A fuzzy approach for the earned value management

The Earned Value technique is a crucial technique in analyzing and controlling the performance of a project which allows a more accurate measurement of both the performance and the progress of a project. This paper presents a new fuzzy-based earned value model with the advantage of developing and analyzing the earned value indices, and the time and the cost estimates at completion under uncertainty. As the uncertainty is inherent in real-life activities, the developed model is very useful in evaluating the progress of a project where uncertainty arises. A small example illustrates how the new model can be implemented in reality.     

A performance-based approach to project assignment and performance evaluation

Project assignment and performance evaluation have been addressed as two important and separate research issues in project management. This paper develops a new performance-based approach for integrating the project assignment and the performance evaluation processes in a project-based organization. An objective-oriented preference-based assignment process is developed to assign a project to a project manager. An optimal project assignment model is developed to maximize the total weighted contribution value of all new projects to the organizational objectives. An efficiency-based evaluation process is developed using data envelopment analysis to measure the relative performance efficiency of the completed projects and of the project managers. The approach provides a proactive mechanism for facilitating objective-focused management of projects. The outcomes of an empirical study conducted provide managerial insights in assigning projects to project managers and in evaluating the performance efficiency of both projects and project managers.     

Barriers to effective configuration management application in a project context: An empirical investigation

Configuration management (CM) is not a new set of ideas, what it does represent is an effective way for project managers to use a formalized methodology in order that they can manage status and changes to it throughout the lifecycle. This research sets out to identify and prioritize the obstacles in the effective implementation of the CM practices, categorize these obstacles into more manageable groups of factors, and analyse the effects of multiple factors on the identification and rating of these barriers. Nineteen barriers are finalized and prioritized on the basis of their criticality and as a result three groups (managerial and organizational barriers, implementation barriers, and planning and process barriers) are extracted with the help of factor analysis. This study will help both configuration management and project management professionals to plan better and avoid the impacts of these key obstacles from much earlier in the definition phase.     

An optimization method for selecting project risk response strategies

There is wide agreement that the risk response strategy selection is an important issue in project risk management (PRM). Some academic researchers have paid attention to this issue. This paper proposes a novel method for solving the risk response strategy selection problem in PRM. In the method, an optimization model is developed, which integrates three critical elements that are the project cost, project schedule and project quality. By solving the model, the optimal solution could be obtained so that the most desirable risk response strategies to cope with the risk events can be determined. If the optimal solution is not found or project managers are not satisfied with the solution, another pathway can be used to support the managers to get the desirable strategies. The pathway is based on an iterative process which involves making trade-offs between the project budget, time and quality according to objective requirements and managers' judgments. The iterative process comes to an end if the objectives predefined by the managers are reached. A simple example project is also provided to illustrate the practicality and usefulness of the proposed method.     

Project planning practices based on enterprise resource planning systems in small and medium enterprises — A case study from the Republic of Macedonia

This paper examines whether Macedonian SMEs plan for the implementation of ERP projects and studies the effect of project planning practices on project success. Four project planning measures were taken into consideration: business case development, scope planning, baseline plan development and risk planning along with three measures of project success; customer satisfaction, perceived quality of the project and success of the implementation process. The study was based on a survey that was conducted on 30 SMEs in the Republic of Macedonia. Data dimensionality was reduced through factor analysis and relationships between the two sets of variables were analyzed by correlation and regression analyses. The findings demonstrated that Macedonian SMEs implemented general project planning practices, even though they did not consider the planning process as a separate phase of the ERP implementation. However, they did not use any particular project planning tools, such as the Gantt chart or WBS. Of the project planning practices that were surveyed, the most practiced were the development of a business case, project scope and baseline plan. The least practiced were risk planning practices. Considering the success of the ERP implementations, this study demonstrated that most of the companies' representatives perceive this undertaking as successful in terms of client satisfaction and perceived quality measures. A higher percentage of respondents found their ERP implementations unsuccessful in terms of implementation process measures, when compared to the previous two success parameters.     

A new approach for project control under uncertainty. Going back to the basics

In this paper we propose a new methodology for project control under uncertainty. In particular, we integrate Earned Value Methodology (EVM) with project risk analysis. The methodology helps project managers to know whether the project deviations from planned values are within the “expected” deviations derived from activity planned variability. Although the methodology is new and innovative, we only go back to the fundamentals of project simulation to generate the “universe” of possible projects, according to the assumed variability of project activities. Then we organize and gather the information in order to make the data coherent with EVM. We explain the steps to implement the methodology and we show three case studies. The methodology makes explicit that the schedule and budget resulting from traditional methods like PERT are statistically very optimistic.     

Rating defence major project success: The role of personal attributes and stakeholder relationships

In this paper we develop and test a model of the associations between major project managers' personal attributes and project success in the context of the Australian Defence industry. In our model, emotional intelligence, cognitive flexibility and systemic thinking were hypothesised to relate to project success, mediated by internal and external stakeholder relationships. The model was tested in an online survey with 373 major project managers. Emotional intelligence and cognitive flexibility were found to be related to the development, quality and effectiveness of major project managers' relationships with both internal and external stakeholders; and these in turn were associated with their ratings of project success. Systemic thinking, however, had no relationship with either stakeholder relationships or project success. Additional research is needed to examine the contribution of a wider range of personal attributes to stakeholder relationships and project success, and to assess whether this model is applicable in other industries and types of projects.     

Subcontracting in project-based firms: Do you follow the same pattern across your different projects?

This article analyzes an important dimension in which the organization of the projects performed by the same firm can differ: the insourcing or outsourcing of an activity that needs to be undertaken in each of the different projects. Analyzing the variability of a firm's insourcing or outsourcing decision across its projects gives us a better understanding of the firm's decision-making process in terms of the stability of its choices across projects and the main determinants of that variability. This analysis is valuable because a firm that manages multiple projects can benefit from the careful analysis and consideration of the interactions among and the specificities of its projects. Using a comprehensive database of construction firms and projects, we conclude that firms demonstrate variability in their insource or outsource choices across projects and that this variability is explained by factors such as the number of projects simultaneously undertaken, the variability in a project's complexity, and their market power in local markets. These results suggest that the theories explaining firm boundaries in project-based firms should be expanded to include interrelationships between projects and the individual project characteristics that drive differences in insource or outsource choices.     

The moderating effect of human resource management practices on the relationship between knowledge absorptive capacity and project performance in project-oriented companies

In response to recent calls for research on human resource management (HRM) in project management, this research investigates the links between HRM practices, the project team's knowledge absorptive capacity (ACAP) and project performance in project-oriented companies (POCs). Based on survey data from 198 projects in multinational companies (MNCs) in the Thai automotive industry, this research finds that HRM practices moderate the effects of a project team's knowledge ACAP on project performance, in particular of potential ACAP on long-run project performance. In addition, HRM practices covary with a project team's realized ACAP, the other dimension of ACAP, to affect short-run project performance. This research sheds light on the different roles that HRM practices play in a project, finding that HRM practices not only facilitate knowledge management from the current project to future projects but also strengthen the relationship between a project team's knowledge ACAP and long-term project performance. This research contributes to the understanding of HRM in the literature of project management.     

Identifying,framing and managing uncertainties in project portfolios

Uncertainties in the organization, external environment and from single projects may hamper project portfolio performance unless managed properly. This paper introduces a framework on uncertainties and their management in project portfolios and pursues increased understanding on how managers can take uncertainty into account better. We explore uncertainties, how managers frame them as opportunities or threats, and the actual practice of managing them across ten R&D project portfolios. The framework on project portfolio uncertainties and their management is further refined based on the empirical results. As key contributions, we show evidence on the balanced existence of three types of uncertainties, the threat bias in their framing, and the dominance of rational, opportunity driven mechanisms of control in uncertainty management. We discuss the context-dependent practice of project portfolio management and the need to complement rational mechanisms with structural and cultural, for project portfolio management to become a dynamic capability.