Functional estimation of activity criticality indices and sensitivity analysis of expected project completion time

Functional estimation of activity criticality indices and sensitivity analysis of expected project completion time

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Article ID: iaor20051061
Country: United Kingdom
Volume: 55
Issue: 8
Start Page Number: 850
End Page Number: 859
Publication Date: Aug 2004
Journal: Journal of the Operational Research Society
Authors: ,
Keywords: project management
Abstract:

For a PERT network, a new method is developed for estimating the criticality index of activity i (ACIi) as a function of the expected duration of activity ii) and for the sensitivity analysis of the expected project completion time (μT) with respect to μi. The proposed method evaluates the frequency of activity i being on the critical path, and thereby its ACIi, using Monte Carlo simulation or a Taguchi orthogonal array experiment at several values of μi, fits a logistic regression model for estimating ACIi as a function of μi, and then, using the estimated ACIi function, evaluates the amount of change in μT when μi is changed by a given amount. Unlike the previous works, the proposed method models ACIi as a nonlinear (i.e., logistic) function of μi, which can be used to estimate the amount of change in μT for a variety of changes in μi. Computational results indicate that the performance of the proposed method is comparable to that of direct Monte Carlo simulation.

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