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Optimal scope of work for international integrated systems

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2005
Ertem, Mustafa Alp
This study develops a systems integration project scheduling model which identifies the assignment of activity responsibilities that minimizes expected project implementation cost, considering the project risk. Assignment of resources to the individual jobs comprising the project is a persistent problem in project management. Mostly, skilled labor is an essential resource and both the time and the cost incurred to perform a job depend on the resource to which job is assigned. A systems integration project includes implementation issues in the areas of shipping, installation, and commissioning. Implementation problems lead to project delays, increased costs, and decreased performance, leading to customer dissatisfaction with the systems integrator. Activities can be performed in one of three ways: by the integrator, by the customer, or jointly between the integrator and customer. In this study we select the performer (mode) of each activity comprising the project network while taking into consideration the varying cost, duration and extreme event probability of each activity among different modes-integrator, joint work and customer. Use of the model will permit customers and integrators to mutually agree on an appropriate assignment of responsibilities in the contract. Systems integrators can also use the model to improve their implementation services offerings. An experimental design and a Monte-Carlo simulation study were conducted to see the effects of the parameters of the problem on the selection of modes.