Serial Production Lines
		13.1.2 Duration - Resource Relation for WPs
	13.2 A Mathematical Programming Model for the Repetitive Projects
		13.2.1 The Objective Function
		13.2.2 The Constraints
		13.2.3 The Mathematical Programming Model
	13.3 A Model with an Alternative Total Cost Function
	13.4 Conclusions, Recent Developments, and Some Future Research Directions
	13.5 Case Study: 50 Km Gebze-Orhangazi Section of Gebze-Izmir Motorway Project
	Exercises
	References
14: Project and Portfolio Selection
	14.1 Introduction
	14.2 A Multi-criteria Scoring Model
	14.3 The Analytic Hierarchy Process
		14.3.1 Sensitivity Analysis
	14.4 Mathematical Programming Models
		14.4.1 A Single Objective Mathematical Programming Model
		14.4.2 Multi-objective Mathematical Programming Models
		14.4.3 Multi-objective Linear Programming Approach
		14.4.4 Goal Programming Model
		14.4.5 Multi-objective, Multi-period Project Portfolio Selection and Scheduling Model
	14.5 Conclusions, Recent Developments, and Some Future Research Directions
	14.6 Case Study: Project Portfolio Selection for the Construction of a Series of Dams
	Exercises
	References
15: Recent Developments and Some Promising Research Areas
	15.1 Sustainability and Project Management
	15.2 Project Management in the Era of Big Data
		15.2.1 Meaning and Techniques of Big Data Analytics
		15.2.2 Application Areas and Opportunities in Project Management
	15.3 Fourth Industrial Revolution and the New Age Project Management
		15.3.1 Evolution of the Project Environments
		15.3.2 Transformation of the Project Management Practices
	References
		References for Section Sustainability and Project Management
		References for Section Project Management in the Era of Big Data
		References for Section Fourth Industrial Revolution and the New Age Project Management
Abbreviations
Mathematical Notations
Index