Advanced Models for Project Management by Prof. L. Valadares Tavares (auth.)

By Prof. L. Valadares Tavares (auth.)

More than 40 years have handed because the early makes an attempt to version initiatives. a wide area of theoretical advancements has grown generating a excessive variety of analytical and numerical effects, however it turns out that the most version remains to be an identical: the concept that of venture community. this idea has come to symbolize the 2 significant positive aspects underlying the thought of a undertaking: the sequential and the aggressive nature of its parts, the project's actions. truly, the sequential estate defines the constitution of the undertaking and the aggressive nature stems from using universal assets (facilities, items, gear, administration, etc.) to hold out the various actions. in spite of the fact that, major advances were completed in venture modelling, permitting the creation of even more robust effects: A. the idea that of priority and the outline of actions has been generalized to supply a variety of practical illustration of initiatives. B. the stochastic examine of the beneficial properties of tasks comparable to the period and value in their actions is performed by way of numerous analytical and numerical versions, permitting experimental and forecasting analyses. C. the allocation of assets will be now studied for extra complicated events and regulations. D. the monetary description of initiatives is extra effectively studied and its optimization is carefully pursued. E. the overview and the overview of tasks now may be studied in the framework of multicriteria choice concept contemplating a number of views and assisting the venture supervisor to pick the main applicable compromises among threat, time and anticipated gains.

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For instance, the use of a piece of equipment of the company in charge of the project to carry out an activity may not generate an expenditure but it certainly implies a cost. , an improvement of environmental conditions). Basic models/or project management 37 In Economics, a value can be considered capital if more value can be generated from its use along time ("callital rellroduction"). ) units in one year's time (measured in tenns of the same monetary units), where ex. is the additional generated capital.

2 BASIC MODELS FOR PROJECT MANAGEMENT 1. Projectnetwor~ng After presenting the general systemic model for project management, special attention should be given to the basic model of a project which includes a model of the system@and of the criteria to compare alternative decisions. The basic modelling of a project can be developed in terms of an interconnected set of activities which implies: a) the decomposition of the project into a set of activities; b) the definition of all the relations connecting such activities; c) the definition of the criteria to evaluate alternative decisions.

Capital is a non-renewable resource although in theory the expenditure per time unit also will be bounded by the feasibility of making proper deals. Therefore, money can be considered as a typical example of a non-renewable resource and the interest rate can be considered as the holding cost of this good called capital. The capital allocated to each activity is called its cost and it may be not associated to an expenditure. For instance, the use of a piece of equipment of the company in charge of the project to carry out an activity may not generate an expenditure but it certainly implies a cost.

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