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Application of Mathematics and

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Hêriş Golpîra Editor

Application
of Mathematics
and Optimization in
Construction Project
Management
Application of Mathematics and Optimization
in Construction Project Management
Hêriş Golpîra
Editor

Application of Mathematics
and Optimization in
Construction Project
Management
Editor
Hêriş Golpîra
Department of Industrial Engineering
Sanandaj Branch, Islamic Azad University
Sanandaj, Iran

ISBN 978-3-030-81122-8 ISBN 978-3-030-81123-5 (eBook)


https://doi.org/10.1007/978-3-030-81123-5

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland
AG 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse
of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by similar
or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.

This Springer imprint is published by the registered company Springer Nature Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
To my mother Himêra, my wife Someye, and
my daughter Hozan
Preface

A project is a unique, novel, and transient endeavor undertaken to create a unique


product or service through a well-defined set of tasks that must all be completed
to meet specific but limited goals or, more generally, to solve an organizational
or business problem. Project management is then a multidisciplinary discipline that
combines renewable and non-renewable resources in a systematic process to achieve
the goals and ultimately the success of the project. Traditionally, the success of
a project, especially construction projects, is assessed based on measures such as
technical and operational goals, and meeting schedule and budget. However, several
other measures should be addressed to define project success.
Mathematical and operations research (OR) techniques, despite their reliability
and ability to solve multi-dimensional problems in a reasonable time, are generally
less considered due to the lack of familiarity of project managers with their basics
and usefulness. This increases the importance of paying attention to the applications
of mathematics and optimization to construction projects as a challenging issue. In
response to this need, the book at hand provides comprehensive coverage of the
mathematical decision-making methods and optimization techniques leveraged in
construction project management.
One of the main parts of the book is related to modeling the time, cost, and quality
of projects using OR techniques and related solution methods, taking into account
existing constraints, especially resource constraints. To this end, a comprehensive
and categorized review of the types of modeling and decision-making processes
introduced for project management has been conducted in this book. This study not
only includes a critical, systematic, and categorical introduction of existing mathe-
matical methods as well as OR approaches but also provides useful suggestions for
future research in any of the areas of project management science.
The book could be useful for engineers and managers working on construction
projects, as well as postgraduate students and academic researchers. The book
describes mathematical and optimization issues from introductory to advanced
steps. The book is organized into ten chapters.
Chapter 1 studies the basic and sometimes contradictory definitions and prin-
ciples of a project as well as its organization and management in a way that

vii
viii Preface

provides a general and accurate summary of the concept of project management


and corresponding concepts. Definitions of relative terms have been collected and
expressed and a comprehensive review, with emphasis on the basics, processes, and
applications of project management techniques in different organizations, has been
presented.
Chapter 2 gives an overview of research in project scheduling. It provides a
survey that covers the most important models as well as related solution approaches.
The chapter sketches out and classifies the most important problem settings,
with a focus on settings that are relevant for construction projects. This includes
the basic resource-constrained project scheduling problem (RCPSP) as well as
its major extensions such as multiple modes, generalized precedence relations,
different resource categories, various objectives, and stochastic aspects. Moreover,
related algorithms are outlined, ranging from exact to heuristic (and in particular
metaheuristic) algorithms.
Chapter 3 studies the literature on mathematical optimization of the construction
project scheduling problems to examine and further classify the mathematical
aspects of the problem modeling and solution approaches. The chapter explains the
mathematical details of modeling, solution methods, and the development process
of the problem. It also proposes some potentials for further extension of the concept.
Chapter 4 examines the time-cost tradeoff problem (TCTP) as an important
optimization problem. In the chapter, the TCTP has been extensively studied
considering its several variants, as well as many exact and non-exact solution
techniques.
Chapter 5 recognizes the TCTP as an important aspect of construction project
management subject to the project’s fixed budget/deadline or to obtain minimum
cost/duration for the project. It, in its continuous or discrete variants, generally
deals with the deterministic or non-deterministic mathematical, heuristics, and
metaheuristics approaches. Stochastic, fuzzy, and robust optimizations are the
modeling approaches that are widely used in the background of the concept.
Accordingly, this chapter reviews the literature of the concept and provides some
potential directions for future research.
Chapter 6 studies the literature on mathematical optimization of the quality of
construction projects, focusing especially on the time-cost-quality tradeoff problem
(TCQTP). It explains the mathematical details of modeling, solution approaches,
and their extension process.
Chapter 7 addresses an overview of the construction supply chain (CSC) concept,
given the importance of procurement in construction projects. Not only the past
research trend in the field of CSC is considered from the point of view of
mathematical modeling and optimization but also the existing research gaps are
extracted and the existing potentials for future research are introduced.
Chapter 8 illustrates some heuristic approaches in resource management, dif-
ferent optimization models in resource management and their shortcomings, and
a new and novel optimization model and its benefits from the implementation
in construction projects. Furthermore, some potential research areas in resource
management are suggested which can be carried out in the future.
Preface ix

Chapter 9 critically reviews the literature on project stakeholder management


(PSM) and motivation. It studies the research works in the area of PSM and
coordinates and further analyzes them with a comprehensive view focusing on the
applications of mathematical approaches that may be useful to further extend the
concept.
Chapter 10 describes the general approaches in project risk management (PRM).
Additionally, it introduces and analyzes the general procedure as well as different
approaches of the main existing multiple attribute decision making (MADM) and
optimization methods used in construction risk management. It provides practition-
ers and early-stage researchers with basic research topics and solution approaches
in PRM.

Sanandaj, Iran Hêriş Golpîra


June 2021
Contents

1 Overview of Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1


Hêriş Golpîra
2 Optimization Models and Solution Techniques . . . . . . . . . . . . . . . . . . . . . . . . . 25
Sönke Hartmann
3 Optimization for Project Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Hêriş Golpîra, Sina Safaeipour, and Syed Abdul Rehman Khan
4 Optimization for Project Cost Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Leila M. Naeni and Amir Salehipour
5 Time –Cost Trade-off Optimal Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Hêriş Golpîra, Heibatolah Sadeghi, and Syed Abdul Rehman Khan
6 Optimization for Project Quality Management . . . . . . . . . . . . . . . . . . . . . . . . . 141
Hêriş Golpîra, Cosimo Magazzino, and Sina Safaeipour
7 Optimization for Construction Supply Chain Management . . . . . . . . . . . 165
Hêriş Golpîra and Erfan Babaee Tirkolaee
8 Optimization for Project Resource Management . . . . . . . . . . . . . . . . . . . . . . . 185
Kumar Neeraj Jha and Santu Kar
9 Project Stakeholder Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Cosimo Magazzino, Marco Mele, and Hêriş Golpîra
10 Optimization for Project Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
A. Karam, M. Hussein, A. B. Eltawil, and T. Zayed

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

xi
About the Editor

Hêriş Golpîra obtained his PhD in industrial engineering – operations research and
system engineering from Sciences & Research Branch, Islamic Azad University,
Tehran, Iran (2016). Currently, he is an assistant professor in the Department of
Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran.
He is the author and co-author of more than 60 journal/conference papers.

xiii
Chapter 1
Overview of Project Management

Hêriş Golpîra

1.1 What Are the Projects?

A project, in general, is a dynamic [1] and a temporary endeavor made to create a


unique product, service, or result. While the temporary nature of the project means
that it sets up to meet a specific goal with a definite start and a fixed end [2, 3], its
dynamic nature reflects the need for the knowledge of their evolution over time [4].
Narrowing down the scope of the project, its evaluation requires (1) the description
of the system’s initial state, (2) the identification of the system to be purposefully
transformed from a state to another, and (3) the explanation of the system’s new
state, including the project’s objectives [5]. The project then becomes a network
of unique, complex, and interrelated tasks/activities that are integrated to achieve a
single goal and must be performed at a specific time, with a budget, and according
to specifications [6, 7]. And the project ends when the goal is achieved or ensured
that it will not or cannot be met, or the project is no longer needed [2]. So, it is
important to control if the project has achieved what it was set up to do. This is
perfectly consistent with looking at the project not only as a temporary organization,
given its temporary nature, but also as an open organization that is closely related
to the grassroots organization and its environment. Because looking at the project
as a closed entity reduces the need for control [8]. While in an open organization,
the use of new resources inside and outside to adapt to rapid environmental change
[9] greatly increases the need for control, even under temporary openness [10, 11].
This is because in an open organization, the focus is more on the process than the
structure and free human interaction is more effective than the impersonal chain-
of-command hierarchy [12]. So, not only task but organizational perspectives are

H. Golpîra ()
Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
e-mail: H_Golpira@iausdj.ac.ir

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 1


H. Golpîra (ed.), Application of Mathematics and Optimization in Construction
Project Management, https://doi.org/10.1007/978-3-030-81123-5_1
2 H. Golpîra

Fig. 1.1 Framework for the Organization


analysis of project research Mono Multi
Mono-project Project
Mono
organization network
Project
Multi-project Project business
Multi
organization network

fundamental in managing projects [8, 13], while leading to different but related
ways of viewing the functions of project management [8].
The first has found its way in engineering science and applied mathematics,
especially in planning techniques and methods. And the last challenges the engi-
neering approach using economics and organizational psychology and sociology
aspects [14]. More specifically, a task, within a single project, is defined in
terms of the resources used, its duration, and the order in which it is performed
relative to other activities [15]. However, project research attempts are further
expanded toward broader aspects of the organizational unit [16] or even project
business. A project organization, unlike the traditional ones, involves the owner
and the contractors temporarily to create a cooperative system based on shared
objectives [17]. While a project business refers to multiple projects and multiple
organizations [18] as a specific risk-averse and reactive business [19, 20] that
is time-limited, and often disposable. It includes hostile relationships between
actors, separation of design and production, competitive bidding, high uncertainty,
and limited possibilities for standardization [21–23]. Accordingly, Söderlund [24]
combines projects and organizations as the two dimensions to categorize different
lines of project management research as shown in Fig. 1.1.
More specifically, mono-project management is known as a well-researched
area. Several project management standard documents provide an overview of what
mono-project management includes in its application area [2, 25–27]. While the
main focus of mono-project management is on the network of activities/tasks and
their characteristics, in a multi-project organization, successful projects are the
only prerequisite for business success [28]. However, simultaneously managing the
throughput times, resource allocations, and cost controlling of projects to obtain
a good balance between the multiple participants’ interests is a more challenging
issue [15, 29–32]. Therefore, some researchers have introduced frameworks of
managing multi-project organizations aiming at investigating the control issues to
design holistic frameworks of control mechanisms [33]. For instance, using the
concept of backlogging incoming projects, introduced in [34], Anavi-Isakow and
Golany [35] have introduced project control mechanisms to limit the number of
active projects in multi-project environments.
While the main focus of multi-project management is on balancing the projects’
needs and achievements, what is crucial in the project network management
is how multi-stakeholder interests are synchronized due to the high level of
interdependence between them [36]. In this regard, Cleland [37] and Gudienė,
1 Overview of Project Management 3

et al. [38] have claimed effective and efficient relationship management as an


important, but challenging [39] success factor in a project network. The challenge
is further aggravated if the number of stockholders from multiple disciplinary
parties increases. In such a challenging situation, the importance of proper risk
management to deal with uncertainty and unavoidable risk becomes much greater
[40, 41]. Because the difference in interests and opinions of stakeholders [42] and
poor communication among them are the main sources of risk and vulnerability
of the project network. It may result in poor project definition, inadequate pre-
project planning, ineffective design, and omissions and information inaccuracies
[43], or inadequate project change management, which negatively affect project
success [44]. In this regard, Strachan and Stephenson [45] have introduced cost,
reliability, mobility, ease of installation and management, security, application
services, and overall performance for measuring the performance and suitability
of communication tools for construction project networks.
While Stakeholder Relationship Management (SRM) is important in the project
network concept, Customer Relationship Management (CRM) is a crucial dimen-
sion of a project business [46]. Because it refers to an industrial marketing position
in which business is built in the case of discontinuous, unique, and complex project
deliveries [47, 48]. Today with the increasing influence of networks of organizations
[18] due to the increase in outsourcing, liberalization, technological convergence,
solutions in Information and Communication Technologies (ICT), and digitization
[49, 50], the project business has attracted a lot of attention, although it does not ease
to manage [47, 51]. It is because the unique qualities and discontinuities of inter-
related projects in the project business and marketing draw more management’s
attention to the transactions and trade-offs [52].
As can be seen, the breadth of project management science has, over the years,
brought with it many concepts, challenges, and advertising programs. However, in
the background of the concept, no research can be found that has uniformly studied
and reviewed such issues and the concepts designed and introduced in line with
them. The current chapter fills this research gap by integrating and linking almost
all the basic definitions of concepts in project and project management with special
concern in temporary organizations.
The rest of the paper is as follows. In the next section, the concept of temporary
organizations is explained concerning the definition of the project. Afterward, the
necessity to define projects is studied and project management is defined. Project
success/failure factors are then defined supported by more relevant references
followed by the project management main process definition to achieve project
success. A short review of applications of project management techniques is then
provided followed by its specific application in construction project management,
which is the basic direction of the book. Finally, a conclusion is obtained at the end
of the chapter.
4 H. Golpîra

1.2 What Are Temporary Organizations?

According to the literature, there are several ways to categorize projects [53].
Projects can be considered separately from the organizations or treated as a subset
or branch of them [54]. The former may use the classical contingency theory
to distinguish different projects [55, 56], while the latter recognizes projects as
project-based [57] or temporary organizations [58, 59]. From Fig. 1.2 and Table 1.1,
temporary organizing can be viewed along the participation dimension [60, 61]. It is
because the nature of a temporary organization is that they last for a short but well-
known from the beginning period, i.e., it is temporary in nature, and the teams that
participate in the specific activities/tasks, or some aspects of them, are temporary
[62]. In a temporary organization, participants usually have another “home” before,
during, and after participating. The team, which is temporarily organized by clients
[63, 64] in the case of project organizing, depends on other organized areas, which
can be permanent or temporary, in addition to the current temporary organization
[58].
Limited aspects of temporary organizations have yet been explained and under-
stood theoretically. This may be due to the fact that the difference between per-
manent and temporary organizations is not clear because permanent organizations
usually require temporary elements [65]. And, these organizations may resemble
each other in many ways [66], but with different logics [67, 68]. Nonetheless,
Söderlund [61] has highlighted the differences that exist between temporary and
permanent organizations, declared in Fig. 1.2. Permanent organizations are defined
by goals (rather than tasks), durability (rather than time), functional organizations
(rather than teams), and production processes as well as continual development
(rather than transition) [58]. More specifically, unlike permanent organizations,
temporary organizations naturally last for a short time and have temporary partici-
pating teams [62] depicted to cope with time-limited tasks of high complexity in an
uncertain environment [61]. By this means, the project as a temporary organization
can be defined as an agency to manage the resources, which are assigned by the
permanent organization [14], change in functional organizations, and uncertainty

Fig. 1.2 A typology of Structure


permanent/temporary Permanent Temporary
Permanent Project
organizing [61] Permanent
organizing organizing
Participation
Temporary Temporary
Temporary
employment organizing

Table 1.1 Characteristics of the permanent/temporary organizing


Typology Participation Structural control
Permanent organizing Long-term Bureaucratic, clan form
Temporary employment Short-term Bureaucratic, professional
Project organizing Long-term Professional, adhocracy, clan form
Temporary organizing Short-term Professional, network control
1 Overview of Project Management 5

[69]. The permanent organization has then become responsible for describing the
project’s level of authority and responsibility as well as defining its scope, thus
giving it an embryo of identity [70, 71]. Besides, as a complex organized collective
practice aimed at extracting a nonroutine process and/or producing a nonroutine
product, a temporary organization has a predefined lifetime and its specific kind of
performance measure [72]. In this sense, the theory of temporary organization can
be summarized to be built on four aforementioned building blocks as the task, time,
team, and transition/transformation [58] to create and manage a project.
Despite the aforementioned descriptions, some researchers such as Sedita [73]
have explained how a temporary organization can be embedded in a permanent
organizational environment with interpersonal and interorganizational networks
to provide more flexibility claimed by Bechky [74]. Van Donk and Molloy [54]
have shown the relevance of contingency theory and organization design theory
for categorizing projects in five basic organizational configurations inspired by
Mintzberg [75]. However, different types of projects should be managed and
organized in different ways [54, 55]. So, emphasizing the need to define project
typology definition in the process of project organizing and management, Andersen
[14] and Doty and Glick [76] have evaluated some factors such as regulation and
sophistication, stability, complexity, market diversity, hostility, external control,
internal power, industrial sector, contract types, size, etc., as important factors
in this way. Accordingly, out of the five defined configurations, i.e., (1) simple
project, (2) machine bureaucratic project, (3) divisionalized project, (4) professional
project, and (5) adhocracy, the second configuration can be evaluated as the most
suitable environment for construction projects. Because the bureaucratic project
management aims to ensure the organization’s use of resources in ways consistent
with the disparate goals and objectives. Now it is time to look at why, basically
with permanent organizations, there is a reason to define projects within temporary
organizations within them.

1.3 Why Are Projects Created?

Organizations, whether permanent or temporary, have been created to deliver


something. In construction projects, they are created to produce buildings, bridges,
tunnels, factories, and so on [77]. The increasing need for integrating, planning,
and controlling such schedule-intensive endeavors to enhance overall organizational
performance [78, 79] is the main driver to motivate managers to move toward
projectizing their products and services [80]. Because, projects, whether they are
revenue projects or capital projects [81], are not simply just getting the job done,
but initiated for business goals [82]. The major goals in projects, especially in
construction projects, are budget, schedule, and quality, called Iron Triangle [83].
However, depending on the nature of the project, stockholders, and company,
some other goals such as safety, market-entry, and satisfaction of the stakeholders
can also be specifically considered as other goals [84, 85]. Such goals, some are
6 H. Golpîra

strategic and others are tactical/operational, need to be balanced [86] with a carefully
reinforced emphasis on managerial decision-making. Although there is no accepted
methodology to provide such a balance [87], it is generally accepted that achieving
the goals requires structuring the activities in the framework of projects with specific
goals that must be adopted under the main/strategic goals of the organization [5].
The project is then created to go through tasks, operations, and works into a
single, unique, and cohesive entity that contains novel and complex activities to
be managed.

1.4 What Is Project Management?

Managing the projects requires some more efficient methods and faster decision-
making approaches than traditional management [88]. Therefore, it is hard to
integrate project management in traditional management disciplines [89]. Notwith-
standing, the use of project management began with the scientific management of
Frederick Taylor who integrated mathematics with management science [90], and
since then many definitions have been developed from different points of view.
From an organizational viewpoint, it is the process of controlling the achievement
of project objectives by leveraging the aforementioned organizational structures
and resources as well as a set of tools, techniques, and knowledge without
disturbing the day-to-day operation of the company [91, 92]. More tactically,
it involves defining the project requirements, allocating the resources, planning
for the implementation and monitoring the progress of the work, and adjusting
for deviations from the plan [93]. By this means, it is the art of leading and
synchronizing human resources and materials during project lifetime with modem
management techniques to effectively achieve predetermined objectives of scope,
cost, time, quality, participants satisfaction [94], etc., according to their specific
mission and nature [5]. And the project manager is the single point of responsibility
for achieving these [95], while as a human activity, it is subject to change and in this
regard requires not only project planning, but also change management [96]. The
change may occur in the project’s main goal or objectives, its predetermined scope
[97], or even its organization [98]. Thus, in the viewpoint of change management,
project management is a way to manage organizational change [2] to the extent that
some researchers believe that the nature of project management is “change” [98,
99]. Effective project management should then involve creating a mechanism for
permanent evaluation of each project under its pre-implementation strategy [100]
so that success in project implementation is guaranteed.
According to the above definitions, the main goal of project management efforts
is to meet the project requirements, which implies the realization of the project
value, while managing the organizational change. In this sense, the value of
project management can be defined through two main dimensions: (1) efficiently
turning resources into the project outputs and (2) enhancing the sum of earned
values for all of the stakeholders, including cost-saving, performance improvement,
1 Overview of Project Management 7

and other interests [86]. Since there are different stakeholders with different and
sometimes conflicting views and interests in a project [101], it is hard to define
the actual value resulting from investment in project management [102]. Among
the researchers in this field, Ibbs and Kwak [80] have determined the positive
financial and organizational impacts of project management as its core values.
While some researchers like Zhai, et al. [86] believe that the value creation of
project management depends on its size and level of complexity, Jugdev and Müller
[103] generally subdivide the value of project management into two categories:
(1) strategic value and (2) tactical/operational value. They claim that focusing only
on variables of time, cost, and scope as tactical objectives may result in neglecting
the links to product/service value as the strategic goals and negatively affect the
project success. While project success, based on a set of principles or standards, is
the most important goal of project management [104–107].

1.5 Project Success/Failure

According to the literature on project management, despite advances in correspond-


ing processes, tools, and systems, project success has not improved significantly.
This issue calls into question the value and effectiveness of project management
and its systems [108]. But this skepticism is not fundamentally logical due to the
essential differences between project success and project management success. The
former reflects the effectiveness of the project in achieving its objectives, while
the latter refers to the efficiency of the project regarding time, cost, and quality
factors [109]. In this sense, successful project management does not necessarily
indicate project success and vice versa [88, 109, 110]. The issue is exacerbated
by the fact that the parameters that indicate the success of the project cannot
necessarily guarantee the success of the company [111]. Because company success
is generally defined as winning in the marketplace and usually evaluated by financial
and economic measures as well as some other nonfinancial measures addressed in
Balanced Scorecard (BSC) [112, 113], Intangible Asset Monitor [114], and Skandia
Navigator [115]. Notwithstanding, since a project is defined over such phases as (1)
feasibility, (2) discovery and screening, (3) concept exploration and definition, and
(4) proof of concept cycle, the success of a project is not necessarily evaluated only
at the end of the project. However, modern companies also adopt and rely on project
management to ensure a competitive advantage [116] and achieve project success in
both tactical/operational and strategic levels [103]. Despite this, executors are still
not so committed to using systematic project management procedures until they see
the system works effectively and produces the expected earned value on the bottom
line of the project [117]. This is somewhat because it is perceived, affected by time,
and maybe partial, thus not manageable mainly due to their possible conflict [118].
It depends on the age and nationality of the project manager, the complexity of
projects, and the industry to which they belong [119]. In addition to the industrial
environment, Ika, et al. [120] have denoted monitoring, coordinating, design, and
8 H. Golpîra

training, as the other projects Critical Success Factors (CSFs). And Akinsola, et
al. [121] have also defined client characteristics, project organization, and project
characteristics, in addition to the environmental factors as the project CSFs.
Due to the importance of the environment as one of the main project CSFs,
some other researchers have also evaluated the CSFs in different countries and
geographical areas by emphasizing the differences in the project environment. For
instance, based on some successful projects in Vietnam, Thi and Swierczek [122]
have defined cost, time, technical performance, and customer satisfaction as the
projects’ CSFs. Swedish construction clients’ views on projects’ CSFs are studied
in [123]. Reviewing CSFs used to assess successful building information modeling,
Antwi-Afari, et al. [124] have declared that such countries as the USA, UK, and
South Korea have clearly developed their CSFs while defining some universal
factors as (1) collaboration in design, engineering, and construction stakeholders,
(2) earlier and accurate 3D visualization of design, (3) coordination and planning
of construction work, (4) enhancing the exchange of information and knowledge
management, and (5) improved site layout planning and site safety. Famakin, et al.
[125] have studied the factors affecting the performance of partners in joint venture
construction projects in Nigeria. Murphy and Ledwith [126] have investigated
project management practices in Irish small and medium high-tech and service
enterprises. With an emphasis on Indian projects, Jha [127] has assessed the
criticality of the 20 success/failure factors (including 11 success factors and nine
failure ones) in terms of their impact on the project Iron Triangle.
While some researchers have tried to promote the project Iron Triangle as the
project success factor [110, 128], Baccarini [118] has categorized it only as of the
hard factor that is relatively easy to gauge and to reach some degree of consensus.
While such soft criteria as job satisfaction, enhanced reputation, and attention to
detail are classified to be subjective, subtle, and more difficult to evaluate. Despite
reporting the same classification including 12 success factors by Cooke-Davies
[109], Jugdev and Müller [103] and Al-Tmeemy et al. [111] have also laid stress
on the same classification but as the short- and long-run success factors. Lim and
Mohamed [104] have also subdivided the construction project success factors into
two levels as (1) the macro-level mainly concerned with clients and user of the
project as the strategic level, and (2) micro-level concerned with contractors and
consultants as operational level. Micro- and macro-technical CSFs are also well
categorized in [129], while Sauser, et al. [130] have emphasized that the main cause
of many failures in projects is not technical, but managerial. In this regard, Belassi
and Tukel [101], Morris and Hough [131], Munns and Bjeirmi [88], and Pinto and
Slevin [132] have denoted the management support, projects’ mission, planning,
control, and feedback, in addition to the technical tasks as the projects’ CSFs. In
line with the significance of the projects’ mission in their success, it is reported that
the misalignment between large projects and the business strategy leads to 30% of
all projects failing [133, 134]. In this regard, the literature denotes some internal
factors, such as effective communication, executive support, involving the project
manager in the business strategy development, and the project manager leadership
competence, that can make the relationship between the project management and the
1 Overview of Project Management 9

business strategies [135]. Emphasizing the important role of managers in directing


projects, the existence of no formal training for employees who become project
managers, especially in Information Technology (IT) projects, is defined as a reason
for project management failing [136]. Despite the above research, the diversity
of projects, the factors affecting them, and the variety of projects’ stakeholders
make research on the main factors of project success, and CSFs become the most
important areas of research in the field of project management. And, in this sense,
the impact of project management on project success is a field of great concern.

1.6 Project Management Main Processes

Although both “project” and “management” include the essential processes of


justifying, setting direction, and control [137], there is no universally accepted
methodology or defined process for impartially measuring project management
practices in any organization or industry [80]. And they have options in developing
their project management methodologies and processes [138]. If they chose to have
more standardized processes, Project Management Body Of Knowledge (PMBOK),
PRojects IN Controlled Environments (PRINCE2), etc., are available [139]. On the
contrary, if the standardized processes are not appropriate for them (for instance,
the PRINCE2 standard is not appropriate for small projects [140]), they can have
their own standard. Nevertheless, what every organization agrees on is that a well-
defined project management process is a necessity for the successful implementation
of projects [126].
In full agreement with what is claimed in [81], projects should pass at least four
phases as conception, development, realization, and termination [137], through three
major steps, each with its owned sub-steps, to adapt project management, shown
in Fig. 1.3. Since the misalignment between project and business strategies lead
to project failure, the first step is to ensure that there is no such inconsistency. In

Securing Strategic Alignment


Customizing Project Management Methods
and Processes Continuously
* Create an Improving
understanding of
business strategy Based on project: * Developing
* Size improvement/implement
* Visualizing Methods ation team
and Processes * Family * Defining mechanism to
* Aligning the methods * Type collect ideas and problem
and processes with solving
strategy
* Following
improvement process

Fig. 1.3 Steps for adapting project management


10 H. Golpîra

Fig. 1.4 Alignment of the Schedule-driven project management


business strategies and
•Differentiation strategy
project management
Cost-driven project management
•Cost-leadership strategy

Performance-cost-driven project management


•Best-cost strategy

this sense, as shown in Fig. 1.4, if the enterprise takes the differentiation strategy,
the project management should lay stress on time and schedule. Because pursuing
a differentiation strategy creates a distinct identity for the organization to satisfy
the desires of the customers. And what can meet the customer’s need, hence leads
to premium price, can usually be fast time-to-market while considering superior
quality and service, and innovative features. This is while the cost leadership
strategy leads to cost-driven project management that is based on the priority of
the cost instead of time. Because the organizations that are pursuing such a strategy
seek to gain a competitive advantage and increase their market share as a producer
with a lower production cost in the industry. Finally, if the best-cost becomes a
business strategy, the focus of the project manager should be on both the project
performance and cost [133, 138, 141].
After aligning the project management with the business strategy, it is time
to recognize the project management phases and their corresponding tools based
on effective parameters, i.e., size, family, and type shown in Fig. 1.3 and further
discussed in Table 1.2. The size of the projects is subdivided into categories,
small, medium, and large, usually based on comparing the project budget and
the company capitalization [142], so that the project is small, medium, or large
when the project budget is on the order of 1/100, 1/10, or 1/1 of the company
capitalization [143]. Lockyer and Gordon [81] have also categorized the projects
into revenue projects and capital projects. Revenue projects are those that are
carried out within the normal organizational structure and normally within a single
accounting period, whereas capital projects are those that are not carried out within
the normal organizational structure and may extend over a number of accounting
periods.
From the viewpoint of the project family, a project is called “Derivative” if it
falls in the range that is from cost-reduced versions of existing products to add-
ons or enhancements for an existing production process [144, 145]. The project
scope does not exceed the organization’s current capability in this family of
projects. This is while in the “Platform” projects, such as benchmarking ones,
the scope of the organization may/may not exceed the organization’s current
capability, while the existing processes meet/lack the desired controllability. On
the contrary, the “Breakthrough” projects, such as Enterprise Resource Planning
(ERP) projects, require the most amount of change to the existing system, hence
the existing processes lack controllability due to the large scope deviations [146].
Table 1.2 Project management process details
Size of project Project family (Novelty)
Project management phases and tools Small Medium Large Derivative Platform Breakthrough
Initiation
Project charter      
Project team      
Financial scoring   
1 Overview of Project Management

Skill inventory   
Stakeholder strategy and matrix (map)   
Planning
Scope statement      
Breakdown Structure Work (WBS)      
Program Work (PWBS)    
Responsibility matrix    
Requirements baseline    
Milestone chart      
Cost estimate    
Gantt chart and Critical Path Method (CPM)   
Risk plan    
Time-scaled arrow diagram 
Probability-impact matrix  
(continued)
11
12

Table 1.2 (continued)


Size of project Project family (Novelty)
Project management phases and tools Small Medium Large Derivative Platform Breakthrough
Execution, monitoring, and controlling
Progress report      
Change control    
Gant chart    
Cost burn down   
Risk register     
Project indicators  
Time-scaled arrow diagram      
Slip chart  
Earned Value Management  
Closing
Final report      
Changelog  
Postmortem report   
Closure checklist  
Project types
Routine projects  
Technical projects  
Administrative projects  
Unique projects  
H. Golpîra
1 Overview of Project Management 13

According to the type and family of the project, at the last step of the project
management, the project organizational structure is improved on two basic teams
as the implementation team and the improvement team. The implementation team
is like a core around which the plan for continuous improvement revolves. This is
while the improvement team is created to develop the improvement plan in each
area [147]. Then critical characteristics are defined and a problem-solving method,
e.g., the Define, Measure, Analyze, Design, and Verify (DMADV) or the Define,
Measure, Explore, Develop, and Implement (DMEDI) or the Define, Measure,
Analyze, Improve, and Control (DMAIC) methodologies, is selected to further
following the project through the last step [148–150].
Such general project management steps are further defined specifically for the
construction projects in Table 1.2. At the first stage (initiation), a new project is
recognized and authorized, high-level requirements are determined, and relevant
stakeholders are identified. The planning phase involves defining the scope of the
project and determining how to do it. The executing and monitoring phase includes
performing the work at hand and controlling it to be executed as planned. And
the closing phase, which is devoted to delivering deliverables, includes finalizing
contracts, official acceptance by a customer, a final review, written documentation
of lessons learned, archiving all important documents, and settling procurements
[151].
As shown in Table 1.2, some tools are the same for any size or family of projects,
while some are corresponding only to a specific size or family of projects. It is
noteworthy that since project customization by its type is fully related to both the
size and family of the project, the last rows of the table are devoted to defining
the types of projects based on these two dimensions. So, one can simply relate the
requirements and tools related to each type of project based on the categorization
done in the table. For instance, Small and Medium Enterprises (SMEs) should
satisfy their strategic objectives to minimize their high inherent risk, while they have
poor project management practices [152], containing simple planning and control,
and informal evaluation and reporting systems [153]. And according to the type of
projects, the table shows that, for instance, derivative projects due to their lower
uncertainty, have a lower level of risk assessment [145].

1.7 A Short Review of Applications of Project Management


Techniques

Regarding the information provided in Table 1.2 and the state of the art application
of the project management, it can be considered as an essential part of knowledge
for various fields of engineering (e.g., electrical engineering, mechanics, civil
engineering, industrial engineering, or software engineering, etc.) [93]. In the
meantime, it is a discipline traditionally linked to normative approaches for planning
and controlling projects, developed by consultants and industrial engineers.
14 H. Golpîra

Due to such different fields and its multidisciplinary nature, there is no explicit
theory of project management at all [154], while having its owned associations,
e.g., Project Management Institution (PMI) and International Project Management
Association (IPMA), its owned journals, e.g., Project Management Journal and
International Journal of Project Management, and conferences. And with the
increasing rate of change in businesses [137], it has been used in various fields and
projects from the public and government sectors to private sectors [155–157].
The use of the project management concepts and tools goes back to the manu-
facturing sector by Frederick Taylor, and later by Henry Gantt through introducing
the Gantt chart, James Kelley by establishing Critical Path Method (CPM) [158],
and Willard Frazar by developing Program Evaluation and Review Technique
(PERT) [90]. Then, the use of its principles is seen in transportation, engineering,
construction, telecommunication, technology, power and energy, libraries, defense,
aerospace, shipbuilding, etc.
The application of project management by the US Navy in the Polaris program
in the late 1950s followed by the National Aeronautics and Space Administration
(NASA) in the Apollo program attracted considerable attention. Winston and
Hoffman [90] have studied the importance of project management in libraries
especially to support graduate programs. Alsudiri, et al. [135] have defined it as
a good managerial approach in telecommunication projects if the nexus between
business strategies and project management is well defined. Light, et al. [159]
have estimated that 75% of large IT projects managed with project Management
Information System (MIS) will succeed, while 75% of projects without such
support will fail. Following this research, Schwalbe [160] has studied the concept
of IT project management. Levin, et al. [161] have used project management
principles to enhance client–agency relationship quality in the advertising industry.
Wu, et al. [162] have introduced a new energy project management system based
on project portfolio management technology. Goh, et al. [163] have studied the
nexus of project planning and development of a wind energy project in Malaysia.
Through a qualitative research, Jung and Wang [164] have outlined that there is a
strong relationship between “soft” Total Quality Management (TQM) components
and continuous improvement of international project management. Golpîra and
Tirkolaee [165] have successfully combined project management principles into
the concept of preventive maintenance. Boehm and Ross [166] have developed a
software project management theory. Vachan [167] has demonstrated the application
of project management principles when designing, running, and completing a
research project. The application of project management in health and community
services has been studied in [168]. And Rew, et al. [169] have demonstrated the
usefulness of project management principles in facilitating nursing research. Despite
all the above research, the application of project management techniques in various
areas of business is still expanding in today’s competitive, changing, and uncertain
world. However, the focus of the book, of which the present study forms its first
chapter, is only on the construction project management area of research and
application.
1 Overview of Project Management 15

1.8 Construction Project Management

Despite the widespread use of project management in various industries, businesses,


and sciences, the construction industry has certain complexities due to uncertainties
and dependence on other industries and a lack of performance efficiency [170].
While it plays a key role in a country’s economic growth [171], especially due to its
relation to other economic sectors [172, 173]. It represents an additional economic
benefit of $2.86 for every $1 of construction Gross Domestic Product (GDP) [174].
It is also one of the largest sectors of the global economy [175], so that construction-
related spending accounts for 13%, and the total annual revenue of the sector is
estimated to be around $10 trillion, predicted to be up to $14 trillion by 2025 [175].
Besides, it is concerned with improving the social and environmental indicators
[176]. As a result, even a slight improvement in the sector will carry huge positive
implications for the national or global economy life [174, 177]. However, construc-
tion project management is not easy due to the complexity, uncertainties, and a large
number of activities involved in construction projects [178]. Because, it involves
overall planning, design, construction, and commissioning of construction projects
from inception to completion [179]. However, since a few designs are needed to
be assessed through optimization approaches, the necessary computational time to
achieve an optimal design is significantly decreased, hence the use of mathematical
optimization techniques to manage the areas included in the construction project,
shown in Fig. 1.5, is increasing [172]. Therefore, in the book that the first chapter
is at hand, an attempt is made to evaluate the applications of various modeling
approaches, Operations Research (OR) techniques, and mathematical optimization
in connection with the aspects of construction project management, somewhat
shown in Fig. 1.5 over the years.

Fig. 1.5 The overview of the construction project management concepts


16 H. Golpîra

1.9 Conclusion

This chapter comprehensively describes the basic definitions and principles of


project management. Definitions of terms such as project, project management,
CSFs, project management process, and the need to define the project in permanent
and temporary organizations are studied and expressed concerning influential
sources in the literature of the concept. Although there is a lot of research work on
the definitions of project management, so far an extensive review with emphasis on
the basic principles, processes, and applications of project management techniques
in different organizations has not been presented. And this research mainly aims
to fill this gap by studying different perspectives and converging them to achieve
a general definition and process of project management and emerging concepts.
Besides, by reading this chapter, the reader of the book will be ready to enter the
next chapters in a short time.
According to the approach taken in this study, some future potentials can be
defined as follows. How to ensure the correctness and consistency of a project
classification and its impact on project risk, costs, and resources of the project clas-
sification and the impact of an incorrect classification on different dimensions of the
project and its responsibility can be good research potentials for the future. Besides,
given the broad standards and techniques developed for project management, it is
necessary to provide a well-defined framework to support the decision as to which
standard and technique can best manage different projects. In today’s world, the use
of IT has become a necessity. But this issue has not developed as much in project
management science as it has in other areas. Therefore, the existing challenges,
methods of dealing with them, and related processes and procedures can be the
subject of future research. Management problems are one of the most important
causes of project failure. Project managers rely mainly on heuristic and qualitative
models and approaches due to their lack of knowledge of advanced management
sciences and the corresponding quantitative models. Therefore, training project
managers on advanced quantitative management techniques can lead them from
experimental and heuristic models to using more accurate and reliable models.
Providing soft and hard approaches to fill this management gap can be another area
of future research.

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Chapter 2
Optimization Models and Solution
Techniques

Sönke Hartmann

2.1 Introduction

Construction projects—such as building bridges, tunnels, factories, warehouses,


or large-scale buildings—are highly complex undertakings, often with substantial
pressure on time and costs and often in an environment that is prone to uncertainty.
Within the management of such projects, the calculation of a schedule plays an
important role.
Scheduling involves the computation of a start time for each activity of the
project, possibly along with additional decisions such as which resources to assign
to which activity. Constraints like limited resource capacities or given temporal
restrictions must be met when calculating a schedule. Beyond that, an optimization
goal is pursued, e.g., one may want to find a schedule that leads to a short overall
duration of the project or to the lowest possible costs.
The resource-constrained project scheduling problem (RCPSP) covers resource
and temporal constraints in rather basic form. It can be traced back to the pioneering
work of Pritsker et al. [73] and has since become a standard model for project
scheduling that has attracted many researchers. Still, it is too simple to capture all
project scheduling requirements that occur in practice. Real-world projects (and
construction projects in particular) are often much more complex, and they are
different with regard to certain needs that must be observed when scheduling. Thus
there is no standard approach to scheduling all possible projects. As a consequence,
researchers have developed a broad variety of models that help to capture various
requirements that arise in projects. Moreover, calculating schedules is also hard
from a mathematical point of view. It is a difficult task to determine high-quality

S. Hartmann ()
HSBA Hamburg School of Business Administration, Hamburg, Germany
e-mail: soenke.hartmann@hsba.de
www.hsba.de/hartmann

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 25


H. Golpîra (ed.), Application of Mathematics and Optimization in Construction
Project Management, https://doi.org/10.1007/978-3-030-81123-5_2
26 S. Hartmann

schedules within reasonable computation times, and researchers have proposed and
analyzed various types of algorithms.
In the last two decades, several survey papers in the field of project scheduling
have been published. Hartmann and Briskorn [39] summarize a large number of
papers with regard to alternative problem settings but do not discuss solution
methods. Other survey papers focus on solution techniques, but only for the standard
RCPSP. This includes Kolisch and Hartmann [54] who compare heuristics as well
as Pellerin et al. [70] who provide a more recent comparison with a focus on hybrid
metaheuristics. Finally, some survey papers are devoted to a specific class of project
scheduling problems. Wȩglarz et al. [98] provide an overview of papers dealing with
project scheduling problems in which the activities have multiple modes. Afshar-
Nadjafi [2] reviews scheduling approaches that consider multi-skilled resources,
the majority being project scheduling approaches. Herroelen and Leus [41] give
an overview of project scheduling under uncertainty.
This contribution takes a broader perspective than the survey papers listed above.
It gives an overview of the main developments in project scheduling and summarizes
the most important models and solution methods (naturally, due to the vast number
of publications, it is impossible to provide a comprehensive survey). This way, a
condensed summary of the broad field of project scheduling is provided, especially
for those readers who are not fully familiar with the diversity of the field. Beyond
giving an overview, some current trends in project scheduling research are discussed
as well.
The paper is organized as follows. Section 2.2 outlines the well-known resource-
constrained project scheduling problem (RCPSP) along with its most important
variants and extensions. Next, we take a look at exact and heuristic algorithms in
Sect. 2.3. Section 2.4 analyzes trends in project scheduling. Conclusions are drawn
in Sect. 2.5.

2.2 Project Scheduling Models

This section provides a survey of project scheduling models based on a classifica-


tion of modeling concepts. The classical resource-constrained project scheduling
problem (RCPSP) and variants and extensions that are relevant for scheduling
construction projects are summarized. For the RCPSP and the main extensions,
mathematical formulations are given as well. The modeling concepts can be com-
bined as needed to meet the requirements when scheduling an actual construction
project.
2 Optimization models and Solution Techniques 27

2.2.1 The Resource-Constrained Project Scheduling Problem

The resource-constrained project scheduling problem (RCPSP) has evolved as the


standard project scheduling model. It can be described as follows. J activities
labeled j = 1, . . . , J with non-preemptable processing time (or duration) pj are
given. Due to technological requirements, an activity j is only allowed to start when
its predecessor activities comprised in the set Pj have already finished.
Moreover, K resources are given. The capacity of resource k = 1, . . . , K is
denoted as Rk . The resource capacity is the same in every period. Each activity j
requires rj k units of resource k in each period of its processing time.
The parameters (durations, capacities, resource requests) are assumed to be
nonnegative and integer valued. Usually two additional activities j = 0 and
j = J +1 are added. These are dummy activities with zero duration and no resource
requests and mark the start and the end of the project, respectively. The objective is
to determine a schedule (i.e., a start time for each activity) with the shortest possible
project duration (i.e., minimal makespan). Of course, both the temporal and resource
constraints must be observed.
Figure 2.1 shows an example project with J = 6 non-dummy activities and a
single resource (K = 1) which has a per-period capacity of R1 = 4 (this may
reflect that, e.g., 4 workers are available in each period). The illustration contains
the processing times and the resource requests, and the precedence relations are
given by the edges of the activity network.
Binary decision variables xj t for each activity j = 0, . . . , J + 1 and each period
t = 0, . . . , T are defined (T is the planning horizon):

1, if activity j is finished at the end of period t
xj t =
0, otherwise.

Following Pritsker et al. [73], the following mathematical programming formu-


lation of the classical RCPSP can be derived:

j
p j r j1
1 3 5
2 3 4 2 2 1
0 7
0 0 0 0
2 4 6
1 1 5 3 4 3

Fig. 2.1 Example project network


28 S. Hartmann


T
Minimize t · xJ +1,t (2.1)
t=0

subject to

T
xj t = 1 j = 0, . . . , J + 1 (2.2)
t=0


T 
T
t · xit ≤ (t − pj ) · xj t j = 0, . . . , J + 1, i ∈ Pj (2.3)
t=0 t=0

J t+pj −1
 
rj k · xj q ≤ Rk k = 1, . . . , K, t = 1, . . . , T (2.4)
j =1 q=t

xj t ∈ {0, 1} j = 0, . . . , J + 1, t = 0, . . . , T (2.5)

Objective (2.1) minimizes the finish time of the dummy sink activity and,
therefore, the project’s makespan. Constraints (2.2) make sure that each activity
is carried out exactly once, while constraints (2.3) take care of the precedence
relations. Constraints (2.4) take the resource restrictions into account. Finally,
constraints (2.5) declare the binary decision variables. The start times of the
activities can be derived from the decision variables by
 T 

sj = t · xj t − pj .
t=0

2.2.2 Multiple Modes

Multiple modes allow for more flexibility when defining an activity. An activity j
can be carried out in one of several possible modes m = 1, . . . , Mj . Each mode m
is associated with a processing time pj m and resource requests rj mk . This allows to
incorporate the choice between alternative resources (resource-resource tradeoff),
and it allows to shorten an activity’s duration by allocating more resources to it
(time-resource tradeoff).
The concept of multiple modes can be traced back to Elmaghraby [28]. To
capture this approach formally, the following decision variables are introduced:

1, if activity j is processed in mode m and finishes at time t
xj mt =
0, otherwise.
2 Optimization models and Solution Techniques 29

Following Talbot [86], a model for the multi-mode RCPSP (or MRCPSP) can
now be given as follows. The model simply extends the single-mode RCPSP by
incorporating the mode into the objective and constraints:


T
Minimize t · xJ +1,1,t (2.6)
t=0

subject to
Mj T
 
xj mt = 1 j = 0, . . . , J + 1 (2.7)
m=1 t=0
Mj T

Mi 
T  
t · ximt ≤ (t − pj m ) · xj mt j = 1, . . . , J + 1; i ∈ Pj (2.8)
m=1 t=0 m=1 t=0
Mj t+pj m −1

J  
rj mk xj mq ≤ Rk k = 1, . . . , K; t = 1, . . . , T
j =1 m=1 q=t
(2.9)

xj mt ∈ {0, 1} j = 0, . . . , J + 1; m = 1, . . . , Mj ;
(2.10)
t = 0, . . . , T

Note that nonrenewable resources are often considered as another component


of the MRCPSP (cf. Sect. 2.2.5). Due to its practical applicability, the MRCPSP
has become a standard problem setting in its own right that has attracted a lot of
research over the last decades. Wȩglarz et al. [98] give an in-depth survey of the
MRCPSP and its variants. More recently, Gnägi et al. [33] developed an MRCPSP
with continuous time, that is, the time axis is not divided into periods of equal length.
The MRCPSP can further be generalized by the concept of mode identity [76,
79]. It may be desired that several activities are processed by the same resources
(e.g., by the same workers). This can be achieved by enforcing that these activities
are carried out in the same modes. Such activities are comprised in a set Uh . With
u being the number of such sets, the following mode identity constraints can be
obtained:
Mj T

Mi 
T  
m · ximt = m · xj mt h = 1, . . . , u; i, j ∈ Uh . (2.11)
m=1 t=0 m=1 t=0
30 S. Hartmann

2.2.3 Further Generalizations of the Activity Concept

Before an activity can be started, a setup time may be required. Mika et al. [64]
consider different types of setup times. Two of the most important types are as
follows. Sequence-independent setup times depend only on the activity and the
resource the activity will be performed on. Sequence-dependent setup times also
depend on the sequence of the activities, that is, the previous activity executed on
the same resource is relevant as well.
Transfer times are closely related to setup times. A transfer time T Tij k must
be taken into account if a resource k has to be transported from the location of
activity i to that of activity j . Resource k is unavailable during transportation.
Recent publications considering transfer times include those of Kadri and Boctor
[46] and Poppenborg and Knust [72]. Transfer times are of particular relevance
for construction projects if a resource such as a crane must be moved from one
construction site to another.
Finally, while the classical RCPSP does not allow to interrupt an activity once
it is started, there are several models that allow for preemption. Allowing activities
to be interrupted generally increases the degrees of freedom for scheduling. Many
different assumptions concerning preemption have been discussed in the literature.
Moukrim et al. [66] allow activities to be interrupted without any restriction. In Zhu
et al. [100] the number of interruptions of an activity is limited to M. Quintanilla
et al. [75] suggest a more detailed approach in which the maximum number of
interruptions depends on the activity and a minimum duration of each part of an
activity is given. Vanhoucke and Coelho [95] permit multiple interruptions, and they
take setup times into account when resuming interrupted activities. Kreter et al. [56]
incorporate a calendar, and some activities may be interrupted due to weekends or
holidays.

2.2.4 Generalized Temporal Constraints

In the standard RCPSP, an activity is not allowed to start before its predecessor is
finished. This can be extended by introducing minimal time lags between the finish
time of activity i and the start time of successor activity j . This indicates that at
least dij periods have to pass after the completion of i before j can start.
In addition to these finish-to-start time lags, also start-to-start, start-to-finish,
and finish-to-finish time lags can be defined. However, Bartusch et al. [11] have
shown that any type of time lag can be transformed into a finish-to-start time lag
if the processing times are fixed, so the additional types do not further increase the
expressive power of minimal time lags.
Moreover, maximal time lags can be added, indicating that no more than d̄ij
periods have to pass between the completion of activity i and the start of activity
j . Both minimal and maximal time lags are important in construction projects.
2 Optimization models and Solution Techniques 31

Consider for example concrete which may have to dry before certain other activities
may start, indicating a minimal time lag. It may also be that a successor activity
must start before the concrete has hardened, which implies a maximum time lag.
Minimal and maximal time lags can be included in the RCPSP by replacing
Constraints (2.3) with:


T 
T
t · xit + dij ≤ (t − pj ) · xj t j = 0, . . . , J + 1, i ∈ Pj (2.12)
t=0 t=0


T 
T
t · xit + d̄ij ≥ (t − pj ) · xj t j = 0, . . . , J + 1, i ∈ Pj (2.13)
t=0 t=0

The RCPSP with minimal and maximal time lags (RCPSP/max for short) has
become a popular model as well. Some rather recent publications include Ballestín
et al. [9], Bianco and Caramia [15], and Schutt et al. [81]. Minimal and maximal
time lags have also been incorporated into the multi-mode RCPSP (which led to the
MRCPSP/max), see, e.g., Barrios et al. [10] and Schnell and Hartl [80].
Another important extension of the RCPSP is obtained from adding a release
date ρj and a deadline δj for some activities j . Obviously, an activity cannot
start before its release date, and it cannot finish later than its deadline. While
release dates indicate the time at which the preparation of a construction site is
completed, deadlines can be part of contracts and must therefore be considered
when scheduling. Release dates and deadlines are of particular importance if several
construction projects are scheduled within one model (see Sect. 2.2.8).
The set of activities with a release date is denoted as Vρ . Analogously, Vδ is the
set of activities with a deadline. Now release dates and deadlines can be integrated
into the RCPSP using the following constraints:


T
t · xj t − pj ≥ ρj j ∈ Vρ (2.14)
t=0


T
t · xj t ≤ δj j ∈ Vδ (2.15)
t=0

The RCPSP with release dates and deadlines has been considered by Demeule-
meester and Herroelen [26] and Klein [49]. Deadlines are used in models in which
the project duration is limited while the objective optimizes the resource capacities,
the costs, or the net present value of the project (see Sect. 2.2.6). It should also be
mentioned that a release date corresponds to a minimal time lag between the dummy
start and the actual activity while a deadline corresponds to a maximal time lag.
32 S. Hartmann

2.2.5 Generalized Resource Constraints

The standard RCPSP assumes that both the resource capacity Rk as well as the
resource request rj k are constant over time. The former can be generalized by
considering time-depending capacities Rkt which allow capturing variations due to
vacations of employees or planned maintenance of equipment [49]. The latter can
be made more flexible by introducing time-dependent requests rj kt , indicating that
activity j needs rj kt units of resource k in the t-th period of its processing time [38].
Both extensions can be included into the RCPSP by replacing Constraints (2.4) with
the following constraints, which leads to the RCPSP with time-dependent resource
parameters (RCPSP/t):

J t+pj −1
 
rj,k,t+pj −q · xj q ≤ Rkt k = 1, . . . , K; t = 1, . . . , T (2.16)
j =1 q=t

The time-dependent resource requests mentioned above can be further general-


ized by resources with flexible resource profiles, also referred to as work content
resources. There, the overall amount wj r of resource r required by activity j
is given. This could be the activity’s workload in terms of person-days. During
scheduling, not only the start time of an activity but also its processing time as well
as its resource request in each period are determined such that the overall amount
wj r is met. The processing time of an activity must be within a given range, the
requested amount per period must be between a lower and upper limit, and after
a change, the requested amount must remain constant for a minimum number of
periods. Problems containing resources with flexible resource profiles (and further
assumptions) are discussed by, e.g., Baumann et al. [12] and Naber and Kolisch
[68].
The resources of the standard RCPSP are renewable, that is, they are available
in every period. Another important resource category is nonrenewable resources
for which the entire capacity is available at the beginning of the project and
then consumed by the activities. Such a resource can reflect a budget for a
construction project. Note that nonrenewable resources only make sense in multi-
mode problems (in single-mode problems, the consumption by the activities would
be predetermined). Let K N be the number of nonrenewable resources, let RkN be
the availability of nonrenewable resource k, and let rjNmk be the request of activity
j in mode m for this resource. The following constraints can now be added to the
MRCPSP [86]:

Mj

J  
T
rjNmk xj mt ≤ RkN k = 1, . . . , K N (2.17)
j =1 m=1 t=0
2 Optimization models and Solution Techniques 33

Finally, two more complex resource categories are summarized that can capture
more detailed requirements. The first one is partially renewable resources [4, 18].
A partially renewable resource is associated with sets of periods called period
subsets. For each period subset, a total capacity is given. This concept can help
to model working time regulations. Consider an employee who may work on every
day but not on both Saturday and Sunday. A partially renewable resource can now
be defined as follows: each day from Monday through Friday corresponds to a
separate period subset with a related availability of 1. Another period subset contains
Saturday and Sunday and is related to a capacity of 1. Also note that a partially
renewable resource is very general because it includes renewable and nonrenewable
resources as well as time-dependent resource capacities as special cases.
The second category is resources with multiple skills [3, 65]. A set of skills is
given, and for each resource it is known which of these skills it masters. Moreover,
each activity requires resources with certain skills. When scheduling a project, not
only a start time but also resources with appropriate skills have to be determined
for each activity. Myszkowski et al. [67] present an extended multi-skill problem in
which resources master skills at different levels. Activities require resources that are
at or above a given skill level. Very recently, Afshar-Nadjafi [2] provided a survey
of project scheduling approaches with multi-skilled resources.

2.2.6 Alternative Objectives

The objective of the standard RCPSP is to minimize the makespan. Aiming at an


early project completion may in fact be appropriate when scheduling construction
projects because this reduces the risk of violating a deadline which may cause
penalties (construction projects cannot always be carried out as planned when
unexpected delays occur). Also, finishing a project early implies early payments
that are due upon completion, and resources are available for the next project as
early as possible. Nevertheless, further objectives are of high relevance as well.
The first category of objectives is time-based objectives. An activity may be
associated with a due date Dj . While activity j is allowed to finish later than its
due date, the goal is to avoid this (note that a due date is different from a deadline
because the latter is not allowed
 to be exceeded at all). Let VD be the set of activities
with a due date, and let fj = Tt=0 txj t be the finish time of activity j . Furthermore,
let wjt be the weight reflecting how severe it is if activity j finishes later than its due
date. The objective to minimize weighted tardiness with regard to due dates can be
formulated as [96]:

Minimize wjt · (max{0, fj − Dj }) (2.18)
j ∈VD

An objective based on tardiness can be useful, for example if multiple construc-


tion projects are scheduled and each project has a due date. This objective can be
extended by considering earliness as well. Let wje be the weight related to possible
34 S. Hartmann

earliness of activity j . Now the objective that minimizes weighted earliness and
tardiness can be stated [6]:
  
Minimize wje · (max{0, Dj − fj }) + wjt · (max{0, fj − Dj }) (2.19)
j ∈VD

The latter objective is particularly useful when rescheduling a project, see Van de
Vonder et al. [91]. Assume that a project is carried out, and due to unforeseen events,
delays have occurred, and the schedule is no longer valid. Then a new schedule must
be determined. In order to minimize the differences between the start and finish
times in the previous and the new schedule, respectively, the previous finish times
can be used as due dates in objective (2.19). Of course, start times of activities that
have already been started (or even finished) cannot be changed when rescheduling
the project [91].
The last type of time-based objective to be considered here is to maximize the
robustness of a schedule. It may be beneficial to determine a schedule that has a
high chance of remaining valid even when some kind of change like a delay of an
activity or breakdown of a resource occurs. This can be achieved by buffers for the
activities. Chtourou and Haouari [22] examine the objective to maximize the total
free slack of the activities in the schedule (as well as several variants and extensions
of this concept).
When planning a construction project, the availabilities of the resources such as
manpower, cranes, and further equipment have to be determined. This leads to the
second category, resource-based objectives. In such a situation, usually a deadline
for the project is given. One of the most studied objectives is the resource investment
objective that minimizes the costs for the (constant) resource capacities. The per-
period capacities Rk now become variables. Denoting the unit cost of resource k as
ck , the objective is


K
Minimize ck · Rk (2.20)
k=1

The RCPSP with this objective and a deadline constraint is often referred to as
resource investment problem (RIP) or resource availability cost problem (RACP).
Recent publications include Rodrigues and Yamashita [78], Van Peteghem and
Vanhoucke [92] and Zhu et al. [101].
Resource leveling objectives aim at finding a schedule in which the total resource
requirements vary as little as possible from period to period (again, a deadline is
taken into account to limit the overall project duration). Now the capacity Rkt of
resource k required in period t is a variable, and ck is a given weight associated
with resource k. Several objectives to achieve a smooth resource profile have been
proposed. Some of them consider the changes of the total resource requirements
from period to period. Both the weighted absolute changes [71, 77] and the weighted
squared changes [74] can be minimized:
2 Optimization models and Solution Techniques 35


K −1
T
Minimize ck |Rk,t+1 − Rkt | (2.21)
k=1 t=1


K −1
T
Minimize ck (Rk,t+1 − Rkt )2 (2.22)
k=1 t=1

Moreover, the total overload cost can be minimized, that is, the costs for resource
requests that exceed a given target capacity R̄k [5, 77]:


K 
T
Minimize ck max{0, Rkt − R̄k } (2.23)
k=1 t=1

The third major category of objectives includes net present value based objec-
tives. Carrying out an activity can be associated with cash outflows (caused by the
usage of resources) or cash inflows (due to payments when specified parts of the
project are completed). Discount rates are usually taken into account as well; let α
be the discount rate. While cash flows can occur at any time during an activity’s
processing time, they can easily be compounded to a single cash flow cj at the end
of activity j which can be positive, negative, or zero. The objective to maximize the
net present value can be given as follows e. g. [Kimms 47]:

+1 
J T
cj
Maximize · xj t (2.24)
(1 + α)t
j =0 t=0

While this formulation is based on per-period compounding, continuous com-


pounding can be used as well [59, 87]. There are several useful extensions in which
further payments are included. Icmeli and Erenguc [45] added a penalty that is
charged for each period the project is finished after its due date. Such penalties
are of particular importance in construction projects. Chiu and Tsai [21] also take
bonus payments for early completion into account. The survey of problem settings
with net present value objectives of Herroelen et al. [43] can also be recommended.

2.2.7 Multiple Objectives

In some situations, more than one objective needs to be taken into account.
Two ways to deal with multiple objectives have received substantial attention by
researchers. The first one is to combine these objectives in a weighted objective
function. Let us have a brief look at two examples of this approach. Van Peteghem
and Vanhoucke [94] minimize resource investment as well as tardiness with regard
36 S. Hartmann

to a project due date (the weights reflect the respective costs). Zamani [99]
minimizes the weighted sum of costs and makespan within a multi-mode RCPSP.
The second way to consider multiple objectives is to determine the set of Pareto-
efficient solutions. In fact, this approach has become very popular in recent years.
While providing a survey is beyond the scope of this contribution, the reader is
referred to Ballestín and Blanco [8] who present an in-depth discussion of the
calculation of non-dominated schedules. Their study makes use of twelve objec-
tive functions including the makespan, weighted tardiness, resource investment,
resource leveling, and net present value objectives.

2.2.8 Multiple Projects

Often, several projects that are carried out simultaneously require the same
resources. In this case, it makes sense to integrate the projects into one model
such that an overall schedule can be determined. A straightforward approach is to
include all project networks into an overall “super network” as illustrated in Fig. 2.2.
A project index is added but otherwise the resulting model essentially corresponds
to the single-project RCPSP, see Pritsker et al. [73].
Of course, the extensions summarized above can be added if needed. Release
dates, deadlines, and due dates are of particular relevance when scheduling multiple
construction projects, and if different construction sites have to be considered,
transfer times for resources such as cranes and other equipment can be taken into
account. Important objectives for multi-project scheduling include the minimization
of weighted tardiness with regard to the due dates of the projects [58], resource
investment and resource leveling [29], and maximization of the net present value
including tardiness payments [21].

Fig. 2.2 Scheduling multiple


projects Project 1

2 4 6
1 8
3 5 7

0 16
Project 2

10 12
9 15
11 13 14
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