Evaluation Indexes of Degree of Closeness between Strategy and Project Portfolio Allocation
ABSTRACT
The main activities in project portfolio allocation management are selecting the right project components given a strategy. It is crucial to establish a scientific system of evaluation indexes to guarantee the closeness between strategy and project portfolio allocation optimally. With organizations growing in sizes, the functions and objectives of project components are becoming more and more different. It is necessary to set evaluation indexes of the degree of closeness from the perspectives of financial, market share, social effects, and so on according to the strategy-oriented process of project portfolio allocation. This paper proposes a project portfolio allocation process under strategic orientation and evaluation indexes of the degree of closeness between strategy and project portfolio allocation. This will help projects managers make portfolio allocation decisions.
The main activities in project portfolio allocation management are selecting the right project components given a strategy. It is crucial to establish a scientific system of evaluation indexes to guarantee the closeness between strategy and project portfolio allocation optimally. With organizations growing in sizes, the functions and objectives of project components are becoming more and more different. It is necessary to set evaluation indexes of the degree of closeness from the perspectives of financial, market share, social effects, and so on according to the strategy-oriented process of project portfolio allocation. This paper proposes a project portfolio allocation process under strategic orientation and evaluation indexes of the degree of closeness between strategy and project portfolio allocation. This will help projects managers make portfolio allocation decisions.
Cite this paper
Bai, L. and Bai, S. (2015) Evaluation Indexes of Degree of Closeness between Strategy and Project Portfolio Allocation. American Journal of Operations Research, 5, 38-46. doi: 10.4236/ajor.2015.51004.
Bai, L. and Bai, S. (2015) Evaluation Indexes of Degree of Closeness between Strategy and Project Portfolio Allocation. American Journal of Operations Research, 5, 38-46. doi: 10.4236/ajor.2015.51004.
References
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http://dx.doi.org/10.1016/j.ejor.2013.10.063 [2] Fatemi Ghomi, S.M.T. and Ashjari, B. (2002) A Simulation Model for Multi-Project Resource Allocation. International Journal of Project Management, 20, 127-130.
http://dx.doi.org/10.1016/S0263-7863(00)00038-7 [3] Otero, L.D., Centeno, G., Ruiz-Torres, A.J., et al. (2009) A Systematic Approach for Resource Allocation in Software Projects. Computers & Industrial Engineering, 56, 1333-1339.
http://dx.doi.org/10.1016/j.cie.2008.08.002 [4] Laslo, Z. and Goldberg, A.I. (2008) Resource Allocation under Uncertainty in a Multi-Project Matrix Environment: Is Organizational Conflict Inevitable? International Journal of Project Management, 26, 773-788.
http://dx.doi.org/10.1016/j.ijproman.2007.10.003 [5] Gonçalves, J.F., Mendes, J.J.M. and Resende, M.G.C. (2008) A Genetic Algorithm for the Resource Constrained Multi-Project Scheduling Problem. European Journal of Operational Research, 189, 1171-1190.
http://dx.doi.org/10.1016/j.ejor.2006.06.074 [6] Huang, W., Ding, L., Wen, B., et al. (2009) Project Scheduling Problem for Software Development with Random Fuzzy Activity Duration Times. Springer, Berlin, Heidelberg, 60-69. [7] Ke, H. and Liu, B. (2010) Fuzzy Project Scheduling Problem and Its Hybrid Intelligent Algorithm. Applied Mathematical Modelling, 34, 301-308.
http://dx.doi.org/10.1016/j.apm.2009.04.011 [8] Wang, W., Wang, X., Ge, X., et al. (2014) Multi-Objective Optimization Model for Multi-Project Scheduling on Critical Chain. Advances in Engineering Software, 68, 33-39.
http://dx.doi.org/10.1016/j.advengsoft.2013.11.004 [9] Majazi Dalfard, V. and Ranjbar, V. (2012) Multi-Projects Scheduling with Resource Constraints & Priority Rules by the Use of Simulated Annealing Algorithm. Tehnicki Vjesnik, 19, 493-499. [10] Zheng, Z., Shumin, L., Ze, G., et al. (2013) Resource-Constraint Multi-Project Scheduling with Priorities and Uncertain Activity Durations. International Journal of Computational Intelligence Systems, 6, 530-547.
http://dx.doi.org/10.1080/18756891.2013.789152 [11] Singh, A. (2014) Resource Constrained Multi-project Scheduling with Priority Rules & Analytic Hierarchy Process. Procedia Engineering, 69, 725-734.
http://dx.doi.org/10.1016/j.proeng.2014.03.048 [12] Khoshjahan, Y., Najafi, A.A. and Afshar-Nadjafi, B. (2013) Resource Constrained Project Scheduling Problem with Discounted Earliness-Tardiness Penalties: Mathematical Modeling and Solving Procedure. Computers & Industrial Engineering, 66, 293-300.
http://dx.doi.org/10.1016/j.cie.2013.06.017 [13] Afshar-Nadjafi, B. and Majlesi, M. (2014) Resource Constrained Project Scheduling Problem with Setup Times after Preemptive Processes. Computers & Chemical Engineering, 69, 16-25.
http://dx.doi.org/10.1016/j.compchemeng.2014.06.012 [14] Jia, Q. and Seo, Y. (2013) Solving Resource-Constrained Project Scheduling Problems: Conceptual Validation of FLP Formulation and Efficient Permutation-Based ABC Computation. Computers & Operations Research, 40, 2037-2050.
http://dx.doi.org/10.1016/j.cor.2013.02.012 [15] Zhong, W.J. (2009) Theory and Methods for Enterprise Technology Innovation Management. Science Press, Beijing, 118-119. [16] Du, X., Sun, S. and Ou, L. (2006) A Multi-Phase Framework of R&D Project Balanced Portfolio Selection. Science of Science and Management of S & T, 11, 006. [17] The Project Management Institute, Inc. (2004) A Guide to the Project Management Body of Knowledge. 3rd Edition, Vol. 11, Project Management Institute, Inc., Newtown Square, 245.
[1] Bertsimas, D., Gupta, S. and Lulli, G. (2014) Dynamic Resource Allocation: A Flexible and Tractable Modeling Framework. European Journal of Operational Research, 236, 14-26.
http://dx.doi.org/10.1016/j.ejor.2013.10.063 [2] Fatemi Ghomi, S.M.T. and Ashjari, B. (2002) A Simulation Model for Multi-Project Resource Allocation. International Journal of Project Management, 20, 127-130.
http://dx.doi.org/10.1016/S0263-7863(00)00038-7 [3] Otero, L.D., Centeno, G., Ruiz-Torres, A.J., et al. (2009) A Systematic Approach for Resource Allocation in Software Projects. Computers & Industrial Engineering, 56, 1333-1339.
http://dx.doi.org/10.1016/j.cie.2008.08.002 [4] Laslo, Z. and Goldberg, A.I. (2008) Resource Allocation under Uncertainty in a Multi-Project Matrix Environment: Is Organizational Conflict Inevitable? International Journal of Project Management, 26, 773-788.
http://dx.doi.org/10.1016/j.ijproman.2007.10.003 [5] Gonçalves, J.F., Mendes, J.J.M. and Resende, M.G.C. (2008) A Genetic Algorithm for the Resource Constrained Multi-Project Scheduling Problem. European Journal of Operational Research, 189, 1171-1190.
http://dx.doi.org/10.1016/j.ejor.2006.06.074 [6] Huang, W., Ding, L., Wen, B., et al. (2009) Project Scheduling Problem for Software Development with Random Fuzzy Activity Duration Times. Springer, Berlin, Heidelberg, 60-69. [7] Ke, H. and Liu, B. (2010) Fuzzy Project Scheduling Problem and Its Hybrid Intelligent Algorithm. Applied Mathematical Modelling, 34, 301-308.
http://dx.doi.org/10.1016/j.apm.2009.04.011 [8] Wang, W., Wang, X., Ge, X., et al. (2014) Multi-Objective Optimization Model for Multi-Project Scheduling on Critical Chain. Advances in Engineering Software, 68, 33-39.
http://dx.doi.org/10.1016/j.advengsoft.2013.11.004 [9] Majazi Dalfard, V. and Ranjbar, V. (2012) Multi-Projects Scheduling with Resource Constraints & Priority Rules by the Use of Simulated Annealing Algorithm. Tehnicki Vjesnik, 19, 493-499. [10] Zheng, Z., Shumin, L., Ze, G., et al. (2013) Resource-Constraint Multi-Project Scheduling with Priorities and Uncertain Activity Durations. International Journal of Computational Intelligence Systems, 6, 530-547.
http://dx.doi.org/10.1080/18756891.2013.789152 [11] Singh, A. (2014) Resource Constrained Multi-project Scheduling with Priority Rules & Analytic Hierarchy Process. Procedia Engineering, 69, 725-734.
http://dx.doi.org/10.1016/j.proeng.2014.03.048 [12] Khoshjahan, Y., Najafi, A.A. and Afshar-Nadjafi, B. (2013) Resource Constrained Project Scheduling Problem with Discounted Earliness-Tardiness Penalties: Mathematical Modeling and Solving Procedure. Computers & Industrial Engineering, 66, 293-300.
http://dx.doi.org/10.1016/j.cie.2013.06.017 [13] Afshar-Nadjafi, B. and Majlesi, M. (2014) Resource Constrained Project Scheduling Problem with Setup Times after Preemptive Processes. Computers & Chemical Engineering, 69, 16-25.
http://dx.doi.org/10.1016/j.compchemeng.2014.06.012 [14] Jia, Q. and Seo, Y. (2013) Solving Resource-Constrained Project Scheduling Problems: Conceptual Validation of FLP Formulation and Efficient Permutation-Based ABC Computation. Computers & Operations Research, 40, 2037-2050.
http://dx.doi.org/10.1016/j.cor.2013.02.012 [15] Zhong, W.J. (2009) Theory and Methods for Enterprise Technology Innovation Management. Science Press, Beijing, 118-119. [16] Du, X., Sun, S. and Ou, L. (2006) A Multi-Phase Framework of R&D Project Balanced Portfolio Selection. Science of Science and Management of S & T, 11, 006. [17] The Project Management Institute, Inc. (2004) A Guide to the Project Management Body of Knowledge. 3rd Edition, Vol. 11, Project Management Institute, Inc., Newtown Square, 245.