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 idea that of venture community. this idea has come to symbolize the 2 significant positive factors underlying the suggestion 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 different actions. even if, 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 sensible illustration of tasks. B. the stochastic research of the gains of tasks reminiscent of the period and value in their actions is performed through numerous analytical and numerical versions, permitting experimental and forecasting analyses. C. the allocation of assets will be now studied for extra complicated occasions and regulations. D. the monetary description of tasks is extra adequately studied and its optimization is punctiliously pursued. E. the evaluate and the assessment of initiatives now might be studied in the framework of multicriteria selection conception contemplating a number of views and assisting the undertaking supervisor to pick the main acceptable compromises among chance, time and anticipated gains.

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However, a very simple and well known method allows the minimization of the total cost of a project, C = LCj (OJ), obtaining a total duration not higher than a maximal bound, LT, the Crash Duration Method. This method is based on the following iterative procedure: 1 - Schedule the project with Dei) = M j • If the total duration, T, is lower than L T , this is the optimal schedule. If not, go to the next step. 2 - IdentifY the activity k which belongs to the critical path and with the lowest fk = 1/}C(k)l.

If there are several activities directly connecting k and 111, (Fig. 19 EXAMPLE OF MULTIPLE ACTIVITIES BETWEEN A PAIR OF NODES the previous definitions can still be applied substituting A; by Ail. , AiL are the activities connecting k to m. ~J where Basic models for project management 47 The planning and management of a project described by a project network with B = {Bl(i) = D i } implies setting up a calendar for the project which corresponds to define {ti:i = 1, ... ,N}. This calendar is called the project schedule and this definition is called Ilroject scheduling.

09 ). This means that long tenD effects are poorly represented by financial analysis tending to ignore impacts above 20 or 25 years. This myopic nature is particularly serious if a. is high. ) . Thus, the assessment or evaluation of projects should be carried out within a more comprehensive and consistent framework, the financial perspective being just one dimension of such analysis. This topic is treated in Chapter VII. A very convenient strategy to increase the NPV of a project can be based on the anticipation of benefits and on the delay of costs.

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